In Reno, about 450 miles north of the Las Vegas Strip, a significant development is taking shape that could alter the landscape of Nevada's gaming and tourism sectors. The Grand Sierra Resort (GSR) is advancing on a project initiated by billionaire Alex Meruelo, which features a 10,000-seat arena. This ambitious endeavor is positioned to be a game changer for the region.
Groundwork for the arena began amid hopes and challenges, with construction amping up about three years after the project was announced. As winter approaches, the ongoing foundation and infrastructure work may face delays depending on the season’s severity. The arena is part of a larger $1 billion expansion plan, which, if completed, would mark the largest private investment in Reno's history.
Chris Abraham, GSR’s Chief Marketing Officer, reported substantial progress during a recent site tour. "The arena, we’re out of the ground, we have walls, we have foundations; all the underground work is basically done. Now it’s the fun time when we can actually start building up and everyone gets to see," he stated.
While initial cost estimates for the arena range from $350 to $375 million, Abraham indicated that new figures likely put the cost closer to $450 to $500 million, emphasizing Meruelo's commitment to excellence. The arena is set to host not only University of Nevada men’s basketball games but also a variety of other sports and entertainment events. "For a 10,000-seat-plus arena, it’s going to be the very best one of those, maybe in the world," Abraham added.
The design is inspired by leading arenas globally, including the Intuit Dome in California and the Moody Center at the University of Texas. The operational aspect draws example from the Mohegan Sun Arena in Connecticut, known for its similar capacity and ties to a major casino.
Additionally, the arena plans to host professional hockey—a rarity in Reno's recent sports history. Although the Reno Aces, the Triple-A affiliate of MLB's Arizona Diamondbacks, have thrived due to Greater Nevada Field, other local professional teams have faced difficulties, sometimes folding. Meruelo, who formerly owned the NHL's Arizona Coyotes, sold that team, which has since been rebranded as the Utah Mammoth, but retained ownership of the Coyotes’ AHL affiliate, the Tucson Roadrunners.
The Roadrunners recently extended their lease in Tucson through the 2027-28 season, which aligns with the anticipated opening of the GSR arena in 2028. However, the specifics of the Roadrunners’ potential relocation remain uncertain. Abraham mentioned, "We expect to have hockey as part of the future of the arena. It’s just a determination right now of what kind of hockey and how that looks. We’re probably another six months or so from really getting into the details of that."
The university's collaboration has been pivotal from the start. That partnership was established between Meruelo and Brian Sandoval, who formerly served as Nevada's governor and now heads the university. Sandoval's extensive experience includes a previous role as chair of the Nevada Gaming Commission and a corporate position at MGM Resorts after leaving public office.
Reno has seen its athletics capture the community's passion at peak moments, such as the 2010 football season featuring Colin Kaepernick. However, periods of downturn are common, especially in the highly competitive name, image, and likeness (NIL) environment. The university aims for the new arena to enhance its recruiting efforts. Athletic Director Stephanie Rempe noted, "We’re investing in our basketball program because everybody wants them to be successful now, and it’s important to the Meruelos, of course, when we go into that venue that we’re winning and attracting people."
Both the GSR and the university recognize the uniqueness of their collaboration. Few college teams utilize off-campus facilities with the notable exception of UNLV football at Allegiant Stadium. Rempe mentioned her discussions with other institutions about managing an off-campus operation, recognizing that this setup appears to be specifically unique, particularly as it involves a casino.
The relationship between college sports and gambling has posed challenges, with incidents of harassment faced by student-athletes and calls for regulatory restrictions. While sports event contracts are banned in Nevada, wagering on in-state college teams has been legal since 2001.
"You’re always concerned about it, and you need to make sure you put things in place and educate your student athletes," Rempe explained. "We have to be conscious of that and be responsible."
From GSR's perspective, Abraham reassured that since the venue's opening, the property has catered to families and guests of all ages. Hosting Nevada athletics is nothing out of the ordinary for them, and they’re committed to fostering a welcoming atmosphere for everyone involved.
Meruelo’s timing in investing in Reno is notable, as the city recorded a substantial upturn in its gaming market. According to the Nevada Gaming Control Board, Reno's fiscal year concluded in July with $825 million in gross gaming revenue, marking a year-over-year increase of 7%. August saw even more momentum, recording $79 million in GGR, up 15% from the previous year, and setting monthly hotel room revenue records.
Mike Larragueta, president and CEO of Visit Reno Tahoe, remarked on the city's growth: "We want to continue creating demand for Reno Tahoe throughout the year, reaching new audiences, and strengthening the destination in ways that create lasting value for our community."
Abraham, who first arrived in Reno in the 1990s for a position at IGT, has witnessed the market’s revival. He confidently stated, "As you can clearly see, it is happening. It is definitely happening. There are a couple hundred people right now as we speak out there building what is going to be just a wonderful experience for the entire city. So we couldn’t be more excited about that."
