Red Rock Resorts Increases Durango Expansion Budget to $430 Million While Targeting 20 Percent ROI

Red Rock Resorts raised the budget for its Durango Casino & Resort expansion to $430 million from $385 million. The additional $45 million reflects broader project scope. The company maintains its targeted 20 percent return on investment with an opening now set for the third quarter of 2027.

Expanded Gaming and Entertainment Scope

The project will add more than 275,000 square feet including nearly 400 additional slot machines plus a new bingo room and dedicated Keno lounge. Dining additions encompass an Italian restaurant, a Chinese restaurant and Moonshine Flats, a country-western bar with live music. Entertainment facilities include a 36-lane bowling center, luxury movie theaters, miniature golf, golf simulators, karaoke and arcade games.

Red Rock Resorts Chief Financial Officer Stephen Cootey detailed the revised budget on the third-quarter earnings call. Management expressed confidence in the investment's long-term financial potential. The expansion builds on strong customer metrics at the property, which added more than 168,000 customers to its database with higher per-visit spending among carded players.

Q3 Results and 2026 Capital Allocation

Consolidated net revenue reached $488.7 million, a 2.8 percent increase year over year. Las Vegas operations produced $479.1 million, up 2.3 percent and the highest third-quarter revenue in company history. The operator reported a net loss of $17.7 million versus net income of $76.9 million the prior year, driven by $79.1 million in share-based compensation tied to 50th anniversary employee stock awards and other one-time items. Adjusted EBITDA declined 4.3 percent to $182.6 million.

Red Rock expects total 2026 capital expenditures between $550 million and $570 million. This includes an $87 million Sunset Station redevelopment on budget for mid-2027 completion alongside work at Green Valley Ranch. According to This Week in Gambling, the Durango increase underscores the operator's continued emphasis on the southwest Las Vegas local market.

The budget revision positions the property for broader customer appeal when it opens next year.