Reno’s First $1bn Casino Project Aims to Reignite Growth

Grand Sierra Resort is wagering that a $1 billion-plus expansion anchored by a state-of-the-art sports and entertainment arena can jump-start growth in one of America’s most mature gaming markets, even as competition from northern California and Las Vegas reaches unprecedented levels.

The multiyear project — the first in Reno history to surpass the $1 billion threshold — is the boldest attempt yet by a local operator to reposition the Biggest Little City after decades of sluggish gaming performance. GSR’s owner, billionaire Alex Meruelo, who bought the property out of bankruptcy in 2011, is aiming to bring a Las Vegas-style development cycle to a region long overshadowed by its southern neighbor.

The plan’s success hinges on a central question: Can sports and entertainment serve as the economic catalyst for Reno that they have been for Las Vegas? Reno has struggled to maintain relevance in the two decades since California tribes secured exclusivity for Class III gaming in 2000. While northern California tribal casinos have grown into the nation’s largest regional gaming market — reporting $12.1 billion in FY2024 gross gaming revenue — Reno’s GGR has remained essentially flat or declined. The city’s FY2024 gaming revenue of $754 million is lower than its FY2000 total of $834 million.

Las Vegas, meanwhile, is experiencing another surge of major investment, including a new MLB stadium backed by the Oakland A’s and adjacent resort development led by Bally’s Corp. Northern California is also expanding, with Hard Rock Sacramento pursuing its own billion-dollar project.

Against that backdrop, GSR is attempting to reposition Reno as a regional entertainment destination rather than solely a gaming market.

 

Element	Key Fact	Status / Note
Project Cost	~$1+ billion (full build-out)	Phased investment; arena ~ $435M
Arena Capacity	10,000 seats	Home to UNR men’s basketball; aims for major concerts
Timeline	Phase 1 completion ~ Sept 2027	Full project ~10 years (estimated)
Public Financing	$61M Tax Increment Financing (TIF)	Approved; contested by local operators

 

Inside the GSR Expansion Plan

The centrepiece of GSR’s plan is a 10,000-seat, $435 million arena that will become the new home for the University of Nevada, Reno’s men’s basketball team. The venue is designed to compete for top-tier touring acts and indoor sports, surpassing the capacity of current regional facilities such as the Reno Events Center or Lake Tahoe Outdoor Arena.

GSR executives say the arena will incorporate features and design elements from a dozen of the country’s newest venues. “We’re not just building an arena,” said Chris Abraham, GSR’s chief marketing officer. “We think we’re building the greatest arena on the planet at 10,000 seats.”

The arena is part of the first phase of development, along with a parking structure, a community ice rink and a waterfront entertainment facility similar to Topgolf. Groundbreaking took place on September 30; construction briefly paused due to soil contamination but is expected to stay on schedule for a 2027 opening.

Subsequent phases include a workforce housing complex and an 800-room hotel tower, with the full project expected to take roughly a decade to complete.

Speculation has also swirled regarding ice hockey. Meruelo formerly owned the NHL’s Arizona Coyotes and still controls their AHL affiliate, the Tucson Roadrunners. Abraham said no decision has been made on whether a professional or minor-league team might ultimately play in Reno.

GSR is betting that the arena will attract year-round entertainment that Reno has historically struggled to land. While UNR’s existing Lawlor Events Center seats more people (12,000), it is more than 40 years old, has limited parking and no longer hosts major concerts.

New entertainment venues across California remain scarce; one comparable facility, Acrisure Arena in Palm Desert — designed by the same architectural firm, Gensler — has drawn A-list concerts that typically skip northern Nevada. GSR argues that a modern arena could shift the entertainment map and produce broader economic benefits for Reno’s hotels, restaurants and service providers.

 

TIF Controversy Sparks Industry Divide

The most contentious aspect of the project is GSR’s use of tax increment financing (TIF). Under TIF, future increases in property tax revenue are diverted back to the developer to help fund approved projects within designated redevelopment areas.

GSR’s $61 million TIF package was approved in May, but not without resistance. A coalition of six Reno operators — including Caesars Entertainment, Peppermill Resort and Atlantis Casino Resort — pressed city officials to reject the proposal. They argued the GSR site does not meet the city’s definition of a “blighted” area and alleged the developer might use the funds for operating rather than capital expenses.

The coalition said it did not oppose the project itself, only its public financing. TIF eligibility varies across Reno, and only Caesars operates properties within the redevelopment zones where the incentives can be claimed. GSR rejects the criticism. “If there’s incentives available to you, then go out and get ’em,” Abraham said. “The market wins when it reinvests in itself.”

The University of Nevada, Reno will not contribute financially to the arena despite being its primary sports tenant. Meruelo initially emphasized that the arena would require “not one dollar” from the university, a statement some misinterpreted as meaning no public funding would be used at all.

UNR President Brian Sandoval — a former Nevada governor and former chair of the Nevada Gaming Commission — negotiated the agreement on behalf of the university. Sandoval’s deep ties to the industry and his recent appointment as chairman of the Resorts World Las Vegas board have drawn attention but no formal objections from state officials.

 

We’re not just building an arena — we believe we’re building the greatest 10,000-seat arena on the planet.

 

A High-Stakes Bet on Reno’s Future

GSR’s expansion represents one of the most ambitious private investments in Reno’s modern history. The resort, originally the MGM Grand Reno, has cycled through multiple owners and struggled financially before Meruelo acquired it in a 2011 fire sale.

Since then, Meruelo has poured hundreds of millions into the property. Supporters say he has brought a long-needed entrepreneurial mindset to a stagnant market; skeptics note that the scale of investment is unprecedented for a market whose annual gaming revenue is only modestly larger than the cost of a single project.

Reno’s operators generally agree on one point: the city is overdue for reinvestment. Whether GSR’s mega-project becomes a catalyst for growth or an overreach in a slow-growth market will determine the trajectory of northern Nevada’s gaming economy for the next decade. As Abraham put it, “People from any walk of life can come to the property and find something for them. The goal now is to build experiences that can elevate the entire market.”