The long-running casino operator in Primm has officially moved on, saying the roadside destination outside Las Vegas has become “obsolete.”
Affinity Gaming’s parent company announced Sunday that the transition of its operations in Primm to the landowner and the new operator was completed.
It said in a news release that the economics of its ground lease in Primm were “no longer viable” and that the landlord “was not willing to reduce the rent … to a sustainable amount.”
The release from Affinity Interactive did not say how much the company paid to rent the sites in the remote gambling outpost along Interstate 15 at the Nevada-California border, roughly 40 miles south of the Las Vegas Strip.
But it said that Primm was a “cash drain” of approximately $10 million to $15 million per year “for many years, and there was no commercially rational basis to continue investing in the property or to financially support its continued operations.”
Cory Clemetson, president of Primm’s landowner group and grandson of the outpost’s namesake, the late Ernie Primm, said in a statement Sunday that he disagrees with the assessment of the now-former tenant.
“Consider the source,” he said. “This is the same company that made the ill-advised decision to lay off more than 300 Nevadans on our nation’s 250th anniversary. That would have shut down this crucial gateway to Southern Nevada at the worst possible time, been an embarrassment to our state and created a tremendous hardship for everyone involved. That’s all you need to know about their credibility.”
‘Closure of Primm is a prudent business decision’
Las Vegas-based Affinity told state officials in a letter dated May 5 that it would permanently close its operations at Primm’s three hotel-casino properties — Whiskey Pete’s, Buffalo Bill’s and Primm Valley Resort — and at the Primm Center gas station and Flying J trucker fueling stop in Primm.
A total of 344 employees would lose their jobs, and the businesses would close on July 4, the letter said.
An apartment complex in Primm that was built for the local workforce was also set to close, and the nearby Lotto store just over the border in California was earmarked for closure, as well.
Affinity’s letter to the Nevada Department of Employment, Training and Rehabilitation did not provide a reason for the mass shutdown.
However, Affinity spokeswoman Melissa Krantz previously told the Las Vegas Review-Journal that Primm had been a “significant cash drain and management distraction of Affinity for many years.”
The company embarked on an “exhaustive analysis, an extensive evaluation of alternatives, and a robust sale process that yielded no potential buyers,” she said, adding Affinity “determined that the closure of Primm is a prudent business decision.”
The company had already scaled back its operations in Primm. It closed two of the hotels — Whiskey Pete’s and Buffalo Bill’s — over the past few years, though it previously said those shutdowns were temporary.
Past owner returns
Last month, Primm’s landowner group announced that it signed an agreement with the Herbst family, owners of the Terrible’s gas-station chain, to take over operations in Primm.
Nevada casino regulators subsequently approved licensing for the new operator.
It was a full-circle moment: The Herbst family’s former casino company, Herbst Gaming, acquired the three hotel-casinos in Primm for $400 million combined in 2007 from the casino giant now called MGM Resorts International.
But the next year, the U.S. economy collapsed into the worst recession in decades. The financial pain was especially severe in Southern Nevada, where job losses soared, property values plunged, and masses of people lost their homes to foreclosure.
Herbst Gaming filed for bankruptcy protection in 2009 as the economy spiraled downward, court records show.
In 2011, the Review-Journal reported that members of the founding Herbst family no longer had any involvement in their casino business following a court-administered reorganization.
The new leadership also adopted a new name: Affinity Gaming.
“We believe it is in the interest of the employees and management to make a fresh start,” Affinity’s then-CEO David Ross said at the time.
‘Primm location has become obsolete’
On Sunday, Affinity noted that it has a long history with the Herbst family, having worked together during the bankruptcy restructuring many years ago.
Affinity said that it “preserved jobs, revitalized the Primm properties, and was a responsible employer,” but added that it was “unfortunate that the Primm location has become obsolete.”
Overall, Primm has become increasingly quiet over the years.
It has faced ever-expanding competition up the highway in Las Vegas, which offers a seemingly endless lineup of shows, nightclubs, shops, restaurants and other places to spend time and money outside the casino floors.
At the same time, California now has tribal casino-resorts throughout the state, offering more — and often more convenient — options for customers who may have otherwise thought about going to a place like Primm.
Underscoring the dwindling fortunes, the sprawling outlet mall in Primm was once packed with stores and shoppers but is now largely deserted.
By 2007, it was 99 percent leased and among the top 10 outlet centers nationally by sales. As recently as 2015, it was still about 92 percent occupied, according to published accounts.
However, after waves of store closures over the years, the mall only has one retailer left.
Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.
