Flamingo Reno is sold, will be closed

Monday, Oct. 8, 2001 | 9:41 a.m.

SUN STAFF AND WIRE REPORTS

Park Place Entertainment Corp. announced Friday it agreed to sell the Flamingo Reno hotel-casino. In connection with the deal, Park Place will shut down the downtown Reno casino on Oct. 23.

The purchaser, Capital One LLC of Las Vegas, plans to redevelop the 23-year-old property, and will not reopen it until this development is complete. About 1,000 people will lose their jobs.

"The continued challenges in Reno, particularly the significant reductions in air service over the last 18 months, have caused our Flamingo Reno to operate at a loss," said Scott LaPorta, Park Place chief financial officer.

Park Place reached an agreement to sell the Flamingo Reno to Sapphire Gaming, an affiliate of the Hertz Investment Group of Los Angeles, for $20 million in December 1999. Sapphire withdrew this offer in July 2000.

Though the sale price to Capital One was not disclosed, "you can make the assumption it was less than the original terms on the table (from Sapphire)," Park Place Chief Operating Officer Wally Barr said.

Barr said the sale shouldn't be viewed as a signal Park Place would begin divesting properties in a slowing tourism environment.

"This is isolated in terms of what we're trying to do with the company," Barr said. "This is a property held for sale ... it just took us longer than expected. It is not a knee-jerk reaction to events."

Separately, two veteran gambling industry executives were named to head other Park Place resorts in Northern Nevada.

Mark Rittorno was appointed president of Caesars Tahoe, while Tim Maland was named president of the Reno Hilton.

Rittorno was most recently president of Park Place's Flamingo Las Vegas, while Maland was senior vice president of Playboy Enterprises' gambling division.

Maland replaces Rhett Long as head of Northern Nevada's largest hotel-casino.

Long's abrupt departure from the resort in August followed the sudden exit of Michael Caryl as senior vice president and general manager of Caesars Tahoe.

In another move Friday, Anthony Santo, now president of two Park Place resorts in Las Vegas, was promoted to head a third resort.

Santo, president of Bally's and Paris Las Vegas, will assume additional responsibilities as president of the Flamingo Las Vegas.