Red Rock Resorts has increased its Durango expansion budget to $430 million from $385 million, as the Las Vegas-based casino operator continues investing in its southwest Las Vegas property following record third-quarter revenue from its local operations. The revised investment represents an additional $45 million in projected spending. Despite the higher costs, the company maintains its targeted 20% return on investment and expects the project to open in the third quarter of 2027.
The Durango expansion will add more than 275,000 square feet to Durango Casino & Resort, significantly increasing its gaming, dining and entertainment offerings. The development includes nearly 400 additional slot machines, a new bingo room and a dedicated Keno lounge. Red Rock Resorts Chief Financial Officer Stephen Cootey outlined the revised budget during the company’s third-quarter earnings call, explaining that the increased expenditure reflects an expanded project scope. Management said it remains confident in the investment’s long-term financial potential.
Beyond gaming, the Durango expansion will introduce several dining and entertainment attractions. Planned additions include an Italian restaurant, a Chinese restaurant and Moonshine Flats, a country-western bar featuring live music. The entertainment facilities will include a 36-lane bowling center, luxury movie theaters, miniature golf, golf simulators, karaoke and arcade games. The broader offering is intended to attract customers seeking entertainment options beyond traditional casino activities.
The project is progressing while Durango continues recording strong customer activity. Red Rock reported that the property added more than 168,000 customers to its database, with increased spending per visit among carded customers. Management also identified improved gaming performance in the surrounding southwest Las Vegas market. The company’s third-quarter financial results provided additional context for the investment. Consolidated net revenue reached $488.7 million, representing a 2.8% increase compared with the same period in 2025. Las Vegas operations generated $479.1 million, up 2.3% year over year and marking the highest third-quarter revenue in company history.
However, Red Rock reported a quarterly net loss of $17.7 million, compared with net income of $76.9 million a year earlier. The result was primarily affected by $79.1 million in share-based compensation associated with the company’s 50th anniversary employee stock awards and additional one-time expenses. Adjusted EBITDA declined 4.3% to $182.6 million, reflecting higher operating costs and other financial pressures.
The Durango expansion forms part of a wider capital investment program. Red Rock expects total capital expenditure of between $550 million and $570 million during 2026, including improvements at Sunset Station and Green Valley Ranch. At Sunset Station, an approximately $87 million redevelopment remains on budget, with additional dining, gaming and entertainment facilities scheduled for completion by mid-2027. Red Rock’s increased commitment to Durango demonstrates its continued focus on the Las Vegas local market. With construction underway and an expanded entertainment program planned, the company is positioning the property for additional customer growth when the development opens in 2027.
