Private Investment Firm Buys Sparks Nugget
John Ascuaga’s Nugget Resort and Casino in Sparks, Nevada, has been sold to a private investment group for an amount that was not publicized, it was widely reported in the media last week.
The property, originally opened back in 1955, consists of two 29-story towers. Sparks, a town with a population of about 90,000 people, is located just outside of Reno in the northern part of the state.
Property has been in the family for decades
The Nugget has been controlled by the Ascuaga family for more than five decades, with 88-year-old John Ascuaga at the helm. Originally called Dick Graves’ Nugget when it first opened its doors to the public, Ascuaga, who was at the time the Nugget’s general manager, was able to take it over in 1960.
He paid $3.775 million to buy the property, now considered to be one of the most iconic in a state known for iconic casinos.
Big attractions at the Nugget over the years have included The Celebrity Showroom, a venue that played host to many of the most famous names in entertainment through the 1960’s and 1970’s. Later an elephant act involving a mother elephant and her baby, which was a hit in the Circus Room in the 1980’s and 1990’s.
John Ascuaga went on to become a major philanthropic figure in the Sparks area, contributing large sums of money to civic, academic, and other causes.
Competition is one reason behind the deal
The family decided to sell to Global Gaming and Hospitality in part because of the difficulty of competing against tribal casinos located in nearby California, and the overall struggles that have been facing the northern Nevada casino industry for several years. The region has seen gambling revenue on the decline for the better part of a decade.
Speaking to the difficulty his father, John Ascuaga, is having parting with the property, Nugget chief operating office Stephen Ascuaga, told the Reno Gazette-Journal, “It’s been a heavy day, and not just with the sale. He’s very much a realist. He’s very emotional. He’s been meeting with employees.”
“On the flip side, looking into the future, it will be very beneficial. This sale will guarantee the Nugget will go forward for decades,” Stephen Ascuaga continued.
Need for improvements, but lack of funds to make upgrades also a consideration
The Nugget, which has 1,600 hotel rooms, also is in need of renovations and upgrades, something the Ascuaga family lacks capital to do. In selling, the Ascuagas hope to see jobs preserved and the necessary improvements made to the aging property.
The younger Ascuaga commented, “The new owners have the financial resources needed to invest in the property and allow it, and its 1,300 employees, to prosper in the years ahead.”
Family patriarch John Ascuaga also expressed his overall happiness at the deal, saying, “While this has been an emotional decision, the $50 million that will be invested in the Nugget gives it the best opportunity for success.”
Members of the Ascuaga family will continue to be involved with the Nugget, serving in advisory roles.
