Casino expansion: Why is Penn betting big on M Resort?

A $206 million expansion at M Resort is underway some 26 months after owner Penn Entertainment announced plans to double the Henderson casino’s hotel capacity. The timing is perfect, said Penn Executive Vice President of Regional Operations Todd George. 

The Henderson market has lost two casinos since the pandemic: the Fiesta Henderson was demolished in September 2022 while the Eastside Cannery on Boulder Highway has never reopened. Competition, however, could arrive from Red Rock Resorts, which has hinted at developing a casino-hotel in the nearby Inspirada community, where it owns land.

Penn is bullish on the market: George pointed toward the growing neighborhoods in the vicinity of M Resort, which sits on 93 acres bordered on the west by Las Vegas Boulevard and St. Rose Parkway to the north.

“I’m amazed at the number of rooftops we see between the Strip and our property,” George said, noting that M Resort draws out-of-town customers when special events are happening on the Strip. “We’ve seen growth in our business at the M every year that we’ve owned it.”

Several floors of the second hotel tower are now rising on the east side of the property next to the original building. George said the expansion could open by the first half of 2026.

“The property was designed for another tower,” George said. “A lot of the legwork and overall infrastructure had already been completed. It allows us to do this quite efficiently.”

Penn is increasing M’s total capacity from 390 rooms and suites to 774 while adding additional conference space and other amenities.

As part of the expansion, George hinted that Penn may consider rebranding M’s sportsbook — which is currently managed by Caesars-owned William Hill — as ESPN.Bet. Last year, Penn scrapped its Barstool sports betting business for a $1.5 billion, 10-year partnership agreement with the nation’s most recognized cable sports network. 

The company has begun branding many of its retail sportsbooks in 16 states as ESPN.Bet. However, popular sports betting operators such as DraftKings and FanDuel have been reluctant to get licensed in Nevada because the state requires in-person registration at a casino for mobile sports betting. Most other states offer remote sign-ups for mobile.

George said that if Penn were to rebrand M’s sportsbook as ESPN.Bet, “it would be a flagship for the company,” but that decision hasn’t been made yet. “We’re working through what that could look like,” he said.

Through its marketing partnership with the Las Vegas Raiders, M Resort already attracts a large swath of football fans, given the casino’s close proximity to the NFL team’s corporate headquarters and training facility.

George pointed to Penn’s “large database of customers from across the country” that already come to Las Vegas. The company has 42 additional casinos in 20 states. Getting players from those properties who want to visit Las Vegas to stay at the M Resort is the main incentive behind the expansion.

That was the plan in 2010 when Penn spent $230.5 million to acquire M Resort a year after the property opened. The stylish casino quickly fell into financial trouble when the original owners couldn’t get out from under the weight of an unmanageable $860 million in debt. 

Penn marketed M Resort as a Las Vegas connection when it began managing a San Diego-area tribal casino. That contract ended and Penn acquired the Tropicana Las Vegas in 2015. However, financial issues from the pandemic led Penn to sell Tropicana to real estate investment trust Gaming and Leisure Properties, which leased the now-demolished Rat Pack-era hotel-casino to Bally’s Corp.

George said Penn also sees opportunities for the M Resort with the Tropicana site set to become home to a $1.75 billion Major League Baseball stadium for the relocated Athletics.

“We get our share of locals play. But where we're looking at growth potential is with the California customer,” George said. “We're also locked from how big of a group business portfolio we can have. These additional rooms will help that market while still providing room for gaming customers.”