Red Rock Resorts boosts investment in Durango, Sunset Station

Red Rock Resorts reported the highest third-quarter net revenue in company history for its Las Vegas operations on Tuesday during its third-quarter earnings call. But the parent company of Station Casinos took a net loss for the quarter.

Net revenues were $479.1 million for its Las Vegas operations, up 2.3 percent year over year, and $488.7 million overall, an increase of 2.8 percent from the same period of 2025. The net loss was $17.7 million, a decrease of $94.6 million from net income of $76.9 million in last year’s third quarter.

The massive drop was mostly the result of $79.1 million in share-based compensation expense related to the Las Vegas-based company’s 50th anniversary stock awards issued in the third quarter and $6.9 million of one-time expenses related to the anniversary.

“As part of our 50th anniversary celebration, we were especially proud to make every full-time and part-time team member an owner of our company through the grant of more than $72 million in Class A common stock,” Red Rock Resorts Chief Financial Officer Stephen Cootey told investors during the call. “This milestone reflects our appreciation for the people who helped build Station Casinos over the past five decades and reinforces our belief that our team members should share directly in the company’s future success.”

Red Rock’s revenues beat Wall Street’s consensus expectations and resulted in the second-highest third-quarter profitability in the company’s history. But the net loss of 17 cents per share significantly missed Wall Street’s consensus expectations.

Cootey said the Durango property continues to deliver exceptional operating performance despite ongoing construction activity in and around the resort while attracting new guests to the Station Casinos’ brand.

“To date, the property has added more than 168,000 new customers to our database while generating increased spend per visit,” he said.

Durango North expansion expands

Construction of the Durango North expansion continues to advance with an anticipated opening in the second half of 2027. The project will add more than 275,000 square feet on the north side of the property, including 400 additional slot machines, a state-of-the-art bingo room and dedicated keno lounge.

The expansion will introduce a collection of new dining, beverage and entertainment venues, including a local Chinese favorite, an internationally acclaimed Italian restaurant and the Moonshine Flats country-western bar with live music.

The massive project also will feature a first-to-market entertainment center including a 36-lane bowling facility and diner, luxury movie theaters, a three-course miniature golf destination, and a collection of interactive entertainment experiences such as golf simulator bays, karaoke and arcade games.

The updated project scope has been revised from $385 million to $430 million.

“While the estimated cost has increased, we remain confident in the project’s underlying economics and our ability to achieve our targeted 20 percent return on investment over time,” Cootey said.

Sunset Station redevelopment

In addition to the continued investment in Durango, the company continues to make a major investment in Sunset Station, which expects to open Leticia’s Cocina & Cantina, Sunset Bar and a new state of the art bingo room later this quarter.

The property also will start construction on the centerpiece of the Sunset Station redevelopment: a new premium steakhouse, along with high-limit slot and table gaming areas.

The project remains on budget at approximately $87 million, with the remaining amenities expected to be completed by mid-2027.

Red Rock shares, traded on the Nasdaq exchange, closed at $51.49, down five cents from its previous close of $51.54, before dropping to $49.00 in after-hours trading.

Contact reporter Todd Dewey at [email protected]. Follow @tdewey33 on X.