Ever since Nevada legalised casino gaming in 1931, Las Vegas has consistently grown faster and evolved more dramatically than Reno. In recent years, the rise of tribal casinos in nearby northern California has created even tougher competition for the Biggest Little City’s gaming market.
While billion-dollar developments have become routine in both Las Vegas and California, Reno had never seen that scale of investment—until now. Grand Sierra Resort (GSR), acquired out of bankruptcy in 2011 by billionaire Alex Meruelo, has launched a major multi-phase expansion that includes a new sports and entertainment arena, an additional hotel tower, and upgraded amenities. When completed, the project is expected to exceed $1 billion in total costs, marking the first development in Reno’s history to cross the 10-digit mark.
At the heart of this expansion is an important question for the gaming industries in both Nevada and California: can sports and entertainment act as a powerful catalyst for casino and regional economic growth, the same way they have fueled Las Vegas’ rise over the past decade?
Reno far behind California, Las Vegas by revenue
With construction now underway, GSR is optimistic that its new arena will become a major attraction for a region that primarily competes with northern California’s tribal casinos—and, to some extent, with Las Vegas. One of the biggest turning points for Reno’s gaming market came in 2000, when California tribes gained exclusivity for Class III gaming.
Since then, northern California has grown into a major gaming hub, while Reno’s industry has struggled to expand. According to the Nevada Gaming Control Board, Reno generated $754 million in gross gaming revenue (GGR) in fiscal year 2024, down from $834 million in fiscal year 2000.
By comparison, the latest National Indian Gaming Commission figures show that California’s tribal casinos earned $12.1 billion in GGR in FY24—the highest of all eight regions the commission tracks. Meanwhile, combined GGR from the Las Vegas Strip, downtown, and local markets—Reno’s other major competitor—was also around $12 billion in FY24.
This competitive pressure is only intensifying as both regions continue to build. Hard Rock Sacramento is currently undergoing its own billion-dollar expansion, and although a planned casino near Santa Rosa is on hold, it remains active in the courts. In Las Vegas, the Oakland A’s are constructing a new MLB stadium on the Strip, alongside a future resort development planned by Bally’s Corp.
GSR’s arena enters this landscape as Reno’s next big bet—one that aims to help the city regain ground in a highly competitive West Coast gaming market.
What’s included in the GSR expansion project?
The yet-to-be-named arena is the centerpiece of the expansion and is set to become the new home court for the University of Nevada, Reno men’s basketball team. Stakeholders hope the venue will not only draw larger crowds but also strengthen the school’s recruiting efforts in the competitive name, image and likeness era. The university, however, is not contributing financial support to the 10,000-seat, $435 million facility.
According to GSR chief marketing officer Chris Abraham, the vision for the large-scale expansion began taking shape about three years ago.
“As time passed, it became obvious that our community truly needs a real arena—one that can host sports and entertainment at a first-class level,” he told iGB. “We’re not just building an arena. We believe we’re creating the best 10,000-seat arena in the world.”
The first phase of the development includes the arena, a nearby parking structure, a community ice rink and a waterfront Topgolf-style attraction. Ground was broken on 30 September, and the phase is scheduled for completion by September 2027. Although construction paused briefly last week due to soil contamination, work is expected to restart soon without impacting the overall timeline.
Hockey on the horizon?
Abraham added that the new arena is also being designed with ice hockey in mind. Meruelo previously owned the NHL’s Arizona Coyotes from 2019 to 2024, but the franchise was ultimately dissolved after efforts to secure a new arena in Phoenix failed.
Meruelo still owns the Tucson Roadrunners, the Coyotes’ former minor league affiliate. While there has been speculation that the Roadrunners could eventually relocate to Reno to play at the GSR arena, Abraham said no decision has been made yet regarding which hockey team might call the venue home.
Following the arena-focused first phase, future development plans include a workforce housing complex and an 800-room hotel tower. Exact timelines for these phases have not been finalized, but GSR estimates the entire expansion will span roughly a decade. Abraham noted that most of the build-out will take place on the property’s existing land, and GSR has already acquired some adjoining parcels.
“We’ve always been fortunate to have an enormous amount of land,” Abraham said. “Our property covers more than 150 acres, which is huge. We have the space, and Mr. Meruelo has always talked about unlocking the full potential of this property—not just the resort itself, but everything the land allows us to create.”
Hope is that if arena is built, growth will follow
A major question surrounding the project is whether Reno’s mature gaming market can sustain such a large-scale investment. The arena alone is expected to exceed its $435 million estimate, a figure that represents more than half of the city’s average annual gaming revenue. Still, GSR believes that a world-class venue could be the spark needed to revive growth in the region.
Beyond hosting UNR basketball and other sporting events, the arena is positioned to become the top destination in northern Nevada for major concerts and live entertainment. Its 10,000-seat capacity would surpass key competitors in the region, including the Lake Tahoe Outdoor Arena (9,300 seats), Reno Events Center (7,000 seats) and the outdoor Nugget Event Center (8,500 seats).
Although UNR’s current home, Lawlor Events Center, offers a larger capacity at 12,000 seats, it is more than four decades old, has limited parking and no longer accommodates concerts. GSR’s arena, while slightly smaller, would feature updated systems, enhanced fan experiences and modern technology that Lawlor cannot match.
“We’ve toured a dozen of the newest arenas across the country and identified the best features from each,” Abraham said. “When this project is finished, we believe it will be the finest arena of its size anywhere in the world.”
Las Vegas remains a powerhouse for top-tier entertainers, and California continues to expand with several new high-end venues. One comparable model, highlighted by Nevada Sports Net, is Acrisure Arena in Palm Desert. Designed by the same architecture firm, Gensler, Acrisure’s similar size has enabled it to attract major acts such as Harry Styles, Olivia Rodrigo, Maroon 5 and Dave Chappelle—artists who would typically bypass Reno.
Betting big on the Biggest Little City
Most major casino properties in Reno are more than 30 years old, and GSR is no exception. Originally opened as the MGM Grand in 1978, the resort changed ownership several times and struggled to reach its full potential as Reno’s largest property by room count and gaming floor. Before Alex Meruelo purchased it, GSR was widely viewed as nearing collapse and was ultimately sold in a $42 million fire sale.
In the nearly 15 years since taking control, Meruelo has invested hundreds of millions of dollars into revitalising the resort. According to Abraham, Meruelo’s biggest contribution has been bringing “an entrepreneurial spirit” to the operation. The new arena and full-scale expansion reflect that mindset, even if some question whether the Reno market can sustain such bold development.
“As Mr Meruelo learned the business, he focused on crafting experiences,” Abraham said. “It wasn’t just about spending money, but spending it the right way—knowing where to invest and how to improve the guest journey.”
He added that GSR’s strength comes from its diverse customer base. “We have core guests from every segment—convention visitors, leisure travelers, business guests because of our proximity to the airport, entertainment fans and gamers,” Abraham said.
“By understanding how all these groups interact with the property, we’re able to design services, amenities and pricing that make the resort successful. No matter who you are or where you come from, when you arrive at GSR, you’ll find something that fits you.”
TIF drama and the university’s involvement
The most contentious issue surrounding the expansion is its reliance on tax increment financing (TIF). TIF is a complex public financing tool that redirects future increases in property tax revenue to developers, rather than to general city services, in order to support projects within designated redevelopment zones. Supporters argue that TIF helps attract investment to underdeveloped areas, while critics say it diverts tax income away from essential public needs.
When the expansion was first announced in 2023, Meruelo stated that the project would be privately funded. He also said the arena “will not cost the university one dollar,” a remark that some later interpreted as a promise that no public funds would be used at all. Officials have since clarified that Meruelo was referring specifically to the university—not the city—when making that statement.
