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• MGM Resorts International or Caesars Entertainment, but specializing in upscale casino resorts for the Las Vegas locals market and off-Strip visitors.

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• Casino Gaming: Providing various gaming options including slot machines, table games, poker, bingo, and sports betting. (Leisure & Entertainment Service)
• Hotel Accommodation: Offering lodging through hotel rooms and suites at their resort properties. (Hospitality Service)
• Food and Beverage Services: Operating a wide range of restaurants, bars, and cafes within their resorts. (Food Service)
• Live Entertainment & Recreation: Hosting concerts, shows, movie theaters, bowling, and other recreational activities. (Leisure & Entertainment Service)
• Meeting and Event Facilities: Providing venues and services for conferences, banquets, and special events. (Event Hosting Service)

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Red Rock Resorts (RRR)

Red Rock Resorts (RRR) primarily sells its services directly to individual consumers rather than to other companies. As a gaming and entertainment company operating casinos, hotels, and resorts, its revenue is derived from the direct patronage of guests who utilize its gaming facilities, accommodation, dining, entertainment, and other amenities.

Major Customer Categories

• Local Las Vegas Residents: A significant portion of Red Rock Resorts' business model is focused on serving the local population of the Las Vegas metropolitan area. Their properties, often referred to as "locals casinos," are designed to be convenient and appealing destinations for residents seeking entertainment, dining, and gaming options close to home.
• Leisure Travelers and Tourists: While not located on the Las Vegas Strip, Red Rock Resorts' properties, particularly its flagship Red Rock Casino Resort & Spa and Green Valley Ranch Resort Spa & Casino, attract visitors and tourists seeking a luxury resort experience slightly off the main tourist corridor, often for a more relaxed or family-friendly stay.
• Group and Convention Guests: The company's larger resorts feature extensive meeting and convention spaces, attracting individuals attending corporate events, conferences, trade shows, and other organized group gatherings. These guests utilize the properties for both their business needs and leisure amenities.

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• Light & Wonder (LNW)
• International Game Technology PLC (IGT)
• Everi Holdings Inc. (EVRI)

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Frank J. Fertitta III, Chairman & Chief Executive Officer

Mr. Fertitta has served as Chairman and Chief Executive Officer of Red Rock Resorts since September 2015. He has a long history with the company and its predecessor, Station Casinos Inc. (STN), serving as CEO of STN from July 1992 and President of STN from 1989 to July 2000. He held senior management positions dating back to 1985 as General Manager of Palace Station. Mr. Fertitta was also the co-owner of Fertitta Entertainment until it was acquired by Station LLC in May 2016, and co-owner of Zuffa, LLC, which was sold in August 2016.

Stephen L. Cootey, Executive Vice President, Chief Financial Officer & Treasurer

Mr. Cootey has served as Executive Vice President, Chief Financial Officer, and Treasurer of Red Rock Resorts since May 2017, joining the company in March 2017. Prior to Red Rock, he was Chief Financial Officer of Wynn Resorts Ltd. from May 2014 to March 2017. He also held senior roles at Las Vegas Sands Corporation, including Senior Vice President of Corporate Finance from March 2012 to December 2013 and Vice President of Corporate Finance from October 2009 to March 2012. Earlier in his career, he was a Partner and Senior Research Analyst at Prides Capital, LLC and a Vice President at Credit Suisse First Boston.

Lorenzo J. Fertitta, Vice Chairman

Mr. Fertitta has served as Vice Chairman of Red Rock Resorts since January 2017 and was a Director since September 2015. He also served as Vice Chairman, President, and Director of Station Casinos Inc. (STN). Notably, he was Chairman and CEO of Zuffa LLC from June 2008 until its sale in August 2016. He also held the position of President and Chief Executive Officer of Fertitta Enterprises, Inc. from June 1993 to July 2000.

Scott Kreeger, President

Mr. Kreeger was appointed President of Red Rock Resorts in February 2022. He rejoined the company in September 2021 as Senior Vice President of Development. His extensive experience includes serving as Director of Operations Development, New Resorts at Galaxy Entertainment Group in Macao from January 2018. Mr. Kreeger originally joined Station Casinos in 2000 and held various senior operational and leadership roles. He previously served as President and Chief Operating Officer of Revel Resort and Casino from July 2013 until its sale, and then as President and Chief Operating Officer of SLS Las Vegas Resort and Casino from October 2014 to December 2017.

Kord Nichols, Executive Vice President & Chief Operating Officer

Mr. Nichols has served as Executive Vice President and Chief Operating Officer of Red Rock Resorts since February 2024. He has a long tenure with the company, having previously served in various increasingly senior operating and leadership roles, including Senior Vice President of Operations. He also held the position of General Manager of Graton Resort and Casino.

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1. High Leverage and Interest Rate Sensitivity: The company operates with a highly leveraged financial structure, carrying approximately $3.4 billion in principal debt as of the third quarter of 2025. This significant debt, coupled with a high debt-to-equity ratio, makes Red Rock Resorts particularly sensitive to interest rate fluctuations and economic downturns, which could increase borrowing costs and impact financial performance.
2. Market Concentration in Las Vegas Locals Market: Red Rock Resorts' business is heavily concentrated in the Las Vegas market, primarily serving local residents. This market concentration exposes the company to risks associated with local economic conditions, consumer discretionary spending, and the pace of population growth in Las Vegas. A slowdown in the Las Vegas locals' demand or changes in local economic factors could significantly affect revenue and profitability.
3. Disruptions from Property Renovations and Expansion Strategy: The company is engaged in an aggressive expansion strategy, including significant capital expenditures and major property renovations. While aimed at long-term growth, these projects introduce near-term operational risks, potential disruptions to existing properties, and can temporarily reduce property EBITDA. This strategy also contributes to keeping leverage ratios higher than the company's target.

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The increasing legalization and adoption of online casinos and sports betting across the United States pose a clear emerging threat. As more states authorize iGaming and mobile sports wagering, consumers gain convenient alternatives to traditional brick-and-mortar casinos. This shift can divert discretionary spending and leisure time away from physical properties, directly impacting Red Rock Resorts' revenue, particularly from its core Las Vegas locals market which values accessibility and convenience.

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Red Rock Resorts (RRR) primarily operates integrated casino, hotel, and entertainment properties, with a significant focus on the Las Vegas locals market and broader Southern Nevada. Their main products and services include casino gaming, hotel accommodations, food and beverage, and other entertainment amenities such as movie theaters, bowling centers, live music venues, and spas.

The addressable market sizes for Red Rock Resorts' main products and services in the specified region are as follows:

• Casino Gaming (Las Vegas Locals Market): The combined Las Vegas locals market, encompassing areas like North Las Vegas and the Boulder Strip (Henderson), generated nearly $3.2 billion in gaming revenue in 2024. Another estimate places the locals-market gaming revenue at approximately $3.12 billion for the 12 months leading up to January 2, 2025. The broader Southern Nevada market (Clark County) saw gaming revenue of $13.6 billion in 2024, contributing to a statewide commercial casino gaming revenue record of $15.61 billion for Nevada.
• Hotel Accommodations (Las Vegas Region): Las Vegas hosted 40.8 million visitors in both 2023 and 2024. While specific market revenue for hotels alone is not provided, the total economic output related to visitor spending in the Las Vegas region, which includes hotel rooms, dining, and other activities, reached a record $79.3 billion in 2022. The direct visitor spending in 2024 was $4.8 billion.
• Food and Beverage (Las Vegas Region): Food and beverage operations are a substantial part of Red Rock Resorts' non-gaming revenue, accounting for roughly 15-20% of their total net revenues in 2024. In 2024, seven independent Las Vegas restaurants on a top 100 list collectively grossed almost $130 million.
• Entertainment and Amenities (Las Vegas Region): The non-gaming sector, including entertainment, has become a significant driver of the hospitality industry in Las Vegas. Non-gaming revenue surpassed gaming revenue for the first time in 1999 and reached 65.3% of total revenue in 2015 for Las Vegas resorts. In 2023, the Las Vegas Strip alone generated a record $15 billion in non-gaming revenue.

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Red Rock Resorts (RRR) is expected to drive future revenue growth over the next two to three years through several key initiatives and market dynamics:

1. Expansion and Development of New Properties: A primary driver of revenue growth is the strategic development and expansion of new casino resorts. The recently opened Durango Casino Resort is anticipated to become one of the company's highest-margin properties, and further expansion phases for Durango are underway, including additional casino space and amenities. Looking ahead, the North Fork Project in Central California, featuring a significant number of slot machines, table games, and dining options, is expected to open in late 2026, further contributing to the company's revenue growth.

2. Renovations and Enhancements of Existing Properties: Red Rock Resorts is investing in substantial renovations and upgrades to its existing portfolio, including properties like Sunset Station and Green Valley Ranch. These investments aim to modernize facilities, enhance the guest experience, and stimulate repeat visitation, thereby driving continued revenue growth from established assets.

3. Growth within the Las Vegas Locals Market: The company's strategic focus on the resilient and consistently performing Las Vegas locals market is a significant revenue driver. This market benefits from strong long-term demographic and income growth across the Las Vegas Valley, particularly in areas such as Summerlin, where substantial new household additions are projected. Red Rock Resorts is well-positioned to capitalize on this expanding customer base due to its dominant presence and extensive land holdings in these growth areas.

4. Customer Database Growth and Engagement: Red Rock Resorts is focused on expanding its customer database by attracting new and younger demographics, particularly at newer properties like Durango. The company also emphasizes maintaining strong customer engagement across its portfolio, aiming to increase visitation frequency and spend per visit from its core local guests as well as regional and national customer segments.

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Share Repurchases

• Red Rock Resorts' board approved a stock buyback plan on October 28, 2025, to repurchase $300.00 million in outstanding shares, representing up to 4.9% of its stock.
• On November 9, 2025, the share repurchase authorization was increased by $300 million, bringing the total authorization to $900 million and extending the plan through 2027.
• As of October 30, 2025, $573 million was available for future share repurchases.

Share Issuance

• As of September 30, 2025, approximately 12.4 million shares of Class A common stock were available for issuance under a plan that reserves a total of 24.0 million shares.

Capital Expenditures

• For the nine months ended September 30, 2025, capital expenditures totaled $240.1 million, and for the same period in 2024, they were $257.0 million.
• Full-year 2025 capital expenditures are projected to be between $325 million and $375 million.
• The primary focus of these capital expenditures includes various renovation and expansion projects, notably the Durango Casino & Resort, and the North Fork Project in Central California. Renovations are also continuing at existing properties such as Sunset Station and Green Valley Ranch.