UFC CEO Dana White allegedly owes Red Rock Resorts $25.2 million in unpaid betting debts, a source told Casino.org.
Key Takeaways
- White reportedly owes Red Rock Resorts more than $25 million, and it's possible the debt could be closer to $50 million.
- His gambling history includes multimillion-dollar wins and losses at Las Vegas casinos.
- Red Rock shareholders face little risk, as the debt would represent less than 1% of the company's market capitalization.
White's debts, which allegedly could even be closer to $50 million for credit extended to him, reportedly stem from high-limit baccarat and blackjack sessions at Red Rock Casino Resort in Summerlin, Nevada. White has a long history of high-stakes gambling. He won $1.2 million at Fontainebleau earlier this year and claimed he netted more than $26 million at Caesars Palace between January and March.
However, he also admitted to losing $8 million at an undisclosed casino in July.
The relationship between White and the Fertitta family complicates matters. The Fertittas, who control Red Rock Resorts, owe much of their wealth to UFC's growth under White's leadership. Casino.org notes that even if White owes $50 million, it would represent less than 1% of Red Rock's $6.29-billion market capitalization, minimizing any potential impact on shareholders.
Red Rock reports record-breaking quarter
Red Rock Resorts is thriving financially, regardless of White's reported debts. In its latest quarter, the company posted the highest net revenue and adjusted earnings in its 49-year history, per CDC Gaming. CFO Stephen Cootey described the quarter as "exceptional," citing a strong customer base and reinvestment in property upgrades.
Cootey referred to differences in the locals-focused Red Rock business model and the Strip-focused tourism model, highlighting better value, convenience, and individual attention as positive aspects at Red Rock. The company posted $513.3 million in Las Vegas net revenue, a 6.2% increase from
the prior year. The adjusted EBITDA was up 7.3% and stood at $239.4 million, and the margins were better at 46.7%.
President Scott Kreeger added later that VIP, core, and regional customers were all contributing, and visitation by guests under 35 was up 15%. Strong slot play, table game action, and an increase among non-rewards customers also supported the results, a good sign in all segments.
