Sky River considers new hotel, convention center as casino rides early hot streak
Better than expected business at Elk Grove’s new Sky River Casino could soon lead to a hotel and convention center on the site.
Plans for both date back to Las Vegas-based Boyd Gaming’s December 2021 purchase of the casino site near Highway 99 and Kammerer Road. Boyd president and CEO Keith Smith said at the time Wilton Rancheria and Boyd “will have the most dynamic casino and hospitality development site in all of Northern California,” including a convention center that Smith said would stand as one of the region’s largest.
Now six months after the $500 million Sky River’s surprise August opening, Boyd officials say the casino’s performance is more than strong enough for developers to consider the expansion.
“That’s always been part of the long-term plan for the site,” Boyd spokesman David Strow said. “Since we opened, Sky River has been a tremendous success for both Boyd and Wilton Rancheria. We’re excited about how well it’s performing.”
Boyd announced Sky River’s early success in a Feb. 2 investors call. Boyd collected $21 million in management fees in the fourth quarter 2022 for operating the Wilton Rancheria casino, Strow said. Strow said only that Sky River’s take “far exceeds” 2022’s $21 million number, placing the Elk Grove casino among the strongest performing properties in Boyd’s portfolio.
“We have an excellent location in Elk Grove that is convenient to the Sacramento market and we’ve built a high-quality experience,” he said.
The gaming conglomerate Boyd has 11 casinos in Nevada and properties in nine other states, but Sky River is Boyd’s first in California, home to a nearly $8 billion tribal gaming market. Boyd expects to receive $50 million in fees from Sky River in 2023, Strow said.
The money coming in to Sky River “will make it easier to secure financing for a project. There are a lot of things that we can do to broaden appeal.” Strow said. “We’ll follow (Wilton Rancheria’s) lead. When they’re ready, we’ll be ready. It’s been a tremendous partnership on both sides.”
Boyd officials and Wilton Rancheria leaders haven’t said when that time will be, but in a statement, Wilton Rancheria Tribal Chairman Jesus Tarango said the goal has always been to “create a complete entertainment resort” in Elk Grove.
“We have never wavered in our vision to create a complete entertainment resort. In the short time we’ve been open we are already moving on with our plans and that speaks volumes about our partner but also tribal leadership past and present,” Tarango said. “We will continue to invest to enhance the Sky River experience and that means evaluating all expansion opportunities.”
Wilton Rancheria fought for years first for federal tribal recognition, then for the gambling pact with the state that was approved in 2019 by the federal Department of Interior. The only federally recognized tribe in Sacramento County, Wilton Rancheria’s casino is also the closest to the capital city, its vast 100,000 square-foot gaming floor, restaurants and rows of slot machines and table games landing squarely in the middle of one of California’s most competitive tribal gaming markets.
Longtime players United Auburn Indian Community’s Thunder Valley Casino in Lincoln and Shingle Springs Band of Miwok Indians’ Red Hawk Casino near Shingle Springs have answered newcomer Sky River with splashes of their own. The Lincoln casino resort debuted The Venue at Thunder Valley, its 4,500-seat, 150,000 square-foot music and entertainment center, last week. In El Dorado County, Red Hawk recently opened a 150-room hotel and The Apex and Apex Grill, its 85,000 square-foot family amusement center and sports bar.
This story was originally published February 22, 2023 at 10:31 AM.
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