HERBST GAMING TAKES OVER FROM MGM PROPERTIES IN PRIMM,NV...

Implications: I'm sorry to have to say that MGM was not the type of company prepared to operate the Primm, Nevada properties. They were rather small and catered to people traveling along the I-15 corridor from Los Angeles to Las Vegas. It was generally considered a pit stop for most travelers with just 40 miles left on their trip to LV. The Herbst family has an inside feel on how to cater to the automobile traveler - they are, after all, noted for their Terrible Herbst gas up and rest stops through out the country. They are also into gaming in other properties in Nevada.

Analysis: Primm, Nevada - doesn't sound very interesting, however, it a very meaningful assortment of casinos and hotels. They are now owned  by the Herbst family. Just a little background to fill you in, Primm is about 40 miles south of Las vegas along interstate 15 - The town was originally called State Line (located on the California/Nevada border) and later changed to Primm. The prompting from the Primm family who then owned a major portion of the property there made this change possible. There was really no objections at the time as no one really cared. This area has changed over the years to a major stopping off point for travelers and truckers alike. It is a fill you tank spot before entering California and higher gasoline prices. It offers fairly good food and other amenities to take ones mine off off a rather boring road trip to LA. One of the other major features is a discount center mall that is under roof and not very far for LV residents to travel and an added incentive for the traveler to make a stop. This mall carries all the major discount outlets.

The Primm family was the original owners of the casino properties there - it was later acquired by the MGM and now by Herbst who has the opportunity to make a substantial contribution to these properties that are in need of some up grading. A side note should be mentioned that eleven miles south,  down I-15 toward LV was another casino complex of two properties that has recently been closed to make room for a major housing project. This will only enhance the value of the Primm properties. The running of these properties should fit very nicely for Herbst Gaming as it's really into their original idea of dealing with the road traveler through out the country. They have a very good handle on what the traveler needs are and it's my thought that they will improve these properties and make them successful once again. They need the interest of a family oriented company dedicated to employee benefit, good food, clean atmosphere and prices suited for the traveler.

It was a very good business move for both MG and Herbst. It allowed MGM to get out of the business they had no experience with. It gave them some additional cash and will allow them to just concentrate on their new mega CityCenter Project. They sold to a company who has for years made a special effort for travelers and the reputation for clean, reliable and inviting facilities. They have the knowledge to operate these properties and the experience to handle the type of trade that will frequent their new hotel/casinos. I think they will be very successful in Primm and offer their clientele a new perspective on how an off road property should function. Good news for their customers and the casino industry in general..............