That consolidation makes sense, though I hate to see Harrah's Reno closed / converted to a non-casino entity.

I hope someone else does pick up the Montbleu at Lake Tahoe and keep operating it as a casino. Time will tell.

Part of the equation in downtown Reno may also be an effort to remove excess supply of casino-hotel square footage & hotel rooms. The remaining properties (Eldorado / Silver Legacy / Circus Circus-Reno) may be able to command higher room rates and better casino floor activity. In turn, this would help the new consolidated company pay for increased debt load and other costs associated with the new mega-casino combination.