The owners of the Venetian on the Las Vegas Strip have cleared a hurdle for taking $550 million in cash from the property as part of a distribution to private owner Apollo Global Management and its investors. The Nevada Gaming Control Board forwarded its affirmative recommendation to the Nevada Gaming Commission that will meet in two weeks.

Venetian CFO Robert Brimmer said the financial performance “has been exceptionally strong” and that in 2023, the resort beat its budget and goals by double digits. He also noted that 2024 is trending in the same direction.

“We’re meeting budgets in the first half of the year and market trends continue to be very strong, as evidenced by the financial results the Strip released last week,” Brimmer said. “The Venetian continues to grow market share.”

Brimmer said the capital investments made by Apollo have been well received by customers and are driving incremental revenue. Investments they’re making in their culture for employees to think like owners and be accountable for results are also bearing fruit.

The board is taking a long-term view to be competitive in the long run, Brimmer said.

Since Apollo took the Venetian private in February 2022 from Las Vegas Sands Corp., it has invested $490 million in capital expenditures in the facilities.

“If you walk through the property, it is different than it was two years ago and we’re just getting going. We have $1 billion in our capital plan, of which we will deploy $900 million over the 2024-25 time period,” Brimmer said. “The asset is in great shape, and once we finish our plan toward the end of 2025, we will be in the best condition in the last 25 years. The goal here is to create more compelling experiences for guests and create strong returns for our investors and more opportunities for our team members.”

The Venetian has invested in new high-limit gaming spaces, opened several restaurants and a Parisian entertainment venue, and launched a new sportsbook and poker room. Investments are underway in a theater, more restaurants, and the renovation of 4,000 suites, some of which will be completed by the end of this year and others by mid-2025.

The Venetian had $830 million in cash at the end of July and that would leave $280 million after the distribution. “We don’t need the $550 million to execute against the business plan,” Brimmer said. “We have adequate liquidity and we have our capital source. With the money we have and cash flow we expect to generate, we’re able to invest this $1 billion over the next 18 months.”

Brimmer said they also have the ability to deal with any slowdowns that happen in the future.

Board Chairman Kirk Hendrick commended Apollo for its commitment to invest in Nevada and its workforce, to which the Venetian is handing out bonuses.

Board member Brittnie Walkins said she’s glad the distribution is paid for with cash on hand rather than debt and, given the strong financial performance of the company, she doesn’t have any concerns about recommending it to the Commission.

In backing it, Board member George Assad said he’s glad there’s still $280 million cash on hand for reserves.

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