DRAFT Table of Contents

3 4 6 Executive Summary Regional Economic Profile Local Projects 7 8 9 Station and Local Developments Site Profile the Market 11 12 13 Demographic Summary Household Wealth Development Activity Map 14 15 16 About The Developer The Manager

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, 89135 DRAFT Executive Summary Population Growth between FOUNDED IN 1976, , Inc. (“Station”) is the premier provider of locals-oriented gaming and entertainment services. We currently own and 2017 and 2022 Durango Station’s operate ten major casinos and seven smaller gaming operations in the primary trade area Las Vegas metropolitan area. In addition, we own a 50-percent interest in, is projected to see and manage, three properties in Henderson, Nevada and operate the Gun substantial Lake Casino near Grand Rapids, Michigan and Graton Resort & Casino near population Santa Rosa, California. growth during the next five years

The Station brand has become synonymous with value, convenience, quality, excitement and entertainment. In Las Vegas, a majority of adult households are active members of our loyalty program – the Boarding Pass. This loyalty has been earned by surpassing the expectations of our customers at every turn. Proprietary gaming products like a monthly kiosk game have elevated the gaming experience, while our properties consistently rank among the most desirable in terms of restaurants, live entertainment, movie theaters and bowling.

Las Vegas has undoubtedly provided a fertile market for our company. During the past 25 years, the region has ranked at or near the nation’s highest in terms of population, employment and income growth. Future developments across the valley will not only provide further growth, but also promise a more stable economic base and a continuing stream of investment well into the future.

Publicly owned land and resource limitations within the limit where growth can occur. A key emerging area is the valley’s southwest region – the location of Durango Station. This fast-growing corridor is not only expected to see higher- than-average population and employment Population Increase growth, but the barriers to entry for competitive gaming properties are formidable and legislatively 53 0 imposed. This combination of a favorable demographic climate and limited competitors will position 0 150 Durango Station for success well into the future. 150 250 250 400 400 1,000 1,000 A

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Regional Economic Profile

SOUTHERN NEVADA’S economic development has been nothing short of remarkable during the past 25 years. The region’s population has increased from 816,085 to 2.2 million since 1991, or at Las Vegas’ population has grown at roughly an average annual rate of 3.8 percent. This translates into roughly 6.2 new people every hour of 6.2 new people every hour of every day for 25 years. every day for 25 years. Although slower (conservative) rates of population expansion are projected going forward, southern Nevada’s population is expected to reach 2.5 million in the next decade.

Las Vegas’ largest employment sector is leisure and hospitality, accounting for 30.2 percent of the region’s workforce or 284,900 employees. The economic recovery in the valley has continued, and new large projects are beginning in the valley in 2017, such as Genting’s and Wynn Paradise Park. Clark County Population Taxable retail spending sourced to southern Nevada’s 2.2 million residents and 46.1 million annual Historical and Projected visitors totaled $39.9 billion in twelve months through November 2016. Aggregate spending Ca Cont oation increased at an average annual rate of 3.7 percent during the past 15 years.

Simply stated, southern Nevada has been the most prolific economy of its size during the past 3.0 2.53 2.50 2.47 2.44 2.41 25 years. The fundamentals giving rise to this growth remain sound; and, while not immune to 2.38 2.35

2.5 2.29 2.32 2.2 2.23 2.21 2.12 2.10 2.0

economic cycles, the region is expected to outpace national and regional growth averages in the 2.01 1.97 1.9 1.93 1.90 2.0 1.85 foreseeable future. 1.5

iionS 1.0

0.5

Top Five Demographic Considerations: 0.0 7 8 7 9 0 1 2 3 4 5 7 8 9 0 1 2 3 4 • Population growth expected to outpace national and regional averages through 2022 5 0 2 0 2 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 • New developments and strong growth across multiple sectors • Pro-business tax and regulatory environment creates an incentive for future business investment Nevada has been the fastest growing state in the nation for 17 of • Increased transportation capacity resulting from I-11 and other highway improvements the past 25 years. Accounting for 73 percent of the state’s population, • Southern Nevada ranks among the nation’s highest in terms of retiree in-migration Clark County has captured the lion’s share of that growth.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Regional Economic Profile

106 61 Government Construction 23 Simply Stated, 28 Manufacturing southern nevada Other Services has been the most 187 Trade, Transportation & Utilities Prolific 302 Las Vegas MSA Employment Distribution Leisure & 11 Economy Hospitality Information of its size during 100 Education & Health the past 25 years. Services 133 48 Professional & Financial Activities Business Services 39.9 38. 3.4 3.5 34. 33.5

Taxable Retail Sales 32.0 30.1 28.5 Clark County 28.3

Consumer and visitor spending has not only continued to grow iionS in southern Nevada, but thrive. Taxable retail sales reached a record $38.6 billion in 2015, and looks set to break it again in 2016. 2007 2008 2009 2010 2011 2012 2013 2014 2015 201 1 12 onts nin o 2016

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Local Projects Project Cost Status1 Estimated Completion Date Las Vegas Projects Resorts World Las Vegas $4,000,000,000 Under Construction 2019 The Las Vegas Stadium, early Las Vegas Stadium (65,000 Seats) $1,900,000,000 Planned Q3 2020 Wynn Paradise Park $1,500,000,000 Planned 2020 in its planning process, could Convention Center District Expansion $1,400,000,000 Planned 2022 potentially be home to the Union Village $1,200,000,000 Planned 2025 Switch $1,000,000,000 Under Construction 1-3 Years relocated Raiders NFL franchise. Project Neon (Highway Infrastructure Improvements) $900,000,000 Under Construction 2019 Park MGM (former Monte Carlo) $450,000,000 Planned Late 2018 It will provide hundreds of I-11 Boulder City Bypass $318,000,000 Under Construction Late 2018 thousands of additional ARIA Resort & Casino Convention Center Expansion $154,000,000 Under Construction February 2018 Flamingo Remodel $100,000,000 Planned 2021 visitors attending games, Moulin Rouge Las Vegas $100,000,000 Planned 2019 concerts and other large-scale Las Vegas Monorail Extension to $100,000,000 Planned 2019 UNLV New Medical Education Building $100,000,000 Planned TBD events. UNLV University Park Apartments Phase I $94,500,000 Under Construction Mid-2017 MountainView Hospital Expansion $90,000,000 Under Construction Early 2017 Vegas Extreme Park $60,000,000 Planned TBD UNLV New Hotel College Academic Building $57,000,000 Under Construction Q1 2018 MGM Resorts New Parking Facility (near Excalibur) $54,000,000 Under Construction Mid-2017 McCarran - D Gate Connector (D Gates to U.S. Customs) $51,000,000 Under Construction Spring 2017 Resorts World Las Vegas is UNLV University Gateway $48,100,000 Under Construction Q4 2016 currently in the early stages Henderson Freeways Crossing $40,000,000 Under Construction Q4 2016 MGM Resorts Existing Parking Facility Improvements $36,000,000 Under Construction Q2 2017 of development. The $4.0 Billion Pedestrian Bridge Upgrade ( at Tropicana) $30,000,000 Under Construction Mid-2018 project represents the largest UNLV University Gateway Development Phase II $30,000,000 Planned TBD UNLV Engineering Academic and Research Building $30,000,000 Planned TBD investment on the Strip since the Southern Hills Hospital Behavioral Health Center $26,000,000 Planned Late 2017 Wynn Plaza $25,000,000 Under Construction Fall 2017 end of the Great Recession. The UFC Headquarters DND Under Construction March 2017 property will provide thousands Sands/Madison Square Garden Performance Venue DND Planned TBD Remodel and Expansion DND Planned Mid-2017 (Phase I) of jobs when it opens. Other Projects $334,590,000 Various 2017-2018 Total $14,228,190,000 DND = did not disclose

¹as of January 2017

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Station Casinos and the Las Vegas Market

STATION CASINOS provides a superior product at superior locations. Our Station, Fiesta, Palms and Red Rock properties are strategically located throughout the Las Vegas valley. As each new property has opened, we have not only grown the market but also increased our market share. Our brand value and customer loyalty are unmatched. Nearly three in four southern Nevada households Las Vegas Locals Market Capture are active Boarding Pass members. This loyalty has been earned by consistently exceeding our Gross Gaming Revenue customers’ expectations.

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Station CasinosRed Rock Casino, Resort & Spa, 11011 W Charleston Blvd, Las Vegas, NV 89135 (702) 797-7777 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000Green | 1505 Valley S. PAVILIONRanch Resort, CENTER Spa DR., & LAS Casino, VEGAS, 2300 NEVADA Paseo 89135 Verde Pkwy, Henderson, NV 89052 (702) 617-7777 Palace Station, 2411 W Sahara Ave, Las Vegas, NV 89102 (702) 367-2411 DRAFT Sunset Station, 1301 W Sunset Rd, Henderson, NV 89014 (702) 547-7777 Boudler Station, 4111 Boulder Hwy, Las Vegas, NV 89121 (702) 432-7777 , 4949 N Rancho Dr, Las Vegas, NV 89130 (702) 658-4900 , 2101 Texas Star Ln, North Las Vegas, NV 89032 (702) 631-1000 , 2400 N Rancho Dr, Las Vegas, NV 89130 (702) 631-7000 , 777 W Lake Mead Pkwy, Henderson, NV 89015 (702) 558-7000 Barley’s, 4500 E Sunset #30, Henderson, NV 89014 (702) 458-2739 The Greens Gaming & Dining, 2241 N Green Valley Pkwy, Henderson, NV 89014 (702) 454-4211 Wildfire Boulder, 2000 S Boulder Hwy, Henderson, NV 89002 (702) 558-6454 Wildfire Rancho, 1901 N Rancho Dr, Las Vegas, NV 89106 (702) 648-3801 Wildfire Casino & Lanes, 4451 E Sunset Road Suite #1, Henderson, NV 89014 (702) 685-2100 Wildfire Sunset, 1195 W Sunset Rd, Henderson, NV 89014 (702) 454-0544 Wildfire Anthem, 2551 Anthem Village Dr, Henderson, NV 89052 (702) 495-3822 Wildfire Valley View, 3045 S Valley View Blvd, Las Vegas, NV 89102 (702) 495-3989 Wildfire Lake Mead, 846 E Lake Mead Pkwy, Henderson, NV 89015 (702) 495-3050 Wild Wild West, 3330 W Tropicana Ave, Las Vegas, NV 89103 (702) 740-0000 Local Casino Developments

LOCAL RESORTS have been developed on a seemingly never-ending basis since 1994, with the opening of . Yet in the wake of the Great Recession, the number of residents per slot machine in a local Residents per available casino has risen dramatically. There are just as many residents per slot machine now as there were in 1994. This suggests that the market has considerable room to grow before reaching saturation. Local’s Casino Slot Machine

0 Local Slots 50 Residents per local slot are even higher than before the opening of Boulder Station in 1994, in spite of the influx of competitive locals 40 orientated casinos through 2009.

30 sints oa Casino Sot

20 10 In 2009, the M Resort was the last major local’s resort to open in the Las Vegas Valley. 1990 1992 1994 199 1998 2000 2002 2004 200 2008 2010 2012 2014 201

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Site Profile Population within three miles of the Durango Station site THE DURANGO STATION site is well positioned in the path of growth, making it the right project at the right time. The southwest submarket has been among the Las Vegas valley’s fastest-growing already exceeds the current population around areas since 2000. The population within three miles of the site (110,030) already exceeds that of the Red Rock Casino, Resort and Spa when it opened in April 2006 (90,000+). Furthermore, a Red Rock Casino, Resort and Spa, and well exceeds recent change to the airport’s noise restrictions has opened up a substantial portion of land in the population of its opening in 2006. the southwest valley to development. Already, thousands of apartment units and home sites are underway in these and other areas surrounding the site.

The Durango Station site has excellent visibility and accessibility off the highly traveled 215 Beltway and Durango Drive. Traffic counts on these thoroughfares are 89,000 and 44,000 per day, Durango Station – Primary Market Area* respectively, on par with our other successful properties.

Perhaps the most outstanding attribute of the Durango Station site is the lack of current and future Population Estimates competition. Nevada State Senate Bill 208 (S.B. 208, passed in 1997) significantly restricts the (in thousands) entitlement of future gaming sites within the Las Vegas valley; as a result, there are no existing competitors and no potential competitive sites within a five mile radius of the Durango Station site. This is a densely populated, suburban region of the Las Vegas valley. Although we have used three miles to define the primary trade area, Durango Station’s reach is likely to be much farther due to 140 the lack of competition and its location on the 215 Beltway. Not only will the project be superior Durango’s primary 120 in terms of design, amenities and operations, but it will also be the most convenient regional market area entertainment alternative for those living in the southwestern Las Vegas valley. 100 population will 80 continue to grow,

0 though it has Top Five Demographic Considerations: already exceeded 40 Red Rock’s • Strong population growth and increasing development densities 20 opening-day • Excellent accessibility off of the 215 Beltway and Durango; superior traffic volumes 0 population.

• Favorable demographic profile in terms of consumer spending potential 2010 2011 2012 2013 2014 2015 201 2017 2018 2019 2020 2021 2022 • Limited competition, particularly to the south, expanding the property’s reach ano oation 2006 o oation • Excellent proximity to major employment centers (e.g., the Las Vegas Strip)

*Primary Market Area is defined as area within three miles of the site.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Site Profile

C there are no existing competitors and no potential competitive sites within a five mile radius of the Durango Station site. ans 5-Mile Residents Per Slot Machine At Current Population, Residents per slot machine at Durango Caan ntnationa will exceed all other Station properties. iot

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¹Durango Station assumed to have 2,000 slot machines, though exact programming for the site is to be determined.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Demographic Summary

THE DURANGO STATION site is well positioned both in terms of location and timing. Upon opening, its demographic profile will be Demographic Red Rock Casino, as good as or better than our most profitable casino sites. Comparison 2015 Durango Station Resort and Spa Santa Fe Station Sunset Station Consider that Durango Station’s: 1 Mile Population (2017) 14,597 12,956 15,080 15,532 11,861

• One-mile population is considerably higher than Red Rock Casino and Sunset Station 3 Mile Population (2017) 110,030 101,381 147,865 129,340 126,714 • Three-mile population already exceeds that of Red Rock Casino, Resort and Spa 5 Mile Population (2017) 285,989 250,450 297,717 407,492 290,083 • Population per slot machine is 3.7 times that of Red Rock Casino, Resort and Spa and 4.3 times that of Green Valley Ranch 5 Mile Age 21+ 75.35% 76.67% 77.73% 72.14% 75.45% • Share of population over 21 years old is consistent with other market areas 5 Mile Average HH Income $75,061 $88,550 $84,301 $76,738 $72,317 • Freeway traffic counts are more than double the total of Red Rock Casino, Resort and Spa 5 Mile Pop per Slot Machine 143.0 38.8 33.2 54.6 21.5

Nearby Freeway Traffic Counts 89,000 34,000 155,000 117,000 118,000

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Household Wealth , a neighboring residential

STATION CASINOS has always strived to place a premium product within a premium location. The site of Durango Station community, is one of Las Vegas’ premier master will be no different. With a large number of wealthy homeowners in Summerlin South, Rhodes Ranch and other developments currently without a nearby casino, the property will be in a prime position. planned communities. The community does not

Additionally, the development looks to capitalize on the continuing growth of the southwest corner of the valley, by extending have a casino located within a five-mile radius. the Station Casinos brand to new residents. The nearest properties to the southwest corner of the valley are either Red Rock or Green Valley Ranch, a substantial distance to travel for residents. By building a resort in their neighborhood, Stations hopes to provide a recurring source of entertainment and value to residents. Number of Owner Occupied Units in a 5-mile Radius

The area has seen rapid growth since 8,50 297,798 3,007 2000, and growth is expected to continue. As one of the last areas of Rhodes Ranchthe valley Photo to contain large tracts213,783 of undeveloped land, it will continue 141,30 28,81 to be a prime area for residential development.

2000 2017 2022 2010 2015 2020 $312,324 Average Household Net Worth in a 5-mile radius

Aggregate household net worth is projected to increase by 14.6% over the next five years

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT Development Activity Map

Truly in the path of growth, there is not a more active area in the Las Vegas valley.

Commercial/Industrial Count Size

■ Office Buildings/Parks (Existing and Future) 311 Buildings 9,097,130 Sq. Ft

◆ Industrial Buildings/Parks (Existing and Future) 314 Buildings 15,374,733 Sq. Ft

 Retail (Existing and Future) 54 Centers 7,473,409 Sq. Ft 5 Miles TOTAL COMMERCIAL/INDUSTRIAL 679 Buildings/Centers 31,945,272 Sq. Ft Residential

● Single Family (Actively Selling) 71 Developments

● Apartments (Existing and Future) 67 Developments 18,630 Units

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT About Durango Station

DURANGO STATION will be the premier regional entertainment destination in the southwest Las Vegas valley. The project is well located on a 71-acre parcel fronting both the 215 Beltway and Durango Drive. Plans for Durango Station include slot machines, table games, a hotel and other entertainment amenities. The project will also include multiple restaurants, bars and retail options.

The Durango Station site is highly visible, easily accessible and is in close proximity to major employment centers (e.g., the Las Vegas Strip), major population centers and major transportation infrastructure (e.g., the 215 Beltway, Interstate 15 and McCarran International Airport).

Combining a superior location with a superior product has been our core business principle for more than 30 years.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT The Developer

Station Casinos We are the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Our properties are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering.

We own and operate Red Rock Casino, Resort and Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, , Wildfire Casino and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada; Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada; and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, and Wildfire Boulder Casino in Henderson, Nevada. We also own a 50 percent interest in Wildfire Lanes, Barley’s Casino & Brewing Company and The Greens in Henderson, Nevada. In addition, we manage Graton Resort & Casino near Santa Rosa, California on behalf of the Federated Indians of Graton Rancheria and the Gun Lake casino near Grand Rapids, Michigan, on behalf of the Match-E-Be-Nash-She-Wish Band.

In the trailing twelve months through September 2016, our company generated $1.48 billion in net revenues and $497.3 million in adjusted EBITDAM. For more than 35 years, Stations has been supporting the Las Vegas community both as a recognized top workplace and through its corporate philanthropy.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT The Manager

Operating Strategy: The following key principles have been integral to our success as a gaming operator, and we intend to continue to employ these strategies at each of our properties. We know the type of operation that appeals to a customer who travels a relatively short distance on a frequent basis. Having built our business working with that market segment, we know how to design, build and operate a regional entertainment facility that will most successfully serve that essential “drive” market. We have consistently developed facilities that are beautiful, functional, appropriate for their setting, financially successful and master-planned for future growth. Targeted Customer Base: Our operating strategy emphasizes attracting and retaining customers primarily from the local and repeat visitor markets. Our casino properties attract customers through innovative, frequent and high-profile promotional programs directed towards the local market, focused marketing efforts and convenient locations, aggressive marketing to the repeat visitor market and the development of strong relationships with specifically targeted travel wholesalers in addition to convention business. Although perceived value initially attracts a customer to our casino properties, actual value generates customer satisfaction and loyalty. We believe that actual value becomes apparent during the customer’s visit through an enjoyable, affordable and high-quality entertainment experience. We believe that our out-of-town patrons are also discerning customers who enjoy our value-oriented, high-quality approach. Provide a High-Value Experience: Because we target the repeat customer, we are committed to providing a high-value entertainment experience for our customers in our restaurants, , casinos and other entertainment amenities. We develop regional entertainment destinations for locals that include other amenities such as movie theaters, bowling centers, ice skating, live entertainment venues and child-care facilities. In addition, we believe the value offered by restaurants at each of our casino properties is a major factor in attracting local gaming customers, as dining is a primary motivation for casino visits by many locals. Through their restaurants, each of which has a distinct style of cuisine, our casino properties offer generous portions of high-quality food at reasonable prices. In addition, our operating strategy focuses on slot and video poker machine play. Because locals and repeat visitors demand variety and quality in their slot and video poker machine play, our casino properties offer the latest in slot and video poker technology. As part of our commitment to providing a quality entertainment experience for our patrons, we are dedicated to ensuring a high level of customer satisfaction and loyalty by providing attentive customer service in a friendly, casual atmosphere. We recognize that consistent quality and a comfortable atmosphere stem from the collective care and friendliness of each employee. We began as a family-run business, and have maintained close-knit relationships among our management and we endeavor to instill among our employees this same sense of loyalty. Toward this end, we take a hands-on approach through active and direct involvement with employees at all levels.

Station Casinos 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 702.495.3000 | 1505 S. PAVILION CENTER DR., LAS VEGAS, NEVADA 89135 DRAFT DRAFT