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The Rise of Reno: How a $1 Billion Arena Project Is Reshaping Nevada’s Second City

By jili tutorial · October 7, 2026

The Rise of Reno: How a $1 Billion Arena Project Is Reshaping Nevada’s Second City

Far from the neon lights of the Las Vegas Strip, Reno is experiencing a gaming and tourism renaissance unlike any in its recent history. At the heart of this transformation is the Grand Sierra Resort’s 10,000-seat arena—a project that represents the largest private investment ever made in the city and signals a new chapter for the “Biggest Little City in the World.” This guide provides an in-depth look at the arena’s construction, its economic and cultural implications, the partnerships driving it forward, and the unique challenges of blending a casino property with collegiate athletics in an era of legalized sports betting.

Introduction: Reno’s Gaming Market Surges to Record Heights

Reno has long lived in the shadow of Las Vegas, but recent data suggests the northern Nevada hub is carving out its own identity as a resilient, growing gaming market. The city finished the 2023–24 fiscal year (ending July 2024) with $825 million in gross gaming revenue (GGR), according to the Nevada Gaming Control Board. That represented a 7% increase year-over-year—a standout performance for a mature market that typically sees fluctuations of only one or two percentage points.

The momentum has only accelerated. In August 2024, Reno’s GGR hit $79 million, a 15% jump compared to August 2023, and the pace for the new fiscal year is tracking 8% ahead of last year. Hotel room revenue set monthly records from January through June 2024, and August 2024 set an all-time high for any month on record. Visitor counts rose 14% over the previous fiscal year, with monthly records in January, April, and May.

“We’re proud of these results, but our work is focused on what comes next,” said Mike Larragueta, president and CEO of Visit Reno Tahoe, in a statement. “We want to continue creating demand for Reno Tahoe throughout the year, reaching new audiences, and strengthening the destination in ways that create lasting value for our community.”

Against this backdrop of surging demand, the Grand Sierra Resort (GSR) is betting on an even bigger future.

The Grand Sierra Resort Arena: A $1 Billion Bet on Reno’s Future

A History of Bold Ideas—Now Becoming Reality

The Grand Sierra Resort has seen ambitious plans come and go over its nearly 50-year history. But billionaire owner Alex Meruelo is now turning one of the most transformative visions into steel and concrete. The arena, first announced in late 2021, is the centerpiece of a $1 billion multi-phase expansion that, if fully built out, would represent the largest private investment in Reno’s history.

“There’s a great deal of progress being made, a great deal of work happening, and the garage has just begun,” said Chris Abraham, GSR’s chief marketing officer, during a site tour with iGB in late 2024. “The arena—we’re out of the ground, we have walls, we have foundations. All the underground work is basically done. Now it’s the fun time when we can actually start building up and everyone gets to see.”

Construction Progress and Cost Escalation

As of late 2024, foundation and infrastructure work is well underway. Winter weather could slow the pace depending on severity, but the project remains on track for a tentative 2028 debut. Original cost estimates for the arena alone were in the $350–$375 million range. However, Abraham now puts the figure at “more like $450–$500 million right now” as Meruelo is “sparing no expense” to create a world-class venue.

The arena will seat more than 10,000 and will host University of Nevada men’s basketball games, along with a slate of other sports and entertainment events. “For a 10,000-seat-plus arena, it’s going to be the very best one of those, maybe in the world,” Abraham said.

Design Inspiration from Global Landmarks

The design team is drawing from some of the most innovative arenas worldwide:

The goal is to combine the best design elements of these venues while tailoring the experience to Reno’s unique identity.

Hockey’s Potential Return to Reno: The Tucson Roadrunners Connection

A History of Venue Challenges for Pro Sports

Reno has a mixed track record with professional sports. The Reno Aces (Triple-A affiliate of MLB’s Arizona Diamondbacks) have been a success story, drawing strong crowds at Greater Nevada Field. But many other teams—including several minor league hockey franchises—have folded due to venue difficulties. The new arena could change that.

Meruelo previously owned the NHL’s Arizona Coyotes, a struggling franchise that was eventually sold and rebranded as the Utah Mammoth in 2024. (The NHL “lost patience in [Meruelo’s] ability to find a long-term arena solution in Arizona and facilitated a sale,” per ESPN.) However, Meruelo retained ownership of the Coyotes’ American Hockey League (AHL) affiliate, the Tucson Roadrunners.

Could the Roadrunners Move to Reno?

The Roadrunners extended their lease at Tucson’s Tucson Convention Center through the 2027–28 season in April 2024. That timeline aligns neatly with the GSR arena’s projected 2028 opening. Abraham acknowledged that hockey is a likely component of the venue’s future but stopped short of confirming a relocation.

“We expect to have hockey as part of the future of the arena,” he said. “It’s just a determination right now of what kind of hockey and how does that look. That hasn’t been determined yet. We’re probably another six months or so from really getting into the details of that. But I know Mr. Meruelo is looking at a few options and will make a decision soon.”

Beyond the AHL, options could include an ECHL team, a junior hockey club, or even college hockey exhibitions. For Reno, the presence of a professional hockey team would fill a long-standing gap in the local sports landscape.

University of Nevada’s Role: Recruiting in the NIL Era

A Partnership Forged by a Former Governor

The involvement of the University of Nevada, Reno (UNR) has been central to the project from the beginning. The partnership was brokered between Meruelo and UNR President Brian Sandoval, who served as Nevada governor from 2011 to 2019. Sandoval is no stranger to the gaming industry: he chaired the Nevada Gaming Commission before becoming governor, took a corporate role at MGM Resorts immediately after leaving office, and currently chairs the board of directors for Resorts World Las Vegas.

Sandoval and Meruelo have maintained a relationship since Meruelo purchased the GSR in 2011. The arena will serve as the home court for UNR men’s basketball, giving the program a facility that rivals any in the Mountain West Conference.

Using the Arena as a Recruiting Tool

Peak periods in Nevada athletics—like the 2010 football season with quarterback Colin Kaepernick or the 2018 basketball season with twins Caleb and Cody Martin—are revered as legendary in Reno. But down years have been more common, especially in the ultra-competitive name, image, and likeness (NIL) era. The university hopes the new arena will become a powerful recruiting tool.

However, Nevada Athletic Director Stephanie Rempe emphasized that the venue alone isn’t enough. “We’re investing in our basketball programme because everybody wants them to be successful now,” she told iGB. “And also it’s important to the Meruelos, of course, that when we go into that venue we’re winning and attracting people, people are buying tickets, and it’s a great experience.”

In the NIL environment, schools must invest in good players first—the facility is part of a larger package that includes competitive compensation, coaching, and fan engagement. The arena adds a tangible, high-profile asset to UNR’s recruiting pitch.

A Rare and Complex Arrangement

Only a handful of college teams play at off-campus facilities, and even fewer do so on property owned by a private individual—especially a casino. UNLV football, for example, plays at the Raiders’ Allegiant Stadium, but that venue is publicly owned. Rempe acknowledged that the GSR arrangement “might be the first on a property that’s owned by a private person,” particularly one that includes a full-scale casino.

The Sports Betting Challenge

The relationship between sports betting and college athletics has been complicated—and at times toxic. College athletes have faced harassment from bettors. The NCAA has repeatedly called for restrictions on betting markets. A massive point-shaving scandal involving 20 former players was announced in Pennsylvania federal court this year.

In Nevada, sports event contracts on prediction markets are currently banned, but wagering on in-state colleges has been legal since 2001. That means the university will soon be playing games within walking distance of betting counters where fans can place wagers on those very contests.

“You’re always concerned about it,” Rempe said, “and you need to make sure you put things in place and educate your student athletes, which we do a lot, so they understand the gaming piece. So you have to be conscious of that and be responsible.”

From GSR’s perspective, Abraham notes that “the community has been visiting this property” since it opened, with guests of all ages coming through constantly. Hosting Nevada athletics is “really nothing different than what we’ve been doing all along,” he said, though his team will follow the university’s requests to ensure a “welcoming environment to everybody.”

Potential Safeguards and Best Practices

Casino-owned college sports venues are rare, but lessons can be drawn from other jurisdictions:

The partnership between GSR and UNR will be closely watched as a model—or a cautionary tale—for other casino-proximate college sports arrangements.

Reno’s Economic Surge: What’s Driving the Boom?

Beyond the Arena: A Diversified Growth Story

The arena is a marquee project, but Reno’s current momentum is fueled by multiple factors:

The GGR numbers underscore this resilience. In a market that historically oscillates by only 1–2% annually, a 7% rise (fiscal year 2024) and a 15% monthly spike (August 2024) are exceptional.

What the Arena Means for the Local Economy

The arena is expected to:

Abraham, who first came to Reno in the 1990s for a role at IGT and returned in 2014, has witnessed the city’s resurgence firsthand. The arena, he says, was doubted at times but is now moving full speed ahead.

“As you can clearly see, it is happening. It is definitely happening,” he said, motioning to the work site. “There are a couple hundred people right now as we speak out there building what is going to be just a wonderful experience for the entire city. So we couldn’t be more excited about that.”

Conclusion: A New Chapter for the Biggest Little City

The Grand Sierra Resort arena is more than just a construction project—it’s a symbol of Reno’s ambition to redefine itself as a destination that blends gaming, sports, entertainment, and community. With record-setting revenue, rising visitor counts, and the largest private investment in the city’s history, Reno is writing a new story that goes far beyond its traditional image as “the other Nevada city.”

Whether the arena will truly be “the best 10,000-seat-plus arena in the world” remains to be seen. But for locals and investors alike, the sight of walls rising above the desert floor is proof that the biggest little city is thinking bigger than ever.