Summary:
- The Navajo Nation will develop the Lower 89 Project, a second casino on a 13.79-acre site near Flagstaff.
- Plans will include up to 300 gaming machines and reopening the historic Horsemen Lodge steakhouse.
- The project will generate 300 temporary construction jobs and more than 100 permanent positions.
A second Navajo casino is set to open near Flagstaff following the tribe’s acquisition of a 13.79-acre site northeast of the city.
The property, which formerly housed the well-known Horsemen Lodge steakhouse and adjacent Flying Heart Stables, is located along U.S. 89, about four miles north of Flagstaff Mall, Arizona.
300 Temporary Jobs, Over 100 Permanent Positions Underway
In November, the Navajo Nation secured legal authority for the project by transferring the land into trust status, making it part of the reservation and thus clearing the way for casino development.
Navajo Nation President Buu Nygren confirmed the tribe’s collaboration with the Navajo Nation Gaming Enterprise (NNGE) to establish the new gaming facility.
“Right now, with the various moving parts, I wouldn’t want to speculate how long that entire process will take”, Nygren said in written responses to Flagstaff Business News.
While the project’s specifics remain undecided, Nygren acknowledged that the casino would operate under limited gaming provisions.
The planned development is expected to host up to 300 gaming machines including slots as per the 2021 Tribal-State Gaming Pact.
Nygren emphasized the casino’s potential economic benefits, particularly in addressing high unemployment within the Navajo Nation. He projected that construction efforts would generate over 300 temporary jobs, with more than 100 permanent positions once the casino is operational.
Currently, 85% of NNGE employees are Navajo, with another 5% belonging to other tribal communities.
The Historic Horsemen Lodge Steakhouse to Reopen
The enterprise also intends to reopen the historic Horsemen Lodge steakhouse, a move Nygren believes will be warmly received.
Despite concerns some have expressed, I fully expect the reopening of the restaurant will be welcomed by the local community and Highway 89 travelers. Horseman’s Lodge was an iconic establishment, and it’s been greatly missed since it closed its doors in June 2020 because of COVID.
Revenue from the casino will contribute to a Diné Relocatee Fund, supporting Navajos impacted by the Navajo-Hopi Settlement Act of 1974.
Even more, shared gaming revenue is expected to benefit the Grand Cabyopn State via the Arizona Benefits Fund, aimed at supporting education, healthcare, tourism, and conservation efforts.
Strategic Location
The new casino’s location is strategically significant. It is along a major tourist route to the Grand Canyon, Lake Powell, and Monument Valley.
Nygren highlighted this as part of the tribe’s broader strategy to diversify economic opportunities following the closure of the Navajo Generating Station.
The NNGE already operates the Twin Arrows Casino Resort, which has over 1,000 gaming machines and a 200-room hotel located 20 miles east of Flagstaff.
The enterprise also runs three casinos in New Mexico and the Navajo Blue Travel Plaza near Twin Arrows, which offers gaming and sports betting options.
Under the Tribal-State Gaming Pact, the Arizona Department of Gaming will oversee the development and operation of the Lower 89 casino.
However, Flagstaff city officials and Coconino County authorities have minimal jurisdiction over the project, as it falls on Navajo trust land.
In December, the Arizona Department of Gaming reported tribal gaming contributions of $42.5 million toward the Arizona Benefits Fund for the second quarter of fiscal year 2025.
About the Author
