I lived in the Reno area in the recent past, and continue to visit only for positive expectation VP. The Sands is definitely seedier than the Silver Legacy, Eldorado or Circus Circus just down the street. I don't feel intimidated going there by foot from Silver Legacy, but I'm a 6'3" male. The Sands also has a reputation for a truly Sodom and Gomorrah image and there are plenty of "willing victims," so I would not be overly concerned if your friend is streetwise, but just be aware. And yes, it seems as if a requirement of staying there is having at least one cigarette lit at all times.
That being said, I don't really think there would be any danger staying there, as long as you don't go out alone at night. I don't ever really go there because their gaming stinks and I've been able to get better rooms at Silver Legacy, Circus Circus and Eldorado for similar rates, but my elderly parents used to go there for bingo in the morning with no problems.
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