Casino operators on the Las Vegas Strip are grappling with a construction slowdown due to financial market challenges. Companies securing financing are experiencing some twists and turns due to escalating interest rates and an unpredictable banking industry.
A casino operator has decelerated the development of a new property on The Strip, while another has halted construction on a project initiated last year. There are speculations that a Vegas Strip casino, set to open later this year, may not meet its deadline. Likewise, there might be postponements with a frequently delayed arena being built nearby.
However, one off-Strip casino is forging ahead with construction.
Dream Hotel construction stops
Online gambling in Nevada is restricted to online poker and sports betting, despite the state being the world’s gambling capital. It is noteworthy that there are no online casinos on offer. The existing law potentially allows for the operation of online casinos, but so far, there have been no attempts to establish such a venture.
Construction on Dream Hotel, a brick-and-mortar casino near Mandalay Bay, has completely halted, says developer Bill Shopoff. Ground was broken for the property last summer.
The intention was to inaugurate the boutique hotel and casino in late-2024. However, there may be alterations to this timeline.
Shopoff informs the Las Vegas Review-Journal of his debt amounting to $30 million, which is associated with the partially constructed property. He expresses confidence that the construction will resume in the future, stating that work “will restart once the financing terms are finalized.”
He said that despite recent issues in the banking industry, the company is only two to four weeks away from securing extra financing.
New Fertitta casino progressing slowly
Last year, Tilman Fertitta, the owner of Golden Nugget, bought 6 acres of land on the Vegas Strip. His plan is to construct a new casino near Planet Hollywood and The Cosmopolitan from scratch.
Fertitta recently stated in a meeting with Truist Securities that current economic conditions have caused a lack of significant progress in construction.
There is no established start date yet, and management is open to waiting for a clearer understanding of the economic conditions.
Fertitta is optimistic that construction will recommence shortly. Preliminary designs for the yet-to-be-named property feature a 43-story hotel tower, an auto dealership, and a wealth of amenities for high-rollers.
Fertitta is currently in the midst of purchasing Hard Rock Lake Tahoe with plans to transform it into an additional Golden Nugget casino. The entire process may take up to a year to complete.
A shooting on the property last week resulted in one fatality, leading to the arrest of two individuals by the police.
Durango Casino construction continues
Station Casinos is forging ahead at full speed with the construction of its newest property, located away from the Vegas Strip. The company intends to complete the Durango Casino & Resort in the fourth quarter of this year.
The Durango Casino, located off-strip, is set to open featuring a small hotel tower with 200 rooms. The casino itself will span 83,000 square feet and will house a cutting-edge sportsbook.
Plans are in place for Durango to acquire four full-service restaurants and a food hall. By the end of the year, Station Casinos is expected to have sufficient funding secured to complete these projects.
More construction odds and ends
Fontainebleau has announced that it has obtained the necessary financing to finish building a large, blue casino resort on the northern part of the Vegas Strip by year’s end. However, speculation suggests that construction may experience delays, possibly pushing the property’s opening to next year.
Fontainebleau has not only secured funding, but also hired five executives from The Cosmopolitan to assist in opening the property.
The MSG Sphere at The Venician has been under construction for what feels like forever. The frequently postponed, over-budget stadium aims to open later this year, possibly around the time of November’s Las Vegas Grand Prix.
The target date may still be achievable, but a recent Review-Journal article suggests the fall opening might be delayed due to construction completion timings. Keep an eye out, particularly if you’re looking forward to seeing U2 perform in September.
Hard Rock is currently managing The Mirage. Clark County recently approved plans for a new hotel tower shaped like a guitar. The tower will be situated where the casino’s current volcano attraction is. Construction is set to commence next year, so there’s still time to witness the volcano’s spectacle.
Despite the uncertainty of funding for some new casino projects, it doesn’t seem to affect Las Vegas visitors similarly. In early 2025, gaming revenue, hotel room rates, and visitation continue to thrive.
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