In 2018, Las Vegas’ Lucky Dragon Hotel & Casino began by temporarily shutting down all gaming and restaurant services. Now, it is facing foreclosure and is set to be auctioned off.
The Las Vegas Review-Journal has reported that the off-Strip boutique-style casino resort, designed to provide a genuine Asian cultural and gaming experience, was served a default notice in September. Clark County records indicate that the resort is set to be put on sale at a foreclosure auction on February 6.
Andrew Fonfa, the developer of Lucky Dragon, took out a $90 million loan in the spring of 2016 during the construction of the project, leading to a default notice. According to the foreclosure auction notice, Fonfa remains indebted for $48.9 million of the loan. The loan was initially provided by Snow Covered Capital, a company tied to Enrique Landa of Associate Capital, a San Francisco real estate investor.
Lucky Dragon hotel still open
Currently, Lucky Dragon’s hotel with 203 rooms, its gift shop, and the Cha Garden indoor and outdoor tea garden and lounge are still open. Guests can avail of room service and morning tea and coffee. Additionally, a full-service bar at night and an extended menu are also provided.
However, all the remaining restaurants and the 27,500 square-foot Nevada casino on the Lucky Dragon property are closed.
Company executives’ most recent official statement affirmed that Lucky Dragon’s casino and restaurant operations were shutting down to facilitate a reorganization in the first half of 2018. The company held hopes that this reorganization would create opportunities for new partnerships. Furthermore, these anticipated partnerships were expected to strengthen the property’s long-term positioning and improve guest experiences.
Lucky Dragon struggles
In November 2016, Lucky Dragon had a soft opening and officially opened its doors on December 3, 2016. The opening was attended by a substantial portion of the large Asian community on the US west coast. Despite this, the establishment was fully operational for just over a year before a reorganization was declared. It appears that the members of the Asian community, for whom it was constructed, ceased to patronize it.
The Lucky Dragon is located opposite the Allure Las Vegas high-rise condominium on West Sahara Avenue, just a short distance from the Las Vegas Strip. During its operational days, Lucky Dragon’s casino housed 300 slot machines and 37 table games, predominantly focusing on games favored in Asia. This primarily included Baccarat and Pai Gow Poker tables. Traditional casino games such as Blackjack were also offered, though in smaller numbers compared to the Asian-centric games.
Initially, Fonfa planned to construct a second Allure condo tower on the property. However, considering the economic climate at the time, he concluded that a hotel and casino would be a more viable option.
Initially, Fonfa planned to build a casino resort targeting gay and lesbian clientele. However, in February 2012, he changed course and announced his plan to build the Chinese-themed Lucky Dragon resort. Construction started in May 2015.
Local Chinese gamblers pass
The difficulties faced by the property were well recorded following its opening in December 2016. By March 2017, Lucky Dragon had to lay off 100 employees due to a lack of sufficient customer base needed to sustain the roles. Moreover, in December 2017, the Las Vegas Review-Journal newspaper reported that the casino and its restaurants were often unoccupied.
Local Chinese gamblers, whom Lucky Dragon attempted to attract through extensive advertising and marketing campaigns, complained that the property’s gaming and comp policy were stingy. However, Lucky Dragon’s management team argued that its gaming and comp policy was similar to other Las Vegas casinos. Regardless, the customer base that Lucky Dragon was relying on chose not to visit the establishment. As a result, it’s now facing foreclosure.
