Casino operators on the Las Vegas Strip are grappling with a construction slowdown due to financial market challenges. Companies securing financing are facing some twists and turns due to rising interest rates and an unstable banking industry.
Development on a new property along The Strip has been slowed by one casino operator, while another has halted construction on a project initiated last year. There are rumors that a Vegas Strip casino, scheduled to open later this year, may not meet its deadline. Similarly, there might be further delays with a frequently postponed arena that is currently 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. Interestingly, despite being the global capital of gambling, the state does not provide online casino services. Nevertheless, the existing legal framework could potentially allow for the operation of online casinos, although no such attempts have been made as yet.
Construction on the Dream Hotel, a brick-and-mortar casino near Mandalay Bay, has completely halted, says developer Bill Shopoff. The property began construction last summer.
The timeline for opening the boutique hotel and casino, originally planned for late-2024, might change.
Shopoff informed the Las Vegas Review-Journal that he has accumulated a debt of up to $30 million in relation to the partially constructed property. However, he remains optimistic about the continuation of the property’s construction in the future. He stated that the work will resume 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 additional 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.
Fertitta recently stated in a meeting with Truist Securities that the current economy has caused little progress in construction.
There is no definite start date yet and management is prepared to wait until they have a clearer understanding of the economic conditions.
Fertitta is also optimistic that construction will resume shortly. Preliminary designs for the yet-to-be-named property encompass a 43-story hotel tower, a car dealership, and an abundance of luxury amenities for high-end clientele.
Fertitta is currently in the process of purchasing Hard Rock Lake Tahoe with plans to transform it into another Golden Nugget casino. The entire process could take as long as 12 months to complete.
A shooting on the property last week resulted in one fatality. Two individuals were subsequently arrested by the police.
Durango Casino construction continues
Station Casinos is progressing rapidly with the construction of their latest property located off the Vegas Strip. The company aims to complete the Durango Casino & Resort by the fourth quarter of this year.
The Durango Casino, located off-strip, is set to open with a compact hotel tower featuring 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 feature four full-service restaurants and a food hall. Station Casinos is expected to secure the necessary funding to complete this project by the end of the year.
More construction odds and ends
Fontainebleau has announced that it has obtained the necessary financing to complete the construction of a large, blue casino resort on the northern end of the Vegas Strip by the year’s end. However, there is a circulating rumor that suggests the construction might face delays, potentially pushing the property’s opening to the following 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 Venetian appears to have been under construction forever. The arena, which has frequently been delayed and has exceeded its budget, aims to be open by the time of November’s Las Vegas Grand Prix later this year.
A recent Review-Journal article suggests that the targeted opening date is still feasible, however, it also mentions that the construction “might” finish in time for the fall opening. Stay updated, particularly if you’re looking forward to the U2 concert in September.
The Mirage is now being operated by Hard Rock. Clark County has recently given the green light for the construction of a new hotel tower, designed in the shape of a guitar. This tower is planned to be built where the current volcano is situated in front of the casino. Construction is slated to commence next year, which means there’s still time to see the volcano before it’s replaced.
While the funding for certain new casino projects remains uncertain, it doesn’t seem to affect visitors to Las Vegas. Gaming revenue, hotel room rates, and visitation continue to flourish in the early part of 2024.
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