What’s Really Happening in Vegas

Written by Haylie | Thursday, March 19th, 2009

What’s going on in Las Vegas is definitely interesting and may make many who follow the gaming industry in Vegas ponder. There is still plenty of construction going on there, despite the decline in business and the financial losses suffered by the town over the last year. For example, the Hard Rock Hotel reported a net loss of $280+ million, in addition to a $180 million property value decrease. As a result, staffing was decreased by nearly 11%. However, the property is anticipating later this year, the opening later an expansion project that cost $760 million. This expansion includes a concert venue, added convention space, a 490-room tower, a 375-room all-suite tower, a new spa, and a casino expansion.

In addition, an investment advisor analyst predicted this week that Harrah’s Entertainment will be bankrupt before the year is over, and MGM Mirage’s Duetsche bank deal for the $1.2 billion needed to complete the $9.1 billion City Center project went sour. Furthermore, construction on the Cosmopolitan’s west tower has come to a halt this month. This project would erect a 3,000 hotel-condo units on eight and a half acres on the Las Vegas Strip between MGM Mirage’s CityCenter and the Bellagio, expected to open in 2010.

Meanwhile, Vegas mogul Phil Ruffin just got the support of the Gaming Control Board to purchase Treasure Island from MGM Mirage for $775. “The gaming industry needs individuals like Mr. Ruffin. He has a forward-thinking and long-term approach,” says Control Board Chairman Dennis Neilander. The city of Vegas seems to look kindly on those who believe in Vegas and invest in the hope that the city will be what it was always meant to be. “I know sales have been off and it will be tough for awhile,” Ruffin said, “but going forward, I think we’ll do well.”
The future of Vegas looks bright through some people’s eyes and bleak through others. The bottom line is that there is a lot of money invested in Las Vegas city, and they are not going down without a fight.

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