Financial challenges impact Las Vegas casino developments

By Joseph Miller

Las Vegas continues to represent the world's most famous gaming hotspot with its stunning selection of casinos designed to suit players of all shapes and sizes. Two casino developments in particular are attracting significant attention from members of the gaming industry as they indicate the various challenges and difficulties encountered by contrasting venues at this competitive level. MGM Mirage's $8.5bn (£5.25bn) CityCenter resort complex was launched before the New year and is already receiving heavy praise from players. Miami property developer Jeff Soffer's $3.1bn Fontainebleau complex, on the other hand, stands half finished with no further work undertaken since the summer of 2025.
The Fontainebleau complex encountered a number of difficulties in the early stages of its development. The collapse of the Lehman Brothers, the firm responsible for funding a significant proportion of the complex, left the project in ruins. Following this, Fontainbleau Resorts pursued legal action against a banking consortium who had withdrawn an expected $800m of funding. MGM Mirage, meanwhile, experienced its own fair share of problems following a law suit pursued by Dubai World. Bill McBeath, president and chief operating officer at the Aroa Resort and Casino noted that the projects came "close to bankruptcy". Noting the severe setbacks encountered by the firm, he admitted that the development had "a very near death experience".
CityCenter is now up and running and enjoying a successful bout of business. Fontainebleau, meanwhile, has been given some hope following a recent court decision to hand over control to Carl Icahn for a low-ball for a sum of $150m. All eyes will be watching very closely indeed as both casinos fight for survival.