caesars entertainment (CZR) – Get Free Report and MGM Resorts International (MGM) – Get Free Report Although they dominate the southern and central parts of the Las Vegas Strip, their leadership faces challenges. Basically every casino owner and every major hotel operator sees the wealth that his iconic 4.2-mile road in Las Vegas affords, and at least considers it.
Success on the Strip is not guaranteed and much fortune is lost by those who think it will be easy to fight the incumbent leaders. Many big names have failed on the Las Vegas Strip, just like Donald Trump failed to challenge Caesars and his MGM in Atlantic City.
Building a new property alone can take years (decades in Fontainebleau’s case), and announcing a strip project is a public declaration of intent rather than an actual promise that it will come to pass. It’s like doing This is the case with multiple NBA-compatible arena projects currently in development, and is how we see most announcements of new Las Vegas Strip casinos.
But while MGM focuses on consolidating Cosmopolitan in 2023 and Caesars revives its former Bally’s under the Horseshoe name, two very different billionaires are emerging as rivals to the status quo on the Las Vegas Strip. The first has already declared his intentions, but the second may actually have the biggest ace in the hole.
Golden Nugget Owner Bill on the Strip
Billionaire Tilman Fertitta bought land in the heart of the region controlled by Caesars and MGM. And while Fremont owns his Golden Nuggets downtown on the street, the billionaire owner of the Houston Rockets plans luxury brands on his strip property.
Fertitta spent $270 million on land between Caesars’ Planet Hollywood and the MGM Grand. In October, the billionaire’s firm submitted plans to build a 43-story, 2,420-room hotel/casino on its property, the Las Vegas Review-Journal reported.
“The approximately six-acre luxury project on the southeast corner of Las Vegas Boulevard and Harmon Avenues will require restaurants, convention space, a spa, a wedding chapel, an auto showroom and an approximately 2,500-seat theater,” Clark County records show. The plans show that it will also include suites and villas, a VIP salon, a bar and lounge for high-limit gamblers,” the paper added.
But Fetitta isn’t the only billionaire looking to take on Caesars and MGM. Circus Circus owner Phil Ruffin may have plans beyond his rather modest fortune.
circus circus may play ball
Owned by Ruffin, Circus Circus is a family-friendly outdated strip property. He spent his $30 million on property renovations this year, but that’s a modest amount. The billionaire also owns a far superior property, Treasure Island, but his trump card may actually be the Las Vegas Fairgrounds.
The Oakland Athletics are eyeing the Las Vegas Strip, home to the current location of the Bally’s Corporation-owned Tropican. (Bailey) – Get Free Report Earlier this year, Ruffn’s vacant amusement park was purchased as one of the two sites the team negotiated.
Although no deal has been signed, Ruffin has been in talks with teams to build a 30,000-seat stadium with a retractable roof on site, the Las Vegas Review-Journal reported.
If that deal goes through, it could prompt Ruffin to consider a major upgrade (or even a complete overhaul/reboot) at Circus Circus. And whether A goes to the Tropicana site or stays in Oakland, his 37-acre property in Ruffin, with frontage on the Strip, may be the largest land available for companies wanting to challenge Caesars and MGM. .
Ruffin is a quiet player, but he has a lot of cards, so he could have a stronger hand than Fertitta in 2023.