Casino Project Shut Down Could Devastate Las Vegas

There is a developing mess in Las Vegas that could make anything that has happened in the past year look like child's play. City Center, a massive casino and resort project is on the verge of being shut down because of bankruptcy.

The ongoing battle between the two principle developers of the project, MGM Mirage and Dubai World, has reached a climax and the result could be bankruptcy for City Center before it is even completed.

A $220 million payment is due today and Dubai World has already informed MGM Mirage that they will not be making their half of the payment. That has left MGM scrambling to come up with the entire amount on their own.

Lenders have been slow to adopt the idea that MGM should move on with the project on their own. A rift has developed between MGM and Dubai World, the latter accusing the former for cost overruns on the project.

Negotiations continued late into the night on Thursday between the two developers. If no agreement could be reached, there may be no choice but to move forward with bankruptcy proceedings. If bankruptcy becomes the answer, it could mean trouble for Las Vegas.

8,500 construction workers have been employed by the project. All of them would be without a job a couple of days after the bankruptcy papers are filed. Thousands of others who are relying on the new casino-resort for employment would also be out of work.

March 27, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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