Packer Aborts Plans For World's Tallest Casino In Las Vegas
Casino operators in year's past have gone relatively untouched during hard economic times. This time around, however, it appears that the economy woes are beginning to have an impact on the industry.
One example of a definite impact the economy had is a proposed plan by Crown Ltd. and owner James Packer. He was planning on building the tallest casino in the world in Las Vegas, but has now called off the project.
The global credit crunch was used as the reason that the plan was being aborted. The plan had been in trouble for the past three months when it became clear that Packer was having difficulty securing funding for the casino.
The company now loses $44 million that it fronted for the deposit to buy the casino site. The option to buy that site runs out at the end of the month, and with the deadline nearing, the company faced the reality of not having the funding.
Crown will not be left out of the Las Vegas mix all together. They still own three casinos in the outskirts of Las Vegas and have a stake in one that is hoping to open at the end of next year, the Fontainebleau.
Normally, analysts have said that the economy does not hurt Las Vegas casinos. That has not been the case this year, however, with many casinos in Las Vegas experiencing sharp declines in their revenue numbers from last year.
June 4, 2008
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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