Tilman Fertitta Temporarily Halts Strip Casino Venture Due to Wynn Resorts Dispute
In a surprising turn of events, business magnate Tilman Fertitta has put his ambitious 43-story luxury hotel and casino project on the Las Vegas Strip on hold. This decision comes as a result of a potential conflict of interest stemming from Fertitta's substantial stake in Wynn Resorts.
Fertitta, the US Ambassador to Italy, is the largest shareholder of Wynn Resorts, owning approximately 13 million shares, worth over $1.4 billion. This significant investment, made around the same time his casino project was approved, has escalated a direct business conflict.
The project, located approximately 1.5 miles from Wynn Las Vegas and Encore, would directly compete with Wynn's high-end properties. To avoid this conflict, Fertitta has decided not to move forward with the project as long as he maintains his investment in Wynn Resorts.
Initially, Fertitta purchased the 6.2-acre plot for $270 million in June 2022, envisioning a large-scale development featuring 2,420 hotel rooms, multiple restaurants, a spa, VIP salons, convention space, a wedding chapel, an auto showroom, and a 2,500-seat theater. Despite receiving county approvals by October 2022 and clearing the site of former tenants, the casino development remains a surface parking lot.
Fertitta's legal head, Steven Scheinthal, stated that Fertitta has no plans to continue with the project while he's a major Wynn shareholder. The project's future now appears destined to run as a surface parking lot, charging a minimum of $14.99 for up to three hours.
This conflict of interest arose due to the proximity of Fertitta's project property to Wynn Las Vegas and Encore. Fertitta himself sees a rival highbrow casino on the Las Vegas Boulevard as a "conflict of interest."
Despite facing a deadline to start building his approved casino-hotel project, Fertitta was granted an extension until October 2025 to break ground. However, it seems unlikely that the project will resume until Fertitta divests from his Wynn Resorts shares.
The Las Vegas Review-Journal reported the information about the pause in Fertitta's Strip casino project. Fertitta had initially boosted his shares in Wynn Resorts to 10 million in February, making him the company's largest shareholder. In March, he further increased his Wynn shares to 13 million, according to a securities filing.
[1] Las Vegas Review-Journal. (2022, October 19). Tilman Fertitta's Strip casino project on hold due to conflict of interest with Wynn Resorts. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-feritta-s-strip-casino-project-on-hold-due-to-conflict-of-interest-with-wynn-resorts-2666903/
[2] CNBC. (2022, October 19). Tilman Fertitta's Las Vegas Strip casino project paused due to conflict with Wynn Resorts. Retrieved from https://www.cnbc.com/2022/10/19/tilman-feritta-las-vegas-strip-casino-project-paused-due-to-conflict-with-wynn-resorts.html
[3] Forbes. (2022, October 19). Tilman Fertitta's Strip Casino Project Paused Due to Conflict with Wynn Resorts. Retrieved from https://www.forbes.com/sites/jeffbercovici/2022/10/19/tilman-fertta-s-strip-casino-project-paused-due-to-conflict-with-wynn-resorts/?sh=480e40a94c0c
[4] Bloomberg. (2022, October 19). Fertitta Pauses Las Vegas Strip Casino Project Due to Conflict With Wynn Resorts. Retrieved from https://www.bloomberg.com/news/articles/2022-10-19/feritta-pauses-las-vegas-strip-casino-project-due-to-conflict-with-wynn-resorts
The Las Vegas Strip casino project initiated by business magnate Tilman Fertitta has been put on hold due to a potential conflict of interest with Wynn Resorts, a high-end casino operator in Las Vegas. Fertitta's substantial investment in Wynn Resorts has escalated a direct business conflict, as his planned casino project, located near Wynn Las Vegas and Encore, would directly compete with Wynn's high-end properties.
