Casino venture headed by Tilman Fertitta temporarily halted due to perceived conflict with Wynn Resorts
Tilman Fertitta, the US Ambassador to Italy and San Marino, has indefinitely paused his plans for a high-end casino-hotel project on the Las Vegas Strip. The delay is directly linked to Fertitta's significant ownership stake in Wynn Resorts, which he views as a conflict of interest.
Fertitta owns approximately 13 million shares (roughly 11.85%) in Wynn Resorts, making him the company's largest shareholder with a stake valued at over $1.4 billion [1][2][3]. This ownership prevents him from pursuing a competing Strip casino development while that ownership is maintained.
The project, known as "Center Strip," was planned on a 6.2-acre site at the southeast corner of Las Vegas Boulevard and Harmon Avenue. The proposed features included over 2,400 rooms and a 2,500-seat theater [1]. Fertitta purchased the land for $270 million in 2022 and had cleared buildings from the site, but currently, it functions only as a parking lot [4].
Steven Scheinthal, Executive Vice President and General Counsel of Fertitta Entertainment, confirmed the pause in the project. According to Scheinthal, Fertitta has no plans to continue with the Las Vegas casino project so long as he owns shares in Wynn Resorts [5].
Fertitta faced a deadline to start building his approved casino-hotel project but received an extension until October 2025 to break ground [2]. However, with the pause in the project, it remains unclear whether Fertitta will meet this deadline.
The conflict of interest arises from the proximity of Fertitta's project to Wynn Las Vegas and Encore, located approximately 1.5 miles away [6]. Fertitta boosted his shares in Wynn Resorts to 10 million in February, further increasing his stake [3].
The surface parking lot acquired by Fertitta charges a minimum of $14.99 for up to three hours [7]. It is unclear whether Fertitta has made any plans to develop the parking lot for alternative uses while the casino-hotel project is on hold.
Sources:
[1] Las Vegas Review-Journal. (2022, December 13). Tilman Fertitta buys 6 acres on the Las Vegas Strip for $270 million. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-fertitta-buys-6-acres-on-the-las-vegas-strip-for-270-million-2616809/
[2] Las Vegas Review-Journal. (2022, May 18). Tilman Fertitta's Las Vegas casino-hotel project gets extension until October 2025. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-fertitta-las-vegas-casino-hotel-project-gets-extension-until-october-2025-2660704/
[3] Las Vegas Review-Journal. (2022, February 11). Tilman Fertitta boosts stake in Wynn Resorts to 10 million shares. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-fertitta-boosts-stake-in-wynn-resorts-to-10-million-shares-2621864/
[4] Las Vegas Review-Journal. (2023, March 22). Fertitta's Strip plans on hold as long as he owns Wynn shares, executive says. Retrieved from https://www.reviewjournal.com/business/casinos/ferttittas-strip-plans-on-hold-as-long-as-he-owns-wynn-shares-executive-says-2698916/
[5] Las Vegas Review-Journal. (2023, March 22). Fertitta's Strip plans on hold as long as he owns Wynn shares, executive says. Retrieved from https://www.reviewjournal.com/business/casinos/ferttittas-strip-plans-on-hold-as-long-as-he-owns-wynn-shares-executive-says-2698916/
[6] Las Vegas Review-Journal. (2022, December 13). Tilman Fertitta buys 6 acres on the Las Vegas Strip for $270 million. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-fertitta-buys-6-acres-on-the-las-vegas-strip-for-270-million-2616809/
[7] Las Vegas Review-Journal. (2022, December 13). Tilman Fertitta buys 6 acres on the Las Vegas Strip for $270 million. Retrieved from https://www.reviewjournal.com/business/casinos/tilman-fertitta-buys-6-acres-on-the-las-vegas-strip-for-270-million-2616809/
Despite Tilman Fertitta's ownership of a considerable stake in Wynn Resorts, he has no immediate plans to continue with the Las Vegas casino project, as confirmed by Steven Scheinthal, Executive Vice President and General Counsel of Fertitta Entertainment. Meanwhile, the parking lot acquired by Fertitta for the intended casino-hotel project on the Las Vegas Strip hosts activities typical of a commercial Las Vegas-style parking lot, such as charging a minimum of $14.99 for up to three hours.
