When Dinks Global Realty Casino went down for good last week, some real estate investors in Las Vegas were left wondering whether the gambling company had the right people in place to keep the business afloat.
The answer to that question is: it did.
But the company is going up in smoke.
In a new report from the real estate firm, LendEDU, the Las Vegas Strip casino is on the verge of being demolished.
“The market for Vegas real estate is in free fall,” LendEdU CEO David Johnson told The Hill.
“A massive portion of the market is being destroyed.”
Johnson added that it’s likely that the realty company will soon have to liquidate and re-open a new casino in another state or another market.
Las Vegas is already home to two new casinos, MGM Resorts International and the Sands, both of which are owned by Chinese investors.
A report released earlier this month by the Center for American Progress, a progressive think tank, also found that there are currently fewer than 2,000 jobs in the casino industry.
The report also said that Las Vegas was losing $1 billion a year in real estate tax revenue, which means that “it’s unlikely that the state will ever be able to raise taxes.”
“In short, the casino is going to be gone by the end of this year,” Johnson told the Hill.
The casino has been under the management of billionaire casino magnate Sheldon Adelson, who has been fighting to save the business.
Adelson has also donated millions of dollars to political candidates over the years.
Las Venetians have long been a popular spot for political fundraisers.
But with Adelson’s help, the business has struggled to compete with other casino locations in Las Angeles and elsewhere in the U.S. “Adelson is pushing hard to keep Las Vegas a bastion of American gambling,” Lenda Miller, the executive director of the Los Angeles-based Institute for Southern California Policy, told The Daily Beast.
“It is clear that the political climate is changing and the Las Venets’ position has been weakened.”
Adelson recently told The Wall Street Journal that “Las Vegas has to be the only place to play real money in America.”
And in a new statement to the Las Vetans, Adelson said that “a casino is a great place to live, work and play and should remain a destination for our families.”
The Las Vegas Sands and MGM Resolutions, the company that operates the Sands and Resolutions casinos, have both said they are committed to keeping the casinos open.
Las Vets chief executive officer Tom Gores told the Las Angeles Times in a statement that “the casinos are a part of the fabric of our community.
The owners of the casinos have been dedicated to creating a safe and attractive environment for our guests, employees and community.”
Gores also said, “I know that the owners of MGM Resourses International, Sands and Sands Properties have taken the time to do everything they can to ensure that we are successful in our long-term plan to create a world-class casino.
They have worked tirelessly with local government officials and elected officials, as well as the casino’s board of directors to provide the best possible situation for our employees and our community.”
Johnson, the LendedU CEO, said the industry is facing a “very serious situation” in the Las Vegans’ time, and that the company believes it is “now in a position to make a major financial decision to relocate the Las Veces from the current location.”
The Lendeds report said that there is “no doubt” that Adelson is planning to keep a stake in the casinos.
“He has been trying to acquire a controlling stake in Vegas for many years,” Johnson said.
“We have never been able to get a deal.
And he has made it clear that he wants to retain a significant share of the value of the company.”
Johnson also said there are no signs that Adels plans to retire anytime soon, saying, “He will have to be able and willing to take the reins for a significant period of time to sustain his investment in the company and the casinos.”
Johnson said that the companies plans for a new Las Vegas casino have been in the works for several years.
“There is no doubt that there has been some progress on the Las Valets’ plans to build a new, state-of-the-art casino, but there has never been any final agreement or final plans made,” Johnson wrote.
“With the market continuing to collapse, this has become a more pressing and difficult time for all involved.”