The Lucky Dragon’s main creditor has secured a U.S. Bankruptcy judge’s OK to close the failed Las Vegas resort’s hotel, bringing an end to a great idea𑁋a totally Asian-themed boutique casino𑁋that never took hold.
Coming 10 months after the gaming floor and restaurants were shuttered, the approval from Judge Laurel Babero clears the way for Snow Covered Capital to try to sell the Sahara Avenue property.
As Las Vegas’ first ground-up gaming resort since the recession, Lucky Dragon opened to great fanfare in November 2016 with a unique top-to-bottom theming aimed at attracting Asian and Asian-American gamblers. The casino was packed with baccarat, pai gow and sic bo tables, there were specialized restaurants, multi-lingual staff and signage, even a tea sommelier. But the business never gained attraction, held back by its off-Strip location, and in no small part because it lacked the financial resources to compete with the big Strip resorts on comps and credit.
In January, developer Andrew Fonfa filed for Bankruptcy Court protection owing millions to Snow Covered Capital, which issued loans for the project.
The nine-story hotel was left open, but SCC said in recent court papers that the property has posted operating losses of roughly $200,000 a month throughout the reorganization. There is “no dispute,” the firm said, that the resort’s operations “have been a dismal failure”.
A foreclosure sale held last month ended with SCC in credit possession. A second sale is expected to be held later this month, with SLS Las Vegas’ new owner, Alex Meruelo, and Dotty’s slot parlor chain among those showing interest, according to news reports.
Left in the lurch, meanwhile, are some 179 investors Fonfa recruited from outside the U.S. to kick in $89.5 million to Lucky Dragon’s construction through the federal government’s EB-5 visa program, which affords foreigners the possibility of permanent U.S. residency for themselves and their families in exchange for investing in capital projects that generate jobs.
