Caesars Entertainment (CZR) and MGM Resorts International (MGM) dominate the south and central Las Vegas Strip but they do face challenges to their leadership. Basically, any casino owner and every major hotel operator look at the riches to be had on Las Vegas's iconic 4.2 mile stretch of road and at least considers it.
Success on the Strip isn't guaranteed and a lot of fortunes have been lost by people who think it's easy to battle the incumbent leaders. Like Donald Trump failing to challenge Caesars and MGM in Atlantic City, a lot of big names have failed on the Las Vegas Strip.
Just getting a new property built can take years (or decades in the case of the Fontainebleau) and announcing a Strip project is sort of like publicly declaring an intention, not an actual promise that it will happen. That's the case with multiple NBA-ready arena projects currently in development and it's how people see most announcements of new Las Vegas Strip casinos.
In 2023, however, while MGM focuses on integrating Cosmopolitan and Caesars relaunches the former Bally's under the Horseshoe name, two very different billionaires may be stepping up as rivals to the Las Vegas Strip status quo. The first has already declared his intentions, while the second may actually have the biggest ace in the hole.
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Golden Nugget Owner Building on the Strip
Billionaire Tilman Fertitta has purchased a piece of land in the heart of the area dominated by Caesars and MGM. And while he owns the Golden Nugget on Fremont Street downtown, the billionaire owner of the Houston Rockets plans a higher-end brand for his Strip property,
Fertitta spent $270 million on a piece of land located between Caesars' Planet Hollywood and the MGM Grand. In October, the billionaire's company has filed plans to build a 43-story, 2,420-room hotel/casino on the property, the Las Vegas Review-Journal reported.
"The upscale project, on roughly 6 acres at the southeast corner of Las Vegas Boulevard and Harmon Avenue, calls for restaurants, convention space, a spa, wedding chapel, auto showroom and a theater with around 2,500 seats, Clark County records show. It would also include suites and villas, VIP salons, and a bar and lounge for high-limit gamblers, building plans indicate," the paper added,
Fetitta, however is not the only billionaire with an eye on taking on Caesars and MGM. Circus Circus owner Phil Ruffin may have plans beyond his somewhat modest property.
Circus Circus May Play Ball
Ruffin owns Circus Circus, a dated Strip property that tried to cater to families. He did spend $30 million renovating the property this year, but that's a modest amount. The billionaire also owns Treasure Island, a much nicer property, but his trump card may actually be the Las Vegas Fairgrounds, an empty piece of land next to Circus Circus which has an ever-escalating value.
The Oakland Athletics have their eyes on Las Vegas Strip with the current site of the Tropicana, which Bally's Corporation (BALY) bought earlier this year and Ruffin's empty fairgrounds property as the two sites the team has held negotiations over.
No deal has been made, but Ruffin has talked to the team about building a 30,000-seat stadium with a retractable roof on the site, the Las Vegas Review-Journal reported.
If that deal happened, it might be a catalyst for Ruffin to consider a massive upgrade (or total remodel/reboot) at Circus Circus. And, even if the A's go to the Tropicana site or even stay in Oakland, Ruffin's 37-acres with frontage on the Strip may be the biggest piece of land available for any company hoping to take on Caesars and MGM.
Ruffin has been a quiet player, but he's holding a lot of cards and may have a better hand than even Fertitta in 2023.
