However, recent updates indicate that the deal has fallen through, as the Las Vegas Convention and Visitors Authority (LVCVA) did not finalize the sale of the 10-acre plot planned for the new casino resort.

The Deal’s Failure Is a Setback for Both Parties

Claudio Fischer has a long and troubled history in the Vegas Strip. His first venue there went bankrupt back in 2010, but the businessman remained adamant about retaining a presence at one of the world’s premiere casino destinations. Fischer’s plans faced further delays due to the pandemic, but another unexpected obstacle appears to have surfaced just as the entrepreneur was about to reenter the Strip.

By failing to close the $120 million deal, Fischer will effectively have to start from scratch should he later choose to continue pursuing his Vegas ambitions. The LVCVA also loses out on a lucrative investment. The organization planned to use the profits to renovate its four exhibit halls. According to an official statement from LVCVA CEO Steve Hill, the contract at least included a guaranteed deposit, which should soften the blow.

“The LVCVA terminated the agreement, received the $7 million non-refundable deposit, and relisted the property for sale.”

Steve Hill, LVCVA CEO

The prime 10-acre plot was situated near the Las Vegas Convention Center’s West Hall. It would house a Dreams casino resort, scheduled to begin construction by the beginning of 2031. Since the LVCVA had long planned to sell the property, the deal seemed like a no-brainer. However, the recent updates mean both parties will need to reevaluate their plans for the future.

Fischer Pulled Out Due to US Economic Instability

With the property back for sale, the LVCVA at least retains a $7 million consolation prize to cover its losses from the failed sale. Finding another willing candidate will likely take some time, as such high-profile deals take at least several months to complete. A previous buyer pulling out at the last moment may also be a warning flag for risk-averse investors, even if it has nothing to do with the property or the LVCVA.

Fischer rationalized the decision to ultimately pull out of the deal with the troubled US property market, rising mortgage rates, and the looming economic crisis. Bracing for an upcoming recession makes a believable motive for the South American entrepreneur. If true, he likely plans to consolidate his existing properties and refrain from long-term investments until the storm passes.