On June 4th, 2008, the Developers of a casino complex in Las Vegas, Nevada worth $5 billion has decided to discontinue the project, blaming the credit problem in the U.S. The casino facility was supposed to feature a five thousand room hotel and one of the tallest towers in the U.S. It was a joint partnership between the Crown Casino of Australia, Texas Developer Christopher Milan and private equity firm York Capital Management.
Crown, which is owned by James Packer, recently announced a strategic study for the project. The conclusion of the study stated that it would stop giving payments to site’s owners and shelved its own investment. Crown chief executive Rowen Craigie said that the recent problems with the global credit market have made it difficult for them and their partners to construct the casino on the land in the Las Vegas strip.
The land for the casino was the former site of Wet’n’Wild water park that was sold in March. Angus Gluskie from the White Funds Management said that this development is a clear evidence of the listless economic environment that can affect even the gaming industry.