Tilman Fertitta halts Las Vegas casino project over Wynn stake conflict of interest

Houston billionaire and newly appointed U.S. Ambassador to Italy Tilman Fertitta has officially paused plans for a luxury casino resort on the Las Vegas Strip due to a potential conflict of interest with his significant stake in Wynn Resorts.

Fertitta Entertainment executive vice president and general counsel Steven Scheinthal said Fertitta “has no plans to continue with the project so long as he maintains his Wynn ownership," the Las Vegas Review-Journal reported.

Fertitta owns 13 million shares in Wynn, making him the company’s largest shareholder. Wynn operates the Wynn Las Vegas and Encore resorts, located about 1.5 miles from Fertitta’s undeveloped property on the Strip.

Fertitta purchased the 6.2-acre parcel in June 2022 for $270 million, paying more than $43 million per acre. Originally envisioned as a towering 43-story casino resort, the approved plans called for 2,420 hotel rooms, multiple restaurants, a spa, VIP salons, convention space, a wedding chapel, an auto showroom, and a 2,500-seat theater. 

While Fertitta secured county approvals in October 2022 and cleared the site of its former tenants—including a Travelodge motel, souvenir shops, and restaurants—the site today remains a surface parking lot, charging $14.99 for up to three hours.

Fertitta’s investment in Wynn was also made in October 2022, with an initial purchase of 6.9 million shares, coinciding with the approval date of his Strip resort plans. Since then, he has steadily increased his stake to 13 million shares, representing an 11.85% ownership in the Las Vegas-based casino operator.

Although speculation mounted earlier this year about the future of the project, Fertitta Entertainment released a noncommittal statement earlier in July, saying “all options remain under consideration.”

Fertitta had until October 19, 2024, to begin construction on the site, but was granted a one-year extension by Clark County, moving the deadline to October 19, 2025.

The pause in development comes on the heels of Fertitta’s political appointment. In December, then-President-elect Donald Trump nominated him to serve as U.S. ambassador to Italy. 

In a letter to the State Department this past March, Fertitta pledged to resign from leadership roles at Fertitta Entertainment and related entities to avoid any conflicts of interest. The Senate confirmed his nomination in April.

Fertitta, whose business empire includes the Golden Nugget casinos, Landry’s restaurant group, and the NBA’s Houston Rockets, now appears focused on diplomatic duties abroad, leaving the future of his Las Vegas casino vision in limbo for the time being.