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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Las Vegas

Las Vegas gets the casino blues

By
Alex Konrad
Alex Konrad
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By
Alex Konrad
Alex Konrad
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November 10, 2011, 10:00 AM ET
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FORTUNE — Casino developers in America’s Sin City long thought they were playing with house money, but when the financial crisis hit, a slew of multibillion-dollar projects hit the skids. One casino executive estimates that at least $15 billion worth of projects have failed, been put on hold, or are struggling. The unused towers on the strip — including the 68-story Fontainebleau, the tallest tower in the city — paint a bleak picture for the nation’s gambling capital. —



Bets placed

1. Sahara $0.3 billion: What Sam Nazarian and Stockbridge Real Estate paid in 2007 for the Sahara, the last of the Rat Pack-era casinos. The building is still empty, but the company says it plans to renovate.

2. The Fontainebleau $2.9 billion: The original projected cost of the casino. Investor Carl Icahn snatched up the 70%-completed project — the tallest structure in Vegas — in 2010 for $150 million and is selling off its unused furnishings.

3. Echelon $4.8 billion: The price tag when Boyd Gaming (BYD) broke ground on this multipurpose hotel and casino in 2007. Construction has been suspended temporarily.

4. Las Vegas Plaza $5.0 billion: The projected cost of developing the Las Vegas Plaza. The Israeli El-Ad Group purchased the site for $1.2 billion in 2007. The project is still in the planning stages.

5. St. Regis Residences at the Venetian Palazzo $0.6 billion: The planned cost of this condo tower, meant to rest atop the Venetian casino complex. Owner Las Vegas Sands (LVS) has halted construction for now.

6. The Cosmopolitan $3.9 billion: Deutsche Bank (DB) foreclosed on a $760 million loan in 2010, which gave it ownership of the Cosmopolitan casino complex. In all, the bank has invested $3.9 billion in the project. The resort is losing money.

7. Harmon/CityCenter $8.5 billion: The amount invested in the CityCenter gaming and hotel complex by MGM Resorts International (MGM) and Dubai World. Contractor Perini Building is suing the owners for $313 million in cost overruns. Meanwhile, the Harmon hotel tower has not opened because it is not earthquake-proof.

Source: Las Vegas Convention and Visitors Authority

This article is from the November 7, 2011 issue of Fortune.


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