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Las Vegas’s struggling economy will be given a significant boost this coming Monday when about 12,000 people will appointed to jobs at CityCenter, the sprawling US$8.5B resort development seen as crucial to the resurgence of the World’s Casino Capital. MGM Mirage, the owner of Las Vegas casinos: Bellagio and MGM Grand, has spent 4 years developing the 18Msq ft CityCenter, the largest commercial real estate project in the USA The future of the development, which includes upmarket hotels, a casino, shopping center and concert arena, fell into question this year when MGM Mirage was unable to access cash from the frozen credit markets. However, the company did secured several debt waivers and has since completed a US$2.5B refinancing, securing the funds needed to complete the development and open it as planned in December 2009.The group also issued new shares, which diluted the stake held by Kirk Kerkorian, its largest shareholder, from 52% to 37%. Read more

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Wynn Resorts Ltd. plans to raise as much as US$1.63% in a Hong Kong initial public offering of its Macau casino assets. The US gambling company founded by Stephen Wynn plans to sell 1.25B shares for between HK$8.52 and HK$10.08 apiece. The sale would represent about 25% of the Macau business, they said. Wynn’s profit has fallen for the past two years as a global economic slowdown hurt travel and spending at its Las Vegas casinos and hotels. In contrast, net income at Wynn’s Macau operations rose 48% last year as gambling revenue in the only Chinese region where casinos are legal climbed. Global investors are likely to be drawn to the IPO, as it’s the first foreign casino operator to be listed in Hong Kong. JPMorgan Chase & Co., Morgan Stanley and UBS AG were hired to manage the sale, and will begin offering the stock from tomorrow. The price is due to be fixed on Oct. 2. Shares of Macau casino operators listed in Hong Kong have jumped this year. Read more

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Colonial BancGroup Inc., the Alabama lender facing a criminal probe, had its banking operations closed by regulators and taken over by BB&T Corp. in the biggest failure since Washington Mutual Inc. collapsed last year. Regulators also shut two companies in Arizona, one in Las Vegas and one in Pittsburgh on Friday, pushing the tally of failed banks this year to 77. Branches and deposits of Colonial Bank, ranked second in its home state, were turned over to BB&T in a deal brokered by the Federal Deposit Insurance Corp., the regulator said in a statement. The failure of Montgomery-based Colonial followed a Florida expansion that left the company with more than US$1.7B in soured real-estate loans. Regulators are closing banks at the fastest pace in 17 years. Read more

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