Introduction
Las Vegas is known for its luxurious casinos that attract millions of visitors every year. The Cosmopolitan Casino, situated in the heart of the Strip, is one of the most popular destinations for tourists and locals alike. However, behind the glitz and glamour of the casino lies a complex web of ownership disputes and changing hands. In this article, we take a deep dive into the history of the Cosmopolitan Casino’s ownership and who currently owns it.
The Cosmopolitan Casino: Tracing the Ownership Trail
The Cosmopolitan Casino opened its doors in December 2010, becoming the newest addition to Las Vegas’ plethora of luxury casinos. The Cosmopolitan quickly became a must-visit hotspot for travelers seeking a unique and trendy atmosphere. However, as demand for the casino grew, so did the questions surrounding the ownership of the property.
Before the current ownership structure, the Cosmopolitan had many different owners. The casino was originally developed by the German firm, Deutsche Bank AG. However, Deutsche Bank was facing financial difficulties in 2008, and in the wake of the financial crisis, the bank decided to sell the property to the Blackstone Group LP, a private equity firm.
Blackstone Group LP purchased the property in 2014 and immediately began implementing changes to make the casino stand out from its competitors. They invested more than $500 million into the property, adding new restaurants, clubs, and entertainment venues to attract visitors.
However, the Blackstone Group LP only owned the property for a few years before selling it to MGM Resorts International in 2018. The price tag? A whopping $1.73 billion.
Today, MGM Resorts International is the majority owner of the Cosmopolitan Casino and controls its day-to-day operations. However, this is not the whole story. When it comes to the ownership structure of the Cosmopolitan, things get even more complex.
Behind the Scenes: Meet the Owners of Cosmopolitan Casino
The ownership of Cosmopolitan Casino is not a straightforward process. MGM Resorts International may be the majority owner, but the property is also owned by numerous investors. Among these investors are a group of high net worth individuals whom Forbes estimates are worth a combined $67 billion.
The owners of the Cosmopolitan Casino include billionaires such as James Packer, Phil Ruffin, David Bonderman, and Lorenzo Fertitta, among others.
James Packer is an Australian businessman and investor. He is the owner of Crown Resorts, a company that owns and operates luxury hotels and casinos in Australia, London, and Macau. Packer is known for his big personality and flamboyant lifestyle, making him a frequent fixture in the international tabloids.
Phil Ruffin is an American businessman who owns several businesses, including the Treasure Island Hotel and Casino in Las Vegas. He is best known for his extensive real estate empire and his sponsorship of the Republican Party.
David Bonderman is a billionaire investor and founder of TPG Capital, a private equity firm. Bonderman has invested in a wide range of companies, from Airbnb to J. Crew, and has made a fortune from his investments.
Lorenzo Fertitta is the former CEO of the Ultimate Fighting Championship (UFC). He is a billionaire and one of the largest shareholders of the UFC. Fertitta has long been a well-known figure in Las Vegas, where he has invested in several casinos and hotels.
Each of these owners brings something unique to the table and has a vested interest in the success of the Cosmopolitan Casino.
Unraveling the Complex Ownership Structure of Cosmopolitan Casino
The ownership structure of the Cosmopolitan Casino is difficult to follow. The property is held by a limited liability company called Nevada Property 1 LLC, of which MGM Resorts International holds a 50.1% interest.
However, while MGM Resorts International may be the majority owner, the other owners hold significant smaller interests in the company. According to reports, James Packer owns 9.99% of the property, Phil Ruffin owns 5%, and David Bonderman owns 14.25%, with a few others holding even smaller percentages.
While this ownership structure can be difficult to understand, it does have its advantages. For one, it allows the property to be held by multiple investors, which can make it easier to obtain financing. It can also provide legal protection for the owners, as they are not personally liable for the debts of the company.
However, having so many owners can also be a drawback. Decision-making can become complicated, as each owner may have different priorities and opinions. It can also slow down the process of making decisions, which can be detrimental to the business in a competitive industry like Las Vegas’ casino market.
From Blackstone to MGM Resorts: A Look at the Changing Owners of Cosmopolitan Casino
Since its opening in 2010, the Cosmopolitan Casino has had several changes in ownership. The original owner, Deutsche Bank, sold the property to the Blackstone Group LP in 2014, who then sold it to MGM Resorts International in 2018.
Each owner has left their own mark on the Cosmopolitan. Blackstone Group LP invested over $500 million in the property during their time as owners, expanding the casino’s offerings and making it more competitive. MGM Resorts International, as the current majority owner, has continued to expand the casino’s offerings and solidify its position as one of the top casinos on the Strip.
There is speculation that the Cosmopolitan may see more changes in ownership in the future. With the ongoing pandemic impacting the casino industry, some speculate that MGM Resorts International may be looking to sell its interest in the property to raise cash and shore up its financial position.
The Battle for Cosmopolitan: The History of Ownership Disputes
When it comes to ownership disputes at the Cosmopolitan, there is a long and storied history. One of the most significant battles was between Deutsche Bank and the original developers of the property.
Deutsche Bank claimed that the developers, who were represented by Ian Bruce Eichner, had failed to meet certain construction deadlines and was in breach of contract. Eichner, on the other hand, claimed that the bank was trying to undermine his interests and dissolve the partnership.
The legal dispute was long and drawn-out, with each side claiming the other was at fault. However, in the end, Deutsche Bank was able to take control of the property, paving the way for its eventual sale to the Blackstone Group LP.
Inside the Boardroom: Decision Making at Cosmopolitan Casino
When it comes to decision-making at the Cosmopolitan, it is not just a matter of the owners making decisions themselves. In many cases, the owners are represented by a board of directors, who oversee the management of the property and make decisions on behalf of the owners.
The board of directors is responsible for many decisions, including approving the property’s budget, setting policies, and approving new initiatives. The board must work closely with the management team to ensure that the property is running efficiently and effectively.
However, not all decisions are made by the board of directors. On major issues, such as the sale of the property or major renovations, the owners themselves may be called upon to make the final decision.
Is the Owner’s Identity Important? A Debate on Transparency at Cosmopolitan Casino
Transparency is an essential aspect of good governance, and it is especially important when it comes to casino ownership. Knowing who owns a casino can help regulators ensure that companies are operating within the law and not engaging in any illegal activities.
However, not everyone agrees that transparency is necessary in the casino industry. Some argue that revealing ownership structures can put the owners at risk and make them targets for extortion or harassment. They also point out that the casino industry is highly regulated and that regulators have access to the necessary information to ensure that companies are following the law.
Others argue that transparency is necessary to ensure accountability and to prevent illegal activities such as money laundering. They point out that not having transparency in ownership structures can make it easier for individuals or companies to hide illicit activities.
When it comes to the Cosmopolitan Casino, there is no clear answer to this debate. While certain information about ownership is available to the public, the full details of the ownership structure remain shrouded in secrecy. However, if transparency becomes a more significant issue, it is possible that the owners of the property may be forced to reveal more about their interests in the property.
Conclusion
The Cosmopolitan Casino is one of the most popular destinations on the Las Vegas Strip, but its complex ownership structure has left many questions unanswered. While the majority owner is MGM Resorts International, the casino is also owned by a group of high net worth individuals, each with their own interests and priorities.
Despite the disputes and changing ownership, the Cosmopolitan Casino remains a favorite of locals and visitors alike. With the ongoing pandemic impacting the casino industry, it is possible that the ownership structure of the property may change once again.
The debate over ownership transparency in the casino industry continues, with no clear answer in sight. However, one thing is certain – the Cosmopolitan Casino will remain a staple of the Las Vegas Strip for years to come.