The Year of the Rooster may have fared well for some but for the Lucky Dragon, the Asian-themed boutique hotel / casino resort in Las Vegas, Nevada, the fortune cookie didn’t have much fortune. After just one year in operation, the Lucky Dragon announced it was shutting down its casino and restaurants, however the hotel and Cha Garden would still be up and running.
This announcement was made on Thursday last week.
“Effective immediately Lucky Dragon Hotel & Casino is beginning the process of repositioning and, in doing so, will have a reduction in staff while it temporarily closes all gaming and restaurant operations,”
They went on to add that operations would resume in six months but did not go into specifics on their future plans other than,
“this reorganization paves the way for Lucky Dragon to establish new partnerships that will enhance the property’s long-term positioning and provide a better guest experience.”
A stiff competition
This closure may not come as too much of a surprise with stiff competition to contend with on a daily basis. Within months of opening, the Lucky Dragon immediately struggled to keep some of its restaurants afloat. Despite Asian inspired grandeur, the primary-used Mandarin language, the feng shui, the restaurant row resembling a genuine Chinese food market, and all the Chinese superstitions covered, it still wasn’t able to attract the slew of Chinese gamblers both visiting and residing in Las Vegas...
One of the Lucky Dragon’s drawbacks was its inability to match up in promos against the bigger establishments. And since it is sin city, no matter how opulent and tailor-made places are, players will continue to patron the establishments that offer the best value for their buck. It’s a dog-eat-dog world, especially for the newcomers looking to gain an advantage in the market.
A challenge for the EB-5 Investors
In addition to the challenges this temporary closure presents, according to the Las Vegas Review Journal, the Lucky Dragon was “funded with $60 million in loans from 120 Chinese families seeking a permanent green card through the EB-5 program.
Under the program, foreign investors can receive permanent green cards if they invest $500,000 in at-risk projects that create 10 jobs. EB-5 investors are generally willing to accept a nominal interest rate in order to receive the green card. The Lucky Dragon investors face the prospects of losing their money and right to a green card if the project fails.”
Article by Triccia David