Wynn Las Vegas has taken legal action against Fontainebleau, requesting a Clark County District Court judge to intervene and halt what they claim is the ongoing poaching of their executives by the rival resort.

Wynn’s Legal Filing Claims Fontainebleau Tempts Executives with Salary Boosts

In a recent court filing, Wynn attorneys outlined allegations that Fontainebleau has been actively enticing Wynn executives, who are bound by noncompete agreements, to abandon their positions and join the competitor, reported The Las Vegas Review-Journal. The motion, submitted on April 5, detailed instances where Fontainebleau allegedly offered substantial salary increases to lure Wynn employees away.

The motion asserted that Fontainebleau had repeatedly interfered with and attempted to interfere with Wynn’s employment agreements. It further argued that given Fontainebleau’s past behavior, it is likely to continue such practices, hence the request for an injunction to prevent further disruption of contractual relationships.

This legal tussle began at the beginning of March when Wynn initially filed a lawsuit against Fontainebleau. The complaint alleged persistent efforts by Fontainebleau to convince Wynn employees to switch sides.

The ongoing lawsuit later escalated with the submission of a response from Fontainebleau, including correspondence between the CEOs of both companies, revealing discussions about alleged attempts by Fontainebleau to attract Wynn executives. 

Executive’s Involvement Shapes Wynn-Fountainebleau Legal Battle

One such employee mentioned in the Wynn Las Vegas filing is Wayne Crane, a senior executive director of entertainment for Wynn Nightlife. According to the motion, Crane, who had been with Wynn for over a decade, was approached by Michael Waltman, senior vice president of nightlife at Fontainebleau. Waltman allegedly suggested Crane was undervalued at Wynn and discussed potential opportunities at Fontainebleau, including a significant salary increase.

Crane, although content at Wynn, expressed openness to new prospects, particularly if accompanied by a substantial pay raise. Fontainebleau reportedly offered Crane nearly double his current salary and proposed a workaround for the noncompete clause by assigning him to their Miami branch while allowing him to oversee operations in both Miami and Las Vegas from Nevada.

Crane eventually accepted Wynn’s counteroffer of a new three-year contract with substantially increased pay. This turn of events underscores the intensifying competition for talent in the Las Vegas hospitality industry.

While noncompete clauses are not prohibited in Nevada, legal experts speculate on whether this lawsuit might prompt a reevaluation of such contractual agreements in the state.Judge Mark Denton of Clark County’s business court is expected to rule on Wynn’s request for a preliminary injunction within the next month, marking a pivotal moment in this legal battle between two major players in the Las Vegas hospitality sector.

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Less than one month after the grand opening of the Fontainebleau Las Vegas resort, the latest chapter in the 70-year history of the iconic Fontainebleau brand, chief operating officer Colleen Birch and chief marketing officer Shane Smith have announced their voluntary resignations. 

Three High-Profile Exits So Far

The two join the resort’s now former senior vice president of casino operations, Michael Clifford, who made a similar announcement some two weeks ago. 

Through a statement issued by a resort representative, Fontainebleau Las Vegas thanked COO Birch and CMO Smith “for their contributions” while wishing them well in the future. 

The ex-CMO joined the resort at the start of 2023 thanks to his rich expertise in casino and development which included two years at Witkoff, the real estate company that temporarily owned the unfinished property prior to Fontainebleau Development. 

There, the Stanford graduate showcased his skills in development and strategy. Smith was also vice president, marketing & customer experience at The Palazzo at The Venetian and he spent two and a half years as chief of staff and chief marketing officer at The Cosmopolitan of Las Vegas.

Birch was appointed COO for the resort in November 2022. In the past, she was The Cosmopolitan of Las Vegas’ senior vice president of revenue optimization. She also took the position of revenue management director at Fontainebleau Las Vegas for ten months in 2008.

Ushering in “a New Era of Luxury Hospitality”

The $3.7 billion North Strip property with 67 stories is expected to usher in “a new era of luxury hospitality” for Fontainebleau Las Vegas. 

The casino spreads across 150,000 square feet and is joined by Savor Fontainebleau Las Vegas’ selection of “delectable restaurants, bars, and cafes, fit for any variety of craving or the most memorable occasions,” vibrant entertainment options and nightlife, and over 3,600 hotel rooms and suites.

The official opening date of the resort “built upon a legacy of sublime beauty, unparalleled service, and timeless design” was set for December 13, 2023, after it obtained the necessary approval from the Nevada Gaming Commission. 

The original concept of the resort was announced in 2005, right after Florida-based developer Jeff Soffer bought the historic Miami Beach property.

Last November, Nevada Gaming Control Board’s chairman, Kirk Hendrick, expressed the Board’s excitement to finally witness the project that has taken two decades to finally come to life. 

He added the resort would bring shine and glamour to a part of the Vegas Strip that has not been busy in a while. 

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Fontainebleau Las Vegas is a brand new Strip property set to welcome its first guests on Wednesday. While the casino hotel will offer premium gaming offerings, it will also double down on live entertainment and nightlife. Las Vegas Sun, a local news outlet, said that guests should be prepared for a “full and fresh Vegas resort experience.”

Set to open in a few days, Fontainebleau Las Vegas has been in development for some time now. The property boasts a stunning casino featuring a 150,000 square feet gaming area. Visitors will be able to play a variety of slots, table games and wager on sports. In the meantime, a VIP salon and a VIP rooftop experience will provide high-rollers with unprecedented thrill.

According to Fedor Banuchi, SVP of entertainment, special events and sponsorships, the Fontainebleau brand is “synonymous with entertainment, going back to the Rat Pack era.” Since the opening of the first Fontainebleau hotel in Miami in 1954, the brand has become a phenomenon loved by celebrities, high-rollers and regular players alike.

Fontainebleau LV Will Welcome Post Malone for a New Year Party

Banuchi believes that Fontainebleau’s commitment to entertainment is what sets it apart from other casino brands. In line with this philosophy, the Fontainebleau Las Vegas will celebrate its opening with a performance from the celebrity hip-hop singer Post Malone at the property’s 3,800-seat BleauLive Theater on December 30 and 31. Malone will also perform at Fontainebleau’s LIV club where he will be joined by Metro Boomin.

In addition to that, Fontainebleau will feature a variety of non-gaming venues designed to satisfy the needs of a variety of guests. For example, the Nowhere Lounge will offer live music every week. The LIV Nightclub, on the other hand, will provide nightlife lovers with a great place to party.

For reference, LIV is one of the best-known nightclub brands in the entire US. Its founder, David Grutman, opened a club at the Fontainebleau Miami Beach hotel in 2008 and is a longtime partner of the Fontainebleau brand. Grutman will also launch Papi Steak and Komodo restaurants at the casino hotel, further enhancing the overall experience provided by Fontainebleau Las Vegas. In the spring, he will also launch a LIV Beach pool club at the property.

Grutman concluded that he hopes for an explosive opening event with Fontainebleau Las Vegas.

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A massive casino resort project in Las Vegas that has been waiting to come true for nearly two decades is at the final stretch. Fontainebleau Las Vegas, the latest addition to the iconic Sin City anticipates welcoming its first visitors this December. The resort anticipates opening on December 13, 2023, and has been actively following its plan to meet this deadline.

Now, Fontainebleau Las Vegas made major progress after a meeting Wednesday with the gambling regulator in Nevada, the Nevada Gaming Control Board (NGCB), as announced by the Las Vegas Review-Journal. During the latest meeting, members of the Board questioned Jeffrey Soffer and Brett Mufson, two executives recommended to operate the luxury resort.

Overall, the debate went on for nearly an hour resulting in the unanimous recommendation for approval of the two executives by the NGCB. This step marked a milestone moment for the project, considering that there is one legal challenge left. After Wednesday’s vote of the Board, the executives would seek approval from the Nevada Gaming Commission on November 16, 2023. This would mark the final step prior to the planned opening of the casino resort in December.

Kirk Hendrick, NGCB’s chairman, said that the Board is excited to see a project that has taken some 20 years to finally come true. Moreover, he said that Fontainebleau Las Vegas would bring shine and glamour to a part of the strip that hasn’t been busy for a long time.

“We are certainly happy to see that this 20-plus-year project is coming to fruition as I’m sure you are as well. I’m also happy to see this is fixing and rejuvenating that portion of the Las Vegas Strip that has been dormant for so long, so thank you for that.“

Kirk Hendrick, chairman of the NGCB

Project at Final Stretch after Two Decades

It has taken the project some two decades to come this far. Initially, Fontainebleau was the idea of Soffer as the project started back in 2007. Several years later, due to the Great Recession, the project halted, falling into bankruptcy. After that, Fontainebleau’s ownership changed a few times before Soffer took it back in February 2021.

Fontainebleau Las Vegas represents a multi-billion-dollar investment and promises to bring supreme entertainment. The casino resort would offer more than 3,600 rooms and a massive 173,000 square-foot casino floor. This places Fontainebleau among the venues with some of the biggest gaming floors in Sin City. The massive resort is expected to employ just over 7,000 workers, offering some 5,000 full-time positions. During the latest meeting, Mufson explained that 1,850 employees have already been hired.

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In anticipation of its grand opening on December 13, Fontainebleau Las Vegas, the dazzling resort nestled on the northern stretch of the iconic Las Vegas Strip, has announced pivotal additions to its leadership team. 

Fontainebleau Las Vegas Welcomes New CFO and CAO

John Helderman, a distinguished professional with 25 years of experience in gaming, finance, and accounting, has been appointed chief financial officer of the resort. Accompanying him in the top ranks is Stacie Michaels, who has been promoted from general counsel to chief administrative officer, expanding her responsibilities to encompass legal, risk management, internal audit, compliance, and workers’ compensation functions within the organization.

Mark Tricano, President of Fontainebleau Las Vegas, expressed his confidence in the newly appointed executives, stating: “As we near our global debut, we are developing a successful culture under the guidance and perspective of seasoned leaders in gaming and beyond.” 

He emphasized the invaluable expertise that Helderman and Michaels bring to the resort. Their deep understanding of the Las Vegas market and their exceptional leadership skills align seamlessly with the vision of Fontainebleau Las Vegas.

Fontainebleau Las Vegas, the highly anticipated 67-story casino resort on the iconic Las Vegas Strip, is to open its doors to the public on Wednesday, December 13. Despite facing delays due to economic challenges and the COVID-19 pandemic, the resort, acquired by Fontainebleau Development and Koch Industries in 2021, secured a $2.2 billion loan last year, ensuring the completion of the ambitious project. 

Michaels and Helderman Elevate Resort’s Leadership

Having previously served as chief financial officer for The Brennan Entities, a prominent Las Vegas-based financial services operator, and in a similar capacity for Bluberi Gaming, a leading slot company, John Helderman brings a wealth of experience to his new role. His track record also includes stints as vice president of finance for multiple Las Vegas Strip resorts. Helderman is a graduate of the Las Vegas Chamber of Commerce’s Leadership Las Vegas Class of 2022.

Stacie Michaels, a legal luminary, transitioned into her elevated role at Fontainebleau Las Vegas after a decade-long tenure in various capacities within the Las Vegas gaming and hospitality industries. Michaels, a graduate of New York Law School, earned recognition as one of Vegas Inc.’s “40 Under 40” in 2017. Apart from her professional achievements, she actively contributes to the community, serving on the board of trustees for Discovery Children’s Museum and the Meadows School.

Fontainebleau Las Vegas recently strengthened its senior-level team. Mark Tricano, a veteran with extensive experience in hospitality, gaming, and finance, was appointed as the resort’s president. Michelle Reda, another industry expert with over two decades of experience, took on the role of chief casino marketing officer, while Kimberly Virtuoso, who contributed significantly to the resort’s human resources strategy, was promoted to senior vice president of people. 

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The long-anticipated opening date for Fontainebleau Las Vegas, the towering 67-story casino resort on the iconic Las Vegas Strip, might have just been revealed. While Fontainebleau has yet to officially announce the date, a recent report from the Las Vegas Review-Journal suggests that Wednesday, December 13, is the day when the resort will unlock its doors to the public.

Fontainebleau Las Vegas Overcomes Delays for December Debut

The Fontainebleau Las Vegas, known for its distinct blue tower, will be the first new casino resort to grace the Las Vegas Strip since Resorts World‘s debut back in June 2021.

Standing tall as the tallest building in Nevada, the Fontainebleau will house a staggering 3,644 hotel rooms, making it a prominent addition to the Las Vegas skyline. Additionally, it boasts over half a million square feet of convention and meeting space, with its primary exhibition area sprawling over 105,200 square feet. It’s a testament to the resort’s grandeur, as it rises from the ashes of the demolished El Rancho Hotel and Casino site.

The journey to this grand opening has been fraught with challenges. Initially announced in May 2005 with a projected opening in 2008, the Fontainebleau faced setbacks due to the Great Recession and the impact of the COVID-19 pandemic. However, Koch Industries’ real estate investment arm, in collaboration with Miami real estate developer Jeffrey Soffer’s Fontainebleau Development, acquired the towering structure in 2021, giving new life to the iconic project.

In December last year, Fontainebleau Las Vegas secured a $2.2 billion loan from various banks and investors, ensuring the completion of its long-delayed project, with plans to open in 2023.

While in June this year, Fontainebleau Las Vegas made strategic senior-level appointments to bolster its leadership team ahead of its December opening, with Mark Tricano becoming the president, Michelle Reda taking the role of chief casino marketing officer, and Kimberly Virtuoso being promoted to senior vice president of people. 

Fontainebleau Las Vegas Unveils Extravagant Casino, Dining, and Entertainment Options

Fontainebleau Las Vegas will offer a vertically integrated casino experience, much like the Cosmopolitan, with its gaming area occupying the ground floor and the second and third floors dedicated to retail and dining. The casino floor is set to feature an array of 1,300 slot machines, including multigame options with video poker, keno, and blackjack, as well as 127 table games offering blackjack and three-card poker. Enthusiasts can also look forward to a spacious sportsbook spanning.

The resort plans to pamper visitors with 90,000 square feet of high-end retail space, though specific retailers are yet to be announced. In the culinary department, Fontainebleau aims to delight with 27 upscale dining options, including the American restaurant Vida and Southeast Asian cuisine at Komodo, among others.

Entertainment seekers will be spoiled for choice with three distinct venues – a day club, a nightclub named LIV, and a massive 3,800-capacity theatre, all curated by Miami-based Groot Hospitality and nightlife guru David Grutman. Fontainebleau has already managed to lure superstar DJs Tiesto and Zedd away from Resorts World’s Zouk Group, setting the stage for thrilling nights on the Strip.

High above, the resort’s rooftop pool deck will offer seven different pool experiences sprawled across six acres, providing a luxurious retreat for guests.

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Fontainebleau Las Vegas is well on its way to opening in December with a preliminary Nevada Gaming Control Board suitability hearing in the rearview mirror and a Nevada Gaming Commission hearing on July 27 which almost certainly result in a recommendation to grant the property a license in November. Then, it’s all blue skies, or Fontainebleau wrapping up the details to open in December – finally, after breaking ground in 2007 and investing nearly $4 billion dollars in the development and surrounding economy.

Long Time in Development, Multiple Setbacks

The nearly 70-floor property has stood out on The Strip for years, at one point, it was swathed in white construction wrapping and called an eye-sore by neighboring businesses when in the hands of another owner.

A quick rundown of the type of property visitors can expect when it is opened all point to a high-end experience with over 400 suites included in a count of over 3,500 hotel rooms.

The casino space will be modest by the percentage of total floor space with about 150,000 sq ft of gaming area holding 128 gaming tables and 1,300 slots. High rollers and mid-rollers will be catered to with nearly 20,000 sq ft of VIP gaming space and over 3,000 square feet of domestic high-limit floor. There will reportedly be 6 Salons Privé. Sports bettors will find a dedicated space of more than 13,000 square feet.

The casino will be at ground level with a retail promenade above it and health and fitness above that. Over half a million square feet of convention and meeting space is included with one area covering over 100,000 square feet making it the second-largest meeting hall in the market.

About half of the dining space will be high-end and the remainder reserved for casual dining. The upscale areas will include international chefs and globally recognized brands.

Nightlife has not been overlooked with a nightclub as well as a day club and a theater to seat nearly 4,000 visitors. Development partner “It’s an arena-size theater stage and it will be a multi-purpose room,” Fontainbleau development partner Brett Mufson said. “We will have residences and host groups and meetings, speaker series, and car events.”

To Employ 7,000+

Nearly 4,000 workers are currently on site and operations will require more than 4,500 full-time workers and nearly 2,000 part-time employees. At full operational capacity, including partner employees, over 7,000 people will be employed with some 250 in executive positions.

At Wednesday’s preliminary hearing, Jeffrey Soffer and Brett Mufson of Fontainebleau Development were found suitable to operate the property. They will face the Gambling Board soon for what usually results in a rubber stamp after a few tough questions that may be left dangling, giving applicants a chance to tidy up any loose ends and give finality to any open questions not fully addressed at the preliminary hearing. In this case, it may be a tax matter from a decade ago and whether any debt forgiveness was included in Soffer’s repurchase of the loan involved in the property.

Soffer was the original developer, but he ran into difficulties when the great recession set in and turned the economy upside down in 2008. The current development also includes the deep pockets of Koch Industries’ real estate investment subsidiary, Koch Real Estate Investments. Raider/investor Carl Icahn owned the property for a while but it didn’t progress toward opening under his ownership.

Concerning the “suitability” issue that was brought up during the hearing, gambling lawyer Frank Schreck provided some detail. Schreck said:

“The focus of the investigation appears to be an analysis of a loan related to the development of Town Square more than 10 years ago. It was purchased from the lender by Jeff Soffer and his sister Jackie. According to Mr. Soffer’s counsel, Rod Rosenstein, the former Acting Attorney General, the issue seems to be whether or not there was any debt forgiveness related to the repurchase of that loan. We are still unsure whether Mr. Soffer’s tax accountants properly accounted for any forgiveness in the complicated transaction.”

Thanks to the consequences of the “Great Recession” of the late 2000s, Soffer reportedly had hundreds of millions of dollars of net operating losses. These would presumably be available on paper to take care of any tax liability.

Second Chances

Soffer has owned the property again since February 2021.

“Soffer said, “It’s been a full circle with this development and I’m excited to be able to finish this. It’s going to be fabulous for Las Vegas. It’s definitely a little different than originally planned. It’s much more upscale.”

According to an article in CDC Gaming Reports, Gaming Control Board Chair Kirk Hendrick didn’t have any concerns about earlier failures of the property during the “economic downturn” of the 2000s.

“I’m very excited for that part of the Strip to see some revitalization and your property move forward,” Hendrick said.

According to local ABC News affiliate KTNV, US casinos made a record-breaking $60 billion in revenue in 2022. Nevada casino operators accounted for $14.8 billion, and casinos on the Strip accounted for more than 10%, or $8.2 billion of the entire nation’s gambling revenues, making the Las Vegas Strip the top gaming market in America. A distant second was Atlantic City with 2022 revenues of $2.8 billion last year.

Source: Fontainebleau Las Vegas on track for November licensing ahead of December opening, CDC Gaming Reports, July 12, 2023

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