How quickly could Trump build casino in Las Vegas?

By Thomas Moore

Friday, March 31, 2017 | 2 a.m.

With four acres of land a short walk from Las Vegas Boulevard, President Donald Trump and his business partner Phil Ruffin have an opportunity to build a casino near one of the busiest parts of the Strip. And, according to a recent Forbes article, that’s exactly what they’re thinking about doing.

The land in question is a paved parking lot, adjacent to the east side of Trump International Hotel, owned jointly by Trump and Ruffin, on the north side of Fashion Show Drive across from the mall.

The gold-colored high-rise was conceived to be a condominium tower when construction started in 2005. But it was completed in 2008, just as the recession began, and prospective condo investors withdrew. So the Trump organization shifted strategy and opened the building as a hotel, although it is still possible to purchase a condo unit.

But how long would it take for Trump to add a casino to the building, and could it be built and open before Trump finishes his first term?

The answer depends, in part at least, on two questions: how quickly the owners and key employees (Trump, his sons and Ruffin) could be licensed for gaming in Nevada and how soon they could they could get the permits and permissions needed to start construction.

Gaming Licensing

The fact that Trump is president wouldn’t technically prevent him from holding a gaming license. Nevada gaming regulations, specifically Regulation 11, say Nevada’s government employees and politicians cannot hold a gaming license but they don’t address federal officeholders at all.

Still, Regulation 11 could offer guidance should a federal politician apply for a license, says A.G. Burnett, chairman of the Nevada Gaming Control Board — which along with the Nevada Gaming Commission regulates gaming in Nevada.

“It’s rare that we have someone who is an elected official asking for gaming approval,” Burnett said. “(The regulation) says a gaming license cannot be held by someone who holds office in the state of Nevada or any of its political subdivisions. So it wouldn’t address federal politicians. But it might be looked to in terms of policy guidance if a federal public official applied for gaming license.”

Everyone who applies for a license faces an extensive investigation and at least two hearings, one before the Control Board and one before the commission. That investigation looks into their business dealings, their personal finances, any brushes they’ve had with the law (whether formally charged or not) and any personal issues they have, like substance abuse or gambling habits, that could potentially bring disrepute to Nevada’s gaming industry.

Burnett said a major factor that determines the length of the investigation is the level of ownership the applicant has in the gaming company.

“There are different regulatory requirements that concern the percentage of interest that they may have, and there are different levels of investigation they may have to go through based on the percentage of their holdings,” Burnett said.

Owners with less than a 5 percent interest in the company face the same process — which still looks into their backgrounds — that blackjack dealers and casino hosts face. For those who own more than 5 percent, the investigation is more rigorous.

The fact that Trump has taken steps to distance himself from the management of his businesses may not matter.

In response to concerns about conflicts of interest, Trump and the White House have said that Trump is conveying his business operations to a trust.

In a January press conference and white paper that outlined the ethics plans (and their legal justifications), Trump said his businesses would be managed by his sons Eric and Donald Jr. and his Chief Financial Officer Allen Weisselberg.

Creating trusts does not always inoculate people from Nevada’s gaming licensing process, Burnett said.

“It can become complex when it comes to trusts,” Burnett said. “It depends on how the trust holds the gaming license. But there’s probably no difference if the person is the trustee. A general rule is that we look to who holds control over the company, regardless of how they hold it.”

Another factor that could affect the process is if the applicant is currently, or has been licensed before. In this case both Trump and Ruffin are covered.

Ruffin is currently licensed as the owner of Treasure Island. And several years ago, Trump was licensed as a significant shareholder of stock in the Riviera, Burnett said. The casino no longer exists, and Trump’s license has lapsed.

Even so, it would still be an advantage, Burnett said.

“In general, you have to look at the type of approval that was received in the past,” Burnett said.

“If it was an outright gaming license and the applicant went through that level of scrutiny it would speed things up. If someone already applied for a license, then the current one would in essence be an update from that time to present.”

For example, Burnett said, if someone was approved for gaming license in 2015, then the board would look at the person’s history from 2015 to 2017. “In that timeline, it would only be a two-year update which would make it much quicker.”

Overall, Burnett said, the Control Board has become so efficient that the process doesn’t typically drag on too long.

“It’s entirely dependent on who it is, how quickly they file applications and how responsive they are to us, so it’s impossible to give any specific timing,” he said. "But I can’t see any individual taking longer than a year to be investigated.

“And the only thing that would take it into a year time frame would be if the company has like 10-12 individuals who have lived around the world and who have extensive international business dealings. But, it would take six to nine months for the typical businessperson.”

Construction Permitting

But a gaming license is only one factor that determines how fast a major casino can be built and opened.

There are also financing and marketing considerations. Ruffin and Trump could probably fund the casino on their own — Ruffin did buy Treasure Island with his own cash — but they could decide to reach out to investors. They would also need to develop a marketing plan and a design concept.

Of course, there’s no way to know how long those internal business machinations could take. What you can know is how long it would take for Clark County (not the city of Las Vegas) to issue the necessary permits and approvals needed to start construction on a large building like a casino near the Strip.

The endgame of the permitting process is having the Clark County Commission approve special use permit and a development agreement.

But initially, according to Dan Kulin, a spokesman for Clark County, developers must submit a traffic study and a RISE/PFNA report, which addresses the impacts the project would have on regional infrastructure issues and things such as water, sewer, fire and police services.

As part of the RISE report, the developer has to conduct a study of flood and drainage conditions. Kulin said it’s possible for work to begin once that report is accepted. “If you’re doing the drainage study during this RISE/PFNA process it would be possible to get, say, a grading permit and start,” Kulin said.

It is technically possible, Kulin said, that the developer could submit all their forms and applications and go before the County Commission in a little less than half a year.

It’s possible, Kulin explained, but very unlikely because the developers have to do their own internal scheduling, hire the firms to conduct the specialized engineering studies and also respond to any requests or questions the county has about the project.

“That (time frame) is sort of a perfect-world scenario,” Kulin said

He also said it doesn’t take into account any other issues the parcel of land could have that might delay the process like Federal Aviation Administration height restrictions, utility easements, underground stormwater facilities, etc.

Permitting Timelines for Recent Projects

• Cosmopolitan: Started the permitting process in 2004; opened in 2010

• Hard Rock Hotel and Casino: Began the permitting process in 1991; opened in 1995

• The Venetian: Started applying for permits in 1996; opened in 1999

• The Wynn: Began the permitting process in 2001; opened in 2005