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In another gut punch to the Las Vegas economy, a downtown hotel and casino has defaulted in a $90 million construction loan.
We're talking about the off-strip property, the Downtown Grand Hotel & Casino in Las Vegas.
This shouldn't come as a shock to anyone who has followed Scott Roeben's insider coverage of the Vegas scene. He first reported on vendors not receiving pay checks this past summer.
He offered all the buzz back in July.
The ongoing Downtown Grand saga has reached DEFCON 1, with the financial community and employees buzzing with rumors about the potential of the downtown casino going under.
We thought DEFCON 4 was worse than DEFCON 1, but DEFCON 1 is actually the highest level of readiness for nuclear war. DEFCON 4 is pretty chill by comparison. (See graphic later in this story.)
Yes, there’s going to be a lot of fluffery in this story, as nobody’s gone on the record and Downtown Grand and its owner CIM Group have been mum, but it’s bad.
It's now been confirmed that the hotel-casino’s lender Banc of California filed a lawsuit in December 2025 against the property’s owners after they stopped making interest payments back in March 2025 and did not pay off the loan at its August 2025 maturity date.
Court-appointed receiver Paul Hugens of Province LLC is seeking a sale of the property under Nevada’s Uniform Commercial Real Estate Receivership Act.
The property owner CIM Group purchased the former Lady Luck casino in 2007 for $100 million, spent another $100 million in 2013 for a renovation, then obtained a $90 million construction loan for the 2020 Gallery Tower expansion.
The eight-story, 495-room hotel expansion increased the resort’s inventory to 1,124 rooms.
- Aaron Goldstein, Gambling911.com
