The proposed partnership between Harrah’s Entertainment and AEG to build a 20,000-seat, $500 million arena in Las Vegas has been dissolved, but all indications are that the arena will still be a reality.

The Sports Business Journal reported last month that Harrah’s is out and that a group including Hollywood producer Jerry Bruckheimer, MGM Studios CEO Harry Sloan and Wall Street financier David Bonderman will instead partner with AEG.

Harrah’s, however, issued a statement saying it will “continue to make land available for the project,” adding that  they “remain in negotiations with AEG to finalize the arena transaction.”

The overriding goal of the project is to lure a National Hockey League team to Las Vegas by 2010 or 2011. The Sports Business Journal reported that the announcement might be good news, because the NHL was not excited about having one casino operator develop the arena, possibly deterring other gaming companies from using it.

The project was first announced in August 2007. At that time, both companies said funding for the project was in place, and would go forward despite the troubled credit market.

Clark County Commission Chairman Rory Reid said that based on discussions with AEG officials, the project is still moving forward.

“AEG, according to them, has never announced a project that they haven’t broken ground on and completed,” he told the Las Vegas Review-Journal.

By Casino Connection Staff

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