The Great Recession hit Las Vegas harder than almost any other American city. Construction cranes froze mid-swing, half-built towers stood as monuments to hubris, and the city faced an existential crisis unlike any since the 1931 legalization.

The Casualties

The Fontainebleau, 75% complete, ran out of money and stood as a 63-story blue shell for years. Echelon Place, intended to replace the Stardust, became a massive hole in the ground. The Cosmopolitan's developer went bankrupt, forcing Deutsche Bank to become an unlikely casino operator.

CityCenter's Near-Death

MGM's $9.2 billion CityCenter project nearly collapsed, requiring an emergency investment from Dubai World to complete. The project opened into the teeth of the recession, a monument to either ambition or folly depending on your perspective.

The Restructuring

Major operators went through bankruptcy or near-bankruptcy. Caesars Entertainment, saddled with debt from its 2008 leveraged buyout, would eventually restructure in 2015. Station Casinos, the locals' market leader, filed for bankruptcy in 2009.

The Lessons

The recession forced a fundamental rethinking of Las Vegas's business model. The era of debt-fueled expansion was over. In its place came the REIT revolution, the focus on non-gaming revenue, and a more disciplined approach to capital allocation.