Downtown Las Vegas Casino Enters Receivership After $90M Default

The Downtown Grand has been operated by a court-appointed receiver since January, after defaulting on a major construction loan.

Mar. 28, 2026 at 10:06pm

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The Downtown Grand casino hotel in downtown Las Vegas has been under court-appointed receivership since January 2026 after defaulting on a $90 million construction loan. The property's owner, CIM Group, had spent over $200 million acquiring and renovating the former Lady Luck casino, but was unable to secure a sale to new buyers in 2024 and 2025 despite interest. The receiver is now aggressively marketing the property to find a new owner who can take over the casino free and clear of its previous debts.

Why it matters

The Downtown Grand's receivership highlights the financial challenges facing some Las Vegas casinos, especially older properties in the downtown area, as they compete with newer resorts on the Strip. The case also showcases Nevada's Uniform Commercial Real Estate Receivership Act, which allows a judge to approve a sale that wipes away a property's previous unpaid debts, potentially making it more attractive to new buyers.

The details

The Downtown Grand defaulted on a $90 million construction loan from Banc of California in March 2025, leading the lender to sue the ownership entities in December 2025. A court then appointed Paul Hugens of Province LLC as the receiver to operate the casino hotel while it is marketed for sale. Hugens has already circulated information to 162 potential buyers, resulting in 25 signed NDAs and 17 meetings with interested parties.

  • The Downtown Grand defaulted on its $90 million loan in March 2025.
  • Banc of California sued the ownership entities on December 23, 2025.
  • A court appointed Paul Hugens as the receiver on January 5, 2026.

The players

Downtown Grand

A casino hotel located in downtown Las Vegas that was formerly known as the Lady Luck, established in 1968.

CIM Group

The Los Angeles-based real estate investment firm that acquired the Lady Luck in 2007, spent $100 million on renovations, and then added a $90 million expansion in 2020.

Banc of California

The lender that provided the $90 million construction loan to the Downtown Grand's ownership entities and sued them after they defaulted on the loan.

Paul Hugens

The court-appointed receiver from Province LLC who is now operating the Downtown Grand and aggressively marketing it for sale.

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What’s next

The receiver, Paul Hugens, is continuing to market the Downtown Grand to potential buyers and utilize Nevada's Uniform Commercial Real Estate Receivership Act to facilitate a sale that would allow a new owner to take over the property free and clear of its previous debts.

The takeaway

The Downtown Grand's receivership highlights the financial pressures facing some older downtown Las Vegas casinos as they compete with newer resorts on the Strip. However, Nevada's receivership laws provide a pathway for distressed properties to be sold to new owners unencumbered by previous owners' unpaid debts, potentially making them more attractive acquisition targets.