Andrew Fonfa's widow needs more time to finalize husband's estate and resolve legal disputes
The widow of Las Vegas real estate developer Andrew Fonfa, who built and opened the failed Lucky Dragon Casino Resort, said she needs more time to resolve pending litigation and resolve her late husband's estate.
The Nevada Gaming Control Board (NGCB) this week approved Jodi Fonfa’s application to extend her gaming license for three years. The Nevada Gaming Commission (NGC) is expected to formally approve the extension at its Jan. 25 meeting.
The late Fonfa developed the financing plan through the federal government’s EB-5 visa program. He attracted nearly 180 foreigners who invested at least $500,000 in the Lucky Dragon concept. The EB-5 visa program grants investors permanent residency. Projects should be built in areas with high unemployment.
In 2012, Fonfa opened the Lucky Dragon restaurant on West Sahara Avenue just west of the Las Vegas Strip. According to statistics, the unemployment rate in Las Vegas is more than 150% higher than the national average. At the time, Nevada had the highest unemployment rate in the country, nearly 12%.
Lucky Dragon has bad luck
Once the $165 million Dragon Hotel opened in December 2016, it became clear that it might not survive. At that time, the area was a no-man's land with few pedestrians.
The Asian-themed boutique resort closed its 40,000-square-foot casino in January 2018 after it failed to generate enough monthly gaming revenue to justify continued operations. The Forum's 203 rooms remain open for overnight stays, but without a casino or significant meeting space, the hotel is unable to attract a large number of overnight guests.
Those who stayed complained that restaurants were closed or had limited capacity and scolded hotels for continuing to charge nightly resort fees despite limited amenities.
Lucky Dragon closed in early October 2018. Fonfa subsequently faced a series of lawsuits from EB-5 investors and Snow Covered Capital, which invested more than $40 million in the property through investments and loans. . Snowland Capital said in a statement at the time that the operation of the Ruilong had "failed miserably."
Andrew Fonfa passed away in July 2020 at the age of 68 from a severe heart attack. In his obituary, he boasted of his business success and extremely high intelligence, with an "IQ of 160".
Her husband's executor, Jodi Fonfa, is now named as the lead defendant in a Snow Covered Capital lawsuit seeking the return of loans to Lucky Dragon. A 2023 lawsuit also alleges "fraudulent transfers of assets between Andrew Fonfa (deceased) and...Jordy Fonfa."
The Lucky Dragon was eventually auctioned off to local businessman Don Ahern for $36 million. In February 2020, just before the COVID-19 pandemic hit, he reopened the resort as a non-gaming facility called the Ahern Hotel.
Indian Springs Casino
In addition to being the majority owner of Lucky Dragon, Andrew Fonfa holds a 19% interest in the operation of Terrible's Casino in Indian Springs, about 30 miles north of Las Vegas. Jody claimed that at the time of his death, Andrew was transferring ownership of the position to his son, Evan Fonfa.
Her attorneys said if NGC renews the state gaming license Jody inherited and issues an appropriateness determination to maintain the franchise, it would provide the time needed to resolve the pending litigation.
The cases are expected to be resolved by the end of 2025. NGC transferred Andrew’s gambling license to Jody in January 2021 for an initial term of three years.
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Source: www.casino.org
