Jay-Z's Las Vegas 40/40 Club Is No More, Closure Explained

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Published: Friday - August 29, 2008
Words by Ronnie Gamble

Jay-Z (Photo: Def Jam)

After being opened for just nine months, Jay-Z's 40/40 Club in Las Vegas has been sold off to the Las Vegas Sands Corp. -- well, the location has, since it's location at the Palazzo Hotel Casino is prime real estate.

According to the Los Angeles Times, the rumored closing became official Wednesday (August 27). However, terms of the deal have not been disclosed.

Reps for both Jay-Z and the Palazzo said, "It was a business decision."

While reports said that the 40/40 in Vegas was failing to draw in enough people, Jay's camp said that is not true, claiming it was "doing good business."

"If you went there on a weekend you saw it was packed. Maybe, at other times it wasn't as crowded. But that is true everywhere. The club was doing fine. What is going on here is that (40/40's 24,000 square feet) is valuable real estate, and they came to us with an offer and this was a good business deal," Jay's spokesperson Ron Berkowitz told the paper.

A spokesperson for the Palazzo, Ron Reese, gave the LA Times almost the same explanation. "This was a business decision pure and simple," Reese said.

The Palazzo has a gaming license, and can now use the space for more gaming, tables and slots -- something that wasn't available when it was the 40/40.

"As you have seen from being down there, our current sports book offering is less than ideal. We want to change that and taking back the 40/40 space is the ideal option," Reese continued.

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COMMENTS (10)

Sircarpediem Says:
Friday - September 5, 2008 at 12:10am

Google research this subject from other sources. Jigga was not only asked to get that 24k sq foot back but Sands Casino bought into 40/40. NOW, you will be able to gamble INSIDE all the new 40/40 clubs. New ones and old ones. Lets see, Jigga had $600mil plus the $150mil from Live Nation. Who dont think he going to put away $250mil more in about a year just from the gambling? Jay and B combined income already have them at billionaire status, She has $300mil on her own. The Sands deal now makes him a 10 figure Jigga...

Sircarpediem Says:
Friday - September 5, 2008 at 12:08am

Do the math and google research on this subject from other sources. Look like jigga was not only asked to get that 24k sq foot back but Sands Casino bought into 40/40. NOW, you will be able to gamble INSIDE all the new 40/40 clubs. New ones and old ones. Lets see, Jigga had $600mil plus the $150mil from Live Nation. Who dont think he going to put away $250mil more in about a year just from the gambling? Jay and B combined income already have them at billionaire status, She has $300mil on her own. The Sands deal now makes him a 10 figure Jigga...

giantnyc Says:
Wednesday - September 3, 2008 at 12:47am

I get that part but for me "taking back" means you were letting someone use/hold whatever the item is and you are now reclaiming it; meaning the other person never owned it. He did not say it was purchased. He said it was "taken back." You can't really take something that is not yours to take. On the other hand, if something is yours it cannot be "taken" from you(unless Omar catches up to you)

Bigg J Says:
Tuesday - September 2, 2008 at 7:09pm

Taking back space means that the space the 40/40 was taking up can now be used for gaming purposes. Gambling is the big business here in Vegas. So, 24k square feet of sapce can make a big difference in revenue for a casino.

giantnyc Says:
Tuesday - September 2, 2008 at 8:51am

What does Reese mean when he says "taking" back the 40/40 space? It could be nothing but that is an odd word to use in describing a freely entered into business transaction.

Sunny Says:
Tuesday - September 2, 2008 at 1:16am

I know Beyonce soo happy.

giantnyc Says:
Monday - September 1, 2008 at 9:48pm

What does Reese mean when he says "taking" back the 40/40 space? It could be nothing but that an odd word to use in describing a freely entered into business transaction.

Sean Says:
Monday - September 1, 2008 at 9:04am

When you charge $13 for a vodka tonic filled to the top with ice, $3 for a coke, $3 for refills, and an automatic 20% gratuity for two people who have three drinks and two appetizers, I can see why you'd have a tough time filling the place. Amazing looking space but totally hidden and not really appropriate for the Palazzo.

jordan41 Says:
Monday - September 1, 2008 at 5:45am

Handle your business Jigga.

~olga~ Says:
Friday - August 29, 2008 at 1:49pm

at the end of the day, it's about business and it's about transactions...when the price is beyond right ( and trust me it was), then it's a wrap. What more can be said..."SOLD". My man :-)