When the news surfaced in late 2020 about the Las Vegas Convention and Visitors Authority (LVCVA) acquiring the Las Vegas Monorail Co. out of bankruptcy, supporters of the once-promising tram system saw it as a chance for revival.
Remember to check out the top Vegas betting sites where you can wager online and choose the best one.
In reality, it marked a path to its demise.
Many are unaware that the LVCVA’s plans included an $11 million budget for dismantling the monorail, which could happen as soon as 2028 but certainly by 2030.
The challenge lies in maintaining the monorail, for which the LVCVA pays a California-based firm up to $500,000 yearly.
Maintaining it has become very challenging. Eventually, it will require a replacement part that simply isn’t available anymore.
And vintage monorail components won’t be found on eBay anytime soon.
The monorail operates nine Innovia 200 trams, each consisting of four cars specifically designed for its four-mile track.
Bombardier in Quebec exclusively produced these trams, which have since ceased manufacturing them.
After accumulating significant debt, Bombardier sold its rail division for $6.7 billion to French company Alstom in 2021.
Alstom now only produces a newer model, the Innovia 300, which has a beam width of 27.2 inches, making it incompatible with the older model’s 26-inch design.
For a time, the monorail’s management had hoped that Disney World would upgrade its Mark VI trams, allowing them to acquire the retired units. (The original Vegas monorail, which connected the MGM Grand and Bally’s from 1995 to 2002, utilized two retired Disney World Mark IVs.)
However, Disney faces the same challenge as Las Vegas: though it could purchase a new monorail system, it would have to build entirely new tracks.
While it’s not impossible to create a new monorail compatible with the existing tracks, no one seems eager to take on that specialized task.
The Las Vegas monorail originated when the original MGM Grand-to-Bally’s route expanded in 2003 to include seven additional stops along the bustling resort corridor.
You’ll check back here regularly to stay updated on the news.
The Las Vegas Monorail has never turned a profit — though it was never intended to, as it was designed to function as a public service.
While the project’s $650 million construction (equivalent to $1.12 billion today) did not rely on public funds, Nevada did provide the largest state-issued bond investment in its history.
Aside from its recent bankruptcy, which marked its second, some indicators suggested there were underlying issues. One such sign was the surprisingly low price of $24.3 million paid by the LVCVA for a system with such a hefty construction cost.
Additionally, the silence surrounding the plans for extending the monorail to Mandalay Bay/Allegiant Stadium and MSG Sphere is telling.
Clark County approved these extensions in 2018, and they are projected to open in 2021.
In October 2019, the monorail announced that it had secured $33.5 million in funding from Dallas-based Preston Hollow Capital to finance this expansion.
Las Vegas Monorail Co. CEO Curtis Myles touted the benefits of adding two new stations and enhancing mobility along the resort corridor, but those plans seem to have vanished from LVCVA’s agenda since then.
So, why did the LVCVA acquire a fading transportation system?
The answer lies in the monorail’s noncompete clause, which prevents any other entity from developing an off-street transportation service for the Strip.
Coincidentally, the LVCVA had already entered into a $48 million agreement with Elon Musk’s The Boring Company in 2019 to create the Vegas Loop, which would likely breach the monorail’s noncompete stipulation.
When the LVCVA eventually decides to cease monorail operations, agency representative Hill suggested they might repurpose the elevated guideways rather than tearing them down.
One potential vision includes transforming the guideways into an elevated expressway, allowing for lanes of traffic in both directions and possibly integrating with The Boring Company’s Vegas Loop service.
Currently, monorail ticket prices are $5.50 for a one-way ride, $13.45 for an unlimited 24-hour pass, and $57.50 for a seven-day pass. Trains arrive every four to eight minutes.
Don’t forget to check out our Las Vegas hotel and sportsbooks reviews and see below the list of the best online sportsbooks.
