Mirage Las Vegas Reportedly Suing Condo Developer Over $25K Gambling Debt

Posted on: March 2, 2023, 07:17h. 

Last updated on: March 6, 2023, 01:03h.

Ed Silverstein @casinoorgedsilv Read More
Expertise: Legal, Tribal Gaming.

The Mirage Las Vegas recently headed to court in New York City to collect over $25,000 in gaming debt from Manhattan real estate developer Josh Schuster, according to a news report.

Josh Schuster
Josh Schuster, pictured above. The New York condo developer reportedly is facing litigation for a gambling debt. (Image: The Real Deal)

Schuster is currently disputing the total amount owed to the casino. He has already paid back $325K to the Mirage for debts linked to his company, Silverback Development. The $350K in notes was incurred during the 2019 International Council of Shopping Centers (ICSC) conference in Las Vegas. Schuster allegedly signed notes at the casino, promising he would pay the money back.

The casino’s attorneys claim Schuster still owes $25K plus $4,600 in interest, according to a report from The Real Deal, a national business publication. Schuster incurred a judgment on the debt in Clark County, Nev. court after not appearing for a 2021 hearing.

Schuster responded that a Silverback Development client incurred the debt in question at the ICSC conference. Schuster said he expects to settle the debt for less than $25,000.

Gambling Credit Explained

Such “markers” are typically designed to be interest-free ways casino players can get gambling credit. The signed notes often are supposed to be paid off within a month or so.

Some 20,000 people a year fail to pay on their extended gaming funds, according to Almase Law, a Las Vegas-based firm that specializes in casino marker defaults.

Who is Josh Schuster?

Schuster’s firm has completed more than $650 million in real estate development. That translates to one million square feet of space. His achievements led to him getting named a Real Estate Rising Star by The Real Deal. He was also named a Real Estate Forum Emerging Multifamily Leader.

But Schuster has faced other recent litigation. He was the defendant in several lawsuits directed at Silverback. In the court actions, investors and colleagues reportedly claim he reassigned money from one project to another. The litigation also claims $2M allegedly disappeared under his watch.

But Schuster told The Real Deal in a March 2022 interview that several lawsuits were settled, projects were refinanced, and real estate projects were completed.

Hard Lessons

But Schuster is confident he will overcome the new legal. During The Real Deal interview, he admitted that he learned lessons from the COVID-19-linked downturn in New York’s real estate market.

I think we’ve learned from the last two years,” Schuster said pointing to several issues exaserbated by the pandemic. These include an increase bankerupcies, tenants not being able to pay rent, condos not selling, and  consturctions falling behind schedule.

The Mirage is currently being transformed into a Hard Rock property. When it’s complete in 2025, the renovated complex will feature the brand’s guitar-shaped hotel tower.