When Hollywood Almost Came to Vegas: The Studio Deals That Fell Apart

Las Vegas almost became home to major Hollywood film studios. Both Sony Pictures and Warner Bros. Discovery had grandiose plans to build massive production facilities in Nevada, but years of planning, billions in promised investment, and support from major celebrities later, these projects collapsed in 2025.

The story shows how close the entertainment capital of the world came to becoming an actual film production hub.

The Big Promise

In 2024, Sony Pictures announced its plans for Summerlin Studios. This wasn’t just another soundstage. The company wanted to build a $1.8 billion complex featuring 10 soundstages, production facilities, and a two acre backlot on 31 acres near Flamingo Road and Town Center Drive in Summerlin, Nev.

Warner Bros. Discovery had bigger ambitions. First, the studio proposed an $8.5 billion project at the Harry Reid Research and Technology Park near UNLV. They promised to spend $500 million annually on productions over 17 years. The plan also included partnerships with the University of Nevada, Las Vegas to create educational opportunities for film students.

There was one thing both companies needed to make it happen. Nevada would have to dramatically expand its film tax credit program from $10 million annually to nearly $100 million per year.

The First Cracks Appear

Warner Bros. hit trouble early. In January 2025, the studio split from Birtcher Development, the California company that was supposed to build their UNLV facility. In February, Warner Bros. officially withdrew from that whole project.

The studio didn’t give up, though. Warner Bros. did an about-face. They buried the hatchet with Sony and joined to support the Summerlin Studios project together.

This partnership seemed like it would strengthen the proposal. With two of the major studios of Hollywood backing one facility, the deal should be more attractive to the Nevada lawmakers. After all, the combined project is promising to create thousands of jobs. Estimates ranged from 15,000 to 19,000 workers annually once fully operational

Vast potential unlocked

The construction phase alone would have generated massive employment. With thousands of workers building soundstages, office buildings, and production facilities, premises liability injuries were a serious concern. In fact, any project of this magnitude would usually require months of safety planning and insurance coverage.

The Political Battle

Nevada lawmakers were under intense pressure from both sides. Labor unions created a political action committee called Nevada Jobs Now. They raised more than $1 million for advertising campaigns in support of the studios. Sixteen unions publicly supported the project, including the powerful Culinary Union.

Celebrity supporters also emerged. Mark Wahlberg, a Las Vegas resident, became a vocal supporter. Actor Jeremy Renner pushed for including northern Nevada in any film incentive program.

But the opposition was intense: progressive groups argued that the money was better spent on education and healthcare, while Republicans resisted what they described as corporate handouts. The Nevada State Education Association noted that the state was already facing budget shortfalls.

Secret rewards lie ahead

The numbers didn’t help. A state-commissioned report found that for every dollar Nevada spent on these tax credits, the state would only get back 52 cents in tax revenue. That’s a losing investment by any measure.

Assembly Bill 238 Passes the Assembly

In late May 2025, Assemblywoman Sandra Jauregui’s bill moved forward. Assembly Bill 238 proposed $95 million in annual tax credits for 15 years. The money would go to productions that film at Summerlin Studios, with an additional $25 million for other Nevada productions.

The Assembly vote was nail bitingly close: the bill passed 22 to 20 on Friday, May 30th. It now headed to the Senate, with only days left in the legislative session.

Meanwhile, the rival proposal favored by Sen. Roberta Lange never gained traction. Senate Bill 220, to aid Manhattan Beach Studios at the UNLV site, never left committee. All along the two dueling proposals had damaged each other’s prospects.

The Final Day

Monday, June 2, 2025 marked the last day of Nevada’s legislative session. Since Nevada’s state legislature only meets every two years, this was Hollywood’s only shot until 2027.

With the midnight deadline looming, Senator Lange offered a dramatic amendment. She proposed gutting Assembly Bill 238 altogether. Instead of funding studios, the amended bill would commission a study about developing a sustainable film industry in Nevada.

Neither version ever received a vote in the Senate. With hours to go in the session, lawmakers turned their attention to other priorities. AB 238 died without a floor vote.

Unlock the unseen path

“People just couldn’t get there,” Senator Lange told reporters. “When we’re cutting other important things like housing, education and health care, it’s really hard to get to a place where people feel comfortable putting a lot of money into something new.”

What Went Wrong

Several factors killed these studio deals. First, Nevada had recently committed massive subsidies to sports teams. The state spent $380 million to bring the Oakland A’s to Las Vegas. Before that came $750 million for the Raiders’ stadium.

Lawmakers and voters were tired of corporate subsidies. The perception that wealthy entertainment companies wanted taxpayer money while schools faced budget cuts proved politically toxic.

But perhaps more to the point, the competing proposals weakened both projects. Had Sony and Warner Bros. coalesced around a single proposal at the outset, either might have prevailed. But their competition led to confusion among Albany’s politicians and allowed opponents to exploit the studios against one another.

Unseen truths emerge

Third, the return on investment studies undermined the economic arguments. It’s tough to overcome politically when your own commissioned report shows the state losing 48 cents on every dollar spent.

Timing is everything. The bill had to get approval from the Senate in the last hours of session. Too many priorities competed for attention. Governor Joe Lombardo has his own high priorities for legislation on crime and healthcare reform. Those, too, died – a testament to just how chaotic the end of this session became.

What Happens Next

Howard Hughes Holdings, the developer of Summerlin Studios, expressed disappointment. “Our project represents a tremendous opportunity in the best interest of all Nevadans, creating thousands of jobs at the time when Nevada needs them most,” said a company spokesperson.

Sony and Warner Bros. are still interested. Both studios said they are still considering their options. Governor Lombardo announced he could call a special legislative session before the end of 2025. Labor unions continue to try and push a revival of the proposal.

But the road ahead appears uphill. Many of the same political and economic hurdles are still there. Nevada has budget issues. The public mood appears dubious about further corporate subsidies. And 2027 can feel like a long time to maintain momentum.

Chase the unknown rewards

The studios could decide to look elsewhere. Georgia, New Mexico and other states offer generous film incentives. California just expanded its own tax credit program to keep productions from leaving.

The Bigger Picture

This story is a reminder of just how hard it is to reshape a regional economy. Las Vegas has been trying to diversify its economy beyond gaming and tourism for decades. Professional sports teams, the Raiders and Golden Knights, arrived. The city hosted a Formula 1 race. Tech companies opened offices in the area.

Film production seemed a natural fit. Las Vegas is called the entertainment capital of the world. The city has world-class hotels, restaurants, and attractions. Many films and TV shows already shoot exterior scenes on the Strip. Building soundstages would just keep more production in town rather than send crews back to Los Angeles for interior shots.

The talent wants to work in Las Vegas too. Directors, producers and actors love to come visit the city. Sony CEO Tony Vinciquerra made that argument over and over again. “They all want to come here because it’s the entertainment capital of the world. It’s a great place to bring your family,” he said.

Choices shape futures

But it’s one thing to want something and another to pay for it. Nevada voters elect lawmakers to make tough choices about limited resources. In June 2025, those lawmakers decided film studios weren’t worth the price.

Lessons Learned for Future Projects

Any new attempt at bringing studios to Nevada will have to learn from this failure. The proposal needs to include unified studio backing out of the gate. The economic studies need to clearly show positive returns, not 52 cent dollars. And timing a legislative session means more than anyone initially realized.

The next opportunity will be in 2027, when the Nevada Legislature convenes again. By then, economic conditions could improve; budget surpluses might make tax credits more palatable. Or the whole idea might fade away as studios invest elsewhere.

For now, Hollywood and Las Vegas will remain separate worlds. Movies about Las Vegas will continue to shoot here briefly before returning to California soundstages. The dream of a major film production hub in Nevada has been delayed, if not ended altogether.

Potential waits quietly unfold

State Senator Lange proposed the state commission a study on sustainable film industry development. “A film tax credit may not be what people want in the end, but there may be something else,” she told Variety. “We have to do a study and look at what we can do that fits our state and move forward.” That cautious approach captures where things stand.

Nevada remains interested in diversifying its economy. Film production still makes sense theoretically. But the specific proposals from Sony and Warner Bros. failed to convince enough lawmakers that the benefits justified the costs. The world’s entertainment capital will have to wait a while longer before it becomes a true production center for entertainment.