Sony and Warner Bros.’ Las Vegas Studio Proposal Fails: Nevada Legislature Rejects Plan

A plan to establish a film studio in Las Vegas was halted by the Nevada Legislature late Monday night, as legislators declined to approve a $95 million yearly financial incentive.

Sony Pictures and Warner Bros. were behind the initiative for Summerlin Studios, a proposed 31-acre complex that would feature 10 soundstages. The funding bill for this project, AB 238, successfully passed the state Assembly last week but failed in the Senate Monday night.

“People just weren’t ready to support it,” explained Sen. Roberta Lange, who favored a competing studio project in association with UNLV. “It’s particularly difficult to justify such substantial expenditures on a new venture when we’re making cuts in critical areas like housing, education, and health care.”

A similar proposal was rejected in 2023. Given that the Nevada Legislature convenes biennially, the next chance to advance this project will not arise until 2027.

Last fall, Sony and Warner Bros. initially supported competing projects. Sony endorsed the Summerlin initiative, set to be developed by Howard Hughes Holdings. In contrast, Warner Bros. supported the UNLV project, planned for a research campus in the southwestern part of Las Vegas.

However, in February, Warner Bros. shifted its allegiance to support the Summerlin studio. The bill sponsored by Assemblywoman Sandra Jauregui, AB 238, proposed creating a $95 million annual tax credit for film and TV productions at the studio, with an additional $25 million allocated to support other unrelated productions.

Lange continued to advocate for the UNLV project, collaborating with Manhattan Beach Studios and Birtcher Development. However, her bill, SB 220, did not progress to a floor vote.

Jauregui’s bill passed the Assembly with a close 22-20 vote on Friday. However, it failed to be addressed in the Senate before the midnight deadline on Monday. In the final hours of the session, Lange proposed an amendment for an economic study on the matter, which also failed to secure a vote.

“A film tax credit might not be the solution everyone agrees on, but we need to explore alternatives,” Lange told The Bangin Beats. “We must undertake a study to determine the best fit for our state and plan accordingly.”

The competition between the two studio proposals ultimately did not favor either. It was apparent from the start that the legislature would likely only approve one of these projects, if any.

Lange mentioned her conversation with Gov. Joe Lombardo, a Republican, on Monday night, who appeared non-committal on the topic, focusing instead on achieving his own legislative priorities.

A representative from Howard Hughes expressed their disappointment with the decision, stating, “Our project represented a significant opportunity that would benefit all Nevadans, creating thousands of jobs during a critical time of need.”