Sam Nazarian expected to be a major player in the gaming industry.
An owner of hip nightclubs turned hotelier, Nazarian looked to make waves when he and Stockbridge Capital spent $415 million to renovate and transform the Sahara into SLS Las Vegas.
But continued red ink and problems with state gaming regulators have caught up with him.
The Wall Street Journalreports Sam Nazarian will sell his 10 percent stake in the SLS and his company, SBE Entertainment Group, will give up management of the casino.
Terms of the deal were not disclosed, but Wall Street Journal reporter Craig Karmin told KNPR's State of Nevada that the staff is expected to stay the same and Scott Kreeger will remain in place to run the resort. They will just be working for Stockbridge Capital not SBE.
The name will also stay the same, according to Karmin, because the agreement includes licensing of the SLS brand.
Karmin said the sale of the Las Vegas property is part of the overall effort by SBE Entertainment to get rid of its hotel properties.
"The timing might also be influenced by the fact that they do have debt coming due and part of the reason they've been selling down stakes is they want to raise that money to pay off their debt," he explained.
Since it opened in August 2012, the SLS has struggled to attract visitors and turn a profit due to its isolated location on the corner of Sahara Avenue and Las Vegas Boulevard.
Karmin said the hotel has not made enough off its retail, nightclub, bar, and restaurant offerings as expected.
Stockbridge and SBE Entertainment had posted $84 million in losses for the first six months of 2015, according to a regulatory filing.
Nazarian hasn't been personally involved with the resort since his gaming license application was denied a year ago, but Karmin believes it is unlikely he will reapply for the license after the sale of his stake in the SLS.
Craig Karmin, reporter, Wall Street Journal