News of Jay-Z's 40/40 being sold back to Palazzo to become a race and sports book with a restaurant has provoked a range of reactions. Within Vegas, most who follow the Strip were not surprised. The Review-Journal put a story in its Business section opening with: "The much-rumored closing of the 8-month old 40/40 Club at the Palazzo became official Wednesday."

I have now gone over the closing with both spokespeople for Jay-Z and Palazzo. Both use the identical words to describe what happened: "It was a business decision."

Jay-Z's camp feels they got a very good deal in being bought out of the lease on 40/40 by Palazzo. But no one involved would give any numbers on how many dollars equal a good deal.

As for reports that 40/40 was failing to draw people, Jay-Z's camp strongly denies that. Ron Berkowitz, a spokesperson for Jay-Z, says, "The club was doing good business." However, Berkowitz noted he had no specific knowledge of the details of costumer counts and grosses. "If you went there on a weekend you saw it was packed. Maybe, at other times it wasn't as crowded. But that is true everywhere. The club was doing fine. What is going on here is that (40/40's 24,000 square feet) is valuable real estate, and they came to us with an offer and this was a good business deal."

A Palazzo spokesperson, Ron Reese, offered me essentially the same explanation:

"This was a business decision pure and simple. As you have seen from being down there, our current sports book offering is less than ideal. We want to change that and taking back the 40/40 space is the ideal option. Additionally, we will offer new gaming, tables/slots, in the space, which will be a component 40/40 couldn't add as we obviously have a Nevada gaming license."

Of course, amidst all this good business comes the question of why this couldn't have been figured out before 40/40 opened? Rather than the synergy expected, the mix of a nightclub with a sports bar confused guests.  My guess is that 40/40 wasn't doing quite the great business everyone had hoped combined with the Palazzo's desire to expand their sports book. Does that sound too straightforward?

That is just a guess. I base this guess on one of my basic rules about Las Vegas: No matter what the press release says, nothing that is really successful closes in Las Vegas (with Celine Dion, of course, as the exception that proves the rule). Vegas resorts are always tinkering and redesigning.

One example: "Hairspray" lasted only a few months at Luxor and soon "Believe" with Criss Angel will open there. How many millions were lost in the one project and then millions more invested in the new show? Not to mention the lost customers of a closed theater during all this changing.

Opening and closing quickly at great expense is fairly usual in Vegas, a local quirk, and usually takes place when someone figures out money-earning is not being fully optimized in a spot and convinces enough executives to agree.

However, local journalist (USA Today, New York Times and columnist for Las Vegas Weekly, where I am on staff) Steve Friess on his blog has a different take and opines: "The surprise was that anybody thought that a place that elsewhere is known for drawing large numbers of black customers would fit in well in a $2 billion resort like Palazzo where the only minorities they're really aiming to please are Asian whales."

I could not disagree with this more. I do not deny racism exists here as anywhere. But as an operating principle I have always viewed Vegas as only interested in the bottom line for better and for worse. And, part of for better is that the money of rich people of any race is just as worthy of courting.

Also, a sports bar attracts sports fans of all races, and this one was meant for wealthy sports fans. The Palazzo knew who Jay-Z was when they made the deal with him in the first place. And Jay-Z's fan base runs the gamut of folks the Palazzo would love as customers: people like me and, oh, the person being nominated for president by the Democratic Party tonight.

Anyway, both Berkowitz for Jay-Z and Palazzo's Reese strongly deny that race played any role in this transaction. Both again using the same word say that the idea that race was involved in anyway is "ridiculous." According to the Palazzo's Reese:

"Places in Las Vegas change all the time -- whether it is shows, restaurants or clubs -- this is no different. It gives us an opportunity to fill an identified need  and that's how and why we approached this agreement with 40/40." (photo by Sarah Gerke)