Movies like "The Hangover" and "Ocean's Eleven" might have put Las Vegas on the cinematic map, but Nevada’s labor unions are betting big on a new plan to make the city a permanent Hollywood hotspot. In a push to create jobs and revive flagging tourism, unions are urging state officials to approve up to $95 million in tax credits for Sony Pictures Entertainment and Warner Bros. Discovery, hoping to lure a major film production facility to the Las Vegas suburbs.
The proposal, which failed to win enough support in the Nevada legislature earlier in 2025, is now the centerpiece of a renewed campaign. More than a dozen labor unions have joined forces, forming a political action committee called Nevada Jobs Now. According to The Associated Press, this committee has already raised over $1 million for digital ads, mailers, and TV commercials aimed at rallying public support. Their hope: that a groundswell of public enthusiasm will persuade lawmakers to revisit the plan during a special session expected next month.
Tommy White, business manager-secretary treasurer of Laborers’ International Union of North America, Local 872 in Las Vegas, is at the forefront of the effort. “We believe if we can get the public behind us, we’ll be able to get the legislators to understand what a big change this can bring to Southern Nevada,” White told the Associated Press. He and other supporters argue that the proposed film studios would not only create thousands of jobs but also help diversify the region’s tourism appeal.
Under the current proposal, Sony and Warner Bros. would need to spend $400 million building a studio and $1.8 billion developing a mixed-use complex of shops, restaurants, and hotels. The total investment over 15 years would reach $4.5 billion. Only after completing the studio and beginning filming would the companies become eligible for the tax credits, explained David O’Reilly, CEO of Howard Hughes Holdings, the developer behind the so-called Summerlin Studios project.
O’Reilly is blunt about the stakes: “There would be no reason for Sony and Warner to film in Nevada when they can get tax credits in 20 other states or around the globe,” he said to WRAL. “They need to bring their productions to where they have the best economic deal, and we’re just trying to make Nevada competitive with everybody else.”
The stakes are especially high as Las Vegas faces tough economic headwinds. The Las Vegas Convention and Visitors Authority reported an 11.3% decline in visitors between June 2024 and June 2025, a significant drop for a city so heavily reliant on tourism. White and his allies see the film industry as a way to draw a new kind of visitor, beyond the usual gamblers and convention-goers. “With movie studios, you bring in a whole different type of tourist,” White said, drawing a parallel to how major sports teams have broadened the city’s appeal. “You don’t just bring the person that’s come in to go to a resort to gamble.”
Supporters point to Atlanta as a model for what’s possible. Since Georgia launched its generous film tax credit program in 2008, the state has become known as the "Hollywood of the South." Iconic movies like "The Hunger Games" and "Forrest Gump," as well as major franchises from Marvel and Netflix’s "Stranger Things," have been filmed there. According to Stephen Weizenecker, an Atlanta attorney involved in Georgia’s program from the start, the tax credits have not only supported thousands of jobs but also sparked a wave of tourism to filming locations. However, the program comes with a hefty price tag—Georgia was projected to give out $1.35 billion in credits in 2024 alone. Carlianne Patrick, an associate professor at Georgia State University who audits the state’s tax credits, found that the return is an average of just 17 cents in tax revenue for every dollar spent. While production activity and jobs have increased, not all positions are permanent or full-time.
Back in Nevada, the economic calculus is a hot topic. Proponents argue the project would create 19,000 construction jobs, a boon for local workers and families. But critics are raising red flags about the long-term value of the investment. The American Federation of State, County and Municipal Employees (AFSCME)—a union representing thousands of state workers—has joined forces with other Nevada organizations to warn against the proposal. In a letter to Governor Joe Lombardo, they called the project “fiscally irresponsible and politically indefensible,” citing a May 2025 state-commissioned report that estimates only $0.52 in tax revenue would be generated for every $1 in credit.
“Every dollar we lock into a corporate handout is a dollar we can’t put toward our rainy-day readiness, public education, health care, wildfire mitigation, housing, and the basic services Nevadans rely on when times get tight,” the organizations wrote, as quoted by The Associated Press. They’re urging lawmakers to prioritize funding for public services over incentives for large corporations.
Jared Kluesner, a psychiatric nurse at the Southern Nevada Adult Mental Health campus and an AFSCME member, summed up the dilemma for many public employees. Kluesner told the Associated Press he supports the idea of Sony and Warner Bros. building a studio and creating jobs, but not if it means siphoning funds away from crucial public services. “If they’re going to do it at the cost of public services and funds that should be allocated to state workers, then that’s not really solving any problems,” Kluesner said.
Governor Lombardo, a Republican, has signaled his intention to call lawmakers back to the capital before the end of the year, though he hasn’t yet confirmed which issues will be up for discussion. The debate over the film tax credits is shaping up to be a key battleground, with labor unions and corporate supporters on one side, and public sector unions and fiscal conservatives on the other.
The broader context is clear: as states across the country compete for Hollywood’s business, the costs and benefits of film tax credits are coming under increasing scrutiny. California, the traditional home of the movie industry, recently revamped its own tax incentive programs in response to a multiyear decline in film production. Meanwhile, more than 20 other states now offer their own attractive packages, making the competition fierce and the economic stakes high.
For Las Vegas, the question is whether a new studio complex can help the city reinvent itself once again—or whether the price tag is simply too steep. As the special session approaches, Nevadans on all sides will be watching closely to see if the promise of Hollywood magic can outweigh concerns about fiscal responsibility and public priorities.
The outcome could set a precedent not just for Nevada, but for states across the nation wrestling with how best to balance economic development, public spending, and the ever-changing tides of the entertainment industry.
