[13] The Ambassador Casino closed at 6:00 a.m. on September 7, 1982, because of financial problems caused by a lack of tourism and a poor local economy.

[14] The family had been approved for a two-month gaming license, giving state regulators enough time to investigate an anonymous tip that Nicholas Robone had skimmed money while previously working at the Continental hotel-casino across the street.

[22] The hotel-casino reopened as the Key Largo on August 29, 1997,[23] with three table games,[24] 248 slot machines, 150 employees,[23] and 320 rooms.

[2] If successful, there were plans to expand the casino and add a hotel tower, both on vacant land directly west of Key Largo.

[25] Key Largo's low prices appealed to tourists and local residents,[26] as the property was known for its $1.99 hamburgers and cheap hotel accommodation.

[1] Key Largo closed on the night of January 18, 2005, although many operations at the property had ceased earlier in the day.

[2][27][28] Approximately 200 people worked at the hotel-casino, which featured 245 slot machines, four blackjack tables, and a roulette wheel.

[25] Anthony Curtis of the Las Vegas Advisor opined that Key Largo would not be missed significantly, stating that while it had loyal customers, it was not nearly as popular as its nearby competitors, Ellis Island and Terrible's Hotel and Casino.

[2] In June 2005, the Clark County Commission approved design plans for the new resort and condominium project, allowing for the demolition of Key Largo.

The project would include a 20,000 sq ft (1,900 m2) casino and three towers, with its tallest building standing 41 stories high.

[30] Because of new laws, the property would need to add at least 200 hotel rooms, a 24-hour restaurant, and 2,000 sq ft (190 m2) of public space to qualify for a new license.

Severe damage, such as a collapsed roof on the property's northern side (formerly the casino floor), slowed down the investigation.

[5][37] On March 29, 2013, Clark County ordered the property's owners to demolish Key Largo's remaining structures by April 26, 2013.

[37][40] On April 26, 2013, the property's owners filed demolition plans with the county, and were granted a four-month extension to demolish the hotel-casino.