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Cars come to a halt at a stop light on the Las Vegas Strip

Derek Neumeier/Derek Neumeier

Topgolf International Inc. will break ground today on a driving range on land just off the Las Vegas Strip owned by MGM Resorts International.

The four-story facility will have 102 bays from which guests can hit golf balls across a 215-yard field. In a Las Vegas twist, the company, which owns 16 driving ranges around the world, will include a stage for live concerts and a rooftop VIP deck with cabanas and swimming pools.

The facility, scheduled to open in the second quarter of 2016, will cost $50 million to build, more than twice the company's typical construction cost, Topgolf Chief Executive Officer Ken May said.

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"It's just going to be over-the-top," he said in a telephone interview.

Las Vegas resort operators have been diversifying in recent years as casinos proliferate across the country and consumer spending on gambling remains below pre-recession levels. Caesars Entertainment Corp. opened a ferris wheel on the Strip last year, while other operators such as Wynn Resorts Ltd. and Las Vegas Sands Corp. continue to invest in their shopping, dinning and nightclub offerings.

Topgolf's driving range will be located two blocks from Las Vegas Boulevard at the corner of Harmon Boulevard and Koval Lane behind the MGM's Signature towers. The company, started in 2000 and now based in Dallas, bills its driving ranges as entertainment centres with food and beverages and featuring high-tech golf balls to provide a video game simulation on accuracy and distance.

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