Caesar's Entertainment said its wheel will be called the "Las Vegas High Roller" and measure 550ft. That would pip the Singapore Flyer (541ft) to the title of world's highest wheel. The London Eye is 443ft tall.
The High Roller will have 32 cabins, each holding 40 people. It is set to begin construction next month and open in 2013.
It faces competition from another project, the 500ft "Las Vegas Super Wheel" being built nearby.
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