The Business of Vegas: How Casinos Drive the Citys Economy

Las Vegas is the city that offers everyone the chance to achieve their wildest dreams and make it big, provided they can strike it lucky. While we all naturally associate Vegas with casinos, there’s actually so much more to see and do in the city. To really understand what’s on offer we need to think about how casinos drive the local economy. Let’s take a look at the details and start to piece the economic picture together.

Casinos bring people from out of town

Far more people visit Vegas than live in Vegas, this much we know from the very beginning. The city would not be able to offer so many exclusive haunts if it weren’t for the pull of the casinos. Because of the size of the US and the nature of all-night gambling, overnight stays are a given when playing in Vegas. The earlier founders of the Strip knew this and built casinos and hotels in shared complexes so that they could profit from the gamblers and the hospitality.

Now that the city has become known as a place for a high stakes wager and a luxury stay, it also needs other activities to keep people entertained. If you add in the fact that not everyone who wants to stay in a luxury hotel will want to gamble, you can start to see that the casinos are actually a starting point for diversification.

Live entertainment takes things up a level

David Copperfield, Floyd Mayweather, Adele…the list of live entertainers from all genres and niches is seemingly never-ending when you’re talking about Vegas. The beauty of this model is that the casinos have already driven the growth of the hotels and the exhibition centers. Now all that’s needed is the money to pay for the stars to perform on a regular basis.

Major casinos regularly put up the money for A-listers to take up residency in Vegas. Legendary undefeated boxer Floyd Mayweather loved the deal he got from MGM that he boxed there exclusively throughout his prime. What started as a hotbed of high-stakes gambling then became a comprehensive hospitality package backed by live entertainment and luxury hotel rooms.

The growth in US consumer confidence in the wake of falling interest rates is another factor we need to consider, and we’ll do so in the next section.

Consumers increasingly trust Vegas

The days when Vegas used to be seen as a shady city that was the domain of risk-takers of the most adventurous variety are long gone. In 2024 Las Vegas is a city with so much to offer that consumers from all over the world fly in for a dozen different reasons. One of the fastest-growing new ventures is live sport, and it’s one that is being driven by the biggest casinos in Vegas.

The NFL, UFC, WNBA and so many others now regularly put on live events in the city. It’s no longer a place that offers gambling and the occasional boxing match. Today you’ll find a whole host of different live sporting events and draft days making their way to the city. Ideal when you want to come to a place that is very much a tourist destination, rather than solely a place for high-stakes gamblers and players.

Will the casinos continue to drive the economy?

Everyone thinks of casinos when they think of Vegas, and we don’t see that changing anytime soon. Instead, what we expect to see are more and more entertainment options being rolled out now that major franchises and media companies see how well-regulated the city is. With record revenue in Vegas already coming quickly over the horizon, we can now expect to see the trend continue as the reputation of the place continually evolves and grows.

Family-friendly sporting events and drafts for college athletes bring a whole new demographic into town. The casinos will continue to underpin this by being the number one provider of accommodation and dining, while also offering iconic settings that everyone will want to at least take some photos alongside.

What does the future look like?

Expect to see more sporting events and annual exhibitions taking place, as well as new venues popping up all over the city. The Sphere is a great example of what’s possible and it is something that the casinos are all too willing to back financially. They know that to continue to expand and grow they need to move with the times, and they’re certainly showing no signs of slowing down.

If you want to be able to create a city that has everything to offer in one place, you can go a long way with visionary financial backers. The casinos are right near the top of that list and are set to constantly drive the expansion of Vegas.