What comes to your mind when you hear the words Las Vegas? The flashy nightlife and the best casinos in Vegas, of course! The Las Vegas Strip has been the heart of casino games for everyone around the world for decades. It’s not called Sin City for no reason. You can play a variety of games from craps table to casino war and baccarat, and so much more. Over the past 20 years though, resorts have focused more on non-gaming activities such as hotels, entertainment, shopping, and restaurants. When investors are buying gambling stocks such as MGM Resorts, Caesars Resorts, and Wynn Resorts, they are getting into more business than just casinos and online gambling in the USA.
Do Casinos Outside of Vegas Make More Money?
Surprisingly, according to the statistics provided by Wynn Resorts, MGM, and Caesars, only 24% to 28% of their revenue is from their casinos.
Company | Casino Revenue | Non-Casino Revenue | % of Revenue from Casino |
Wynn Las Vegas | $135 million | $426 million | 24.1% |
MGM Resorts LV Strip | $499 million | $1,538 million | 23.4% |
Caesars Las Vegas | $315 million | $827 million | 27.6% |
Source: Company earnings reports and SEC filings.
The resorts in Las Vegas, Nevada have figured out how to maximize their revenues through guests who want to do more than just gamble when they visit The Strip. Of course, hotel stays are a huge portion of that revenue, with food and beverage and other entertainment following closely behind.
Resorts outside of Las Vegas are vastly different. The revenue they get from the casino floor is about 75% with non-casino revenue sources lagging behind. These regional properties have fewer rooms in comparison and frankly, they don’t possess the same entertainment draw as Las Vegas does.
Company | Casino Revenue | Non-Casino Revenue | % of Revenue from Casino |
Wynn Boston Harbor | $157.1 million | $53.1 million | 74.7% |
MGM Resorts Regional | $734 million | $226 million | 76.5% |
Caesars Regional | $1,098 million | $357 million | 75.5% |
Source: Company earnings reports and SEC filings.
This revenue breakdown is perhaps what you would expect to see from resorts in Las Vegas and that is exactly what they looked like decades ago.
Vegas Has no Plans of Slowing Down
The talks about a longer Las Vegas strip have been going on for some time. MGM executive Alan Feldman says “it’s possible in the distant future that the Strip could extend south all the way to the M Resort at Las Vegas Boulevard and St. Rose Parkway,”.
In the near future (approximately the next 10 years) “Blue Diamond Road and Warm Springs Drive could be the southern ending point of the Strip with the new resort and NBA-ready 20,000-seat arena under development by Tim Leiweke’s Oak View Group.”
“If you look at the track record that Tim Leiweke and his colleagues have, I have a feeling that we’re going to see a slightly different variant, sort of Resorts World 2, at that part of the Strip,” Feldman told the newspaper in a separate interview. “They’re just going to have to have an NBA team there, which I think is to everyone’s benefit.”
The idea of potentially expanding the Las Vegas Strip has also become easier if you also factor in the underground transportation system that is being built by Elon Musk under the city. With the improvements in technology and the need to have more resorts in the area to provide entertainment for people, the idea of expanding the Las Vegas Strip sounds more possible and reasonable as time goes by. Ever wondered what it feels like to play casino games in Vegas?
- Learn more about what’s it like to gamble in Vegas!
What’s Vegas’ Biggest Non-Gaming Industry?
Even though Las Vegas has been known to be the place to gamble, there is more to the Strip than just gambling. Over the years, the revenue for gambling has dropped significantly. The Departmental income by percentages shows that the hotel industry, other entertainment, and retail surpass the casino revenue by a significant margin.
Since casinos have been going through the biggest changes since 2007, they have had to find new and improved ways to generate revenue opportunities. Casinos are adding resort fees on top of high room rates, adding approximately $30 to $40 per night. There is no free parking, they have been replaced by fees that can run as high as $20 a night. Expensive restaurants have taken the place of free buffets. On top of that adding in entertainment, spa treatments, and clubs. The revenue generated from these venues is as much as, if not more than what casinos generate.
Nowadays casinos are focused on arenas and stadiums for extra revenue. The success of the T-Mobile Arena at MGM Park has other companies wanting a piece of that cake. Sports have become the next non-gaming revenue trend in the Vegas market.
There is no stopping Las Vegas. The Strip has proved to be ever-changing and is sure to stay lively through the years. There really is something for everyone in Las Vegas.