Is the House still ahead? Recent reports on Las Vegas tourism aren’t promising. The city has seen decreases in visitors, hotel occupancy, and convention bookings for September compared to the previous year. This downturn raises questions: Are Trump’s policies driving away international tourists, are rising prices of drinks and food, or are people simply shifting towards online gambling and sports betting?
We consulted Alan Feldman, the Director of Strategic Initiatives for UNLV’s International Gaming Institute. A seasoned veteran in the gaming industry, Feldman believes the current slump is merely temporary, noting that the third quarter is typically a slower period in Vegas. He acknowledges the concerning stats but emphasizes that they are not unique to Las Vegas. Feldman views the rise of online casinos and legalized sports betting as beneficial rather than a threat to the city.
Online Gaming’s Impact on Revenue
Online gaming now comprises 30 percent of total commercial gaming revenue, up from 13 percent in 2021. With discussions about a declining Vegas economy, is online gaming part of the issue?
Economic Cycles and Online Gambling
The so-called “softening economy” is typical and cyclical. Generally, July and August, along with the third quarter, are the slowest for tourism. Although tourism has dipped nationwide, Las Vegas’s situation is not dire compared to other markets. Sports betting’s growth nationwide has not adversely affected Las Vegas; in fact, it may encourage visitors to experience the destination firsthand.
Differences in Gambling Preferences
Feldman notes that sports bettors and online casino players may not be the same customers. Sports bettors are inclined to engage in multiple forms of gambling and may try online casinos occasionally, while those who prefer online casinos may not bet on sports. There has yet to be significant analysis on how these groups interact.
Online Gamblers vs. In-Person Visitors
Casino operators appreciate both in-person and online gamblers. MGM’s CEO has claimed a notable uptick in visitors to Las Vegas linked to those who first engaged with the brand online. MGM is even broadcasting gambling events from its studios internationally, aiming to pique interest in Vegas as a travel destination.
Concerns of Smaller Operators
Challenges related to the investment required for smaller casinos to enter online gaming are significant. For venues like El Cortez in downtown Las Vegas, partnerships may be necessary to facilitate online gambling capabilities, with strict state regulations adding to the expense. The implications of online gaming will vary widely among companies, with some operators fearing they might lose revenue to competitors benefiting from it.
If you or someone you know is facing gambling issues, assistance is available 24/7 via the National Problem Gambling Helpline at 1-800-522-4700, or by visiting https://www.ncpgambling.org/chat.
