Las Vegas has experienced a notable decline in tourism metrics, with visitor numbers, hotel occupancy rates, and convention bookings all decreasing in September 2023 compared to the same month last year. The contributing factors to this downturn include potential impacts from recent political policies, rising costs for basic amenities, and a shift towards online gambling and sports betting.
To gain insight into these trends, we spoke with Alan Feldman, the Director of Strategic Initiatives for the University of Nevada, Las Vegas (UNLV) International Gaming Institute. Feldman, a seasoned professional in the gambling industry, offered a perspective that suggests the current slump may be temporary. He noted that the third quarter is traditionally a slower period for Las Vegas, and the recent statistics reflect broader national trends rather than a specific crisis within the city.
Feldman pointed out that despite the declining figures, the growth of online gaming is not necessarily a detriment to Las Vegas. In fact, online gaming now accounts for 30 percent of all commercial gaming revenue, a significant increase from 13 percent in 2021. He emphasized that the rise of online casinos and legalized sports betting could serve as marketing tools, potentially drawing tourists back to the city.
“Many individuals who previously engaged in sports betting from home may now consider a trip to Las Vegas,” Feldman explained. He highlighted major operators like MGM and Caesars, which are leveraging their online platforms to promote their physical properties and attract visitors.
The discussion around the impact of online gambling on Las Vegas tourism raises important questions about the nature of gambling habits. Feldman stated, “Sports bettors often engage in various forms of gambling, including online poker or traditional casino games.” While some online players may not overlap with traditional casino customers, he believes that the synergy between the two could foster greater engagement with the local gambling scene.
Another factor to consider is how casino operators perceive the growth of online gaming. Feldman noted that while some industry leaders might express concerns about competition from online platforms, many view it as an opportunity to enhance customer loyalty. By utilizing online loyalty programs, casinos can encourage patrons to visit Las Vegas to redeem their points.
MGM’s CEO has previously remarked on an increase in visitors who became interested in the city after discovering it through online gaming. This trend underscores the potential for online platforms to serve as a gateway for new tourists.
The industry is also adapting to the evolving landscape, with operators investing in innovative marketing strategies. For example, MGM has established a television studio at the MGM Grand, broadcasting gambling content to international markets where it is legal. This initiative aims to introduce potential travelers to the Las Vegas experience, increasing the likelihood of future visits.
While larger casinos may embrace the growth of online gambling, smaller operators might view it differently. According to Feldman, smaller casinos in regions like Reno are feeling the pressure from both tribal gaming and the expansion of online gaming. These establishments may find it challenging to compete unless they invest in technology to enter the online market.
The financial barriers to entering the online gaming market are significant for smaller establishments. Many require partnerships with established providers to navigate the complex regulatory landscape and technological requirements. As a result, some smaller casinos may find themselves at a disadvantage, unable to capitalize on the lucrative online gaming segment.
Despite the challenges presented by online gambling, Feldman argues that this evolution in the industry contributes positively to the overall gaming landscape in Nevada. He stated, “The normalization of gambling is accelerating, and the overall environment is becoming more inclusive.”
For those who may be struggling with gambling addiction, resources are available. The National Problem Gambling Helpline offers confidential support 24/7. Individuals can connect with trained professionals for guidance by calling 1-800-522-4700, texting 800GAM, or visiting their website at https://www.ncpgambling.org/chat.
As Las Vegas navigates these changing dynamics, the interaction between traditional gaming and the rise of online platforms will continue to shape the city’s tourism landscape. The ongoing dialogue among industry leaders and stakeholders will be crucial in determining the future of gaming in this iconic destination.
