Las Vegas is facing challenges in its tourism sector, with significant drops in visitor numbers, hotel occupancy rates, and convention bookings in September compared to the same month last year. This decline raises questions about the factors influencing the downturn, including economic policies, rising prices, and the growing popularity of online gambling and sports betting.
To gain insight into this situation, we spoke with Alan Feldman, Director of Strategic Initiatives at the University of Nevada, Las Vegas (UNLV) International Gaming Institute. Feldman, a seasoned expert in the gaming industry, emphasized that the current slump is part of a typical annual cycle. He noted that the third quarter is generally slower for Las Vegas, and the city’s recent struggles are not unique but rather reflect broader trends affecting tourist destinations across the United States.
Feldman highlighted that online gaming has become an increasingly significant component of the gambling landscape, accounting for 30 percent of all commercial gaming revenue, a substantial rise from 13 percent in 2021. He views this growth as beneficial for Las Vegas rather than detrimental. The increasing legalization of sports betting across the nation has not negatively impacted the city; rather, it has attracted potential visitors who may now consider Las Vegas as a destination after engaging with sports betting in their home states.
In discussing the changing dynamics of gambling, Feldman stated, “The impact of sports betting around the country has had absolutely zero impact in Las Vegas,” adding that many individuals are now more likely to visit the city after being introduced to its offerings through online platforms. Major companies like MGM Resorts and Caesars Entertainment are leveraging their sports betting apps to market their properties nationwide, potentially leading to increased visitation.
The landscape of gambling has evolved, with many individuals engaging in sports betting without necessarily visiting a casino. Feldman pointed out that while there are still traditional gamblers, the growing acceptance of online gaming reflects a shift in behavior that has historical roots. “The Mayans were engaged in sporting activities that people were wagering on thousands of years ago,” he remarked.
Feldman also distinguished between online sports betting and traditional casino games, noting differences in customer demographics. Sports bettors often engage in multiple forms of gambling, while those drawn to online casinos may not necessarily participate in sports betting. The interrelationship between these groups remains an area ripe for further analysis.
Online gaming companies often prefer in-person gamblers for their potential to spend money on additional services, including dining and entertainment. Feldman indicated that major operators are keen to attract both types of customers to maximize their revenue streams. He also mentioned that MGM’s CEO has observed an increase in visitors to Las Vegas who were introduced to the city through online gaming experiences.
The conversation then shifted to the operational challenges smaller casinos face regarding online gaming. Feldman explained that smaller properties, such as the El Cortez in downtown Las Vegas, may find it difficult to enter the online gaming market due to the substantial investments required. Many smaller operations would need to partner with established companies to navigate the complex technological requirements.
Despite the challenges, Feldman argued that the growth of online gaming is not detrimental to southern Nevada. He stated that the industry’s long-standing goal of normalizing gambling is now being realized, with a broader acceptance of gambling behaviors that have existed for decades. The overall positive contributions of online gaming can be seen in the investments made by larger operators, including new restaurants and entertainment venues.
While the future of Las Vegas tourism remains uncertain, Feldman’s insights suggest that the evolution of online gambling is part of a larger narrative within the industry. As the landscape continues to change, it will be crucial for stakeholders to adapt and understand the diverse ways in which online gaming can influence the traditional casino experience.
For those struggling with gambling-related issues, assistance is available through the National Problem Gambling Helpline, which can be reached at 1-800-522-4700, via text at 800GAM, or through online chat at https://www.ncpgambling.org/chat.
