The name Las Vegas is likely to bring back images of neon signs, shows, casinos on the Strip, wherever you go Play slot machine games completely for free can and evoke Elvis in most of us. But for the gambling companies who thrived on the rapid development of the city, Vegas already encompasses more than the past. Your future will be a dramatically changed business environment in a few years. Casinos are already preparing for Las Vegas 2020, where the city must maintain its roots and reputation as a gaming and entertainment hub.
After losing its monopoly on gambling in the United States, Las Vegas embarked on the first of several reinventions. It is about to reach another turning point. Casino licenses are spreading to regional markets and tribal countries across the country, forcing the mainstays in Las Vegas to be different from the options that are much closer to home for potential visitors.
More importantly, the spending in cash on games by guests who come to Vegas is not growing as fast as it used to be. In fact, it has lagged behind the growth in revenue coming from non-gaming establishments such as F&B (Food and Beverage), fun, entertainment venues, and nightclubs.
By 2020, this non-gambling revenue trend will join another major challenge for casino operators: a huge influx of new offerings. Three new mega-resorts on the Strip are supported by Resorts World, Wynn Resorts and Marriott International. The 9.000 new hotel rooms they add to the listing will be the largest expansion of room offerings on the Strip in decades.
Some of the largest trade shows in the world are held in Las Vegas. But many smaller conventions and meetings make up the roughly 22.000 events that take place in the city each year, so there is the Las Vegas Convention and Visitors Authority (for short LVCVA) on.
The number of visitors in Vegas has not decreased year-on-year since 2010. Trying to open Encore Las Vegas this year has been incredibly difficult. By 2020, Las Vegas will have millions more square feet of meeting and convention space, including the ongoing major expansion of the Las Vegas Convention Center. The complete expansion and renovation of this facility should be completed by 2023, which would ultimately accept 600.000 new visitors per year.
But that's not all: Caesars Entertainment plans to open the Caesars Forum on the Strip by 2020, and a new venue developed by Madison Square Garden and Las Vegas Sands is opening just behind the Sands Expo & Convention Center.
A different kind of gaming
Las Vegas has relied on its convention business for decades to meet demand for midweek stays and fill the city's hotels with visitors who still spend big on hotels even when they're not gambling. Recently, with non-gaming revenue continuing to outpace gaming revenue growth, Las Vegas has begun to take advantage of another type of attraction: sports.
While it's difficult to factor in every extra dollar produced by Las Vegas sports fans, it's clear that the inclusion of professional teams like the Vegas Golden Knights in the National Hockey League and the Las Vegas Aces in the WNBA is a huge net -Was positive. The next team to come to Las Vegas are the Raiders, who will open the 2020 NFL season in a brand new $ 1,9 billion stadium. In addition to eight home games per year for the Raiders, the new stadium is almost guaranteed to be a future venue for the Super Bowl or college championships in football or basketball.
Vegas could also be the epicenter of the “sport” growing faster than anything else: video games. According to the marketing company Newzoo The sports industry is expected to reach $ 2019 billion in sales in 1. How can so much money be made from tournaments and leagues dedicated to video game watching? Hundreds of millions of dollars are at stake in sponsorship, advertising, media rights, video game provider fees and, most importantly, for Vegas, merchandise and tickets to events. Las Vegas casinos wager on esports in large numbers by competing to host these competitions. MGM opened the Strip's first esports arena at the Luxor in 2018, and that's likely a sign of the future.
Sales strategies for the next Las Vegas
Las Vegas, for example, is undeniably getting a lot of new offers in the hotel and meeting sector, and it is responding to the new demand for a new Vegas experience from sports fans and business travelers. Gambling is not changing in a moving way for now, but neither will it be the engine of growth that it used to be.