Las Vegas Losing Gamblers To Clubbers
We reported recently on the $30 million investment by Planet Hollywood resort and casino in a deal with Britney Spears. In terms of the deal Spears will perform at a specially designed theater for two years in a live performance format. This type of investment in entertainment rather than gambling in Las Vegas is not so uncommon in the last few years.
In fact as a report in the Daily Mail from Center for Business and Economic Research director Stephen P. A. Brown confirms, more visitors to Las Vegas are coming to enjoy the growing club and shopping on offer and not the casinos. The younger crowds attracted to performers like Britney Spears are now being targeted by the big casinos who are investing heavily in mega clubs and luxury shopping which are approving more and more popular with the younger generation.
The changes in the spending patterns of people visiting Las Vegas tells the story of the changes in the past decade. A telling statistic is the current total revenue of the Strip which was made up from 36% of gambling last year. This is in contrast to the 59% which gambling revenues made up for in the Strip in 1984. Even the visitors who come to Vegas seems to be spending less on expensive casinos and are choosing options like clubbing to enjoy their spare time. This is evident in the amounts spent per trip with $1,021 per visit in 2012 compared to $1,318 in 2007.
Another reason for falling gambling revenues in Las Vegas is the fact that they are no longer the only state to offer legal gambling and with online gambling slowly but surely opening up in the U.S. the choice for the consumer will be even greater.
The mega clubs on offer in Vegas are amongst the best in the country with 21 of them being in the top 100 most profitable nightclubs according to Nightclub & Bar publication. Vegas clubs are pulling out all the stops to provide the ultimate clubbing experience and include anything from spectacular laser shows to 3D graphics popping out at the dancing crowds.
It will be interesting to see if the big casinos like MGM and Caesars will succeed in making up losses in gambling revenues with profits from the the nightlife entertainment and shopping sectors.