Las Vegas is the only city on the globe that can claim the moniker Entertainment and Sports Capital of the World. Each year, tourists visit in record numbers; conventions grow in size and capacity, businesses relocate to benefit from the strong economy and friendly business climate, and people move here for job opportunities and a better lifestyle.
While Las Vegas does boast a diverse economy, especially with its growing high-tech and e-commerce business sectors, expanding medical district, increased focus on higher education and research facilities, professional sports teams, and the potential of becoming the new Hollywood with state-of-the-art studios, it is the continual strength of the gaming and resort industry that empowers Las Vegas and Nevada to exceed economic predictions.
The Nevada Gaming Association, which represents more than 70 casino operators statewide, recently released its 100-page “2023 The Facts” report prepared by Las Vegas-based Applied Analysis. Among its results were:
The gaming industry paid $2.1 billion in industry-specific taxes in 2022 with more than $20 billion generated in Southern Nevada with $23 billion in current or planned major tourism-related capital investment projects underway. Slightly more than 80 percent of Nevada’s future tourism projects are located in the Las Vegas valley.
Nevada’s gaming industry is responsible for:
Supporting 386,200 direct, indirect and induced jobs (27 percent of the state’s total workforce).
$21.4 billion in direct, indirect and induced wage and salary payments.
$90.7 billion in total economic impact (43 percent of the state’s total gross domestic product).
Generating 35 percent of the state’s general fund revenue.
Gaming revenues are at an all-time high with Nevada experiencing the largest increase in gaming revenue in history, reaching a historical peak of $14.6 billion in 2022.
In addition to gaming revenues impressive results, resorts are less dependent on gaming than a decade ago. The industry continues to diversify by offering a wider range of amenities and experiences for consumers. In 2022, non-gaming revenue as a share of total revenue reached 49.5 percent.
Looking at gaming revenues specific to the Las Vegas Strip and downtown Las Vegas for January through May 2023, the Las Vegas Convention and Visitors Authority reports a 7.8 percent increase over the previous year for the Strip and an increase of 6.9 percent over the previous year for downtown Las Vegas.
In addition, Las Vegas visitor volume for the first five months of 2023 comes in at 16,896,400, an increase of 10.8 percent over 2022 and convention attendance increased 38.5 percent at 2,770,700.
Other indicators point to Las Vegas’ continued popularity. Passenger totals at Harry Reid International Airport increased 25.4 percent through March this year compared with the same period in 2022.
In addition to crunching the numbers, this year’s Nevada Resorts Association report also focused on corporate responsibility and social impact within the gaming industry, including water saving standards by Boyd Gaming Corp.’s linen and uniform services facility; MGM Resorts International’s mega solar array; The Palms’ grants and awards to UNLV and to 30 local charities, as well as contribution to causes ranging from emergency response, homelessness, food donations and public education funding, among others.
While the national economy may sway up and down, clearly the facts show – never bet against Vegas!