Las Vegas business model to attract visitors seeking a variety of experiences in 2020

The Nevada Gaming Control Board said Friday that healthy percentage gains were seen across the major reporting markets. Statewide, casinos collected $1.038 billion in gaming revenues, a 5.48% increase over January 2019. The month followed 2019’s $12 billion gaming revenue year, the first time the state reached the mark since 2007.

The $1 billion figure also marked the eighth time in the past 12 months the state has hit the lofty total. The Las Vegas Strip, which accounts for more than half of the state’s gaming revenue total, reported $572.1 million, a 7.49% increase.

For the first time, Nevada regulators broke out mobile sports wagering, saying the activity accounted for 49% of all sports bets. Sports wagers made with mobile apps resulted in $11.2 million in revenues from $245.8 million in wagers. Hockey games accounted for $24.7 million in total wagers and $1.1 million in revenues.

Downtown Las Vegas, coming off its best gaming revenue year since 1993, reported $59.1 million during January, a 13.47% increase.

Increment in non gambling revenue

People visiting Las Vegas have been spending more money on food, beverage, hotel rooms, etc. than on casino games for years. It shows that Las Vegas continues to change its business model to attract visitors seeking a variety of experiences.

Additionally, gamblers in just about every region of the country now live within driving distance of a casino. While they serve one need for gamblers, they don’t always offer everything a casino guest could want. Las Vegas casinos have big shows and residencies, the finest dining in the country, luxurious spas, and great mixologists for the drinkers.

But not everyone who visits Las Vegas comes for fun. According to the Las Vegas Convention and Visitors Authority (LVCVA), 8% of visitors to Las Vegas last year were in town for a convention or meeting. These guests have a different purpose and spend money differently.

Only 41% of convention visitors gamble when visiting Las Vegas. Las Vegas is improving convention facilities at a rapid pace to draw more of these visitors because they bring greater revenue for the non-gaming areas in Las Vegas Casinos.

The same report from the LVCVA shows that leisure travelers spend $272.68 on food and drink while convention guests spend $427.07 drinking and dining. Similarly, nearly 90% of convention guests pay a negotiated full convention rate. That’s quite a difference from leisure travelers. Only about two-thirds of vacationers pay regular room rates.

Las Vegas will continue to be a great place to visit for work and play. Developments in 2020 will help ensure that stays the case with new casinos, renovated properties and better convention facilities.

Circa Resort & Casino

Casino developer Derek Stevens will open its latest casino project in December 2020 in downtown Las Vegas. Circa will be the first new casino build in downtown Las Vegas since 1980. The plans for Circa are massive. There will be 1.25 million square feet of amenities including: A three-level sportsbook with the world’s sportsbook video screen and broadcast studios, multilevel pool deck amphitheater with six pools, a Spa, casino on two floors, 777 hotel rooms and suites and numerous restaurants. Circa Resort & Casino will be the tallest building north of the Vegas Strip.

Virgin Hotels Las Vegas

The Hard Rock will close to make way for new casino and hotel operators in Las Vegas. After the 10 months of construction and once the renovation is complete in December 2020, the property will reopen as Virgin Hotels Las Vegas. It will operate the hotel while Mohegan Gaming will operate the casino. These two companies bring a fresh look to Las Vegas.

Virgin will be its first Las Vegas casino. The company offers fair gaming rules at its properties. Mohegan also has a different sportsbook partner than existing Las Vegas casinos. It will also introduce a new casino loyalty club: Mohegan’s Momentum. Virgin Hotels Las Vegas should bring a new way of operating a casino-resort to Sin City. The potential of a property opening with no fees, fair gaming, multiple loyalty/rewards partners, new food and beverage partners should be exciting for those looking for a different experience.

A new Circus Circus

MGM Resorts announced the sale of Circus Circus to Treasure Island owner Phil Ruffin in October. The sale is complete and changes are already underway. Since MGM Resorts no longer owns the property, they won’t be operating the sportsbook. William Hill is operating the sportsbook at Circus Circus. They are renovating the sportsbook by updating the viewing screens, seating, and more in time for the first weekend of March Madness.

The main casino and Slots-A-Fun will be renovated but changes are already underway. Ruffin has already introduced improved gaming conditions that Treasure Island guests might be familiar with. There are now $10 3:2 blackjack games and craps odds have been upgraded to 3x-4x-5x from 2x. Circus Circus also removed MGM’s triple zero roulette game.

Major changes coming to Circus Circus include the closure of the only RV Park on the Vegas Strip. In its place, Ruffin plans to add a massive pool complex similar to Mandalay Bay Beach. He’s also planning on adding a new 2,000 seat theater to Circus Circus. This theater could be home to a new Cirque du Soleil show.

MGM also sold Ruffin 35 acres of land that most recently the Las Vegas Festival Grounds. Ruffin plans on developing this land with a partner. He previously said a family entertainment center could be built here.

Ruffin plans to renovate the casino floor but not the rooms. This will keep room prices down as the property looks to find new customers. The rooms will be upgraded in the future but the goal is to keep Circus Circus an affordable family destination in Las Vegas.