Rendering of the proposed home baseball stadium of the Oakland Athletics . The A ’ s are due to start playing games at the new ballpark in 2028 after Major League Baseball owners approved the franchise ’ s relocation from California to Nevada .
Las Vegas started off by using gaming as the catalyst . It has built on to that engine to surround it with MICE ( Meetings , Incentives , Conferences , Exhibitions ), sports , entertainment , and a host of other non-gaming amenities . It is why destinations like Singapore used two integrated resorts to propel their tourism offering . It is why destinations like Macau are doubling down on investments into non-gaming amenities to enhance the offering and driver further visitation . It ’ s why the United Arab Emirates has a $ 4 billion project with Wynn Resorts in Ras Al Khaimah to drive tourism and diversify the economy . When the 2023 Gaming Abstract was released by the Nevada Gaming Control Board earlier this year , it showed the greatest difference between gaming and non-gaming revenue . The split was a true testament to the further diversity of the economy and the continued impact of sports on the Southern Nevada market . The split with 70 percent from non-gaming amenities to 30 percent for gaming showed a return to the trend that began at the end of the 1990s .
With the exception of one year after the Great Shutdown ( 2021 ), nongaming has held over 50 percent of the revenue generated by the tourism sector and its supporting cast in Southern Nevada . Gaming did see an uptick during the initial year post-shutdown in 2020 but has come back to its highest level , due in part to the continued diversification and added sports amenities .
Investing for the Long Term
The continued trend of professional sports leagues finding home in Las Vegas continues with the soon-to-be Las Vegas Athletics unveiling renderings of their new $ 1.5 billion stadium to be located on the Las Vegas Strip . While they will not officially be home in Las Vegas until the 2028 season as the now Oakland A ’ s transition out of the Bay Area , once built , it will form a triangle of venues that allow events of every major scale to be hosted .
While MGM Resorts will initially benefit the most because of its proximity to these venues , the entire destination benefits from all of these events because of the scale , scope and size .
The last piece of the professional leagues will likely come in the next few years as the National Basketball Association makes Las Vegas its home with an expansion team . While it is unknown when that will occur , basketball has a proven track record in Las Vegas with current and future events , and is one of the top prospects when the NBA votes to expand .
The team ’ s future home may also be another economic driver , as one potential that exists is the Oak View Group proposal for the south end of the Strip coming in currently at $ 10 billion for the entire development .
While criticism in other communities surrounds the subsidies that are provided to sports teams for their venues , Las Vegas continues to defy the model as sports continues to be a true economic engine . This would not be possible if not for the critical mass in both gaming and non-gaming assets that provides the foundation to bring the world to its stage and host the premiere sporting events like the Super Bowl and F1 .
But it is the calendar of events throughout the year at the professional , college and other levels that continue to provide the fuel that makes Southern Nevada ’ s economy what it is today and for the years to come .
As professional basketball and baseball appear to be poised to take root , it will further draw tourists to the destination . This has already been seen by the opponents of the Vegas Golden Knights and the Las Vegas Raiders as fans take a few days to enjoy the Sports and Entertainment Capital of the Word . This further drives revenue into the destination to support the local economy , jobs and overall investment .
The Future Looks Even Brighter
While very few cities can claim hosting a Super Bowl and an F1 race within a few months , the pipeline for sports as an economic driver continues with what is known and what is expected to be coming to Las Vegas in the coming years . A Final Four , a College Football Playoff , and other key sporting events that were once never assumed to be coming to Las Vegas are now on the books . The Final Four will take place for the first time in April 2028 . The College Football Playoff will likely be in and around that time as well , as the college football calendar is extended and no longer has a significant conflict in another major event to Las Vegas when it hosts the Consumer Electronics Show at the beginning of every January .
In what initially became the phrase some two decades ago that helped shape the image of Las Vegas at that time , what happens here can only happen here . It is a model unto itself in the business of gaming , entertainment , sports and hospitality . It is a model for others to glean from to enhance their offering , but only one place in the world has a proven economic engine that works , and it ’ s in Southern Nevada .
This is about the business that drives the economy just as meetings , conventions , retail , food and beverage , and other amenities did to change the paradigm and the tone of Las Vegas , meaning business . The best is yet to come as future F1 races cement themselves in the destination and the Super Bowl becomes a regular fixture on the circuit of NFL cities . It is those events that will propel the long-term sustainability as others follow .
Brendan D . Bussmann is the managing partner of B Global . He has nearly three decades of experience in the gaming , hospitality and sports sectors , where he currently advises public and private companies , tribal nations , sports organizations , financial institutions , associations , and government entities around the world .
26 Global Gaming Business APRIL 2024