The internet questioned whether Vegas is a value. Tourism leaders say they’re listening
Gaming and tourism leaders seem committed to fixing the perceptions about the value Las Vegas offers as a destination. Even if business recovers in the next year, the conversations will continue.
Gaming executives and a tourism leader disavowed the ongoing “Vegas is dead” debate that’s been percolating in social media and travel blogs for much of the year.
But there is still more to address.
Steve Hill, CEO of the Las Vegas Convention and Visitors Authority — the agency whose mission is to help fill the market’s 150,000 hotel rooms — said resort operators are still working through the concerns about high prices along the Strip.
“There’s an affordability aspect. There is a sensitivity to what our customers can afford that has been heightened because of the uncertainty,” Hill said during a discussion on the economy at The Nevada Independent’s sixth annual IndyFest conference. “We talk a lot about value, and it’s been a value conversation over the last four or five months.”
On an IndyFest gaming panel following Hill’s remarks, Ayesha Molino, the incoming chief operating officer for MGM Resorts International, said the company has also been addressing the issue at its 10 Strip properties.
“What is the value proposition that you’re offering to your guests?” asked Molino, who has been in resort operations at the company for the past six years. “Do they feel like they are getting the value that they’re paying for that dollar?”
Last week, MGM Resorts CEO Bill Hornbuckle told the Nevada Gaming Commission he has no concerns about the health of Las Vegas — at least from his company’s perspective.
“Fundamentally, our business is sound and solid,” Hornbuckle said. “It’s been encouraging to see this fall our convention business and event activity in particular, pick up.”
Hornbuckle also cited the event calendar, suggesting more than half of the 62,000 people who filled Allegiant Stadium for the Dallas Cowboys’ 33-16 win over the Las Vegas Raiders on Nov. 16 came from out of town, “which is great for tourism.” He also expected the city would see another economic boost from last weekend’s Formula One Las Vegas Grand Prix.
“Over the next 16 months, there’s more convention business on the books for Las Vegas in our hotels than the city has ever seen before,” Hornbuckle said.
Still, the perception of high costs — such as the $25 bottle of water in a hotel room minibar — hangs over the Strip. Hill said tourism leaders will continue to work through this issue.
“We need to fix those things. I think the properties are taking steps to do that,” Hill said, adding there are “hundreds of thousands” of items priced by resort operators. “It takes a little bit of time to work through those and make sure that’s the appropriate pricing. I think those steps are being taken.”
What’s unlikely to change: parking charges and resort fees — an added cost per night to a hotel room bill covering amenities such as Wi-Fi, pool and gym access.
“Frankly, those are here to stay. They are very transparent at this point, and it’s a part of an overall price for that room,” Hill said. “People know what they are and what those prices are when they reserve a room.”
Molino said MGM offers three hours of free parking at its properties for Las Vegas locals. She added that resort fees are a common practice at hotels throughout the U.S.
“I don’t think that Vegas is anomalous in this way,” she said.
She said her position at the CityCenter properties taught her about what customers on the Strip have come to expect. She said the value proposition pertains to high-end resorts, such as Aria and MGM Grand, and middle market properties, such as Excalibur and Luxor.
“Every single one of our customers [who] comes into the door [needs to] feel that value proposition,” Molino said.
Wynn Resorts Executive Chairman Phil Satre, whose gaming industry experience dates back to the 1980s during his time as chairman and CEO of Harrah’s (now Caesars Entertainment), said the value proposition has long been a consideration in Las Vegas as legalized gambling expanded across the U.S.
Satre said the 1989 opening of The Mirage changed the image of Las Vegas as the first new resort in 15 years with what were considered upscale rooms for the Strip. The property offered attractions such as a free volcano show and a chance to see Siegfried & Roy’s white tigers.
Other resorts started adding more non-gaming attractions and amenities. He suggested Reno’s casino market still needs to adopt that approach to give consumers, primarily from Northern California, more value beyond gambling.
According to the Gaming Control Board’s annual Gaming Abstract, gaming accounted for 26 percent of all revenue on the Strip. In Reno, the figure was 43 percent.
DraftKings, FanDuel depart AGA as the companies target prediction markets
DraftKings and FanDuel, the nation’s two largest sports betting operators, resigned their membership in the American Gaming Association (AGA) a week ago because their expansion into prediction markets “is not aligned” with the trade organization’s priorities.
Prediction markets offer sports contracts (the term companies use to describe the business) on “yes” or “no” aspects of a game, such as who would win Monday night’s NFL game between the Carolina Panthers and the San Francisco 49ers, but not on the exact point spread. Traditional sportsbooks showed the 49ers as a 7.5-point favorite, with bettors wagering whether the 49ers would do better or worse than that line. The 49ers won, 20-9.
Following their keynote appearances at the AGA-produced Global Gaming Expo in Las Vegas in October, DraftKings and FanDuel announced plans to launch prediction market businesses.
The departure from the trade association came a few days after both companies gave up interests in Nevada because of the state’s opposition to prediction markets. Leaving the AGA won’t affect their gaming licenses in other states.
AGA leadership has criticized prediction markets for operating outside traditional state regulatory frameworks and sidestepping responsible gaming and consumer protection rules. The Washington, D.C.-based organization supports state-regulated oversight of gaming instead of federal oversight of prediction markets by the Commodity Futures Trading Commission, which oversees the U.S. derivatives markets.
At last week’s Nevada Gaming Commission meeting, MGM Resorts International CEO Bill Hornbuckle commended state regulators for their “clarity” toward unlicensed prediction markets. MGM operates sports betting nationally through BetMGM and is not jumping into prediction markets.
“Obviously, we have some work to do in some other states,” Hornbuckle said. “It’s fascinating … without a doubt [it’s] sports betting. Full stop.”
DraftKings and FanDuel hold a combined 67 percent market share of the nation’s sports betting industry, according to Southern California gaming advisory firm Eilers & Krejick Gaming. The companies don’t plan to give up that lucrative business. Nationally, legal sportsbooks collected $13.7 billion in revenue in 2024, which was nearly one-fifth of last year’s record-breaking $72 billion in total gaming revenue, according to the AGA.
“FanDuel has always been the company that moves quickly, from daily fantasy to mobile sports betting to prediction markets,” according to a company statement. “We build what consumers want and we operate with an unwavering commitment to integrity.”
At G2E, DraftKings CEO Jason Robins said prediction market companies have flourished because large states such as Texas and California have not legalized sports betting, but are not stopping residents from using prediction markets.
“I just don’t see a world where people are going to prefer [prediction markets] unless you’re somebody that’s maybe been limited and can’t get action,” he said.
What I'm reading
☑️ American Gaming Association names Delaware North CEO Lou Jacobs as chairman — Rege Behe, CDC Gaming Reports
He succeeds former Everi Chairman and CEO Michael Rumbolz, whose two-year term expires in January 2026.
🤠 The Big Bet: Casino giant aims to put landmark destination-resort in Dallas — Phil Prazan, 5NBC/DFW
“Dallas is the only other place in the world that we think can match Marina Bay Sands in Singapore. It’s that simple,” said Andy Abboud, senior vice president for Las Vegas Sands.
News, notes and quotes
🏨 Sandoval named chairman of Resorts World oversight board
UNR President and former two-term Nevada Gov. Brian Sandoval will become chairman of the part-time board overseeing Resorts World Las Vegas. He replaces Jim Murren, who was named to the role nearly a year ago. Murren was recently appointed as the interim CEO of the General Commercial Gaming Regulatory Authority in the United Arab Emirates, the licensing agency for the country’s planned gaming industry. Murren will stay on the board as chairman emeritus. Former Resorts World Las Vegas CEO Alex Dixon, who spent less than five months in the role before transitioning into an advisory role, left the company in October.
💰 Dotty’s parent pays $1.2M to settle EEOC lawsuit
Nevada Restaurant Services, which is headquartered in Las Vegas, agreed to pay $1.2 million to settle a verbal and physical sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission in 2018. The company, which operates a chain of slot machine parlors, primarily under the Dotty’s brand, owns the Laughlin River Lodge & Casino and the Hoover Dam Lodge & Casino in Boulder City. According to a statement from the EEOC, company employees were subjected to harassment by co-workers and supervisors. The EEOC alleged the company knew of the harassment and failed to address the complaints effectively.