We called the Venetian to get to the bottom of this one, and here's the story:
Due to the limited space available, the gondolas are fitted with small electric motors that help them to launch. Once they're moving, they’re steered and partly propelled by the gondolier using his (or her) paddle but they're powered mainly by the motor. The Venetian confirmed that this sets them apart from the gondolas in Venice, which are substantially longer than those at the Grand Canal Shoppes and are powered solely by one or two oarsmen who stand facing the prow, or by poling.
The Vegas versions are also fabricated from fiberglass, making them significantly lighter than traditional Venetian gondolas, which are composed primarily of eight different types of wood in 503 separate pieces.
For further information about the gondola and its history, check out the official Web site of the Institute for the Preservation of the Gondola at www.gondolavenezia.com.it/homeng.asp.