In August 2007 we first shared the glad tidings that Megabus.com, an intercity express bus offering travelers $1 fares, was beginning service that week from its new West Coast hub in LA to six city destinations, including Las Vegas, Oakland, Phoenix/Tempe, San Diego, San Francisco, and San Jose. A limited number of $1 tickets (one-way) were guaranteed to be available for a number of seats on every route at www.megabus.com.
We confess that until you submitted your question, we hadn't heard a lot about it or given it much thought. But you piqued our interest, so we tried to book a trip, just as you did, and found ourselves similarly thwarted. We called to see what was going on and have nothing but bad news to convey for bargain-bus travelers: Not only will Megabus's California-to-Las Vegas route be canceled on June 8, but the entire West Coast service will be curtailed sometime shortly thereafter on a yet-to-be-announced date. Lack of demand and too much competition were blamed for the demise by the helpful rep we spoke with; while gas prices weren't mentioned, we figure they must have played a significant role as well.