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Question of the Day - 13 June 2015

Q:
I live in California and used to visit Las Vegas at least twice if not three times a year. Now with casinos near me, I have not been to Las Vegas in five years. How has the California casino market affected Las Vegas? Are there more yearly visitors to Vegas than in say 2008?
A:

At the turn of the century, Las Vegas’ casino industry opposed tribal gaming in California, partly out of fear that it would sap the Vegas market. That concern has proven to be unfounded and California remains Las Vegas’ number-one feeder market. In the early years of the century, after Vegas-style gambling had been legalized in Nevada, visitor traffic actually rose from 5,591,009 vehicles in 2000 to 5,967,112 in 2001. Clark County gambling revenue dipped slightly, however, from $7,671,252,000 to $7,636,547,000 in 2001.

In 2002, the Las Vegas Convention & Visitors Authority stopped tallying California visitation by car count and switched to percentages. In 2008, as the Great Recession began to take hold, gambling revenue slipped from its all-time peak ($10,868,484,000) to $9,796,749,000, California visitation also fell as a percentage of total tourism to 28%. Since then, it has recovered and stabilized, climbing back to 31% in 2009 (when Clark County gross gaming revenue was $8,838,261,000), 30% the next year ($8,909,574,000), 31% again in 2011 ($9,222,677,000).

California visitors jumped to fully a third of Las Vegas’ clientele in 2012 ($9,399,845,000), remaining at 33% in 2013 ($9,674,404,000) and last year too ($9,554,002,000). They appear to be part of an overall trend that saw more and more people returning to Vegas but spending less per capita. However, when you look at where gambling revenues are now, compared to the turn of the century, California’s tribal casinos cannot be said to have made a dent in Las Vegas’ haul.

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