Question of the Day - 03 March 2025

Yes, it's true. Many businesses in Las Vegas use a similar referral-fee system to incentivize cab and rideshare drivers and even hotel concierges to direct customers their way. 

Strip clubs, as the question states, are best known for this practice. Clubs often pay drivers anywhere from $20 to $100+ per passenger, depending on the night and the club's demand.

Many Vegas nightclubs and pool parties offer drivers a commission for dropping off guests, usually in the form of cash or drink vouchers.
However, some clubs rely more on promoters than cab drivers to fill their venues.

Some cannabis dispensaries offer cab and rideshare drivers referral fees for bringing in tourists. With many dispensaries off the Strip, these businesses rely on drivers to funnel customers their way. However, the cannabis industry has been cracking down on this practice to avoid regulatory issues.

Tour operators pay commissions for referrals, either per person booked or as a percentage of the tour price. Hotel concierges also get commissions for selling these tours.

And some tattoo parlors in Vegas, especially those catering to visitors, offer commissions to drivers who bring in customers.

While not as widespread as other business types, we've heard rumors, though have no direct knowledge, that some high-end or off-Strip restaurants have been known to pay cab drivers to bring in customers, especially for large groups.

Drivers get either a cash payout or a voucher that they can redeem later. Some businesses track referrals by asking customers, "How did you hear about us?" and rewarding the driver accordingly.

This is why Vegas drivers often "suggest" certain places: They have financial motivation. The practice is commonly known as  "steering" or "kickbacks." 

Tommorow: How to identify and avoid steering.