A friend of mine told me that certain entertainers in Vegas were booked not because they consistently filled the showrooms in which they performed, but because they attracted more gamblers and at higher stakes. Supposedly, the casino made a lot more money at the gaming tables when Sinatra was performing, because more of the people who came to see him were high rollers. And if this was ever the case, is it still the case?
Yes, in the 1950s and 1960s, Las Vegas casinos strategically booked entertainers based on their ability to attract high rollers, along with enhance the casino's image and prestige. During this era, often referred to as the "Golden Age" of Las Vegas entertainment, major stars like Frank Sinatra, Sammy Davis Jr., Dean Martin, and other members of the Rat Pack performed regularly. These entertainers weren't just showroom-fillers, though they did that quite effectively; they also served as a magnet for the whales of the day.
Casino operators understood the symbiotic relationship between entertainment and gambling revenue. High-profile performers elevated the casino's image, winning the competition battle for affluent gamblers. Frank Sinatra, for instance, wasn't only a world-class entertainer, but also a symbol of sophistication and glamor, appealing to wealthy influential clientele. This strategy contributed to the city's transformation into a global entertainment capital, where the allure of seeing top-tier talent went hand in hand with the excitement of the casino.
This wasn't always the case, though. The impact Elvis, for example, had on Las Vegas was less about attracting high rollers and more about drawing massive crowds and reshaping the city’s entertainment landscape. While he wasn’t known for specifically appealing to the high-rolling gamblers of his time, like Sinatra and the Rat Pack, Elvis brought a new kind of energy and audience to Las Vegas. His fanbase was broad and diverse, spanning middle-class Americans, die-hard fans, and tourists rather than the whales. His popularity helped Las Vegas move away from its image as a playground for the rich and famous. His shows generated massive foot traffic, bringing more people into the hotel, restaurants, and casino. High rollers who were already in town might attend his performances, but the overall revenue rose due to the middle market.
As for today, the strategy of booking high-profile entertainers to attract gamblers and enhance a casino's prestige still exists, but the focus has shifted. Performers like Lady Gaga, Celine Dion, and Adele are part of the long tradition of using star power to draw crowds, but like Elvis, they appeal to a broad demographic that populates the hotels and increase non-gaming revenue. In addition, the shows themselves are usually profit centers, with ticket sales, merchandise, and concessions generating substantial revenue. Celine Dion’s residency, for example, grossed over $600 million, revolutionizing how casinos view headliner contracts.
Of course, while casinos no longer rely solely on entertainers to attract gamblers, the presence of a megastar can still boost gaming revenue, albeit indirectly. When a star like Adele performs, high rollers and VIP guests are comped, encouraging them to stay, play, and spend. The connection between entertainment and gaming revenue remains, though in a more complex and diversified way.
