Once nearly wholly dependent upon gaming revenues, the Great Recession forced significant changes on the Las Vegas Strip, as casino operators sought to diversify and generate more revenue streams.
Those efforts have seen a rise in non-gaming development in Las Vegas, an increase in non-gaming revenues, and a much more positive economic outlook.
Instead of getting a majority of revenues from gaming, Strip operators now are deriving much of their income from a combination of other sources, including hotel stays, special events, food and beverage sales, and retail leases.
In 1984, properties on the Las Vegas Strip derived some 71 percent of revenues from gaming, according to the Nevada Gaming Commission.
Now, that percentage is down to less than 40 percent, making it the top draw, but losing ground fast to other revenue streams. While gaming is a very mature market on the Las Vegas Strip, many other opportunities abound, particularly in the lucrative events markets.
So far this year, gaming revenues on the Las Vegas Strip are flat, with January posting a 7.7 percent decline, which mostly was made up by a 7.3 percent increase in February, when compared to the same months a year ago.
Slot play was up by about 1.5 percent and table play 4.2 percent, other than baccarat, in February.
Such numbers reflect a generally positive economic outlook for the year in Southern Nevada.
UNLV’s Center for Business and Economic Research reported Southern Nevada’s economy is showing growth in gaming and tourism, and has a positive outlook for the year.
In its March CBER Indexes report, the center reported gross gaming revenues rose to $800.5 million last December, up 2.9 percent from $780 million in December 2014. Statewide numbers showed a 2.2 percent increase in gaming to $929 million.
Average room occupancy rates also rose in Southern Nevada, averaging 89.3 percent in January, up 3.1 percent from January 2015.
Coinciding with the increased room occupancy and gambling, non-farm employment rose 2.4 percent to 925,000 last December, and taxable sales increased by 5.6 percent to more than $3.2 billion for the month, when compared to December 2014.
The report says there are no signs of a looming recession or economic downturn, and McCarran International Airport posted a 7.3 percent increase in passenger traffic in January, with more than 3.9 people traveling through the airport for the month.
McCarran has posted 14 straight months of increased passenger traffic, and handled 45.4 million passengers last year, its third-highest total.
Also posting impressive numbers is Downtown Las Vegas, which grew its gaming revenue by 17 percent including a 7.7 percent rise in slot revenues, in February.
Gaming tables on Fremont Street and nearby took in nearly 14 percent more in February than they did a year earlier.
Las Vegas locals also are betting more, with revenues up by more than 11 percent in the locals market, after posting a 6.1 percent gain in January.
