Huge crowds are reported to be swarming the Las Vegas Strip in the first week of a relaxation of capacity restrictions at Nevada’s casinos, restaurants and other businesses.
An order signed by Governor Steve Sisolak earlier this month bumped up the previous statewide occupancy limit of 35 percent to 50 percent as of March 15, with the promise of another increase on May 1 if new Covid infections remain at the relatively stable rates of the last several weeks.
State health officials recently reported 222 new cases of the potentially deadly virus last𑁋161 of them in Clark County, home to Las Vegas𑁋including some cases of the highly contagious UK mutation. One death was reported, bringing the state’s confirmed total to 5,118.
But that isn’t stopping the revelers, who’ve responded to the increased capacity with enthusiasm. Reports last week had crowds packed shoulder to shoulder on the sidewalks, casino parking lots filled, and most, though not all, visitors adhering to the state’s mask requirement.
“I think the increased capacity will help both consumer confidence and the bottom line,” said UNLV Assistant Professor of Hospitality Amanda Belarmino. “Guests will feel more comfortable and confident; therefore, they will be more likely to travel. The ability to have more guests on the floor at any one time should also help increase revenue by having more machines and tables open.”
It isn’t hurting either that the federal government’s $1,400 stimulus checks have begun to hit people’s bank accounts, making it more likely that cash will be flowing with greater momentum into Strip resorts in the weeks ahead.
The serendipitous timing of the NCAA Men’s Basketball Tournament should provide an added boost.
“March Madness,” as the tournament is known, began March 18, and before last year’s cancellation at the onset of the Covid crisis, was the second biggest betting event on the Las Vegas calendar after the Super Bowl. Normal years would see hotels fill up at near 100 percent occupancy, sports books packed with bettors, and resorts hosting elaborate watch parties and other special events.
“The numbers are exceeding expectations despite some of the limitations we’re still dealing with. These are positive signs that we’re inching back to normalcy,” Jay Kornegay, vice president of Westgate SportsBook, told the Las Vegas Sun.
“From everything I’ve heard and seen, we are expecting to have a great weekend to start March Madness,” said Lisa Motley, director of sports marketing at Las Vegas Convention and Visitors Authority. “Obviously, it’s all under capacity limits so it won’t be what we’re used to but it’s a shot in the arm for the destination to come out of the gate with something this exciting and celebrating what we think might be the start of a return to a little bit of normalcy.”
In March 2019, gamblers wagered a record $498 million on basketball in Nevada, most of which, no doubt, was March Madness betting, although state statisticians don’t break out specific events.
If anything, the long months of national self-isolation and the virtual disappearance of public entertainment have whetted bettors’ appetites. Nevada’s sports books set a single-month handle record with $660 million wagered in October and an all-time win mark of $56 million on football in November.
The Westgate SuperBook, to take one example, has seen record handle in five of the last seven months, according to Kornegay.
“Sports betting is so popular right now. People don’t have a lot of options these days, and sports betting is one of them so they’re taking advantage of that.”
Observers across the larger Las Vegas scene, meanwhile, are steadily more optimistic, albeit with all the qualifications inherent in the slow approach to a “new normal,” whatever that may turn out to be.
Nehme Abouzeid, president and founder of tourism consultancy LaunchVegas, said the new capacity level of itself “won’t have earth-shattering effects.”
“But increasing capacity for retail, dining, entertainment and events is critical to Vegas getting its groove back,” he told the Las Vegas Review-Journal. “A vacation is not a Vegas vacation until it includes all of the things that we excel at, like headliner shows, luxury shopping and over-the-top gourmet dinners.”
Brendan Bussmann, director of government affairs for gaming consultants Global Market Advisors, agrees.
“The continued increase in capacity continues to show that Las Vegas is beginning to reopen. It is a welcome number that has not been seen since last fall when capacity was cut by 50 percent by the governor. The hope is that this trend continues by reopening the economy so that we can continue the recovery that was started last June.”
He added, “The key, though, will be the return of meetings and conventions and other amenities. While other destinations have started to fill that void, the sooner the destination can get back to hosting these events, the better it will be for its long-term recovery.”
