Las Vegas has changed.
While it continues to be known as a mecca for gamblers, visitors today are spending more money on hotels, restaurants and other businesses.
Gaming has gone from 60% of revenue in 1970 to 37% of revenue in 2013.
Here’s an excerpt from a research note from Morgan Stanley:
US regional gaming revenue experienced a period of 30 consecutive years of positive growth from 1979 to 2009 driven by the proliferation of casinos throughout the US. Even more impressive (and discussed in more detail in the section Impact of Supply Expansion in Las Vegas) is that the Las Vegas market continued to expand despite the introduction of new competition throughout the US … In Fiscal Year 1970, Las Vegas Strip revenue was 60% gaming / 40% non-gaming. In
F2013, the mix was 37% gaming / 63% non-gaming. The Las Vegas market has clearly shifted to be something else beyond just a casino market, driven by conventions, shows, hotel rooms,and savvy marketing.
This chart shows how people are spending less on gambling in Sin City compared to the 70s.