Super Bowl's Major Impact on Las Vegas: A Booming Success

While Formula One's fiscal impact remained uncertain, the Super Bowl had a significant economic boost in Las Vegas. Casino revenues surged, hotel occupancy soared, and visitation increased markedly during the event, surpassing pre-pandemic levels. However, concerns arose over the delayed issuance of New York City casino licenses, the continued struggles of Bally's Corporation, and the death of a Nevada casino licensee who retained an active gaming license for four years.

Super Bowl's Lucrative Impact on Las Vegas: A Resounding Success

The much-anticipated Super Bowl LVII, hosted in Las Vegas, has left an indubitable mark on Sin City's economy, demonstrating the immense power of major sporting events to invigorate tourism and boost revenue.

Casino Earnings Surge

In February, casino takings along the iconic Las Vegas Strip soared by a remarkable 12.5%, reaching $801 million. Local casinos also experienced a surge, with earnings increasing by 4% to $242 million. Compared to pre-pandemic levels in 2019, these figures represent an even more impressive growth: a 35% increase on the Strip and a 30% increase off it.

Table games were particularly lucrative, with hold percentages of 14.5% for roulette and baccarat reaching an astonishing 17.5%. Notably, even excluding baccarat, table game winnings rose by 8% despite a 29% increase in wagering. Baccarat win skyrocketed by a staggering 82% to $181 million, fueled by a 50% increase in play.

Slot machines saw a 4% increase in coin-in, but luck was on the side of gamblers, as the win dipped 2% to $381 million.

Record-Breaking Visitation

The Super Bowl's allure extended beyond the casinos, driving an unprecedented influx of visitors to Las Vegas. Room bookings surged by 9.5% compared to the previous year and 6% from 2019, with an impressive 156,190 rooms booked. Occupancy rates soared to 84%, reaching an astounding 90% on weekends.

Conventioneers flocked to Sin City, with a 15% increase bringing the total number to approximately 764,800. Hotel room rates skyrocketed by 43%, although the average daily rate (ADR) remains unreported.

Auto Traffic Surges, Except from California

Auto traffic at the borders increased by 3%, indicating an influx of visitors driving into Las Vegas. However, traffic from the California border dipped by 1%, possibly due to the infamous traffic backups that have plagued Interstate 15 in the past.

Uneven Geographic Distribution of Benefits

While Las Vegas as a whole benefited from the Super Bowl, the distribution of revenue was somewhat uneven. Downtown casinos saw a modest 3% growth to $76 million, while North Las Vegas casinos declined by 4.5% to $23.5 million. Laughlin experienced the steepest decline, with revenue falling by 8% to $42 million.

The Boulder Strip remained steady at $75.5 million, while miscellaneous Clark County casinos saw a 7% increase to $142.5 million. Reno, which attracted many would-be Super Bowl attendees, witnessed a 10% increase to $60 million. Sparks, just north of Reno, saw a 3% rise to $14 million. Lake Tahoe casinos enjoyed a 13% jump to $21 million, Mesquite gained a percentage point to $16 million, and Wendover rose by 4.5% to $23.5 million.

Durango Resort's Dominance

An intriguing observation emerged from the data, suggesting that Durango Resort has significantly impacted the surrounding competition. Truist Securities analyst Barry Jonas noted that win per slot per day at neighboring casinos has decreased by 7%, while comparable numbers for table games have plummeted by 22%. This points to significant cannibalization, despite Boyd Gaming executives denying any direct impact.

Gaming License Lapse Controversy

The Super Bowl's positive economic impact was marred by a bizarre revelation about a gaming license held by a deceased individual. Shirazalli Jafferali Lalji, who passed away in 2020, inexplicably remained a licensed casino operator for nearly four years after his demise.

The Nevada Gaming Control Board (NGCB), responsible for issuing licenses, has drawn widespread criticism for allowing this oversight to persist for so long. The license was only revoked after the Culinary Union brought the matter to their attention.

Proxy War between Culinary Union and Lalji's Heirs

The Culinary Union has launched a proxy war against Lalji's heirs, using the license issue to draw attention to a labor dispute in British Columbia. The union has called for a boycott of Rampart Casino, owned by Richmond Investments, a company connected to the Lalji family.

The Culinary Union's disclosure about the NGCB's negligence has drawn headlines but is unlikely to lead to significant consequences. NGCB member George Assad, in a tongue-in-cheek statement, declared Lalji "vindicated."

New York Casino License Delay

In contrast to Las Vegas's success, New York City's casino license awarding process has hit a roadblock. The Empire State's Gaming Commission has proposed delaying the announcement of licenses until after 2025, citing the need for extensive environmental impact statements and land review processes.

Governor Kathy Hochul had faced criticism for not including more gambling revenues in her budget, but this delay may ultimately prove beneficial. The commission's decision aims to ensure a thorough and transparent process, maximizing the potential benefits of future casinos.

Crown Resorts Retains License Despite Controversy

In Australia, Crown Resorts has been granted permission to retain its casino license in Melbourne, despite facing allegations of money laundering and organized crime connections. The company will pay a fine of $294 million as part of the settlement, but this may be seen as a small price for avoiding the potential loss of its lucrative license.

Economic concerns appear to have played a significant role in the government's decision to grant Crown Resorts a reprieve. The company's impact on the local economy and the potential job losses associated with license revocation were likely factors in the decision.

Bally's Corp.'s Mounting Woes

Bally's Corp., a casino operator with ambitious plans in New York City and Las Vegas, has faced a setback with Moody's downgrading its credit rating to "Negative." The rating agency noted that Bally's has taken on too much debt and faces significant challenges in securing financing for its projects.

Grand Lisboa Palace Opens in Macao

In the gambling hub of Macao, the long-awaited Grand Lisboa Palace has finally opened its doors. The opulent resort features a 271-suite Palazzo Versace Hotel, offering guests the ultimate in luxury and exclusivity. Corporate titan Pansy Ho graced the grand opening ceremony.

Culinary Union Leadership Transition

Former Culinary Union boss D. Taylor, now president of Unite-Here, has announced his resignation. Taylor, a highly respected labor leader, will be succeeded by Gwen Mills, who is expected to continue his legacy of fighting for workers' rights and improving the lives of hospitality employees.