- Legal States
Julie Moraine January 1, 2020 3 min read
Optimistic Outlook for Las Vegas Gaming Industry in 2020
It seems there is some good news regarding Las Vegas Gaming Industry in 2020.
Las Vegas’ Gaming Industry Revenue Expected to Grow in 2020
In 2020, Nevada is expected to generate more sustainable gains due to increases in visitation, convention attendance and employment growth locally and nationally.
This statement quoted by Las Vegas Business Press, belongs to the senior research analyst at the Nevada Gaming Control Board, Michael Lawton. He also said that throughout the next year there will be more gaming wins in Clark County.
It is expected that slots and sports betting revenue will increase by 1 and 1.5 percent. Yet, Lawton specified that these numbers are not valid for gaming revenue from baccarat.
“The headwinds to growth we are currently experiencing and could continue to see are primarily due to the Las Vegas Strip’s baccarat business,” Lawton explained.
However, he expressed his concerns related to the economic impact of the trade war between China and the USA that could lead to Asian customers outflow from Las Vegas.
“As a result, this could have a negative impact on the baccarat business for the Las Vegas Strip in the future,” Lawton commented.
Good Prospects for Growth of Las Vegas Gaming Market
Another positive opinion about 2020 comes from Las Vegas native and gaming attorney with Brownstein Hyatt Farber Schreck, Frank Schreck.
In his opinion 2017 was the moment when the industry started to come back to normal, in 2018 the situation improved even more whereas in 2019 the gambling sector came to its 2007 level.
“It’s a bright outlook for 2020 as we will continue on from 2019, but that’s as long as the economy stays healthy. All the momentum is going in the right direction as we see construction and expansion,” he said.
Shcreck also pointed at the fact that the growing population will be positively influenced by the jobs created in the industry that will stimulate the local economy.
He commented on the future properties that will come on the Las Vegas market and mentioned that MGM Resorts International is selling the Bellagio to the Blackstone Group for $4.3 billion. He also talked about Caesars Entertainment selling the Rio to a group of investors who leased again the hotel to Caesars.
Further, Schreck shared his expectations in relation with possible ownership changes in Las Vegas casino properties.
He commented on Caesars Palace’s possible sale, but said he didn’t think in the end it would be done.
“They may sell one or two in Las Vegas so they’re not so heavily concentrated here,” Schreck explained.
“I know people are looking at The Linq and Flamingo, but Planet Hollywood is the most likely to be sold,” concluded Schreck.