Recently, while catching up on economic news, I noticed stories related to Las Vegas.

People say it's still a 'thriving city,' but the reality seems a bit different.

On the surface, it's glamorous and bustling, but there are many reports that the casino business is not as good as it used to be.

First of all, the revenue itself is at an all-time high.

As of 2024, the total revenue of the Las Vegas Strip is about $21.8 billion.

This is a 6.8% increase from last year.

The number of tourists reached 41.7 million.

The performance venues are also booming. The new venue called Sphere has ticket sales exceeding $400 million.

U2 and other famous pop stars have been performing one after another, and bookings are fully packed.

There are even reports that the average spending per person is over $1,300.

This indicates that spending on hotels, shopping, and Michelin restaurants has significantly increased.

But... the casinos are not doing as well as expected

The twist begins here.

Casino net profits have decreased by over 40%.

If they earned about $1.4 billion last year, this year they are left with only around $800 million.

This means that while people are visiting Las Vegas, they are not spending money on 'spinning the roulette and playing blackjack' like before.

In my view, there are several reasons for this.

Labor costs have risen across the board, including hotel staff, dealers, and cleaning teams.

Energy costs are similarly high. This has created a structure that eats into profits.

Nowadays, people don't just go to gamble. They are now entering surrounding facilities rather than the gambling halls.

In particular, it is said that the profits from high-stakes betting games like 'baccarat and blackjack' have decreased. Big spenders are either not coming as often as before or are betting more cautiously.

Las Vegas is still a city where money flows well, but the flow of money is shifting from casinos to entertainment, tourism, and retail.

In fact, it is said that gambling accounts for only 26% of the Strip's revenue.

In the past, gambling was almost the main focus, right?

Now, 'sights, activities, and dining' are playing a larger role.

Looking at the current atmosphere, it seems that Las Vegas is trying to make some changes.

Performances, concerts, exhibitions, shopping, and even F1 was held last year, right?

Just the F1 Las Vegas race alone generated an economic impact of $1.5 billion, which might be better than casinos.

Las Vegas is no longer a place that survives on a 'jackpot' alone,

but is transforming into a city for shopping, sightseeing, enjoyment, and experiences.

Of course, from the casino's perspective, decreasing profits is a concern, but

in the long run, this kind of 'diversification' might actually provide a more solid foundation for the city.

Personally, I find this change quite interesting.

In the past, "Las Vegas = gambling" was the norm, but

now it seems to be leaning more towards "Las Vegas = enjoyable experiences."

Whether this trend will continue or if it will revert back to being the 'gambling city'...

The next few years will likely be an interesting point to watch.