Executives from casinos in downtown Las Vegas have reported that business remains steady, despite the current economic uncertainties and evolving travel trends. They are pushing back against the notion that the city is losing its charm.
During a community forum organized by the Downtown Vegas Alliance, leaders from key downtown establishments stated that visitor numbers and spending levels continue to be robust, even though comparing these figures to the post-pandemic boom years is difficult.
Cliff Atkinson, CEO of the Fremont Street Experience and former president of Virgin Hotels Las Vegas, remarked, “It has been a challenge. We have some headwinds. But I believe in the resilience of this city. We’re reinventing ourselves, and I think that’s what this city is most known for.”
Executives acknowledged worries regarding rising costs, shifting travel habits, and a growing “K-shaped economy,” where affluent visitors continue to spend, while those with lower incomes are facing increased financial strain.
Joe Woody, chair of the Downtown Vegas Alliance and CFO of El Cortez, noted, “There’s a lot of social media and news coverage that we felt was exaggerating the issues of overpricing and affordability in Las Vegas.”
Although performance has softened compared to the record growth seen in 2022 and 2023, operators maintain that overall demand is still strong.
Jonathan Jossel, CEO of Plaza hotel-casino, stated, “It’s hard to compare. While things may not be as good as they were 12 to 24 months ago, it’s still pretty good.” He emphasized that visitation and gaming expenditures remain significant.
Operators have observed varying performances across different properties, reflecting economic disparities among customers. Jeff Victor, VP of operations for Circa Hospitality Group, mentioned, “We’ve been watching this for several years now, where the rich are getting richer and the poor are getting poorer.”
Interestingly, some downtown casinos are attracting new visitors who are willing to spend more, including those moving away from the Las Vegas Strip.
Woody commented, “We’ve seen a change in our customer base. Our core customers are still strong, but we’re also seeing new, higher-end players.”
Executives believe that downtown’s unique appeal lies in its ability to offer a different experience compared to the Strip, featuring lower minimum bets and more personalized service.
Jossel remarked, “The relationships people develop downtown are significant. Whether it’s meeting Kenny at El Cortez or Derek at Circa, visitors enjoy connecting with individuals and feeling a sense of community.”
He added that downtown operators are confident in their ability to provide a more meaningful customer experience compared to their Strip counterparts.
“We can make guests feel special downtown, and ultimately, we can repeat that experience time and again,” he said.
Looking to the future, industry leaders expressed optimism about the area’s prospects, highlighting ongoing development and its unique character. Atkinson concluded, “It’s an authentic experience. You can’t recreate the history of downtown Las Vegas.”