Las Vegas is witnessing a trend toward a younger and more diverse visitor demographic, prompting casino resorts to adapt their strategies to appeal to this emerging clientele. Recent years have seen scrutiny of the Las Vegas casino industry regarding its ability to attract younger patrons as older casino-goers age. So far, the answer seems to be affirmative, as Nevada, particularly the Las Vegas Strip, achieved record gaming revenue in both 2021 and 2022. The concern now is whether this trend can be sustained or if further evolution of Las Vegas casinos is necessary.
The average age of visitors to Las Vegas has decreased, from 43.2 years in 2021 to 40.7 years in 2022, based on a recent visitor profile survey by the Las Vegas Convention and Visitors Authority (LVCVA). Oliver Lovat, CEO of the Denstone Group, noted that the average visitor age peaked at 49.2 in 2010. Millennials, defined as those born between 1981 and 1996 and aged 26 to 41 at the time of the survey, accounted for 48% of visitors in 2022. In contrast, Generation Z, born between 1997 and 2012, represented 13% of visitors, surpassing the 12% share of baby boomers born between 1946 and 1964.
The shift in demographics has proven beneficial for casinos. In 2010, just 29% of visitors were under 40. Visitors are not only younger, but they are also becoming more diverse, with increases in the representation of Hispanics, Asians, and Asian-Americans. White visitors constituted 77% of the total visitor base in 2019 but declined to 62% by 2022.
Lovat considers the latest survey results to be some of the most significant in two decades of observing Las Vegas visitation trends, illustrating how the city has engaged emerging consumer needs by shifting focus from budget accommodations and inexpensive buffets to experiential offerings. "It’s validation for getting it right," Lovat remarked about the industry's strategic pivots. He highlighted that major players like Caesars Entertainment and MGM Resorts International have opted to invest in dining and entertainment, moving away from budget-centric models, which has positively influenced visitor engagement and satisfaction.
Further contributing to the influx of visitors, Andrew Klebanow of C3 Gaming attributed the effectiveness of the LVCVA's advertising campaigns and an increase in high-quality entertainment options. By 2022, one in four Las Vegas visitors were first-time guests, a rise from one in five in 2021. "Casino operators have also become very adept at moving their customers from casinos in high-tax jurisdictions to their properties in Las Vegas where the gaming tax is the lowest in the nation," Klebanow stated.
Post-pandemic, Lovat indicated that Las Vegas has emerged as a prime destination for individuals seeking enjoyable experiences with friends. The trend shows visitors are now seeking entertainment beyond gambling. In 2022, 35% of guests were unmarried, a significant increase from 16% in 2018.
The appeal to younger audiences is supported by a shift in Las Vegas' offerings, which now features more contemporary dining, nightlife, and entertainment options. For example, popular acts like Adele and Bruno Mars attract younger crowds, while traditional artists like Cher have become less common. Spending per visitor has also increased, with the average amount spent on food and beverages rising from $415 in 2019 to $527 in 2022, and on entertainment from $111 to $310 over the same period.
The evolution in gaming and entertainment is reflected in recent trends. While the percentage of gaming revenue has declined, casinos have adapted to capture new market segments. Lovat noted that the average visitor budgeted $761 for gambling during their trip in 2022, up from $591 in 2019, reflecting an overall shift in visitor intent and interaction with gaming establishments.
Despite promising trends, not all industry observers believe efforts are sufficient. Lovat emphasized the need for casinos to embrace cashless technology and adapt gaming experiences. Some experts suggest a more profound change is required to attract younger patrons. They argue that traditional slot machines may not resonate with younger generations as effectively as other gaming innovations could. Nonetheless, there is a belief that the pandemic has educated younger generations about the entertainment value of casino gambling.
Innovative practices in hospitality and entertainment are emerging in Las Vegas to draw younger audiences. Area15, for instance, is an experiential retail and entertainment complex featuring interactive art and a food hall that appeals to younger demographics. Despite overall robust gaming revenue, visitor numbers have not entirely rebounded to pre-pandemic levels, with 38.3 million visitors in 2022 compared to 42.5 million in 2019. Hotel occupancy in 2022 stood at 79.2%, down from 88.9% in 2019.
Lovat noted that the focus should not just be on filling rooms but on attracting the right clientele that appreciates the experiences offered by casinos. An increase in visitors earning over $100,000 annually, from 29% in 2019 to 35% in 2022, speaks to the opportunities for casinos.
The average number of casinos visited by guests declined, indicating that more revenue is staying within properties, which is a shift from previous trends. The average visitor visited 4.3 casinos in 2022, down from 5.7 in 2021. This trend highlights the improved diversity of offerings within casinos.
Upcoming major events, including the inaugural F1 Grand Prix in November and the Super Bowl in February 2024, coupled with new venues like the $2 billion MSG Sphere, contribute to an ever-evolving entertainment landscape in Las Vegas. These developments, combined with strategic investments, position the city to attract both new and returning visitors.
