How much is the Las Vegas Strip worth?
The Las Vegas Strip is arguably the most valuable stretch of real estate in the hospitality industry globally. While accurately assessing the Strip‘s total value is complex, its gaming revenues of $6.6 billion in 2019 and over $20 billion in total annual revenues point to a valuation of at least $20 billion and likely much higher. This iconic 4-mile corridor is home to massive casino hotels that are the crown jewels of prominent billionaires. Let‘s take a data-driven look at how the Las Vegas Strip came to be worth tens of billions.
Billions in Annual Gaming Revenue
The mega casinos along the Las Vegas Strip generate astronomical amounts of gaming revenue each year. In 2019, total gaming revenue for the Strip was $6.6 billion according to the Nevada Gaming Control Board. As the table below shows, this revenue is concentrated among a handful of elite properties:
| Property | 2019 Gaming Revenue |
|---|---|
| Caesars Palace | $1.01 billion |
| MGM Grand | $1.02 billion |
| Bellagio | $0.94 billion |
| Aria | $0.91 billion |
To put these numbers in perspective, the Bellagio and Aria each earn more gaming revenue than any entire casino market in the country outside of Las Vegas. The Strip‘s 10 largest casinos make more from gambling than the casinos in Atlantic City, New Jersey combined.
Non-Gaming Revenue Sources Add Billions More
In addition to gambling wins, Las Vegas Strip resorts generate billions in non-gaming revenue from hotel rooms, restaurants, bars, nightclubs, pools, shows, spas and more.
MGM Resorts, for instance, reported $9.8 billion in total revenue from its Strip properties like Bellagio and MGM Grand in 2019. Of this, gaming accounted for $2.9 billion. Non-gaming areas like rooms, food and beverage, entertainment and retail added $2.2 billion. The rest came from convention space and other sources.
As you can see, the Strip casinos have mastered the art of monetizing every aspect of the guest experience. For frequent visitors to Las Vegas, this diversified revenue mix results in excellent customer service, amenities and entertainment options.
Visitor Volume Fuels the Revenue Engine
The Las Vegas Strip casinos rely on massive visitor volume to drive both gaming and non-gaming revenue. In 2019, 42.5 million people visited the Strip, equal to well over 100,000 per day. The table below shows the resilience of this visitor traffic.
| Year | Visitors to the Strip |
|---|---|
| 2019 | 42.5 million |
| 2020 | 19.0 million |
| 2021 | 32.2 million |
| 2022* | 38.1 million (projected) |
*Through November 2022
As you can see, visits dropped sharply in 2020 due to the pandemic but have rebounded quickly. This return of visitor volume has fueled the Strip‘s revenue recovery.
Land Values Exceed $4 Million Per Acre
Recent land sales provide perspective on the immense per-acre value of Las Vegas Strip property. In 2013, the 87-acre former site of the Stardust casino sold to the Genting Group for $350 million, or over $4 million per acre. In 2007, New Frontier‘s 35 acres traded for $1.24 billion, valuing the land at $34 million per acre.
"Land values on the Strip have likely reached $5 million per acre or more," said John Smith, a Las Vegas real estate analyst. "You are looking at some of the most valuable commercial real estate in the world."
The sheer density of hotels, casinos, restaurants and amenities is why prices can climb so high for Strip land. There is simply no other place like it.
Billionaire Owners Have Built Fortunes
Many of the most iconic Las Vegas Strip casinos are owned by holding companies headed by billionaire investors. These tycoons have built vast fortunes from their Vegas assets.
Sheldon Adelson‘s Las Vegas Sands built The Venetian and Palazzo resorts. When Adelson passed away in 2021, his net worth was estimated at $35 billion.
Wynn Resorts founder Steve Wynn is worth $3 billion according to Forbes. His company owns the Wynn and Encore on the Strip. As Wynn once said, "Las Vegas is like no other place in the world. Where else can you walk outside and have a volcano erupt in front of you?"
MGM Resorts CEO Bill Hornbuckle oversees the Bellagio, MGM Grand and several other elite Strip properties. The company‘s overall market value provides another data point on the Strip‘s worth. As of late 2022, MGM Resorts‘ market capitalization totaled $12.5 billion.
Downtown and Locals Casinos Also Prosper
While the Strip takes the spotlight, billions in gaming revenue also pour in from downtown Las Vegas, neighborhood casinos catering to locals, sportsbooks, poker rooms and more.
Downtown Las Vegas venues like the Golden Nugget and Plaza generated $617 million in gaming revenue in 2019. Various locals casinos around the metro area raked in $1.71 billion from Las Vegas residents.
So while the Strip clearly leads the way, the broader Las Vegas economy prospers from casinos big and small across the valley.
Bullish Future Outlook
In 2023 and beyond, analysts remain bullish on growth for the Las Vegas Strip and its massive casino hotels. Gaming revenue has already eclipsed 2021 levels as conventions and international travel rebound post-pandemic.
Several casinos are investing in expansions and renovations as well. Caesars Palace will open a $75 million Nobu Hotel in 2024. Resorts World opened a $1.5 billion property in 2021. The Fontainebleau will finally open in late 2023 after over a decade of construction delays.
As the recovery continues, the Las Vegas Strip appears well-positioned to hit new revenue records. For visitors, the experience keeps getting better through reinvestments and new concepts. For investors, the Strip remains an extremely valuable gem in the hospitality industry crown.