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StumbleSix Questions: William Eadington:
Las Vegas versus Macau not really a contest
Richard N. Velotta
UNR’s Institute for the Study of Gambling and Commercial Gaming leader William Eadington predicts Strip changes.
Tuesday, July 27, 2010 | 2:01 a.m.
Sun Coverage
Beyond the Sun
When gambling went from being a pastime largely offered by organized crime to a leading entertainment industry, academia took notice. Thus began UNR’s Institute for the Study of Gambling and Commercial Gaming in 1989.
Its leader is William Eadington, an economics professor internationally recognized as an authority on the legalization and regulation of the industry.
Las Vegas has long been considered the world’s top gaming destination. Is that still true?
Gaming revenue in Macau this year probably will exceed $20 billion, which is a little over three times the size of Las Vegas ... Las Vegas still has more diversity in its various offerings, but it’s hard to say that it’s king of the hill in gambling.
What’s the biggest threat to Las Vegas’ dominance in the industry: Macau? Tribal casinos? Another venue?
Macau really doesn’t compete against Las Vegas except for, perhaps, at the very high end. I think they’re more complementary than competition so far. There is an argument to be made that what we’re seeing now is the maturing of the American gaming market and the gaming market in many other countries, as the long period of fairly dramatic growth that we had seen in gaming seems to be coming to an end.
How has the casino industry changed as a result of the down economy?
Virtually every major gaming company found itself caught in overleveraged situations and this was all built around the unbridled optimism that prevailed until 2006 and 2007. The gaming industry in particular viewed itself as nearly invulnerable, and Las Vegas, in particular, viewed itself as a place that could continually transform and develop a new destination that would be successful. This time around, it just didn’t work.
We’ve seen a number of projects shut down, canceled or delayed in Las Vegas. When do you think we’ll see a see a new resort?
It’ll take awhile. You’ve obviously got Fontainebleau and Echelon that are partway along. For the Echelon, there’s obviously a question of whether it will physically deteriorate before anything comes about. But the Fontainebleau … it’s still a big number to finish it. And the Cosmopolitan is going to, interestingly, open before the world improves very much, so that’s going to add to some of the challenges.
Besides the economy, what do you consider the biggest issue facing the casino industry today?
The next big questions may be intergenerational. For example, we have gaming that is built around table games that have been of diminishing importance for everybody but Asia, and gaming devices that are really just increasingly souped-up video games with gambling overtones. Whether those products transform to the next generation or not is going to be an interesting question.
Steve Wynn has announced that he is considering moving his corporate headquarters from Nevada to Macau. What’s your view of that strategy?
Steve Wynn is a visionary and his real interest is in the creation of new properties and the creation of new iconic structures. He is not as interested in the operational side. If you look at Las Vegas, versus Macau and Asia, there’s no question where the action is going to be and I thought that part of his statement made sense. The part that didn’t make sense, of course, was the Obama bashing.
A longer version of this story appears in this week’s In Business Las Vegas, a sister publication of the Sun, and on the Sun’s website, lasvegassun.com.
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VIVA LAS VEGAS!!!
...Viva Las Vegas, Viva, Viva, Las Vegaaaas ...:)
(c) by Elvis
The spread of legalized gaming has been happening for twenty years, and sadly, Nevada has yet to diversify its economy; Nevada remains a one industry State and it is now showing. Unfortunately for all Nevadans, diversity depends on so many factors...quality of life, education, amount of crime, trained workforce, etc. Why can't our elected officials and business leaders see this? As far as gaming taxes go, the casino industry does not pay its fair share...or, for that matter, the other segments of industry in our State do not pay enough in taxes.
The subjects thoughts became worthless in the last line of the interview. It reveals he's just another leftist in academia who irrationally defends Obama.
if you are a democrat...
and you step foot in wynn or encore...
YOU ARE AN IDIOT!!!
serious. What would be the Casinos Industries fair share of the total taxes in Nevada? They already pay close to 50% of all taxes paid in this state and they are also responsible for the biggest portion of sales taxes paid in this state. They also are responsible for 65% of all the payroll and taxes in this state. Can't compare them to what other states charge in taxes to the Casinos, most of them don't have 100's of big casinos. Due to the high taxes in other states those states only end up with a few casinos and less jobs. So what is fair? They cover half the costs now, how much should they be covering?
Still run by organized crime except they now call them Harrahs's, MGM, Stations, Boyd et al.
Is William Eadington a gaming "expert" or a gaming "shill?" Interesting info on Macau, though, how it has eclipsed Las Vegas.
Macau is no competition because it's now in a different league.
Tom Shermspun
GRLV News
You should all read the entire interview. This was just a snippet.
Sounds like we'll be hearing a lot of oldies but goodies being pumped into the Casinos. It will be easy to find Sea Bond denture creme and walkers in the stores...
In 20 yrs LV will be a shell from it's "heyday". Too many other states have legalized gambling in such a way that people don't need to travel to get their gambling entertainment. There must be a study that shows the growth of tribal casinos over the last 15 yrs compared to the growth of Vegas casinos. Don't get me wrong, people will still come to Vegas but there's more choices and more bang for your buck elsewhere.
Las Vegas did reinvent itself, in Macau!
"Tap Out" Vegas, all you can do now to reinvent Vegas is; legalized prostitution, marijuana, and bum fights.
Before I moved to Las Vegas, I lived in Los Angeles and my apartment was only a few minutes from a casino on pacific coast highway. To this day, I have still not set foot in that L.A. casino.
People travel to Vegas for the experience, not just for the urge to gamble and nothing on the planet beats The Strip. Vegas has things to worry about but becoming a "shell of a city" is not one of them.
I do think more whales will port in macau then vegas..It is a fact that Las Vegas will live on but,ditto for the many casinos spread around the USA.
Maybe Vegas could reinvent itself with donkey shows?
Too dangerous to go to Mexico now, so Vegas can finish what it has been doing by just becoming Tijuana!
Viva Vegas
We already have a donkey show, Peaches. They are the arses that run these casinos.
There is NO QUESTION that Indian Gaming has put a HUGE dent into Las Vegas Casino profits. Just look at how downtown and stateline suffered! as well as the older mid ranged places along the north end of the strip which were torn down. Laughlin could possibly become a ghost town as well. The Indian Casinos in California, Arizona, Santa Fe, Florida, Lousiana, and Connecticut etc. are fine places to visit with a fairly decent gamble offered. Who needs to make that long trek to Las Vegas anymore? We need to offer a BETTER gamble than these other places if Las Vegas intends to stay alive. The corporate greedy executives need to change their ways right now before it's too late!
Lets get an arena, some pro teams, and build a real university on Lake Las Vegas and run the monorail between all of them, then you'll have a booming city.
Screw the baby boomers and older generations. It's the younger ones we need to attract.
University at Lake Las Vegas with a monorail too? Neither of those two insane suggestions makes any sense.
"... If you look at Las Vegas, versus Macau and Asia, there's no question where the action is going to be...."
Nuff said.
Steve Wynn a visionary? Yeh sure. Crazy Angle has visions too. This guy's had so much Botox injected he's probably dain bramaged.
Good riddance you Commie!
won't be long till macau outdoes the entire us in terms of gaming revenue never mind vegas
You haven't played... until youv'e played Vegas (TM)
environ
correct me if I am wrong, but tribal casinos do not pay the taxes Vegas does either. That is nuts
Birdie,
Let me clean up your post:
If you are a DEMOCRAT
And believe that your political ideology is tied to the original philosophy of what created the city of Vegas....
You are an idiot.
Agreed! There is NO comparison between Macau and Las Vegas. Macau is designed and positioned to outstrip Vegas, primarily due to the sheer number of people and the 'newness' of the location (in regards to American casinos). But none of that matters! What matters is... Vegas BEING Vegas. The individual state-allowed Indian casinos and Macau CANNOT displace Vegas' position of being THE vacation destination for gaming America and other countries (including some Asian countries).
Vegas has built some wonderful high-end hotels with incomparable high-end services. What needs to be done presently, is to build and offer hotel and services for middle (and less than middle) America. Vegas needs to return to its 'average Joe' roots! Even in today's economy, with all of the overseas (Macau) and domestic (Indian) competition, Vegas is yet the destination of choice for extremely splendid gaming and the accompanying services. I have wonderful gaming facilities here in my home state, but I yet PREFER Vegas (and go as often as possible).
Remember middle America, Vegas, and you cannot lose. Implode? NO! Refurbish? YES!
Nevada has insisted upon its own way of doing things, like taxation, education, infrastructure and commerce (other than casinos, prostitution, gluttony, greed, and drunkenness).
The last century has been the model for Nevada, and its pending demise portends ominous results in abiding this abominable anti-culture.
I'm waiting for the country to get back into the business of making money. When that happens, Vegas will prosper again. Steve Wynn is not waiting. He doesn't believe in standing still.
When indian gaming and state lotteries took hold about 20 years ago, it was actually good for Las Vegas. It gave people all across the country a taste of gambling and made them want to step up to the "big time" and go to Vegas. I know several people who wenr to L.V. from around the country because they started in the little tribal tent casinos.
Now the tribal casinos are full service with hotels and venues attached to attract people from farther away than just the locals. The nearest one to me is maybe 65 miles, and a couple more within 100 miles. Never been to any of them. But I do make the trek to L.V. several times a year. I guess when you start at the top, the little places aren't as interesting. But In Oklahoma a couple months back, we went to a tribal casino. Played $2 3/2 Blackjack, won some money, had a good time!