Join one replies to listen, a business wars, one week early and ad free in the wonder, YAP down the wandering app and your apple or Google play Mobile appstore today, quandary, I am David Brown and this is business wars no.

years ago, LAS Vegas was a tiny desert town in the shadow of the Hoover. Damn today, it's one of the largest hospitality centres in the world, attracting nearly forty two million visitors each year, the evolution of Vegas from a turn of the century. Railroad stop already were glamorous. Entertainment oasis is a gripping tale that it's more of an odd than a performance from the late Siegfried in Roy with all the gangsters, celebrities and entertainers that pass through its borders. You think sin city is just about seen it all, but recently a global pandemic estate, wide drought and competition from other markets have given Vegas her run for its money for more I'm speaking with Howard stats. He is a reporter with a devout independent who spent third years covering gaming and tourism in LAS Vegas. We'll talk about the city's juicy past and get some answers about its uncertain future in a world in the midst of a pandemic, all that's coming at nice you do.

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Why me it was the more I mean they go back to the air Bugsy Siegel built the flamingo for that for the for the mob I mean that's here was well play down the movie, but Bugsy baby? Emmi? That's that's kind of words started, I mean, and then the kissed, the bully, the casino back in that in the ninety nineties that really had it was. It was sort of effectual eyes but based on true life, a tale of of how the mob was involved in LAS Vegas may, with the moves from different different parts of the country had ownership stakes are well basically hidden ownership. Sakes, I should say in the in these, in the strict casinos control and of the people there were about were running under the there was skimming off the top of that the money that was the gambling winnings I would come in and it was it was pre. It was prevalent here until the Seventys and then it does in other changed over

We started seeing the motley being driven out by the feds and the corporate world got into got into yes, Vegas admitted into the game in it and that changed so much. But at the same time, I wonder if, even today you have a sense that that early presence of of the mob influenced his culture sort of long term still feel it when you, when you they're, not at all I mean we have a museum here: building the old but the old federal your porous office downtown call them ah museum minutes, a museum, dedicated Morbid and LAS Vegas and the FBI and and the law enforcement, and so tells the whole history of its own, No, the vegas- and you have to remember also gaming casino gaming- is in forty five. Forty six states right now got her real, regional and try. Gay mean, and it's it's very different. It's not it's an energetic form of entertainment, so the whole idea of the mob is not here.

totally get out, but the idea is still sort of out there in the either isn't it I mean. I know a lot of people and I'll just admit to it. I remember when you know DR out, through the desert, for LOS Angeles in kind of feeling a sort of sense of excitement. You knows the whole rat pack thing, you, no wonder they teach us sort of a row that sort of echo's, even in american pop culture today and which are discussed being is just dino, its relegated to a museum by and large, but pretty much mutineers, his free hearing everybody. You know you want to see the thing off the flamingo we're well there's with what exists of of the flamingo that Bugsy Siegel Build is really not there anymore. I mean you and we have a pop culture industry out here of of imploding old buildings in the 90s when, when Steve Wynn, imploded the dunes to make way for Bellagio,

area. Then we we pretty much blown up every every old, every old building on the strip, so the mob culture should not here anymore and its it its history. Now it's part of the history of LAS Vegas yeah, having said that course, this year mark the ninetyth anniversary of legal gambling in Nevada and at peace legislation back in the day had a pretty low key reception, we're Talkin nineteen thirty one, but ultimately, of course it pave the way for the gaming culture as it currently exists. How do you see that shaping Nevadas course? The way LAS Vegas has changed this is this may surprise you- and this is now a dragon pre pandemic, because we ve gone through a lot less in the last year with the with the pandemic, but it before the pre pandemic that the Strip pretty much you think of those casinos and

their revenues from gambling gave me ravage, pure gaming, reverence for about six and a half billion dollars in twenty nineteen. That was basically just thirty five percent of their overall revenues and think about it most. The revenue sixty five percent of the revenues on this, I come from the hotel rooms, the entertainment in the dining room, the retail. It comes from nine gaming. That was the big transformation, LAS Vegas as gambling expanded throughout the: U S, river boats and and and and tribal casinos. He didn't come to LAS Vegas to gamble. You came to LAS Vegas for the experience to come here should probably sherry coarser gambled, but you also came here for the hotels and shows and get away and all the while, the entertainment, the goes around LAS Vegas Walkin of another strip had seen all the facades, the marquise and all the all the attractions it you don't come here, just a gamble anymore. That's that you could do anywhere else that was really

Asian LAS Vegas, you mentioned roughly thirty percent to gambling how of a road, casinos and gaming play in the state's economy. Overall. Do you have a sense of that? We are That is your luck. It is thirty five percent of gambling revenues, but it attacks the stack base forearm for the state, probably over half of the state budget is, is based on the gaming residents coming in. So that has been a question we we ve been trying to diversify our economy in Nevada throughout the years but it is yes tell gaming, is the primary driver, but is also the taxes that are associated with with with the hotel rooms. That's we just built. The of the city was built, the Legion Stadium, which is sixty five thousand since the home of loss, Vegas writer, not just the game in industry contributed seven, her fifty million to that building process. That was done through hotel room taxes and we had nothing to do with game with game. It was done through a quarter of a person

Bedroom tax on your when you stated a hotel room of the strip that that money is being used to help pay for stating what what think it was really fascinating and then something good in her innocence, Vegas sort of serves as a case history for a model for is how Vegas took it made that transition, in other words, what you're describing is a modern day Vegas, that's very corporate. What is part of history is the mob involvement, of course, and as you've underscored, that's history, that's not that's not what Vegas is today, but if you look at that at the transition right

talking about by and large we're talking about. A point lay mid delight, sixties and into the seventies. How did the introduction of corporation sort of contribute to the decline of mob involvement? We're download a tipping point here? The first company that went public was actually out a Rina Harris bill. Hara took his took his casino Harrah's Reno public Harrah's is the start of a big adventure emerged in but is now part of seizures entertain. You know what I thought you were going to say when you started at you, I heard you say, and I thought oh, he is going to mention Howard he's whose will, however, use did buy up up. I can get to their own point out the fact that of you talked about corporate Howard Hughes, private. This is

bought up everything, use a lotta Hughes entities, though, to do that right I mean that was away that because he was very much a recluse and he couldn't show his face before than about a gaming commission. So we used a lot of huge corporations rhyming that that was a big transition for vague It seems to me with a transition why she bought a lot of those casinos. He Odo Buck. Seven differ to see those at one time on the strap, writing a foul of potential antitrust issues by over the monopoly when you know that it's when he as he sold as Howard Hughes Corporation, so off those properties, they went to other cuppy started going public. The Hilton Corporation came in bought the all the international from from Kircher Korean turn that into the LAS Vegas Hilton. They also acquired flamingo theyve. There were their public company as you, some more public companies promulgate coming.

to LAS Vegas. It also changed for some of the operators Steve when we built the mirage. I was right here on just the golden nugget. He went public with gold, nugget enterprises, that's how that's how he was able to come up with the money. You know to find the money to build them. really started in eighth, one thousand nine hundred and eighty nine with a garage opener was the first new resort on the strip and fifteen years of that started. The whole transformation of the LAS Vegas Strip No, it's interesting. You have these characters like Steve when and Kircher Korean and before them course, Howard Hughes, I guess who's. It seems like they all had one thing in common, a certain fascination with not just Vegas but the money to be made there and it and also a kind of courageous streak too, because they knew what was what Vegas was kind of built on Lena. They knew what the financial ground was, but they were willing to take those chances role. The dice, if you'll pardon upon to kind of

turn things around to try to move things in a more legitimate direction. It seems to me: well, you know that the sixties, one when I M J Sarno was the builder unusual builder seizures palace. He got money from the Teamsters. Pension fund, which runs a lot of other Teamsters pension fund, was, can you don't with Jimmy Hoffa? We know it had ties time, organised crime, that's worth that's where the money came and is to build a lot. These properties and Ladys at huge came in bought up a lot of the casinos. You know, which is a one way of kicking out the organised crime influences. The feds started is tearing you know, will be moving in taking things out. The way it is, the involvement is as new casinos rebuilding were built with public money with with with with with copies at one public. That's that was the big change that we saw at sea, and we charging of yours is that that's that really started moving things more corporate

were banned in the ninety. Ninety really yet the nineteen nannies it seem like there was yet another sort of shift, because, even though these forces that you're describing were sort of kicking in polite, sixty seventy. Certainly well today, you know Vegas Brands itself as a more family friendly resort. Do you put them? the nineties pretty much, because you had circus circles, which market have we to families cause other. You know the theme in everything exe Albert open right after the mirage that was more seen as a family friendly type property. It was a push on to get family more families here, in a bid to view you know, is a family friendly attraction that kind of changed a lot still, you know you didn't, you know, cause the gamblers and what the goods and that strollers and the casinos and represent it. There was kind of a change in direction, especially as casino results are open up country today there you know, you see families her all the time. There's attractions here,

are met for families, jig freedom, Roy TIGERS or so on, display it behind the Mirage and the difference Those that are somewhat family friendly, but not the topless reviews are the show the showgirls that has got its more but the family for we're type shows unity that IRAN around the strip. In some in some instances early in the day and the name, then they switch to get out. There the headliner action. The shows that we have now you love LAS Vegas, your listing the right podcast, we're talking with Howard Stout Season Award winning journalist whose covered tourism in gaining for the divan independent. For decades we can have more when business wars returns. all around the world. Tech companies are innovating and driving returns for investors and our sponsor our crowd. Analyzes companies across the global private market, selecting those with the greatest growth potential, then brings them

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patient since the pandemic, and I think that's a lot of us give us a picture of what things you're like there. Now, as we are speaking here in August your back to amass mandate, because our covert numbers of shot up here and in in Nevada if you're visiting that the strip, if you even if your vaccinated you have to wear a mask, all employees are wearing masks in the casinos long as you're inside outdoors is outdoors, no master are required. So that's that's! What's change recently March 18th, two thousand and twenty is when the governor ordered non essential businesses to close and casinos were part were deemed as a non essential business, and that's that was the first time we have received the loss of lost Strip shut down for there were shut down for about seventy eight days it became said they were locals a bizarre. It was hard to believe you know. You never thought you see the Cassini the Strip shut down

The Marquis stayed on all the lights stayed on. They were the right messages. Flashing veto support, we known, be careful, be safe and will welcome you back the scene of reopened on June. For

and it's it's. It's been a slow role, but they ve able game in history is cut in the in LAS Vegas and has come back, but there are two challenges facing the industry right now. The convention, a meaning business, has been slow to return, and that is a big driver, forbid weak business. They haven't returned yet that they haven't, they ve been slow to come back. The other big key driver, Philosophises International travel before the pandemic, LAS Vegas. His airport had flights directly from eleven different countries coming it to take care of airport. Now it right now currently. Well, we had been just one country had been Mexico. Canada did start up some some some direct flights, but international travellers to come here can't get here. I guess it's, the direct, the direct business or a travel business that we ve lost and we still wave that to come back until those two key points come back its

slow your June, we rely on real heavy, are not the pent up demand from tourist to come back to LAS Vegas, come back and travel, that's what we say and we shall be crowds on fourteen July as the mask mandate was removed on June first, which is implemented in August again. So from June July. We have big crowds because we have with the opening of the Resorts World LAS Vegas, four point: three billion dollar property, the first new resort on the strip, and since two thousand and ten we ve had pockets of the mark. coming back, but it's still a challenge. When you said March Eighteenth, twenty twenty, there was a certain kind of boom ground, zero, sound too that you know to do what you are describing, and I guess that certainly stands to reason in a city that

You know it's literally built on tourism in and a covert bringing it all to a grinding halt. Has any one pulled back and said: wait a minute, let's start doing some measurements here. Is there any way of knowing what sort of toll this took in in numbers are sure to the LAS Vegas sick? I can't I mean I don't have time. I haven't been firmly, but our get the gaming numbers decline so be like thirty five forty percent in in twenty twenty, and it was pretty much when work. I'm doing comparisons now for, like the monthly tourism totals and may visitors, account was Vegas and in the month and how mention gamey revenues being reported by the Nevada Gaming Control Board were throwing out twenty twenty we're doing the comparisons. Twenty nineteen, because twenty twenty with just such an anomaly,

it took a wild forever, the ramp back up, so we're destroying out twenty twenty and and and and trying to look at twenty nineteen and twenty nineteen was further stated that it was a casinos stay wide brought into a billion dollars and gaming residence twelve dollars tat. I was the vat was the bird like the third largest year. over and that's just the gaming revenue now just gave me revenue she, so I mean you're looking at all revenues, Saint records of his in a fiscal here, it's up to twenty five billion. Sometimes, when you talk about ski mean, hotel, restaurants, dining entertainment, all that all the ravens combined, that's like something like twenty five billion dollars in a twelve month period. So for the first six months of of twenty twenty one,

when you compare it to the first six months of twenty nineteen, the LAS Vegas for gaming revenues are down about eleven point three percent. So there's there sure there's there's your comparison. We're we're we're we're out right now, try to come back here and still struggling, obviously, as the delta variant spreads, not just obviously not just there in in Lhasa this but nationwide and that's gonna, have an impact on travel on vacation plans on what people were hoping to do before the end of the year has recovery going in LAS Vegas overall meaner people feeling domestic still. We I mean there is an optimistic tone in June and July, as as things were, coming back,

we started seeing the show starting to return. There are some of the sum of the shows. Unstrap yeah. I guess you caught the pent up demand for people to come. One want to travel. Las Vegas is one of those places that people want to travel to, and then they ve been doing it and questions gotta, be as we continue to fight this very. What tools that can take on travel gone forward. I'm sort of struck by the fact that that that optimism remains an end. I guess I can understand the reasons there. People were tired of masks and and all of the separation- and I guess wanted to take advantage of the fact that more and more people were getting vaccinated and so on and so forth. But, as some of these events return what he sees the obstacles going forward now for lost fake there's a lot of look at that at the beginning of twenty twenty two. Is that as the as really the come back, because when a lot of these conventions,

those book they dont book for, like they don't call in a book the next week. This is their book and six seven months out. So what that's? Where there look? That's? Where they're kind of targeting the good, the gaming industry here and a lot of the investment community as they look at LAS Vegas targeting twenty twenty two, maybe twenty twenty three and four, when everything is back to full on capacity here and in LAS Vegas, will see, have this kind of goes forward? It's not like other markets. Las Vegas is very different. You you have to travel to get here you have to fly. I mean you know, you'll be there unless you want to drive. You know four hours from for five hours, my layer in our four or five hours from Phoenix answer. it's a it's! A it's a destination destination! A lot of the gaming markets, gig single markets around the country, indifferent, saves there. There Morton viewed as as as driving destinations like that recovery is a lot quicker. That's good! The LAS Vegas cut recover is going to be much slower than

yeah an end, that's an important point, especially now, because the ongoing popular Eve online gambling was already rising before the pandemic and with so many casinos closed covered. I would imagine that option became somewhat more appealing, certainly to your average gamer. Do you this phenomenon affecting LAS Vegas operations in a more fundamental way going going forward, funny with online gambling is legally now. If there were not talk but the old, the illegal offshore sites, I'm talking about legal, Online gambling is, is only in five states, New Jersey being Pennsylvania Michigan being the largest three of it and what we saw during the pandemic. Pennsylvania's get online gaming numbers skyrocketed when Casinos were clubs; the vat only has has hasn't. They tried online. Just online poker here in Nevada.

There's only one company operating that now seizures entertainment through worlders poker. You need a lot of customers for online poker and people who come here they can buy a liner in a plaintive. Go right either employs that's a difference. What the thing with on line gaming, I should point out where its popular, where does well is in pipes. Population states like New Jersey, like Pennsylvania, like Michigan, Nevada, LAS Vegas as the population Centre, which, what two point one million and that's it so I may Reno still pretty small it on and we have a lot of rural states. So that's why, on line gaming is not really an answer here and about its people go to their local, their local casinos. I dont think anyone's gonna place any bets against Vegas, though right now, even with all of the strain and stress that this place

what they used to call Saint City. You know you got a tip your hat to v on jevity of Vegas me there. It is the middle of a desert. Waters been in short supply, no certainly recently, thanks to that drought affected most of the state. Given those conditions, though,. how sustainable do you see the tourism in and gaming industry and more the point? Where would what about this inability of the city itself longer well, there is There's going on a course with you know, with with water and lake, need the casinos a lot there's a lot of change going on here in Nevada in the Commission themselves and in his in taking up sustainability efforts a lot of em

There's the biggest solar divide, solar arrays that are used to power. A lot of the strip are used, are being MGM. Resorts has a huge solar, re, atop Mandalay Bay meant that the Mandalay Bay Casino and they just open they just build a huge solar re out outside the city in area called APEX. It's kind of north on I fifteen there. That's what they're using do power a lot of good lot of that their properties in your seen that type of changes, you know, there's been a there's, been a movement in that direction towards sustainability, where the desert in the middle of the desert so were learning at something that that's been undertaken by the state. So there's those type of questions are being are being addressed by the industry in and as we move forward in time visit working, you think how

I hope so I looked around rising, allows vague as I hope it is. It is a slow its process and I think it's you know it's an understanding and I think people or understand the point here. You know sustainability issues and as as we move forward in Ireland and the Eliza these corporations there they understand what what does the stakes here and so there. Obviously, this their home home base of they're gonna do what they can do to make LAS Vegas Sustainable Howard. I have to ask one more little question: do you ever had up to the strip and if so, what you game? Oh You know what I'll bet on sports I'll. Do it Moberly I'll go out to the strip the closest I get to the strippers when we get down there for the shoot of the Vegas Golden Knights play the arena for the Vegas gold it's. The nature is right behind New York, New York and Park M Gm soya down there for that at its crowded. I, rather we have. We have regional, you know it's called neighbour,

Peters around here that have movie theatres and such ass. We go to go out to dinner, did happen, and I dont Rarely of my brother comes in from up little black, letting us then. For me, the thinking for twenty dollars. I'm I'm there and I'm down I'm a higher or maybe Howard's debts thanks. So much for joining us has been great chat with any time. Thanks for me out, I appreciate Howard's debts as an award winning journalist whose covered gaming in tourism in LAS Vegas for more than three decades over the years is work has appeared in the LAS Vegas Review Journal. An CDC game reports. You can check out his latest reporting in about an independent Brown wondering this is episode: seven at birth, a Vegas for business wars, I'm your host, David Brown, Kelly, Kyle, produce Zeppa sewed, Karen Lois, our senior producer and editor edited and produced by Emily Frost sounded. by Kyle, Randall,

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