We may have reached the tipping point on Vegas gouging…
UPDATE 12/18/24 –
Original article begins here:
On November 27th, this writer headed to Rio Las Vegas for a Thanksgiving staycation. While checking in to the struggling off-Strip resort, the desk agent advised me that a $100.00 security deposit (standard procedure) was required. He also needed to collect a $56.69 resort fee.
“I’m sorry…how much? $56.69? You must be joking.” I responded. The agent assured me the amount was correct, disclosing that it had risen from $40 plus tax the previous month. Although I’d nabbed an extremely attractive base rate, the amount for Rio‘s mandatory resort fee was absurd.
Remember that the Rio, once known as a cool destination, is now home to closed restaurants, empty shops, struggling shows, and the nearly abandoned Masquerade Village (see below). The pool was closed, and wi-fi was already free property-wide. So WTF was I getting for $56.69?
Elevators, parking garages, common areas, and bathrooms were run down. Cocktail servers were hard to find, two casino bars were shut down, and the room had only bare essentials (no coffee maker, water bottles, or extra tissues/toilet paper). The resort fee was a gouge—nothing more.
It turns out that in regards to junk fees, Rio Las Vegas was getting a jump on Strip properties. On December 4th, MGM Resorts International raised their resort and parking fees citywide. Here is a summary from Jessica Bradley at Hustle ‘N’ Bet:
MGM Resorts International is raising the cost for stays and services at its renowned Las Vegas properties starting today, Wednesday, December 4. Visitors to luxury establishments such as the Bellagio, Aria, Vdara, and Cosmopolitan will now encounter a $55 daily resort fee, a notable increase from the previous $50. Similarly, elevated resort fees will impact guests at the MGM Grand, Mandalay Bay, and Delano locations, where the daily charge will rise to $50, also up by $5.
Of course, there are ways around these fees, ironically to those who can afford them the most. By that, we mean indulging in high-level gaming and lofty purchases through your MGM REWARD loyalty membership. Or you can eat the annual fee to acquire an MGM Rewards Mastercard. Even then, there’s no guarantee you’ll get those benefits, as they’re conveniently suspended during concerts, sporting events, certain holidays, etc.:
Self-parking is complimentary for current MGM Rewards Mastercard cardholders. Guests must insert their Pearl, Gold, Platinum or NOIR MGM Rewards card at the exit gate to receive the free parking benefit. All complimentary parking is subject to availability, which may vary by facility location and Tier Status.
You can also expect the benefits of your tier status and credit card to be regularly “revised”, i.e. “trimmed down or removed”. Loyalty is one-sided in the corporate world. For regular Joes and Janes who want to enjoy a show, dine, gamble a little, or see the sights at an MGM Las Vegas property, you now pay even more for the “privilege” of spending your money there.
You may remember that I bestowed the 2023 Grinch Award on Venetian/Palazzo for its massive gouging practices, major layoffs, and reductions in amenities and services. This year is a toss-up, as nearly every Strip property (and a few in the surrounding Valley) has done the same.
It’s widely known that MGM Resorts sets unpopular precedents. They were first to roll out parking and resort fees. Then Caesars Entertainment and others played “follow the leader”. When the biggest dog in the park barks loudly, expect higher resort and parking fees from one end of the Strip to the other.
Instagramer Jen G. aka @VegasStarfish posted this disturbing video last week, rounding up the new rates:
At the same time, industry watchdogs reported the fourth significant drop in Vegas gaming revenue:
Figures for Las Vegas Strip were the highlight of the report (by the Nevada Gaming Control Board), but not for good reasons. The Strip’s October GGR (gross gaming revenue) total of $692 million was a 3% drop year-over-year. That’s the fourth consecutive month of year-over-year declines for America’s gaming capital, which had its best year ever in 2023. For the fiscal year-to-date, the Strip is down more than 6%.
Downtown Las Vegas had the worst month of all the southern Nevada markets. Its GGR of $86.8 million was an 11% slide from last year, although the market is still up 4% so far this fiscal year. Other nearby markets with declines included North Las Vegas (-3.7%), Laughlin (-6.8%) and the Boulder Strip (-2.6%).
The Las Vegas Strip posted $13.3 million in sports betting GGR, down 50% from a year ago. Its mobile GGR of $6.2 million was also a decline of more than 40%. For both Las Vegas and the state as a whole, football betting was disastrous. – Source igamingbusiness.com.
Graphic via americangaming.org
Legalized sports betting is common in at least thirty-eight of the United States. So how does Las Vegas address a drop in millions (or billions) of potential gambling revenue? By making it less attractive to come to our city! Escalating fees, hidden charges, $30 cocktails, cutbacks on loyalty perks, and on and on…
Our culture is obsessed with shiny, new objects. Naturally, the long-delayed openings of Fontainebleau and Resorts World were hailed as a new era. Unfortunately, all those billions and years of anticipation resounded in a collective yawn for the glossy, clinical monstrosities. And they’re hurting…badly.
Resorts World Las Vegas currently charges a minimum $50 (plus tax) per day for its resort fee. The hotel also rolled out parking fees last year, to the frustration of locals. Fontainebleau‘s resort fee is $45+, and the struggling resort instituted parking fees on day one. Both destinations are jokingly referred to as “echo chambers”.
No matter what news source you turn to, it’s being reported that Vegas tourism has fallen flat. This is despite new hotels, the latest attractions, superstar residencies, massive sporting events, and even more fancy restaurants. What is going wrong?
Screenshot via News3LV
It’s possible that we’ve finally reached a tipping point on Vegas gouging. It’s LONG LONG LONG overdue. Countless visitors have become sick of the city’s endless obsession with “Exclusive! Upscale! High-End!”. Sin City was always meant to be a value-packed destination where hard-working schlubs could be treated like Kings and Queens. We want that back!
