Q: What are people spending their money on in Vegas?
A: Not what they used to spend it on.
Over the past year people (including me) have questioned the Cosmopolitan of Las Vegas‘ focus on everything but gambling, but the truth is they may be on to something as gambling made up the smallest piece of the Vegas casino pie ever, while food and beverage made the most ever for casinos.
The state’s gaming properties earned a record high 34.1 percent of their revenues from spending on “food, beverage and other (related offerings),” the control board reported. But gaming revenue sank to a historic low of 46.2 percent of the financial pie, a figure that stood as high as 60 percent in 1994.
So, while you and I may go to Vegas for gambling first, followed by good eats and drink it seems that less and less people are doing that. While this isn’t too much of a surprise, it just proves that there are less ECG-type visitors in Vegas and more Red Foo’s going to the club and spending money on anything but tables.
Still, there’s something to be said for catering to the gambler. There’s a lot of money there and that’s probably the difference between losing million dollars a year and being a profitable business.
Cosmopolitan may have been the wise one here focusing on what the future holds for revenue figuring they can play catch up on casino marketing. Time will tell.
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