All that glitters isn’t gold along the famous Las Vegas strip, where recent shifts in favor of the house see gamblers losing more and getting smaller payouts.
Las Vegas experienced a huge boom in tourism in 2022, with 38.8 million visitors logged for a 20.5% increase year over year, according to the Las Vegas Review-Journal.
Despite this influx of tourists, industry experts reported that several Las Vegas casinos made changes to favor the house, including raising minimum bets, reducing tables, and lowering payouts, according to The Wall Street Journal.
As such, 2022 saw the second-highest loss for gamblers in blackjack since 2007 of nearly $1 billion. Casinos, on the other hand, saw an overall profit of nearly $8.3 billion.
In light of the robust demand for gambling tourism, casino executives claimed to have made these changes in order to position Las Vegas as a more upscale destination.
As Tom Reeg, who is the chief executive of Caesars Entertainment, explained to Wall Street analysts during a call in May, “You’re bringing in higher value customers, and we’re already full. So, you’re kicking out the lowest end. I see no reason that that needs to stop or would stop,” according to the WSJ.
Yet some experts suggest that visitors might eventually grow tired of higher costs, increased house advantage, and whittled-down payouts.
As casino consultant Bill Zender explained, “If you go into a casino and gamble, and you lose your money fairly quickly, almost every time, you don’t feel you’re getting the bang for your buck,” according to the WSJ.
Derek Van Nostran, a blackjack fan living in Atlanta who frequently travels to Las Vegas, said, “Now, it is almost not worth flying to Vegas to play blackjack,” according to the WSJ.
Alongside fewer opportunities to play at the table, with numbers dropping roughly 19% from 10 years ago, visitors who wish to play blackjack will have to place minimum bets of $50 when things get busy and face 6:5 payouts.
As John Mehaffey — co-owner of gambling news and data company Vegas Advantage — told the WSJ, prior to the pandemic it was possible to find blackjack tables with $15 minimum bets and 3:2 payouts.
The difference is getting $60 instead of $75 after winning at blackjack on a $50 bet.
Data from Vegas Advantage show that roughly 75% of blackjack tables currently offer 6:5 payouts, including MGM Resorts and Caesars, the two largest casino operators on the Las Vegas strip.
It isn’t just blackjack. Vegas Advantage found that the number of triple-zero roulette tables, which have odds more favorable to the house, has grown in the past few years.
So far, tourism to this entertainment hub in the Mojave Desert hasn’t been dampened by the recent measures taking place.
The Las Vegas Convention and Visitors Authority logged 40.4 million visitors in March 2023, showing a 13.6% year over year.
