Las Vegas: Rock & Rolls the Dice

Las Vegas, “America’s most competitive marketplace,” has emerged from the pandemic a new beast. As summer turns up the heat on the desert town, IQ tracks how Vegas has transformed from a glitzy casino town to the hottest entertainment market in the world.

Relieved of any pandemic hangover, Las Vegas has boldly reclaimed its crown as the world’s entertainment capital. Its crown jewel, the Strip, is just under 4.5miles (7.3km) in length, yet the city welcomed its highest number of visitors since pre-pandemic last year, a mere 40.8 million. Formerly known as a graveyard where “legacy acts go to die,” it’s clear that Vegas is evolving into a new destination entirely – one where the industry is cashing in.

A sin-sational city
Nestled in the arid Nevada desert, the illustrious, extravagant, and infamous Sin City serves as a hedonistic playground for those looking for an escape. From world-renowned restaurants and luxury experiences to high-stakes gambling and unique headline performances, Vegas is unlike anywhere else. With a population of just over 656,000, it’s a true paradise for visitors, who spent a record $51.5bn last year, according to the Las Vegas Convention and Visitors Authority (LVCVA). Those who visit do it big, and travellers don’t seem deterred by the rising prices: spending by tourists has ballooned by 45.4% between 2019 and 2023, with the average person spending $1,261 last year (LVCVA).

As new venues, reimagined residencies, and a plethora of entertainment options grace the Strip, competition has never been greater. For those on the industry side, it’s vying for venue space and available artists; for consumers, it’s the abundance of choice, monetary cost, and available time. What happens in Vegas isn’t staying in Vegas – it’s attracting international attention from partygoers and industry leaders alike.

Go big & go home
At the heart of its ecosystem lies Vegas’s transient audience. The city’s population pales in comparison to its annual visitor numbers, comparatively a light 1.5% of 2023’s visitors. Hordes of travellers have only increased since the pandemic subsided, and with international visitors bouncing back to 4.7m in 2023, the curation of the entertainment mecca is designed for tourists.

“It’s Vegas! People are coming into town to let loose, have fun, and spend their hard-earned money on a vacation,” says Kyle Bandler, a WME agent booking acts like Martin Garrix and Steve Aoki. “It’s not just about seeing one of your favourite artists but also an opportunity to live the full ‘Vegas experience’ that people are looking for on a holiday weekend.”

Beyond what may come to mind as a traditional vacationer – a wedding party, a gambling fanatic, or a late-night reveller – a key group of tourists coming to the Nevada hub are corporate colleagues. The metropolis hosts roughly 24,000 conventions and meetings and 75 major trade shows annually. With over 154,000 hotel rooms, a plethora of unique meeting spaces, and luxurious opportunities to unwind, it’s no wonder Vegas is a commercial target.

“Conventions bring all sorts of people from out of state into the market, and that’s in addition to the tourists that want to come into Vegas and party,” says Chris Hammond, VP talent at AEG Presents’ Las Vegas office.

“Wednesdays and Saturdays are kind of neck and neck from a business standpoint, and that’s because Vegas has two sets of travellers”

Last year, according to LVCVA, 6m conventioneers descended on Vegas, a 19.9% increase from 2022. They dominate the weekdays and depart before the weekend, yet are on average spending 25% more than leisure visitors, racking up over $1,500 per trip. Their impact is clear for AEG Presents Las Vegas – while Saturday is the classic blockbuster date, Wednesday is on par with the weekend mainstay, even surpassing the typical travel-day Friday.

“Wednesdays and Saturdays are kind of neck and neck from a business standpoint, and that’s because Vegas has two sets of travellers: midweek convention travellers and weekend travellers,” says Bobby Reynolds, SVP of AEG Presents Las Vegas. “If you’re out here for a convention and there’s only one show that week that’s on the Wednesday, that’s the show you’re going to.”

Programming with the visiting audience in mind is a priority for the AEG Presents Las Vegas office, which opened over 20 years ago. Reynolds dubs it “fishing where the fish are,” or aligning programmed content with other big events in the market, and thereby, their incoming audiences.

“The more people that come to town to see a [Golden] Knights game, odds are, they’re going to be here for a couple of days. The team is only going to play out here one night. The other night they’re going to see Carrie Underwood, Kevin Hart, or Lionel Richie with us,” he explains, adding examples of country music programming alongside rodeo, NASCAR, and professional bull-riding events.

Artists up the ante
Frank Sinatra, Dean Martin, Elvis Presley – all names synonymous with the showtime glitz and old glamour of a neon-soaked destination. The history of Vegas is as rich as the gambling halls it boasts. Never short on iconic and inventive shows, from the introduction of Cirque du Soleil’s first permanent show in 1993 to Siegfried & Roy’s awe-inspiring magic tricks, the entertainment hub has consistently evolved as an all-in capital. And after the turn of the century, a new residency form arose.

Up until Britney Spears, there had never been a residency with a young, pop, generational artist like her

Celine Dion is widely credited as the resident revolutionary for the Vegas scene, with her four-year, 714-show A New Day… stint still earning her the top spot of Billboard’s highest-grossing residency list. In the early noughties, Caesars Palace invested $108m to build the 4,000-seat Colosseum for Dion and her residency, and AEG Presents kickstarted its Las Vegas office with the series. The venture grossed $385.1m and sold 2.8m tickets, opening a new chapter for contemporary artists to try something new.

“That really changed Las Vegas,” explains Glenn Alai, manager of the city’s longest-running headliners, Penn & Teller. “It made people take notice. You can come into Vegas, and you can still have music that is charting, and you can still be a really viable name in the industry playing Vegas and doing really well.”

The shift toward a more modern music scene, according to CAA’s MD Rob Light, was driven by a single popstar in 2013.

“Up until Britney Spears, there had never been a residency with a young, pop, generational artist like her,” he explains. “Suddenly pop music became a phenomenon in terms of playing residencies in Las Vegas, so it really was the catalyst that opened all the doors.”

Britney: Piece of Me saw the superstar take over Planet Hollywood Resort & Casino’s AXIS auditorium, now called the Bakkt Theater, for 248 shows across four years, grossing $137.7m and 916,000 tickets. The success of her dance-driven, pop spectacle was aided by an under-utilised audience in the market – a younger demographic who were busy spending nights in the lucrative club scene.

“When you look back at the phases, in that moment of club culture that exploded before Britney, you sort of see the evolution in the market right before your eyes,” Light shares.

“The beauty of the residency model is there’s flexibility in structure [so we can find] something that works for everyone”

Then came the flood of available artists, purpose-built venues, and audience hunger, all hunting for something flashy and fresh. The model is largely driven by artists’ visions, says Mojave Ghost’s Greg Young, an independent producer who helped bring Donny Osmond’s first-ever solo residency to Harrah’s Showroom.

Bandler echoes a similar sentiment: “The beauty of the residency model is there’s flexibility in structure [so we can find] something that works for everyone,” he says.

Artists can “build a different kind of show,” Light says, one without the need to pack up and move every night. They can escape the rigours of touring and settle down with family, all while selling out performances.

“The residency model was a way for artists to say, ‘I’m going to perform in a way that’s more appealing to me, physically and mentally,’” Light explains.

CAA has brought icons like Spears, Shania Twain, Jennifer Lopez, Maroon 5, Lady Gaga, and countless others out to the desert. Light cites seeing Gaga’s stripped-down residency, Jazz & Piano at Park MGM’s Dolby Live (6,400), as a standout moment in his career. She was the first artist to host dual residencies, coupling J+P with pop-forward Enigma, which landed her at #8 on Vegas’s highest-grossing residency list with over $110m of revenue.

The amalgamation of high-profile artists, technological advancements, and crowd-drawing residencies can be seen in the club scene. Taking over pools during the day and clubs at night, electronic music has crept up to become an unstoppable sound across America’s other city that never sleeps. The club-based series are unique in that their growth is driven by high-rolling VIPs, as “the money generated from individual ticket sales pales in comparison,” Bandler shares.

“Table sales and VIP are what drive revenue for the clubs. So artists that have a strong following in the VIP space or are willing to develop that side of their business have more financial success in the Vegas market,” he explains.

“You can see this honeymoon period of the Sphere has really drawn a lot of audiences away from their typical disposable dollar habits in Las Vegas”

But, if there’s one thing Vegas is good at, it’s rolling the dice on something new.

“We’re starting to see Vegas take some shots already, but with the explosion of house and techno currently happening in North America, expect to see more and more properties take bigger chances on artists in those sub-genres over the coming years,” Bandler says.

With an ever-expanding calendar, there’s always something for everyone in town. Wu-Tang Clan are currently on stage as the first hip-hop residency and Mexican group Los Bukis as the first Spanish-language residency. Country music has hit a new stride, with massive stars like Carrie Underwood, Miranda Lambert, and Garth Brooks all performing. Add in DJs, pop divas, legacy rockstars, and the horses Shania Twain once performed alongside, and you’ll never be bored.

If you build it, they will come
The biggest thing to hit the Strip in recent memory is undoubtedly the futuristic, $2.3bn Sphere. A technological marvel, the 20,000-capacity arena boasts 580,000 ft2 of fully programmable LED screens, wrapping almost completely around the audience. U2:UV Achtung Baby Live at Sphere grossed nearly $245m and slots in behind Celine Dion in Vegas’s highest-grossing residencies with only 40 shows, cementing the venue’s crown as the place to play.

“You can see this honeymoon period of the Sphere has really drawn a lot of audiences away from their typical disposable dollar habits in Las Vegas,” says Young.

Add in four nights from Phish, 30 from Dead & Company this summer, and 20 from the Eagles later this year, and the first 12 months of operation have cemented the MSG Entertainment project both in the city and internationally. Coming up, multidisciplinary artist Anyma, known for his “one-of-a-kind, audiovisual live experiences,” will host six shows around New Year’s Eve, bringing the first electronic music act to the venue before the year’s out.

“When a show does or doesn’t go to a certain property or certain venue within that property, it changes how the entire resort performs”

New builds and redevelopment are a constant feature of the Strip. After the renovation of the Colosseum in 2003, countless other hotel-casino resorts refreshed their entertainment offerings to make way for a growing audience. Diversifying and expanding entertainment spaces – theatres, clubs, casinos, restaurants, pools – is key to keeping audiences on-site.

“When a show does or doesn’t go to a certain property or certain venue within that property, it changes how the entire resort performs,” Reynolds explains. “From hotels to gambling to meals and spa reservations, all of these integrated resorts get fed by foot traffic – and concerts are a great conduit of foot traffic.”

The $3.7bn Fontainebleau Las Vegas arrived on the Strip late last year, bringing the 3,800-capacity BleauLive Theater to life with an opening from Post Malone in December 2023. The Strip’s most expensive resort, the $4.3bn Resorts World, opened in 2021 with an AEG Presents-backed, $170m, 5,000-seat theatre. AEG Presents Las Vegas also exclusively books the Theater at Virgin Hotels Las Vegas (4,500) and the Encore Theater at Wynn Las Vegas (1,480).

MGM Resorts International is widely recognised as the grandmaster of the Strip, operating some of its most renowned spaces: the Bellagio, The Cosmopolitan, Park MGM – home to the 5,200-cap Dolby Live – Mandalay Bay, and more. Its portfolio also includes the city’s three arenas, the MGM Grand Garden Arena (17,000), Michelob ULTRA Arena (12,000), and the $375m T-Mobile Arena (20,000), which opened in 2016 as a joint venture between MGM and AEG. Its unique portfolio widens the selection of artists and residencies it can bring to life.

“At an arena capacity, it is exceedingly difficult to find artists who can sell out more than a couple shows at any given time,” says Paul Davis, MGM’s SVP entertainment booking. “The value proposition at Dolby Live is ‘major artist, small venue’ along with the up-close experience that comes with it. It’s a very different model, which further enhances branding and diversity in our programming.

“This also allows us to develop early relationships with artists and have them perform at multiple venue sizes as their career evolves,” he adds. Dolby Live has played host to residencies from Lady Gaga, Bruno Mars, Mariah Carey, Usher, and others.

In 2020, the $1.9bn Allegiant Stadium emerged, opening the door for bigger artists and sporting events

As the Vegas landscape continuously transforms – “it is no longer sufficient to purchase digital billboards and cab tops,” Davis states – elevating marketing strategies to meet a newer, younger audience who want more than gaming and production shows is paramount to MGM Resort’s future endeavours. The influx of sports fans and events in the market, which Davis says has strengthened their ties to the local community, highlights how attracting new audiences has been crucial to the recent revitalisation of the region.

In 2020, the $1.9bn Allegiant Stadium (65,000) emerged, opening the door for bigger artists and sporting events – including the 2023 Super Bowl, which reportedly generated a $1bn economic impact. It’s gone on to welcome over 4m fans since. K-Pop supergroup BTS hold the stadium record for highest-grossing performances, bringing in nearly $36m from 200,000 fans across four nights in 2022.

Even more newcomers could be on the horizon. Last June, Oak View Group unveiled plans to build a $10bn entertainment district, including a $1bn, 20,000-seat arena. In May, developer LVXP announced it is moving forward with its “NBA-ready,” 20,000-seat arena, casino, and luxury resort, supported by infrastructure consulting firm AECOM, who recently completed LA’s $2bn, 18,000-cap Intuit Dome. With a rise in available space, will there ever come a point where availability outweighs demand?

That’s showbiz, baby
A decade ago, no major sports franchise called Vegas home. Now, almost every large venue plays host to a sports tenant. It began in 2017, with the Golden Knights settling in T-Mobile Arena. In 2018, MGM purchased and relocated the Las Vegas Aces women’s basketball team to Michelob ULTRA Arena.

In 2020, the NFL’s Raiders football team moved from Oakland to Allegiant Stadium, with MLB’s Athletics baseball team to follow suit for 2028. Formula 1 debuted a new Grand Prix in 2023, with a freshly built track taking over the entire Strip and encircling the Sphere. This November, a new $1m music festival is being launched in Downtown Las Vegas during the race weekend, courtesy of LVCVA. And with two potential new arenas on the horizon, an NBA team looks imminent.

Beyond merrymakers and conventioneers, sports fans are the third piece of the audience puzzle: “You’ve got kind of a triple threat that is a necessity for all the venues we have, the acts we have, and the tickets we need to sell,” AEG’s Hammond says. He adds that the rise in sporting events “brings a multitude of fans into this city, which is a big positive thing for us.”

“The town is changing for the better, really a world-class tourist destination, but it affects the ability to sell tickets – it’s becoming more challenging”

In 2022, out-of-town sports visitors generated upwards of $2bn in economic activity, according to a University of Nevada, Las Vegas study. The report precedes F1’s Vegas debut, Super Bowl LVIII, and a host of other noteworthy events, signifying how the sports sector is a prime market for organisers to tap into. But, with new audiences and events comes new competition, an underlying hurdle for those looking to pack their venues.

“The biggest challenge is definitely the sports teams and the increased competition that comes from that: the inventory of seats, available tickets, the choices,” Glenn Alai states. “The town is changing for the better, really a world-class tourist destination, but it affects the ability to sell tickets – it’s becoming more challenging.”

Alai manages the iconic duo Penn & Teller, who after 30 years at the Rio are still enchanting audiences with their magic show. They’re the namesakes on the 1,500-seat theatre they play every weekend and have helped build the acts they now
battle with in the consumer marketplace.

“Penn & Teller have made most of the competition because most of them got their start on their TV show,” Alai explains. “They’re kind of proud parents of these people, as they gave them their first exposure on TV, but they’re also now competition. The magic landscape is very crowded.” After working in the market for over three decades, Alai has a warning for those looking to break into the space and four-wall, or self-fund, their own productions.

“I often say, ‘Run the other way. Save your money or flush it down the toilet but run the other way. If you’re not a headliner, you’re not a huge name, and you’re not already established here, it’s tough. And if you’re not coming in fully funded and prepared to lose millions or at least hundreds of thousands, it’s going to be tough,’” he says.

“It’s incredibly difficult to develop up-and-coming talent specific to the residency circuit in Vegas”

A grassroots scene remains largely hidden in the shadows of the neon glow emanating from and around the Strip.

“It’s incredibly difficult to develop up-and-coming talent specific to the residency circuit in Vegas,” says WME’s Bandler. “Given the level of A-list artists coming through the market almost every weekend and given a residency’s overall success is largely determined by what they can turnover on tickets and tables, you need established acts that can drive numbers from day one.”

As with most of America, costs are rising across the board – one cocktail in Vegas can put you back $25 and more. The cost of entertainment has snowballed 150.6% from 2019, with the average spend per head rising to $278.44 last year. According to the LVCVA, roughly 25% of tourists (of which only 16% are first-time visitors) attended shows or entertainment during their trip, down dramatically from 51% in 2019.

While trip length may grant travellers the ability to see multiple shows, the cost may not.

“We came out of the pandemic, and people were spending anything just to see live music, and ticket prices skyrocketed,” Hammond says. “But with inflation picking up, things have gotten a bit tighter, and we as concert promoters need to be cognisant of that and make sure we’re not blind to the fact that the economy is changing.”

Bet on it
Vegas is, and will continue to be, a place for revellers to cash in on – it is the gambling and entertainment capital, after all. On any given night, you could see intimate theatre shows from A-listers, sporting events, a plethora of comedy and magic performances, a DJ at a swanky club, and even have a Michelin Star dinner. There’s truly something for everyone, and extravagance is celebrated.

Audiences may come and go in Vegas, but America’s most competitive marketplace looks hotter than ever. Every major agency, promoter, producer, and developer has a seat at the poker table, where audiences and artists divvy out the draw. In Sin City, what’s old becomes new again. At press time, The Mirage shut its doors after a 35-year run, set to reopen in 2027 as the next Hard Rock Hotel. A market built on leisure and pleasure, one that’s constantly reinventing itself, Las Vegas undoubtedly still has some aces up its sleeve.

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