Neighborhood Casinos and Sprawl
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©2010 Center for Gaming Research • University Libraries • University of Nevada, Las Vegas Number 4 June 2010 Center for Gaming Research Occasional Paper Series University Libraries University of Nevada, Las Vegas Urban Dynamics in the Las Vegas Valley: Neighborhood Casinos and Sprawl Pascale Nédélec Las Vegas is well known for its urban sprawl. While the casino industry has played an obvious role in the development of Las Vegas, no systematic study has evaluated the exact nature of urban growth and the rise of neighborhood casinos. This paper argues that neighborhood casinos, contrary to tourist‐oriented casinos, are not urban forces that drive the growth of an urban area but reinforce the status quo of residential developments. Neighborhood casinos have nevertheless become a major asset in the economic and social building of residential developments and community life. Keywords: locals/neighborhood casinos, urban dynamics, Las Vegas Preferred Citation: Pascale Nedelec. “Urban Dynamics in the Las Vegas Valley: Neighborh ood Casinos and Sprawl,” Occasional Paper Series 4. Las Vegas: Center for Gaming Research, University Libraries, University of Nevada Las Vegas, 2010. In less than a century, Las Vegas went Las Vegas is famous for some of the biggest from being a Mormon fort in the Mojave hotels in the world, all lined up along the Desert to a world‐renowned tourist resort Strip. Since tourism began in the 1930s, the and a metropolitan area of almost two industry has grown exponentially. million people. Las Vegas has experienced While the casino industry has played a tremendous growth throughout the second major role in the development of Las Vegas, part of the twentieth century; one of its many no systematic study has evaluated the exact nicknames is “the fastest growing metropolis nature of urban growth and the rise of in the United States.” Las Vegas had indeed neighborhood casinos. This paper defines the largest and fastest demographic growth in what is to be understood by neighborhood the US since World War II. casino and focuses on the relation between The gambling industry played an locals casinos and the urban expansion of the obviously key role in the urbanization of the Las Vegas metropolitan area. Las Vegas Valley, especially in Clark County. Many scholars have argued that tourism The local economy is largely oriented produced urban space, the Strip being the towards recreation and services to the point best illustration of that. Along the same line, that tourism seems to be a mono‐industry. could the neighborhood casinos be seen as [2] Occasional Papers | Center for Gaming Research | University of Nevada Las Vegas the driving force of suburban development? understand the urban dynamics of Las Vegas If one can assume tourism created Las Vegas and the social impact of neighborhood and not the opposite, one can also wonder if casinos in the area. the neighborhood casinos created the suburbs and not the opposite. Tourist vs. locals casinos Therefore, this work examines the Location is essential in the definition of plausibility of a casino‐led suburbanization, the neighborhood casinos. These casinos are seeing whether neighborhood casinos are a situated outside the Strip and downtown. driving force for urban sprawl, or if they are a Following the local assumption, the block local outgrowth of residential developments between the Las Vegas Boulevard (the Strip and master‐planned communities. per se) and Paradise Road is considered to be The concept of neighborhood casino or a subdivision of the Strip, whose hotels cater locals casino (there is no relevant difference mainly to a tourist clientele. According to between locals and neighborhood casinos, that assumption, the casinos located in what terms hence used interchangeably) needs to is called the “Strip Corridor” are not taken be defined and examined in details for its into consideration. specificity within the gaming industry of Las While tourist‐oriented and local casinos Vegas. A basic definition serves as a starting share common characteristics, neighborhood point, highlighting the lack of scholarly casinos differentiate themselves to better definition: a locals casino is a gambling cater to the locals population. Locals casinos facility designed primarily to attract residents offer a different mix of games or games not of the area in which it was built rather than usually found in tourist‐oriented casinos, tourists or vacationers. In Las Vegas’s case, such as bingo. New games and machines that kind of casino is also characterized by its (slots or video poker) are usually tested first geographical location. Locals casinos are in neighborhood casinos.2 Since local found throughout the greater Las Vegas area, gamblers may visit the casino many times a except from the main tourist areas, that is the week, it is essential to diversify the gaming Strip corridor and Downtown (around experience as much as possible and variety Fremont Street). on the floor is a major concern for casino With the above in mind, a database was managers. Moreover, in order to attract built in order to approach neighborhood residents to gamble, locals casinos developed casinos as systematically as possible (cf. table ways to better benefit gamblers. They offer 1). Without an authoritative listing, different table games with lower minimum bets, as sources were combined, ranging from well as lower denomination slot machines references on the Las Vegas gaming market, and video poker, quarter and nickel most of real estate registers or even academic the time. databases.1 To be included, properties had to Neighborhood casinos, like casinos on the have a non‐restricted gaming license (more Strip, are not only about gaming. While hotel than fifteen slot machines and table games rooms rarely attract locals, these properties’ permitted) and at least one hundred hotel rooms are often convenient places for visiting rooms. Thirty‐three locals casinos were thus family and friends of local patrons. Because identified. By way of comparison, there are they are off the Strip, they are less influenced an estimate of a little more than thirty hotel‐ by the peaks of tourist season and less likely casinos along the Strip and about ten in to be affected by conventions that come to downtown Las Vegas. To gather more precise town. As a result, neighborhood hotel‐ information, especially opening dates and casinos generally charge less than those on addres s es, the casinos’ websites were the Strip. Similarly, local as well as tourist referred to. casinos in the Las Vegas Valley feature a large By examining how neighborhood casinos range of entertainment and amenities, the cater to the local population we can better most important of them being dining. The Nedelec | Urban Dynamics in the Las Vegas Valley [3] gourmet restaurants of the Strip generally Those statistics highlight the wish of local draw tourists who have a dedicated budget residents to distance themselves from the for those kinds of extras or locals who want tourist crowds and their preference towards to celebrate a special event. By contrast, properties closer to home. The tourist‐ locals will chose neighborhood casinos for oriented casinos may offer more attractions more low key nights out, or more frequent and activities, but this is not enough to family gatherings. Reasonable prices help compensate for perceived overcrowding by secure the loyalty of clients that can tourists and higher prices. Neighborhood potentially come every week. casinos are therefore a sustainable business, catering to the local clientele. The evolution of The popularity of gambling among locals this sector is interesting to study: What Given the density of casinos in a medium‐ stared as a niche market became a very t size metropolitan area and the consistent profitable business. growth of gaming and casinos in the Las Vegas Valley, it seems likely that the locals From a niche to a profitable business gaming industry is economically sustainable. The recent death of Franck Fertitta, Jr. on Some statistics published by the Las Vegas August 21, 2009, has brought some light on Convention and Visitors Authority (LVCVA), the history of neighborhood casinos. Fertitta the official destination marketing Jr., a bellman who became a gaming mogul, is organization of Las Vegas, confirm that locals credited with pioneering the concept of casinos make economic sense in Las Vegas. neighborhood casinos in Las Vegas. Founder According to the latest Clark County Resident of Station Casinos Inc., Fertitta opened his Study (2008), gambling ranked second among first neighborhood casino – simply named the all activities in which residents said they Casino – in 1976. The 5,000‐square‐foot participated, close behind going to the movies property, a few minutes away from the Las (respectively 18% and 20%). Two‐thirds of Vegas Boulevard, within the City of Las the Clark County population is gambling at Vegas’s limits, gave the workers of the Strip least occasionally and, on those who gamble, their own place to gamble. The Casino was 44% do so at least once a week.3 Those renamed Bingo Palace and now is known as numbers are stable compared to those of the Palace Station. Despite the common previous Resident Study, published in 2006.4 assumption that Fertitta coined the concept The Resident Study also asked gambling of neighborhood casinos in the 1970s, this residents where they gamble most often: 75% research shows that locals casino can be answered in a neighborhood casino. Only traced back as early as the 1930s. 16% gamble most often in casinos on the In the early days of Las Vegas, the locals Strip, and an even smaller 5% gamble casinos were modest dollar‐a‐beer joints with Downtown, which demonstrates that locals loose slots that catered to budget‐minded prefer neighborhood casinos over the tourist‐ tourists and the folks who lived here, oriented casinos of the Strip and Downtown typically employees at the hotels and casinos Las Vegas.