Gaming industry CEOs wary of future issues while celebrating Las Vegas success
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Two prominent casino company CEOs said Tuesday they’re happy that Southern Nevada is pacing a record industry rebound, but they remain wary of economic uncertainties that could put a dent in the future.
Derek Stevens, owner of downtown Las Vegas’ Circa, and Craig Billings, the newest person to hold the position of CEO of Wynn Resorts Ltd., kicked off main events for the four-day Global Gaming Expo at The Venetian.
Stevens and Billings were among six CEOs interviewed onstage by CNBC anchor Contessa Brewer. They followed a quick state-of-the-industry address by American Gaming Association President and CEO Bill Miller that celebrated two years of growth that outshined issues on the horizon.
Billings, who succeeded Matt Maddox as Wynn CEO nearly nine months ago, said he’s been delighted with Las Vegas results, even as the tourism economy isn’t fully recovered.
“Vegas has been a tremendous story,” Billings said. “The town does very, very well in finding additional sources of demand. We’ve had record ADRs (average daily room rates), excellent occupancy, our food and beverage, our theater … everything’s firing on multiple cylinders.”
But he admitted the company’s Macao operations have been a huge disappointment as the company prepares for the renewal of its licensing later this year.
Stevens indicated he wasn’t sure Circa, which opened in 2020, could be built today under existing economic conditions.
“You’d have to be more conservative today than three years ago (when construction was underway),” Stevens said. “The market is tight and labor is affecting food and beverage operations. Some restaurant have to go to five-day or six-day (operations) or just a dinner operation because labor has been an issue since 2019. And anyone who says inflation is transitory, I don’t believe that to be the case. There’s going to be some built-in inflation that’s going to last for quite a little while.”
Stevens and Billings believe safety, cybersecurity and water resources are the biggest issues facing Southern Nevada.
“Safety is a societal issue and Las Vegas is not immune to societal issues,” Billings said. “But between our surveillance infrastructure and Metro (police), it’s hard to find a safer location than the Strip.”
Miller, in his industry address, listed other concerns the gaming industry must be wary of that will be the focus of AGA attention in the months ahead.
Miller said the biggest issue facing the industry is the illegal operation of unlicensed websites and gaming machines.
“Our industry’s future depends on tackling our biggest threat — the illegal and unregulated market. Illegal and unregulated websites and machines pose a direct threat to our industry’s hard-earned regulatory licensed operators,” he said. “They prey on customers, especially the vulnerable and the underaged. They don’t provide any consumer protections or invest a dime in responsible gaming.”
Miller said $300 billion is illegally bet annually, resulting in a loss of $15 billion to legal operators and a $4 billion loss in gaming taxes.
Miller also encouraged the industry to embrace the digital future and to focus more attention on responsible gaming.
“Online gaming, whether it’s sports betting or iGaming, is our fastest-growing segment,” he said. “Payment modernization is well underway and new technologies continue to emerge. The truth is, oftentimes they raise more questions than answers, but that has never stopped this industry before.”
He said the AGA would continue to meet regularly with advocates, researchers, regulators and industry leaders to “explore wide-ranging question, including how we should modernize responsible gaming for today’s market.”
rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
