Nickel and dimed: Are Las Vegas casinos pushing visitors to a tipping point?

Every year, tens of millions of people come to Las Vegas with the intention of spending money. Hitting it big in a casino is part of the dream that drives people to the desert in droves, but the reality for the majority of Las Vegas visitors is that the experience they want to have is going to cost them.

And, for the most part, they are OK with that.

However, more and more people are expressing frustration over rising costs associated with patronizing a Las Vegas casino-hotel, particularly in the years following the COVID-19 pandemic. From resort and parking fees to surge pricing in sundry stores to table games with a greater house edge to exorbitant markups on food and drinks, there is growing sentiment that the public is being squeezed when they visit a Las Vegas casino.

Cost of visiting Las Vegas adds up

“I love paying for an experience, but if you are going to nickel and dime me, in my mind, what you’re doing is saying, ‘I will prey on your ignorance,’” said Dee Ellis, a 63-year-old epidemiologist who splits time living between Las Vegas and the Bay Area. “If you’re going to raise your rates, then do it. But, I think, consumers, as a whole, we are getting tired of being nickel and dimed.”

For an industry and a city whose reputations heavily rely on providing value, a public perception that Las Vegas casinos are prioritizing profits at the expense of the guest experience could ultimately push visitors to explore alternative destinations.

“I think Vegas is kind of pricing itself out,” said Bill Perry, a 64-year-old retiree who moved to Las Vegas in 2020 following years of being a regular visitor. “(Las Vegas casinos) welcome you with their words, but their actions aren’t following up with that. You don’t feel welcome at all when you’re charged every time you turn around (after) you already put out a lot of money just to be there.”

What casinos have to say about higher prices

The Las Vegas Review-Journal reached out to the Las Vegas Convention and Visitors Authority as well as over 20 casino operators on the Strip, off-Strip, downtown and around the valley to discuss the topic. Most casino operators did not respond, and two declined to comment. The LVCVA said no one was available to be interviewed for this story but provided select statistics from its 2024 visitor profile survey.

The casino operators who did respond noted that costs are rising on their end as well, with labor and food prices being top among them. Despite larger economic issues, those casino operators emphasized a commitment to delivering value and affordability for a variety of customer budgets.

“As tourism and travel prices rise, we expect that the industry’s hospitality standards and guest service levels should advance too,” said Skylar Dice, senior vice president and general manager of The Strat. “We believe it’s of the utmost importance to still offer guests a great value for their spend at any price.”

Casino executives say Las Vegas still offers value and, compared to other major U.S. tourist destinations, can be a relative bargain.

Cliff Atkinson, president of Virgin Hotels Las Vegas, said the goal for his off-Strip property “has always been to attract visitors seeking an approachable yet high-end hospitality experience while maintaining the value that Vegas is renowned for.”

The participating casino operators each acknowledged the importance of listening to what their guests are saying and, when appropriate, responding with action.

“Las Vegas has always been a beacon for tourists, and I am confident that as a city, we are all committed to continually evolving based on visitor feedback,” Atkinson said.

Derek Stevens, co-owner of three properties in downtown Las Vegas — Circa, The D and Golden Gate — and, arguably, the most visible casino executive in town, said he was a “big believer” in engaging with guests and hearing what they have to say.

“Obviously, you got to have some thick skin to read reviews or be willing to (talk face-to-face with casino patrons),” Stevens said. “But you learn a lot, too, so I think that’s a very important thing.”

Some properties are listening — and adapting

As frustration over rising costs spreads across social media, travel reviews and even among longtime gamblers, some Las Vegas casinos have taken notice — and are adjusting. Some operators have started to roll back prices, promote deals to locals, eliminate certain fees or improve gambling conditions to lure back core customers.

The Palms hotel-casino recently made headlines by announcing it would only offer 3:2 blackjack, bucking a yearslong industry-wide trend toward 6:5 blackjack, which has a higher house edge. Despite grumblings from a few hardcore gamblers that the property uses continuous shufflers on its main blackjack tables, the move was widely praised as a win for players seeking value and a fair game.

Yet, industry-wide changes stemming from consumer concerns remain unlikely. Surveys suggest that, despite being unhappy about higher costs, Las Vegas still delivers enough value to keep visitors coming back, with overall satisfaction scores remaining high.

According to the most-recent LVCVA visitor profile, 87 percent of those surveyed in 2024 said they were “very satisfied” with their visit to Las Vegas, which was down from 94 percent in 2019. Another 10 percent indicated they were “somewhat satisfied” last year. More than half — 54 percent — of respondents said Las Vegas exceeded their expectations.

“Consumer satisfaction has consistently been found to have an impact on loyalty and repeat intentions more so than value itself,” said Amanda Belarmino, an assistant professor at UNLV’s William F. Harrah College of Hospitality. “Value is one aspect of satisfaction, but price is not value. Creating value is about creating memorable experiences, and that we continue to do in abundance.”

Vegas is still delivering value, but is the tide starting to shift?

Other data points in the LVCVA survey suggest a shift in consumer trends that, although not overly concerning, should catch the industry’s attention.

Among visitors who said they were “somewhat satisfied” with their stay, 18 percent answered “too expensive.” That percentage is below the 19 percent who felt that way in 2019 but has risen each of the last three years.

Of those who said they were “dissatisfied” with their Las Vegas visit (which was 3 percent of all respondents), 20 percent answered “too expensive” as the main reason.

The average number of annual visits to Las Vegas dipped slightly last year, as did the average number of trips among repeat visitors, which has fallen each of the last three years. The likelihood to return to Las Vegas is still high, with 75 percent of respondents saying it was “extremely” or “very” likely, down from 84 percent last year and 87 percent in 2022.

According to the LVCVA data, 55 percent of gamblers said Las Vegas “exceeded expectations,” and 49 percent of non-gamblers said the same. Nearly two-thirds of millennials said Las Vegas “exceeded expectations,” while less than half of Gen-X (47 percent) and Gen-Z (49 percent) respondents answered that way.

A changing business model

The traditional Vegas business model — offering inexpensive amenities to attract gamblers — has fundamentally shifted.

Belarmino, the hospitality professor who also worked in management positions for multiple Las Vegas casino hotels, said this change has occurred over the last 15 years or so, “so really what we offer now is nothing new. The consumer has indicated an increased desire for higher-end experiences, and this has also benefited the casinos as they find ways to increase profitability across all of the departments of the casino.”

The average spend per night on lodging hit an all-time high in 2024 at $179.10, according to the LVCVA survey. Visitors’ average spend on food and beverage ($615.07) and shopping ($281.12) per trip were up last year compared to 2023.

Those metrics, while great for the bottom line, seem to support what visitors are saying about rising costs.

Like most commenters on the subject, Ellis and Perry said they love Las Vegas and are only voicing their thoughts because they do not like the direction the city appears to be heading.

“When I hear reports that (casinos) are not making as much money now, well, who’s fault is that?” Perry asked rhetorically. “It’s just crazy. We have a lot of friends that come to Vegas that say it’s just not as affordable anymore.”

Ellis said she thinks Las Vegas is nearing a tipping point in which visitors are completely turned off by the soaring prices and constant fees or charges.

“(Las Vegas) is just not the bargain or the value anymore for the entertainment that you’re actually receiving,” she said. “We are losing the experience while they step over a dollar to get to a dime.”

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @ac2vegas-danzis.bsky.social or @AC2Vegas_Danzis on X.