The Las Vegas Strip has a sort of shared ecosystem where a successful project spills over to lift up other projects. If, for example, Caesars Entertainment (CZR) -) can fill one of its major music venues four or five nights each week, that's not just good for the company's properties but anything nearby.
That applies equally to MGM Resorts International (MGM) -) or Wynn Resorts (WYNN) -). You might have tickets to see a hit show at a venue owned by either of those resort casino operators but could stop for a meal at another company's property, gamble in an unrelated casino, or spend money on the Strip in countless ways.
DON'T MISS: Two More Las Vegas Strip Resorts Adopt An Unpopular Policy
That's why Allegiant Stadium, home of the Las Vegas Raiders of the National Football League and T-Mobile Arena, where the National Hockey League (NHL) champion Las Vegas Golden Knights play have been so important for the Strip.
The football stadium sits just off the Strip and it drives hotel, restaurant, and casino traffic whenever the team plays or a concert fills the stadium. A 65,000-seat venue (capacity varies based on the event), the stadium brings in massive crowds that have pushed hotel prices higher on NFL and major concert weekends.
T-Mobile Arena only holds 20,000 people, but the Golden Knights play 41 home games a year, while concerts and UFC events fill the arena on other nights. That's a huge influx of people to a part of the Strip that's dominated by Caesars and MGM properties.
Many of those attending Raiders and Golden Knights games, as well as other events at their respective venues, are coming to Las Vegas to see those teams or special events. Sports has been a huge driver of tourism in Las Vegas and stadium financing expert Alan Hoffman, a partner at Winston and Strawn, expects a planned baseball stadium for Major League Baseball's Oakland Athletics to also be a big draw as well.
Image source: Shutterstock
Las Vegas Has Become a Major Sports Destination
The success of the NHL and the NFL in Las Vegas along with the Strip's long-time place as a home for boxing and mixed martial arts events makes it a logical destination for any sports league. Las Vegas will host a Formula 1 event in November that already looks like it will be a massive success.
Despite that, plans for the A's to build a 30,000-seat arena on land owned by Gaming and Leisure Properties (GLPI) -) where Bally's (BALY) -) Tropicana currently sits were not universally embraced by the city or the state. There were a lot of questions about baseball as a draw, but Hoffman told the Las Vegas Review-Journal that the project should be a huge hit.
“Drawing upon not just the tourism industry, which of course is phenomenal in Las Vegas, but also the local community,” Hoffman said. “People think of Vegas as this great party town, bachelor parties, and everything else. But there is also this broad family-based community that would really love Major League Baseball. You’re really combining the two demographics.”
The A's will also have twice the inventory -- 81 home games -- as the Golden Knights and will play multiple games in a homestand against national drawing teams like the New York Yankees and Boston Red Sox. Those teams have somewhat of a national following but also have fans likely to travel to see their team play.
Hoffman also believes that the 30,000-seat stadium, the smallest in Major League Baseball, will add to its appeal.
"There’s really been a focus on having a better fan experience, better sight lines, more intimate…I do see that trend," he told the paper. "Thirty-thousand is the smallest, but there is a logic to it. You make back the money with some of the luxury boxes and some of your more expensive food options that we didn’t have when we were kids.”
