In some ways, the Las Vegas Strip feels like an unregulated Wild West that just happens to be surrounded by billion-dollar properties.
If you walk between the massive Caesars Entertainment (CZR) -) and MGM Resorts International resort casinos that dominate the south and central strips, you're exposed to all sorts of things.
The homeless presence, with some panhandling, is sharply apparent. Some busk in some fashion, while others just try to sleep in a corner.
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The smell of marijuana is also everywhere on the the Strip. It's legal to possess cannabis in Nevada, but it's legal to consume it only in private residences. This has pushed people to toke on the Strip, usually with some effort at discretion but, in other cases, openly.
Las Vegas police have bigger problems than people illegally smoking pot, so unless you're doing something else, it's tolerated. This, however, has contributed to the sketchy vibe of the Strip, which also features plenty of women dressed as showgirls, shirtless men as police and firefighters, and an array of low-budget superheroes, all selling photos.
The Strip also has what you could call pop-up street vendors. These people, selling everything from food to souvenirs, operate without regulation.
A new law that Clark County has passed will change that, which is good news for Caesars, MGM, Wynn Resorts (WYNN) -), and the rest of the resort casinos on the Las Vegas Strip.
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New Las Vegas Strip rules regulate street vendors
The Clark County commissioners voted unanimously on Oct. 3 in support of a new law that bans street vendors from operating within 1,500 feet of a resort hotel or near a facility that can seat at least 20,000 people. Anyone cited for violating the new ordinance will be fined as much as $500 for each violation.
This new rule follows the state senate setting out parameters to license street vendors including food carts. That bill also banned street vending within 1,500 feet of large venues, including resort casinos.
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In theory, these new regulations should prevent crowding in front of major properties while providing food options in places they previously were. There's a safety aspect to it — you don't want anything slowing egress in front of a hotel, casino, arena, or concert venue — and the rule does protect the resort operators.
While street vendors may feel a relatively minor impact on business, Caesars, MGM, (MGM) -) and Wynn have invested billions on the Strip. Their properties contain everything from snack carts to food courts to upscale eateries, and they should not lose revenue to an unlicensed business that has decided to park on their doorstep.
Caesars, MGM report strong Las Vegas Strip results
It's fair to say that the Las Vegas Strip has completed its covid comeback and could improve upon those numbers with the upcoming Formula 1 race, Consumer Electronics Show, and February's Super Bowl.
Caesars Chief Executive Anthony Carano talked about the company's results during its second-quarter-earnings call.
"Underlying demand trends in Las Vegas remained strong during Q2, with occupancy growth of [1 percentage point] to 97.6%," he said.
"Total Las Vegas segment revenues were down 1% as a result of exceptional performance last year in our Group segment. ... Las Vegas continues to benefit from strong leisure and casino guest demand, the return of international guests and exciting events calendar and the continued strength of the group and convention segment in ‘23."
MGM Chief Executive Bill Hornbuckle expressed similar optimism during his company's Q2-earnings call.
"At a high level, we're seeing strong demand trends in Las Vegas, with casino drop and handle up year over year, alongside increasing hotel revenues, with our fourth-quarter hotel revenues forecasted to be the highest of all time," he said.
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