The Motley Fool – Las Vegas is the city that made huge successes of the casino resorts operated by companies such as Las Vegas Sands and MGM Resorts. However, for the last five years gaming in Asia, rather than U.S. operations, have lifted these companies’ profits. But with 2014 profits in Las Vegas on the rise, is Sin City on the way back?
Following the 2008 financial crisis, Las Vegas profits dropped as U.S. gamers spent less on leisure travel and nonessentials like gambling. At the same time, Macau profits started surging as the Cotai strip there opened and Las Vegas Sands dominated the Cotai Strip with the most casino resorts and the highest total gaming revenue. Now, though,Vegas might be making its comeback.
Nearly 40 million people visited Las Vegas in 2013, helping the city to pick up both gaming and non-gaming revenues over 2012. Now, total revenue is continuing to increase to date this year. If current forecasts are correct, 2014 could be getting close to those peak 2007 revenues. The chart below lays out the past 10 years of gross gaming revenues for Las Vegas, while the graph compares those numbers to total gaming revenue in Macau during the same time.