Las Vegas: America's Premier Sporting Destination
By Anthony Phillips, Partner, Luxury Real Estate Advisors
Over the last two decades, Las Vegas has undergone a seismic transformation. What was once known solely as the world’s entertainment capital, built on a foundation of casinos, lavish nightlife, and marquee entertainment, has now evolved into a premier global destination for sports enthusiasts. From hosting world-class events in UFC and professional boxing to housing major league sports teams and building state-of-the-art facilities, Las Vegas has solidified itself as a sporting juggernaut. This essay will explore how the rise of sports in Las Vegas has profoundly impacted its local economy, generated substantial new revenue streams, created thousands of jobs, diversified the city’s economic base, and positioned it for continued growth—including the high likelihood of securing an NBA franchise within the next five years.
A New Era of Professional Sports in Las Vegas
The Golden Knights: Las Vegas’ First Major League Team
The launch of the Vegas Golden Knights in 2017 marked a watershed moment for Las Vegas. As the first major league team to call the city home, the NHL franchise proved that professional sports could thrive in a market long dismissed as a gambling-centric town. The Golden Knights’ immediate success—reaching the Stanley Cup Finals in their inaugural season—electrified the city and captivated hockey fans worldwide.
From an economic standpoint, the Golden Knights have been a boon for the city. T-Mobile Arena, their home base, attracts millions of visitors annually. Hotels, restaurants, and entertainment venues near the arena have reported a surge in business during the hockey season. A 2022 economic impact report estimated that the Golden Knights generated over $600 million annually for the local economy, including ticket sales, merchandise, and increased tourism.
Allegiant Stadium and the Raiders: Redefining NFL Experiences
In 2020, Allegiant Stadium became the new home of the Las Vegas Raiders, further cementing the city’s status as a major league sports hub. The $1.9 billion stadium, one of the most advanced in the world, has drawn football fans from across the nation. Beyond NFL games, Allegiant Stadium has hosted major events such as the Pro Bowl, the CONCACAF Gold Cup Final, and concerts by global superstars, demonstrating its versatility as a multi-purpose venue.
The economic benefits have been extraordinary. Raiders games alone attract tens of thousands of out-of-town visitors, who contribute to the local economy through hotel stays, dining, and entertainment. A 2021 study revealed that the stadium generates $620 million annually in economic activity and supports over 6,000 jobs. Additionally, the NFL’s presence has amplified Las Vegas’ appeal as a vacation destination, with many fans planning trips specifically to attend games.
The Las Vegas Aces: Champions on and off the Court
The WNBA’s Las Vegas Aces have not only elevated women’s basketball but have also added another layer of excitement to the city’s sports culture. Playing at the Michelob Ultra Arena, the Aces are trailblazers, winning the 2022 and 2023 championships and drawing attention to the importance of women’s sports. Their success underscores Las Vegas’ commitment to diversity and inclusivity in its sporting ventures.
From an economic perspective, the Aces have contributed significantly to job creation and local spending. Their growing fan base, combined with corporate sponsorships, has further diversified the city’s revenue streams.
Hosting Global Sporting Events
UFC and Professional Boxing: Las Vegas’ Original Sporting Claim to Fame
Long before the advent of major league teams, Las Vegas was synonymous with combat sports. The UFC, headquartered in the city, holds many of its marquee events at venues like T-Mobile Arena and the MGM Grand Garden Arena. These events draw international crowds, filling hotel rooms and creating an unmistakable buzz.
Professional boxing remains a cornerstone of Las Vegas’ sports identity. From Muhammad Ali’s legendary bouts to modern superstars like Canelo Alvarez, the city has hosted some of the most iconic fights in history. The economic impact is staggering; a single major boxing event can generate upwards of $100 million in revenue from ticket sales, pay-per-view purchases, and related tourism spending.
Formula 1: Racing onto the Strip
One of the most anticipated developments in Las Vegas’ sporting evolution is the return of Formula 1. The inaugural Las Vegas Grand Prix in 2023 reintroduced the city to the global motorsport stage, with the race’s circuit weaving through the iconic Las Vegas Strip. The event is projected to generate $1.3 billion in economic impact annually, a testament to the city’s ability to leverage its unique environment for world-class events.
National Finals Rodeo: Tradition Meets Modernity
The National Finals Rodeo (NFR), held annually at the Thomas & Mack Center, continues to attract a loyal following. Often referred to as the “Super Bowl of Rodeo,” the NFR brings an estimated $200 million in economic activity to the city each December. Hotels, restaurants, and retailers benefit greatly from the influx of rodeo fans, many of whom stay for extended periods and explore the city’s other attractions.
Upcoming Developments: MLB and NBA
Las Vegas Athletics: The MLB Comes to Town
The relocation of the Oakland Athletics to Las Vegas is set to further elevate the city’s sports profile. Plans for a $1.5 billion ballpark on the Las Vegas Strip promise to create thousands of construction and operations jobs while driving significant tourism and local spending. The A’s move is expected to attract millions of visitors annually, further diversifying the city’s tourism base.
NBA Expansion: The Next Frontier
Las Vegas’ burgeoning reputation as a sports mecca has fueled speculation that it will secure an NBA team within the next five years. The city’s proven track record—hosting NBA Summer League games and the 2007 All-Star Game—demonstrates its readiness for the league. With a suitable venue like T-Mobile Arena already in place, the arrival of an NBA franchise is less a question of “if” and more of “when.”
The economic implications would be profound. An NBA team would attract a new demographic of tourists and provide additional opportunities for local businesses. Moreover, it would cement Las Vegas as a year-round sports destination.
Economic Diversification and Job Creation
Diversifying Beyond Casinos
The rise of sports in Las Vegas has significantly diversified the city’s economy, reducing its reliance on gaming revenue. According to the Las Vegas Convention and Visitors Authority (LVCVA), non-gaming revenue now accounts for over 60% of total visitor spending, a stark contrast to previous decades.
Job Creation
The construction of new venues like Allegiant Stadium, the forthcoming MLB ballpark, and infrastructure improvements for events like Formula 1 has created thousands of jobs. Beyond construction, the operations of these venues—from ticket sales and concessions to security and marketing—have provided steady employment for thousands of residents. Additionally, the influx of tourists has spurred growth in hospitality, retail, and transportation sectors.
Visitation and Revenue Growth
Increased Tourism
Sporting events have become a significant driver of tourism in Las Vegas. The LVCVA reports that nearly 20% of the city’s 42 million annual visitors attend a sporting event during their stay. This translates to billions of dollars in spending on accommodations, dining, and entertainment.
Corporate Sponsorships and Media Rights
The presence of major league teams and high-profile events has attracted lucrative corporate sponsorships and media deals. Companies are eager to associate their brands with Las Vegas’ dynamic sports scene, further boosting revenue.
The Future of Sports in Las Vegas
Las Vegas is on an unstoppable trajectory as a global sports capital. Its ability to attract major league teams, host world-class events, and innovate with unique offerings like Formula 1 demonstrates its unmatched versatility. The economic benefits are undeniable: billions in new revenue, thousands of jobs, and a diversified economy that is less vulnerable to the volatility of gaming.
Looking ahead, the addition of the Las Vegas Athletics and a potential NBA team will further solidify the city’s status as a sports powerhouse. With its unparalleled infrastructure, vibrant tourism industry, and growing reputation for excellence, Las Vegas is poised to remain at the forefront of the global sports landscape for decades to come.
