Do you wonder how the money flows in Las Vegas? Are you curious who gets what percentage of every dollar you spend in the hotels, casinos or nightclubs?
Well let’s discuss who owns what when it comes to hotels on the world famous Las Vegas strip. And we will also go over the term “illusion of choice”.
If you walk around the strip, you’ll see about 30 major hotels, including MGM Grand, Venetian, Mandalay Bay, Caesars Palace, Bellagio, just to name a few.
You might think that all of these hotel/casino’s are owned by different companies and therefore are competitive with each other in regards to pricing and quality of service.
Well, you might want to think again. Most of these hotels are owned by the same company. Vanguard.
VC Properties bought Harrahs, Venetian, MGM Grand, Mandalay Bay. $17.2 billion dollars. More than annual GDP for country of Jamaica.
The casino’s are renting now. REIT. Rent increases 2% per year. Profits are very important now.
8.4% of the entire world’s GDP. Own’s trillions of dollars including Johnson and Johnson, Pfizer, McDonalds, Exxon, just to name a few: Vanguard. “Changing the way the world invests”.
32.5% in all shares in MGM Resorts, Caesars Entertainment, Wynn Corporation and Las Vegas Sands Corporation = $5.4 billion investment.
Vanguard has direct interest in seeing casino’s increase profit’s year after year.
Vanguard owning 14% in VC Properties – $4.4 billion invested – they own the land the hotels operate on.
Hotels must show profits for the property owners and shareholders.
Violations of anti-trust laws by price fixing hotel room rates. Basically the strip is becoming a monopoly and prices are not competitive anymore. The main goal for casino/hotels is profits and it’s reflected in how much everything costs now.
AI determines hotel pricing (goal is to maximize revenue). Aggressive hotel fees for “perks”.
So if you want to spend the most money and get the least value, spend it at the hotel or casino’s.
Next we have nightclubs and strip clubs. While these aren’t owned by major investment firms like Vanguard, they are owned by corporations who have shareholders and are thus motivated to show profit increases annually to satisfy the owners and shareholders.
The last group is the smallest group and those are small to medium sized agencies. These businesses are usually private and have a small group of owners to satisfy. So profits don’t have to be tremendous every year as most owners are usually satisfied if they make enough money to support their lifestyle. This is far less demand than that of 10,000 shareholders.