After the Oakland A’s recently announced a move to Las Vegas, experts are also predicting a home run for many casinos because of the team’s addition to the city’s sports landscape.
The team announced a plan in May to build a stadium at the present location of the Tropicana. Bally’s leases the land and owns the current casino, but that would be replaced by an MLB stadium on the 34-acre site. The company would then add another casino and hotel on the site as well.
A recent analysis shows that not just the team would benefit from the relocation and construction of the 30,000-seat retractable roof ballpark – especially MGM Resorts. Proximity plays a big role in that.
“Five of the company’s Strip megaresorts totaling more than 13,000 rooms — MGM Grand Las Vegas, New York-New York, Excalibur, Luxor and Mandalay Bay — are directly across from the Tropicana site along the Strip and Tropicana Boulevard,” the Nevada Independent notes. “Aria and Park MGM provide another 7,000 rooms just a few blocks away.”
Major Economic Potential for MGM
Experts point to some advantages MGM casino has in place that may help contribute to the bottom line once the project is complete. MGM Grand has a large parking garage, which could be utilized for local fans heading to watch a game.
With 81 regular season games at the ballpark, plus possible playoff games, that could mean major revenue additions for the company. Stifel Financial gaming analyst Steven Wieczynski also told the Independent that more options are on the table as well.
“He suggested MGM might consider redeveloping the Excalibur, which sits at the southwest corner across from the Tropicana, because of potential ‘outsized returns’ in a few years once the stadium is completed,” the newspaper reported.
The mere addition of the stadium could bring in hundreds of thousands of additional visitors each year. Applied Analysis founder Jeremy Aguero believes A’s attendance could reach 2.6 million people each year with 762,000 of those coming from outside Las Vegas. He projects that 405,000 of those would not have visited if not for the chance to attend a game in the city.
Other Companies To See Revenue Bumps
Those projections mean a lot of extra visitors to the Strip. Bally’s looks to have made a savvy move in purchasing the Tropicana in September for $148 million and seems in a nice position when the stadium is unveiled.
According to TheStreet.com, the new venue will sit on nine acres. A new casino and hotel adjacent to the stadium could provide nice gaming, hotel, entertainment, and parking revenue for Bally’s. Another Las Vegas feature might also benefit from the new stadium.
“The Las Vegas Strip monorail never really worked because resort operators, including Caesars and MGM Resorts International (MGM), did not want it to obscure the visual majesty of their resorts,” TheStreet notes. That forced the above-ground train line behind the Strip, where it runs for 3.9 miles connecting some Caesars and MGM properties with the Las Vegas Convention Center.
“The system is underused; it almost went bankrupt until the Las Vegas Convention and Visitors Authority bought it in 2020, during the height of the pandemic, for $24.3 million.”
The Monorail could offer a mass transit option for baseball fans staying at other properties along the Strip.
Public Funding Debate Continues
The public funding for the project continues to play out. The team projects a $1.5 billion stadium and is seeking $380 million in government money to help make that happen.
The state senate is currently reviewing a bill that would grant the funds for construction. An agreement with Nevada would also help the team avoid a $300 million relocation fee payable to MLB.
“The commissioner of baseball has at least suggested that if the state of Nevada can get a public-private partnership that is acceptable to Major League Baseball, to everyone, that the relocation fee that would be traditionally provided from a team moving to one location to another would potentially be waived,” A’s stadium project consultant Jeremy Aguero told senators last week.
The state legislature was set to close on Monday, so a bill must be passed quickly before heading to the desk of Gov. Joe Lombardo (R), who has expressed his support for bringing the A’s to Las Vegas. A special session could also be called if legislators aren’t able to reach agreement in time.
“This agreement follows months of negotiations between the state, the county, and the A’s, and I believe it gives us a tremendous opportunity to continue building on the professional sports infrastructure of southern Nevada,” Lombardo said in a statement after an agreement on public funding, pending legislative approval. “Las Vegas is clearly a sports town, and Major League Baseball should be a part of it.”
