Marketing, homeless are biggest challenges for downtown Las Vegas, gaming execs say

There’s a whole lot going on in downtown Las Vegas that is driving gross gaming revenue better than in any other Southern Nevada market.

But to those executives who work there, it’s like the guy who winks in the dark — he knows what he’s doing, but nobody else does.

Five downtown Las Vegas gaming executives told members of the Downtown Vegas Alliance on Thursday that marketing what’s happening in the environs of Las Vegas Boulevard and Fremont Street is one of the biggest problems downtown faces.

That, and the problem that perplexes nearly every city in the United States, the preponderance of vagrants and the homeless.

“It’s our responsibility to our guests to keep them safe,” said Derek Stevens, owner of the D, the Golden Gate and the Downtown Events Center, and one of the five panelists.

Stevens also said improving access is critical to downtown’s continued success.

Earlier this week, the state Gaming Control Board reported that downtown Las Vegas gaming win in 2016 was up 4.2 percent to $564.6 million compared with the previous year. During that same period, Clark County win was up 1 percent and the Strip, 0.4 percent.

The downtown executives attribute much of the growth to the expansion of nongaming amenities.

Panelist Jonathan Jossel, CEO of the Plaza, said his property has worked hard to attract people to its revamped bingo hall and its pool deck. Panelist Seth Schorr, chairman of the Downtown Grand, said his property is a big player in e-gaming and wagering on skill-based video games.

And panelist Jim Sullivan, president and general manager of Boyd Gaming’s Fremont property, said his company has been investing downtown for decades, most recently in 2015 when it put in The Filament Bar.

Panelist Joe Woody, chief financial officer of the El Cortez, credited the arrival of Tony Hsieh and his Downtown Project to the area as a catalyst for change. That momentum has been accented by music festivals that draw large volumes of traffic downtown. The newest festival — Las Rageous, a heavy-metal event — is planned April 21-22. Stevens said pre-sales for the festival, which is expected to draw at least 15,000 in its first year, was close to a sellout Thursday, the first day tickets were available.

While nongaming amenities have driven business, Stevens noted that properties also are investing in the gaming product. Crews have begun work expanding the Golden Gate after Stevens’ purchase of Glitter Gulch, Mermaids and La Bayou. He said the Golden Gate would be able to add about 100 slot machines in the old La Bayou space, and plans are in the works to transform the Las Vegas Club next to Glitter Gulch and Mermaids.

Executives agreed that solving the vagrancy and homeless problem is a priority, and they are working with Las Vegas Mayor Carolyn Goodman, who made an appearance at the panel discussion, to address the issue without violating people’s rights.

Goodman noted that City Hall’s work with businesses helped solve problems associated with aggressive buskers performing along the Fremont Street Experience.

The downtown executives also voiced their support for attracting the NFL to Las Vegas. They and Goodman are holding out hope that Cashman Center could become the site for a stadium.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.