Casino Bosses Transform Sin City Into Club City
By HANNAH DREIER
LAS VEGAS (AP) â¿¿ To step into club XS at the Wynn Las Vegas is to enter the dreamscape of a modern artist with fetishes for gold and bronze and bodies in motion.
A golden-plated frieze made from casts of nude women sits atop a shimmering staircase. Waves of electronic dance music grow louder with each downward step toward a pulsating, football field-sized club where lasers cut the air above thousands of dancers.
The revelers take their cues from the famous DJs onstage who are known to surf the crowd in inflatable rafts, throw sheet cakes at clubbers' faces and spray vintage champagne into their mouths.In Sin City, where over-the-top is always the sales pitch, lavish nightclubs featuring a heart-pounding party have become the backbone of a billion-dollar industry that is soaring while gambling revenue slips. "We learned a long time ago that in order to continue to attract people from around the world, we have to provide things that are hard to find anywhere else," said Jim Murren, CEO of MGM Resorts International, which operates nine Strip hotel-casinos boasting their own dance scenes. "These clubs, if done correctly, are tremendous magnets." A $100 million temple to revelry, XS is the top-earning nightclub in the country, joining six other Vegas venues in the top 10. Its estimated annual revenue hovers somewhere near $90 million, according to the trade publication Nightclub & Bar. The city now boasts more than 50 such clubs. New additions are coming all the time, including the five-story Hakkasan at the MGM Grand, which debuted last month, and Light at Mandalay Bay, Cirque du Soleil's first foray into the disco business, opening Memorial Day weekend. The rise of the Vegas super-club coincides with the decline of the town's gambling supremacy. The tiny Chinese enclave of Macau surpassed the desert oasis as the world's top gambling destination in 2006. Singapore is on track to claim the No. 2 spot.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts