Are Casinos Making the Inequity Gap Worse?
The rise of one casino and the fall of three others is called “progress.” Perhaps in some ways, this is true. But what will later become of those soon-to-be vacant lots? How will that change the way we think of those “other” areas of town?
ARE CASINOS MAKING THE INEQUITY GAP WORSE?
A CLASS AND CASTE SYSTEM AND A TALE OF TWO CASINOS
A few days ago, I drove by the new construction site of “Durango Station.” See the photo here. That’s the new casino resort rising from the desert sand in the far southwest corridor of Las Vegas.
I was struck by the speed of work that’s now happening at the site. Only a month ago, the land was a dusty vacant lot. Now, it’s up to a dozen floors and will soon blossom into a vast $750 million entertainment complex, supposedly tailored to the “locals” market. Mind you, this is only two miles away from Downtown Summerlin and the Red Rock Casino, which is owned and operated by the same company.
Injecting–there’s a lot for me here to cover. Let me explain, ask a few questions, and offer some opinions.
But then, drive down the I-215 in the opposite direction to the other end of that freeway and you’ll come upon a very different construction lot. While beams and cement are rising over on the west side, over on the east side they’re demolishing what was the Fiesta Casino (in Henderson). The Fiesta Casino did fine while it was open. In fact, I dined and played there many times. It was always busy and certainly made a profit for many years, at least until COVID disrupted things. Stations Casinos, which owned the Fiesta decided to tear it down rather than reopen it. How strange to see a company taking a wrecking ball to one casino, while construction cranes build another down the same highway.
The same thing is happening to Texas Station right now, as well. Much like the Fiesta Henderson, it was a very successful casino in north Las Vegas, which catered primarily to locals. Texas Station was a fun and affordable resort, mostly tailored to a middle-class crowd. It’s being demolished this month, as well. Moreover, there’s another Stations-owned casino next door called Fiesta Rancho. Like Fiesta Henderson and Texas Station, it too will meet an unceremonious fate. That property is scheduled to be demolished, probably later this year.
For those keeping score — that’s three Stations-owned casinos being torn down. And another one being built from the ground up.
So, what’s the compelling factor here that would make casino suits reduce three (profitable) casinos to rubble while spending three-quarters of a Billion dollars (with a B) on a casino within the same city? Might this have something to do with location and economics? Might this have EVERYTHING to do with location and economics?
The fact is, Durango Station is located in a newer and wealthier neighborhood. Ipso facto, more rich people live there. Prioritizing the Durango Station project is certainly understandable given the amount of investment, but then why demolish popular casinos in other neighborhoods that have generated steady profits for years — in addition to providing thousands of jobs while helping those poorer areas of town?
Of course, casino companies aren’t in the social engineering business. Casino companies, like most corporations, care next to nothing about local neighborhoods or labor or the impacts of their shifting priorities. I’m not naive enough to think Station Casinos has any obligation to maintain operations in markets that they deem unimportant or potentially risky.
Nonetheless, this is a dangerous trend for the casino business and really bad for consumers with more limited financial means (which means middle- and lower-class customers). We’ve already witnessed many parts of the Last Vegas Strip price out the middle class with $200 show tickets and $450-a-night hotel rooms. Fortunately for Las Vegas, there are plenty of conventions and international visitors to keep the showrooms and hotels reasonably full. So, the assembly line rolls on, at least until the next big economic downturn (think of the Fountainbleu disaster). But now, this is happening to the LOCALS casino market. And that’s a really bad thing.
What we’re seeing is a caste and a class system emerging in the casino business. Actually, it’s already here. But, it’s getting worse. Years ago, casino floors were a vast melting pot of rich and poor, working class and executives, young and old, seedy and elegant, all mixed and mingled into a giant blender of smoke, dice, drinks, and cards. A craps table might be ringed by a construction worker, a Japanese tourist, a hooker, a Mafia wise guy, a doctor, and a waiter. Now, we see subtle but very clear markers about precisely *who* and which types of people are more welcome *where.* All you need to do is walk the floor of any of the posh casinos to instantly feel the unmistakable intimidation.
When casinos first became a thing just about everywhere, they were typically located in the so-called “bad areas” of town. In warehouse districts. Shipyards. Poor areas. The “other side of the tracks.” Like Fiesta Henderson, Texas Station, and Fiesta Rancho (okay, there were no shipyards — but those were all in lower-end areas of the city). Now, Red Rock towers over wealthy Summerlin. The Aliante resort dominates the far north corridor. And Durango Station will become the main draw for locals in the southwest part of town, which is the fastest-growing area of the city.
The rise of one casino and the fall of three others is called “progress.” Perhaps in some ways, this is true. But is it really progress? What will later become of those soon-to-be vacant lots? How will that change the way we think of those “other” areas of town, which now have one fewer reason to ever go there and visit? That’s one fewer reason ever again to use the gas stations there or stop into the neighborhood 7-11 for a soft drink on a hot day, or go into any of the countless other small mom-and-pop businesses that owed much of their existence to attractions like Fiesta Henderson and Texas Station. The “bad area of town” prophecy becomes self-fulfilling and the social and economic fallout from these shifts in local concentration of wealth only serves to make a serious problem worse.
