With talks of the Oakland Raiders moving to Las Vegas, it looks like the gambling capital will add another sport, right after the acquisition of an NHL franchise last June that is scheduled to begin play in the 2017-18 season. Recently, the CEO of MGM, James Murren, also expressed interest in an NBA team. At this rate, the entertainment capital of the world will also be known as a sports haven.

Las Vegas isn’t necessarily a city known for its relentless passion for the four major North American sports. So begs the question: Why Vegas? Aside from all the gambling, its only tie with the professional sports world would be the MGM Grand Garden Arena, the venue for some of the most lucrative boxing matches. Las Vegas has never needed to face the challenge of generating fan interest, consistent attendance and season ticket sales. With that being said, to answer the question, teams simply cannot pass up on the seemingly unlimited potential of Sin City, and more importantly, neither can the major businesses – the real winners of this relocation.

It would be disingenuous to suggest that there isn’t some form of symbiosis between sports and business. Sports fit perfectly with the value proposition and target customer segment of the businesses in Las Vegas – young to middle-age adults with disposable incometo spend on various forms of entertainment. Building a new stadium (or two) may be seen as a great way to lose money, and that’s true for most cities in North America. However, Las Vegas will be the site of so many events it will greatly alleviate any financial concern.

Most importantly, this relocation project will create a lot of jobs. From permanent jobs like stadium security to temporary jobs like construction workers, these hires will effectively act as an economic stimulus, as Las Vegas will have an influx of consumers eager to spend their money. Traditionally, Porter’s industry forces have had both positive and negative impact on businesses in Vegas. For example, factors like high barriers to entry and low threat of substitutes benefit casinos, while a dependency on economic trends and volatility in government policies hinder their performances. The acquisition of sports teams will direct a great amount of traffic to businesses and inspire healthy competition. With increasing popularity and significant growth, the aforementioned macroeconomic forces can be assuaged while businesses continue to flourish.

Las Vegas makes the most sense financially for leagues, teams, and businesses. Unfortunately, it appears as though my wish of having a basketball team in Vancouver won’t be happening anytime soon, as we will all be prepared to witness this booming entertainment wonderland that would have made Bugsy Siegel proud.

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Sources:

Sheldon, David. “Las Vegas NBA Franchise Could Follow NHL and NFL Teams” Casino.org. N.p., 27 Oct. 2016. Web. 30 Oct. 2016.

Moskowitz, Dan. “Las Vegas: 10 Years From Now (MGM, LVS)” Investopedia. N.p., 29 Oct. 2016. Web. 30 Oct. 2016.

http://mobilemarketingwatch.com/mobile-innovators-descend-on-las-vegas-for-iot-evolution-expo-67898/

http://vegas.eater.com/2016/4/8/11389724/19-things-you-need-to-know-about-t-mobile-arena