The United States federal government recently banned Russian oil. The announcement has largely contributed to a spike in gasoline prices in Las Vegas and other cities in the country. Economists have warned that the rising prices might make potential casino visitors rethink traveling to Vegas.
Today, most gas stations in Southern Nevada are charging about $5 per gallon. For example, one station in Las Vegas, on Flamingo Road charged cash clients $4.98 on Monday while those using credit cards paid $5.08 per gallon.
The average gasoline price in the state of Nevada is $4.59 per gallon, according to its American Automobile Association (AAA). It serves regions including Alaska, Montana, Arizona, Nevada, Northern California, Wyoming, and Utah. Even so, Nevada’s average price was $3.10 a year ago.
A report from GasBuddy indicates that the country’s average gasoline price was record high on Monday at $4.10 per gallon. The previous record was in 2008 when a gallon of gasoline cost $4.10.
Demotivating Visitors
The high gas prices are likely to discourage some casino visitors. Some of them might find it costly to drive in on the weekend or for a day to play various casino games. Statistics show that many Las Vegas visitors are from surrounding areas such as Southern California.
A player will take four hours to drive from the Metropolitan Los Angeles to Las Vegas since the region lacks a high-speed train service.
Stephen M. Miller, a research director at the University of Nevada, Las Vegas (UNLV) Center for Business and Economic Research informed Casino.org that players can decide to reduce or postpone their Las Vegas trips due to the soaring prices. He forecasts that they will adversely affect Vegas’ economy.
Miller stated that the number of visitors will reduce instantly and continue for a while until extra crude oil supply offers some relief. This will hinder Southern Nevada’s recovery efforts.
The new prices will impact employment in the region, as they will force employees to spend more money traveling to their workplaces. The leisure and hospitality industry in Las Vegas lost 172,000 jobs from February 2020 to May 2020. But, 64 percent of them, about 110,000 jobs, have been recovered, thus having a shortfall of 62,000 vacancies.
The Region’s Casinos are Susceptible
Reverend Richard McGowan, Boston College’s finance professor, predicts that the increasing gasoline prices will negatively affect regional casinos like MGM Springfield, Mohegan Sun, and Foxwoods.
McGowan said that some casino operators mainly depend on day-trip clients, and high gasoline prices will reduce casino trips and the revenue that casinos generate. Subsequently, this will reduce the demand for food and supplies at different casinos. Inflation has increased the operating expenses of gaming properties.
The Ukrainian Crisis has Caused a Spike in Gas Prices
Gasoline stations in the country started increasing prices before Russia invaded Ukraine. But, the invasion has made oil more costly as it has invaded the global market, according to Aldo Vasquez, the AAA’s spokesperson.
Vasquez told Casino.org that the high cost of crude oil has increased gas prices, as it comprises 60 percent of the cost of gasoline. Crude oil is currently selling at $115 per barrel.
100% up to $3,000 Bonus
Bovada is our most recommended ONLINE CASINO and POKER ROOM for US players with excellent deposit options. Get your 100% signup bonus today.
Leave a Reply
You must be logged in to post a comment.