A focus on housing, better transit will keep downtown vibrant, gaming execs say

By Thomas Moore

Friday, Feb. 3, 2017 | 2 a.m.

Five leading gaming executives discussed the state of downtown Las Vegas’ gaming industry and how to keep its recent successes going at a panel discussion hosted by the Downtown Alliance Thursday.

The panel talk, held in the Molasky Corporate Center a block from Fremont Street and Main Street, included Derek Stevens, owner of the D, the Golden Gate, and the Downtown Las Vegas Events Center; Jim Sullivan, VP and general manager of the Fremont; Seth Schorr, chairman of Downtown Grand; Joe Woody, CFO of the El Cortez, and Jonathan Jossel, CEO of Plaza Las Vegas.

On the event’s invitation, the Downtown Alliance boasted about downtown’s recent success by quoting Nevada Gaming Control Board statistics on gaming revenue and increases in occupancy rates. During the discussion, the panelists echoed that praise.

“It's undeniable in downtown Las Vegas that there has been consistent growth,” Schorr said. “Eight or nine or 10 years ago, there were people who felt it was a fad.”

“My perspective is that, you know, we’ve seen two years now of over 5 percent-plus growth of gaming revenue,” Woody said. “And it’s been a long time coming.”

The panelists offered a number of reasons for that success, including investments each has made in their respective properties, the number and variety of special events held downtown, and the cooperation between casino operators that isn’t always found on the Strip.

But to keep the momentum going, they said, downtown will have to enhance transportation, work harder to improve safety and help promote the area as a place to live.

Currently, getting downtown can be a challenge because of Project Neon — the Nevada Department of Transportation’s revamp of the Spaghetti Bowl, where U.S. 95 and Interstate 15 meet — and other challenges.

“We know there are issues with the highway and traffic and cabs and Uber,” Stevens said. “Being able to get people into the area, that’s very important.”

In addition, the operators continue to worry about the effect homeless people and buskers have on the perception of downtown visitors.

“Customers have to feel safe in the morning, they have to feel safe in the day and they have to feel safe at night,” Sullivan said. “We have to have a safe, clean environment, and it’s incumbent on us as operators to have that same feeling in our own properties.”

Some of the operators said the success of downtown casinos was in part a result of developments on east Fremont Street, outside the traditional tourist area.

“I want to say that residential development is important,” Schorr said. “Having more people live downtown will not only add more wallets to the area, but also an energy.”

“I’ve lived downtown for 10 years,” Jossel said. “And I remember people saying to me, ‘What are you doing down there? Are you crazy?’ Now people are saying we need more residential development.”

Schorr said that despite downtown’s success, the industry still needs to let people know it’s a viable alternative to the Strip.

“I still think we have a ways to go in general awareness,” he said. “We can’t take that for granted. There are people in the valley who hear a general buzz and they know something's happening down here. But they really don’t know the experience.”