Following the financial collapse of 2008, the future of Las Vegas look cloudy. Casinos in the area saw a record losses for the years following 2008, but recently, projections from a number of prominent economists have shown that over the next two years, the region could see long turn economic growth. They believed that over the course of the next two years, this growth could rival the days that were seen just before the recession hit in 2008, when the industry was growing rapidly throughout all of Las Vegas. The entire West in fact, could see steady and sustained economic growth after 2015, according to a number of economists and business leaders that attended a meeting sponsored by UNLV at the M Resort, which is located in Henderson. Although they were not going to go as far as to predict a definite turnaround, and stated that the industry and region was a long ways from where it was in 2007, the economists forecasted huge improvement over the course of the next two years.
Prior to the recession, Nevada saw an unprecedented era of growth for almost a quarter century. Prior to 2008, Nevada had one of the fastest-growing economies of any state over the course of the previous 25 years. Much of this growth was led by Las Vegas, the entertainment and gaming industries, and the growing wealth of the nation. Those trends were also seen throughout all of the West. During the same 25 year period, all states to the west of South Dakota saw the biggest economic booms, as well is growth in number of jobs, as well as population. When the economy crashed, however, the West Coast seem to be hit even harder than the East. However, as the economy continues to slowly rebound, it is thought that the West will grow much more quickly than the East, which did not see as big of a bust.
The biggest properties on the strip have changed their business model slightly, but continue to grow as the economy recovers. This is likely because the economy of the country as a whole continues to rebound, and more individuals are interested in taking vacations to areas such as Las Vegas and Nevada. However, casinos the targeted individuals locally have not done as well. The residents of Nevada have seen some of the slowest growth since the recession started to turn around, and still have the highest foreclosure and unemployment rates in the nation. As that begins to pick up, and local casinos are able to turn a profit, more jobs will be created throughout the state, as visitors begin to return to these resorts.
With the upcoming fiscal cliff looming, there are still concerns about the future. Industry insiders worry that an increase on income tax will greatly decrease the profits that casinos can hope to receive, and as a result will not boost the economy is much throughout the state of Nevada. As legislators begin to navigate the upcoming fiscal cliff, it will be interesting to see how they decide to handle it, and how big of an effect this can have on a growing economy. Without an answer to avoid the fiscal cliff yet found, it is not currently clear what types of changes the state should prepare for, and whether or not it is going to be a huge detriment to the gaming industry.