Today, one would be hard-pressed to find a major metropolitan city without a gambling venue akin to an Atlantic City or Sin City one. The US is home to one thousand and eleven gaming establishments that can be classified as casinos (per the AGA), with four hundred eighty-six of these categorized as commercial venues and the rest as tribal locales, meaning properties operated on Native American land. Both sets of establishments are responsible for a US economic impact of $328 billion, support over 1.8 million jobs, bring in tax revenues of $52 billion per year, and generate a commercial-only gross gaming revenue of $66.65 billion. So, to say that this sector plays a vital role in the US economy would be most accurate.
When the topic of casinos comes up, tax distribution, gambling profits, and compulsive wagering are the things that get most discussed. However, one aspect of these resorts and locales that does not get talked about as much but is quite important is the amount of electricity they consume. Most brick-and-mortar casinos are robust complexes that take up quite a bit of space and can hold hundreds, if not thousands, of patrons within their walls. That requires loads of power, especially when things like air conditioning, specialty lighting, and (of course) the number of gambling machines active 24/7 get factored in. For example, the Red Rock Resort in Summerlin, Vegas, has more than twenty-five hundred slots available for real money play at any given time. This website has a full list of Las Vegas casinos and a precise figure of their offered games.
Here, we get more in-depth on this subject, exploring the power these venues waste and other considerations tied to their electricity use.
Electricity Usage & Energy Efficiency Trends
These properties have high operational demands, making them massive electricity consumers. Naturally, how much they use and what they pay depends on their location. Per some estimates, Las Vegas typically utilizes over 8,000 megawatts of electricity on most days, which is enough for a small country. Much of this gets utilized on lighting and air conditioning (HVAC systems) to battle the scorching heat caused by the desert sun.
Naturally, casinos are the prime suspects regarding energy consumption, responsible for 30% to 35% of the city’s total energy use. Naturally, not all of this power goes to gaming floors, given that a good chunk of it gets used up by hotels and entertainment sections of gaming resorts. The casinos gobble up around 20% of the energy consumed in the city, and that should come as no surprise, given that over two million bulbs light up Freemont Street alone. Lighting, on average, is 30% of a casino’s electricity bill, which is why many venues have switched to LED, and some casinos have invested in solar panels. MGM Resorts is one such entity, which boasts a massive solar array on one of its resort’s roofs that spans twenty-eight acres and features twenty-six thousand panels. When it is operating at 100% capacity, it satisfies 25% of MGM’s Mandalay Bay’s energy needs. The system was initially installed in 2014 as a twenty-acre one. At that time, it could produce 8.3 megawatts, enough to power thirteen hundred US households, according to data from Greentech Media.
MGM Resorts also has a Mega three hundred thousand solar array panel farm (six hundred and forty acres) thirty miles north of Vegas that generates up to 300,000 MWh per year and reduced the company’s power use by 41% in 2022.
Do Casinos Get Incentivized to Reduce Energy Consumption?
Yes. First, they do so to reduce operational expenses and boost profitability. So, they have inherent motivations to keep electricity costs down. That to the side, various regional energy efficiency campaigns exist around the globe. In Nevada, The Nevada Energy Program is a renowned one that aims to encourage people and companies, including casinos, to switch over to LED lighting and smart thermostats.
In the US, the government has also attempted to incentivize large-scale businesses to lower power consumption through the Investment Tax Credit for Solar Energy, the Renewable Electricity Production Tax Credit, the Business Energy Investment Tax Credit, the Accelerated Depreciation for Energy-Efficient Equipment, and various state incentives. For gambling operators, the 179D Tax Deduction is extremely interesting, as it allows them, as building owners, to qualify for a deduction of $1.8 per square foot, given they are a project that runs large-scale HAVC systems. Though intended for plants, casinos have greatly benefited from this exemption.
Future Challenges
The most obvious one is the ever-growing adoption of electric table games, which casinos worldwide have begun including on their floors more and more post-pandemic. Moreover, live dealer setups hosting up to a dozen players have gained much popularity over the past few years.
Venues also face difficulties optimizing energy consumption during peak and off-peak seasons, which requires investing in smart meters, motion sensors, and real-time AI-powered monitoring systems. Unfortunately, ambiance requirements make it hard for operators to lower visibility, and security issues come into play here. So, this is a sizeable challenge.