In the 2000s, Las Vegas discovered something remarkable: nightclubs and dayclubs could generate more revenue per square foot than casino floors. This revelation transformed resort economics and the Strip's identity.

The Nightclub Revolution

The modern Vegas nightclub era began with Rain at Palms (2001) and accelerated with Pure at Caesars Palace (2005) and Tao at The Venetian. These venues introduced table minimums, bottle service, and celebrity DJ residencies that generated extraordinary revenue.

The Dayclub Invention

Rehab at Hard Rock Hotel, launched in 2004, invented the "dayclub" concept—a pool party with nightclub production values and pricing. The format proved so successful that every major resort built dedicated dayclub venues with DJ booths, VIP cabanas, and five-figure bottle service.

Revenue Per Square Foot

Top nightclubs generate $2,000+ per square foot annually—far exceeding casino floor averages. A single VIP table can produce more profit than dozens of slot machines. This math drove resorts to reallocate premium real estate from gaming to entertainment.

The EDM Residency Model

DJ residencies—multi-year contracts with performers like Calvin Harris, Tiësto, and David Guetta—became anchor tenants. These deals guaranteed crowds on slow nights and commanded premium ticket prices. The performers earned millions; the venues earned more.