Resort fees began as a minor nuisance and grew into an industry-wide practice generating billions in revenue. The evolution of this controversial charge reveals how Las Vegas adapted to changing competitive pressures.

The First Fees

Resort fees appeared in the late 1990s at non-gaming hotels seeking to cover amenity costs. Initially $10-15 per night, they were easily overlooked. Las Vegas casinos initially resisted, viewing the fees as contrary to their value proposition.

The Tipping Point

The 2008 recession changed calculations. As room rates collapsed, operators faced a choice: lower advertised prices or add mandatory fees that wouldn't appear in rate comparisons. Most chose fees, and competitive pressure made the practice universal.

The Fee Arms Race

Once normalized, fees escalated rapidly. What started at $10 reached $45+ by the 2020s. Services previously included—WiFi, pool access, fitness center—became fee justifications. The gap between advertised and actual prices widened.

The Regulatory Response

The FTC and state attorneys general have challenged resort fees as deceptive pricing. Some jurisdictions now require total price advertising. Whether fees survive regulatory scrutiny remains uncertain, but they've reshaped how Vegas rooms are priced.