For decades, Las Vegas operated on a simple compact: the casino provided free parking, cheap food, and affordable rooms in exchange for your gambling action. In 2016, that compact shattered when MGM Resorts began charging for parking.
The Parking Revolution
In June 2016, MGM Resorts International announced paid parking at its Strip properties—the first such charge in Las Vegas history. Initial rates of $5-10 were met with outrage, but competitors soon followed. By 2019, virtually every major Strip property charged for parking.
The Resort Fee Explosion
Resort fees—mandatory daily charges added to room rates—had existed since 1997 but accelerated dramatically after 2010. What began as $10 "facility fees" grew to $45+ per night, often exceeding the advertised room rate. The FTC and consumer advocates have repeatedly challenged these practices as deceptive pricing.
The Revenue Strategy
These fees represent a fundamental shift in revenue strategy. As gambling revenue stagnated and competition increased, operators sought to unbundle services previously included in room rates, creating new revenue streams while maintaining the appearance of competitive pricing.
The Guest Experience Trade-Off
Critics argue these fees erode the value proposition that made Vegas special. Supporters counter that modern guests demand luxury amenities that require funding. The debate reflects a larger tension: is Vegas a gambling destination with hotels, or a hospitality destination with casinos?
