Casino bosses transform Sin City into Club City

Associated Press

LAS VEGAS

To step into club XS at the Wynn Las Vegas is to enter the dreamscape of a modern artist with fetishes for gold and bronze and bodies in motion.

The revelers take their cues from the famous DJs onstage who are known to surf the crowd in inflatable rafts, throw sheet cakes at clubbers’ faces and spray vintage champagne into their mouths.

In Sin City, where over-the-top is always the sales pitch, lavish nightclubs featuring a heart-pounding party have become the backbone of a billion-dollar industry that is soaring while gambling revenue slips.

“We learned a long time ago that in order to continue to attract people from around the world, we have to provide things that are hard to find anywhere else,” said Jim Murren, CEO of MGM Resorts International, which operates nine Strip hotel-casinos boasting their own dance scenes. “These clubs, if done correctly, are tremendous magnets.” A $100 million temple to revelry, XS is the top-earning nightclub in the country, joining six other Vegas venues in the top 10. Its estimated annual revenue hovers somewhere near $90 million, according to the trade publication Nightclub & Bar.

The city now boasts more than 50 such clubs. New additions are coming all the time, including the five-story Hakkasan at the MGM Grand, which debuted last month, and Light at Mandalay Bay, Cirque du Soleil’s first foray into the disco business, opening Memorial Day weekend.

The rise of the Vegas super-club coincides with the decline of the town’s gambling supremacy. During the heart of the recession, when overall Strip revenues tumbled by 16 percent, nightclubs saw more profit than ever. By 2011, Las Vegas was clubbing all the way to the bank, with Strip beverage departments earning more than $1 billion, and casino tycoons began remaking the Strip into the club capital of the world.