LAS VEGAS — In traditional caps and gowns, the nearly 400 graduates of Foothill High -- a quintessential suburban school -- crossed the stage recently to receive their diplomas in front of proud parents and cheering friends.
It was a time-honored ceremony repeated across America. But what set this one apart was the venue: the three-tower, 21-story Orleans Hotel & Casino that looms over Tropicana Avenue -- two miles west of the fabled Strip -- across the street from the Seamless Adult Ultra Lounge and the Deja Vu Adult Emporium.
The Orleans is one of a new breed of neighborhood casinos that have become de facto civic and family-entertainment centers, complete with day care, bowling alleys, movie theaters and convention space.
As its population nears 2 million, Las Vegas is becoming more mainstream and shedding its mob-stained history. Schools are opening at a rapid pace, and the city scrambles to hire teachers. Retirees have flocked here, and respected medical centers have opened.
But the locals also love to gamble, spending an estimated $1,500 per person annually. And as the population has exploded, a dozen of these neighborhood casinos -- sprawling affairs of up to 80 acres with huge hotels and parking garages that tend to dominate their neighborhoods -- have gone up since 1994. They nearly ring the city, and at least five more are in the works.
The latest and splashiest, the Red Rock Casino, Resort & Spa at the western edge of town, opened in April at a cost of nearly $1 billion. It's already expanding.
Though Vegas has had neighborhood casinos for decades, the latest versions not only play an expanded role in the city but are far bigger, more elaborate and more profitable than their sometimes seedy predecessors. For the first time, they're even attracting a fair number of tourists turned off by the glitter and crowds on the Strip.
As corporate strategy, it has paid off handsomely for Station Casinos Inc., the leader in this expanding market. Earnings have more than doubled since 2002, to $309 million last year, as revenue jumped by 40% to $1.1 billion, both records. The company claimed the highest return on investment and fattest profit margin -- 43% -- in the highly profitable gaming industry last year.
Although the nongambling amenities might get people in the door, the company says 87% of its cash flow comes from slot machines. And 80% to 85% of its customers are locals.
