By Nora Caley
From the July/August 2024 Issue
With Growing Reach, the sports and recreation industries attract locals and visitors alike who watch, participate, and spend.
Going outside is not only good for the mind and body, but it’s also beneficial to local economies. Whether people are enjoying nature or viewing a game, sports and recreation can drive spending and boost area businesses. From high profile professional teams to less well-known events, there is a robust industry in spectating, participating, and buying the T-shirt.
According to the Outdoor Industry Association’s 2024 Outdoor Participation Trends Report, in 2023 outdoor participation grew 4.1% to a record 175.8 million participants, or 57.3% of people in the U.S. aged six and older. That was the ninth consecutive year of participant growth, which indicates that interest in RVing, boating, snow sports, and other activities is a long-term trend.
(Photo: Adobe Stock / Sodel Vladyslav)
Those outdoorsy types had to buy clothing and equipment, and their spending had a positive impact. The U.S. Bureau of Economic Analysis (BEA) reported that in 2022, outdoor recreation accounted for $1.1 trillion in gross economic output, 2.2% of gross domestic product (GDP), and supported five million jobs across the U.S.
In addition to participating in outdoor endeavors, people like to spectate, even if they have to travel to watch the game, race, or match. Sports tourism had a direct spending impact of $52.2 billion in 2023, according to a report from the Sports Events and Tourism Association. In its State of the Industry Report for 2023, Sports ETA put the total economic impact at $128 billion, which supported more than 750,000 full-time and part-time jobs and contributed $20.1 billion in taxes to various sectors of the economy. These travelers spent money on transportation, lodging, food and beverages, and other items related to adult and youth amateur events and collegiate tournaments. (The report excluded professional sports and collegiate regular season games.)
Here are some regions attracting sports and recreation businesses and offering assets for companies in the sector.
Las Vegas, NV: From Sin City to the Next Big Sports Tech Market
Las Vegas is the fastest growing professional sports market in the U.S. In less than a decade, the city has become home to four major league sports teams, multiple minor league teams, and is home to UFC headquarters. And sports technology companies are taking note.
Few sports exist today without the support of specialized technology. Wearables and fitness trackers are widely adopted forms of sports tech, although most Americans are also familiar with video instant replay systems, smart stadiums, interactive equipment, and real time digital signage.
And these investments continue to skyrocket. The global sports technology market was worth around $15.9 billion in 2022, and is now expected to reach $79.2 billion by 2032, creating a colossal opportunity for businesses to grow in sports tech alongside Southern Nevada’s growing sports economy.
In Las Vegas, sports tech companies have access to 13 professional sports leagues, plus countless national and international sporting events, creating endless opportunities to partner on research, testing, and promotion of products and services. Additionally, the city is a popular destination for elite athletes to train in their off-season, creating year-round opportunities for collaboration.
The city is also home to more than a dozen large event venues that play host to the nation’s and world’s biggest sporting events, including F1 and Super Bowl. Las Vegas’ 17 sports facilities and arenas boast a combined capacity of 285,000 seats. Eight additional facilities are in the works, including a proposed major league baseball stadium, which would add more than 120,000 new seats. And six of those venues have been recognized as top-grossing venues globally by Billboard 2023, including Allegiant Stadium and T-Mobile Arena, demonstrating the region’s ability to support this rapidly growing market.
The region also has a strong higher education infrastructure, with the University of Nevada, Las Vegas laser focused on workforce development and sports innovation through the recently created Sports Innovation Institute. This summer, the Institute hosted SEICon in Las Vegas, the nation’s first sports, entertainment, and innovation conference, attracting participants from around the world.
In addition, the UFC Performance Institute is the world’s first mixed martial arts center for innovation, research, and training, and conveniently located next to UFC’s main headquarters.
Thanks to the region’s historical gaming and hospitality prowess, Las Vegas already has a robust sports tech ecosystem in place, including hometown sports betting companies Caesars Sportsbook and BetMGM. DraftKings recently opened a Las Vegas office, and gaming platform Skillz recently moved its San Francisco headquarters to southwest Clark County.
The data analytics and compliance side of the industry is also represented in the region, with Integrity Compliance 360, Sportradar and Stadium Technology Group providing services to professional sports organizations across the globe.
For those sports tech companies with startup ambitions, Las Vegas’ growing entrepreneurial ecosystem is a perfect fit. In fact, Las Vegas was ranked the best city in the country for pre-IPO startups in 2023.
Armed with all that information, the question for sports tech companies really is: Why wouldn’t you look at Las Vegas?
Visit lvgea.org to learn more about this location.
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Publish date : 2024-08-12 08:50:00
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