LAS VEGAS (KTNV) — Eight years ago, during a contentious special session, Nevada lawmakers approved public funding for the construction of a new National Football League stadium.
That, of course, turned out to be Allegiant Stadium, the $2 billion venue located a short walk over the I-15 from Mandalay Bay.
To help fund the stadium, where the Las Vegas Raiders and the UNLV football team now play, those lawmakers green-lit a hotel room tax hike to pay for $750 million in bonds secured through Clark County.
The Las Vegas Stadium Authority, which technically owns Allegiant Stadium, had 30 years from the securing of those bonds to pay them off, and thereby satisfy the public money component for the build.
WATCH: Allegiant Stadium construction is wrapping up
Cash has been flowing so freely from those room taxes, we now know that it's possible the authority could pay off the bonds early, maybe even two or three years early.
Consider this. Last October, the stadium authority collected just under $7 million dollars in hotel tax monies, mostly from the 0.88% tax on rooms on the Strip. That was a 10% jump from the same month in 2022.
Back in October, the Raiders hosted multiple NFL games, one versus the Green Bay Packers, one of the most popular teams in the league, and Allegiant Stadium hosted some major entertainment acts, such as Pink and Ed Sheeran.
A lot of people came to Las Vegas for those events and stayed in resort hotel rooms while they were here. Proponents of Allegiant Stadium say the venue has caused a rising tide that's not only pulling in money for stadium operators, but also for other businesses in town.
"I think you have to be incredibly impressed with the return on investment," says Jeremy Aguero, principal at Applied Analysis, a local firm that has done of lot of analytical work on Allegiant Stadium. "The Raiders have certainly held up their end of the bargain, but look at some of the concerts as well — Taylor Swift, Beyoncé — it's just been incredible. People are coming to this community because we have events at Allegiant Stadium."
WATCH: Taylor Swift fans take over Allegiant Stadium
The venue, which seats 65,000 for NFL games, has quickly established its reputation as one of the best stadiums in America since opening its doors in 2020.
But back in 2016, there were plenty of people who cried foul as state representatives moved to offer public funds for the stadium's construction.
There's no denying today that this caliber of venue works for events here in Las Vegas, but some still wonder whether any public money had to be used at all.
That includes Sondra Cosgrove, a history professor at the College of Southern Nevada and the executive director of Vote Nevada.
"I think it could have been privately financed," Cosgrove says. "I think the business model they've ended up using, they could have easily secured the money on their own."
Part of the argument against public funding was that Mark Davis, owner of the Raiders, was rich enough to finance his own stadium. Some of those same folks were also against last year's move by Nevada lawmakers to allocate public funds for a planned new ballpark on the Strip for the Oakland A's baseball team.
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A's owner John Fisher — like Davis, he's a billionaire — got $380 million in public funding for the planned new ballpark that would go at the site of the Tropicana Las Vegas. It's less than what the public coughed up for Allegiant Stadium, but it's still a lot of money.
Money that could be used on other things, such as education, roads and facilities for the homeless. However, Aguero says the creation of Allegiant Stadium has led to a trickle-down effect that reverberates across the Las Vegas Valley.
Almost gone, he says, are the days when people came to Las Vegas simply to gamble and enjoy an affordable casino buffet.
"The reasons why people come to Las Vegas, in the past 10 years, sports and entertainment have risen almost to the top of that list," Aguero says. "Wage and salary dollars, tips provided by these visitors, are flowing back into our neighborhoods."
In February, according to stadium authority records, just under $6.6 million came into the authority from hotel room taxes, a jump of about 50% from February 2023.
If you recall, February was when Las Vegas hosted its first-ever Super Bowl, which was played between the Kansas City Chiefs and the San Francisco 49ers at Allegiant Stadium.
WATCH: Looking back on historic first Super Bowl in Las Vegas
In all, the stadium authority says it expects to have close to $100 million in its reserves as part of its 2025 fiscal year budget, though the budget has not yet been approved. In other words, the owners of Allegiant Stadium have money in the bank and they'll have options as to what they want to do with it.
With the stadium's reputation as a top-tier venue solidified, Steve Hill, chairman of the stadium authority, says he's confident Las Vegas will host future Super Bowls as well. And there's little doubt on this fact — if you're a city that hosts a Super Bowl, you're a big time city.
"Everybody in town wants the Super Bowl back as soon as we can get it back," Hill says. "The commissioner [NFL Commissioner Roger Goodell] said right after the game, the next day, that it was a fantastic game and rest assured, the game will be back."
