TQ TAKES: Las Vegas Can Cash in on Fintech Innovation

Earlier this month, LVGEA and its partners, including Wells Fargo, Clark County, and the cities of Las Vegas and Henderson, hosted a booth at TRANSACT, a conference taking place at Mandalay Bay and attended by leaders in the global fintech and digital payments industry.

Over the course of three days, our team members met with more than two dozen representatives from some of the biggest fintech companies in the world, as well as emerging startups.

No matter the size of the company, we heard the same thing over and over: “Las Vegas just makes sense.”

We agree.

Fintech is a broad industry but essentially encompasses any application of technology to improve financial services. Digital payments are the largest fintech sector, but it also includes peer-to-peer lending, digital wallets, crowdfunding, robo-advisors, and blockchain.

One recent report estimated there are approximately 32,000 fintech companies globally, amassing $12.5 trillion in annual revenue. The same report projects the global fintech industry to grow sixfold from $245 billion to $1.5 trillion by 2030, accounting for 25% of all banking valuation worldwide.

It’s time for Las Vegas to cash in on this opportunity.

The Vegas Advantage

There’s really no better place than Las Vegas for fintech companies wanting direct access to a growing customer base, because those customers are already here. Las Vegas is home to arguably the world’s largest hospitality market leaning towards cashless, and our growing sports and entertainment sector offers new avenues for the region to become a dynamic hub for fintech and payments.

In addition, Las Vegas’ connected and stable infrastructure supports the high volume, high-availability data centers the fintech industry requires. Companies have access to the UNLV Harry Reid Research and Technology Park, which is located within the county’s newly designated innovation district, and is powered by advanced digital infrastructure, including dedicated dark fiber cables and a supercomputer from SWITCH. And the region’s geographic location and low risk of natural disasters makes it an ideal place for technology-based companies to operate.

We also have a growing and dynamic workforce that is both bilingual and comfortable working all shifts. As of spring 2024, the Las Vegas region had nearly 60,000 employees working in the financial industry with the highest annual growth nationally for employees in that sector. UNLV, Nevada State University, and the College of Southern Nevada all offer degree and certificate programs in finance, business, and software development, creating a robust local talent pipeline for fintech companies.

Nevada also offers one of the lowest tax burdens in the country, with no corporate or personal income taxes, and low property taxes, making it an attractive destination for companies. In fact, the Tax Foundation rated Nevada as the seventh best state for business in 2024. Combine our favorable tax rates with the region’s low cost of living and it’s a recipe for success for both business owners and employees.

LVGEA’s Fintech Attraction Strategy

LVGEA is focusing its recruiting efforts on companies doing business within the gaming, hospitality, and payments spaces, but is also looking at companies within certain growth markets, such as real-time payments.

The vast majority of fintech companies are currently located on the coasts, including the core hub markets of New York City and the Bay Area, plus Los Angeles, Chicago, Boston, and Philadelphia. We know these are high-cost and high-regulation markets, so we’re working with our partners and utilizing data-driven analysis to identify companies experiencing high growth that could be expansion or relocation targets.

As mentioned at the beginning of this column, we’re also attending industry conferences, most of which are held right here in Las Vegas, alongside our community and financial services partners. Not only did we host a booth at TRANSACT earlier this month, but we’ll also be attending G2E and Money 20/20 later this year to connect with global business leaders to share the Vegas advantage when it comes to fintech.

Las Vegas is a Processing Powerhouse

There’s already a lot happening in the local fintech scene. Sightline, located in UNLV’s Harry Reid Research & Technology Park, provides payment solutions to casino and digital gaming clients. Shift4 has been providing secure payment processing solutions to clients in multiple industries for 25+ years.

Las Vegas-based Everi produces financial equipment and services for casinos, and recently announced a merger with gaming powerhouse IGT. Paysign, which moved its offices to Henderson from California in 2004, provides payment and disbursement solutions for pharmaceutical, healthcare, hospitality, and retail companies.

These are just a few of the many fintech companies already calling Las Vegas home, and there is room for many more. While the fintech industry itself is not new, LVGEA believes innovation within the industry will continue to transform the financial services landscape. Investment in the region’s fintech ecosystem will not only help diversity our economy, but ensure Las Vegas cashes in on the $1.5 trillion industry.

LVGEA needs the community’s support to continue to grow the region’s fintech industry. If you know of a fintech company looking to expand or that could be a great fit for Las Vegas, connect with LVGEA’s Business Development team.