Why are there so many malls attached to Las Vegas casinos?

According to Christina Binkley's "Winner Takes All," the wife of Henry Gluck, chairman of Caesar's World, "spent more than her share of time in Las Vegas wishing she was at home in Beverly Hills." This lead to Caesars developing the Forum Shops in 1992 which eventually produced "the highest revenue per square foot of any shopping center in the nation." http://books.google.com/books?id=JN1fPdEnqkcC&lpg=PA27&ots=7Xdujs9Sh3&dq=%22Winner+Takes+All%22+%22Race+to+Own+Las+Vegas%22+%22forum+shops%22&pg=PA27#v=onepage&q&f=false

It's good business. It's no surprise that the strip hosts a myriad of malls and shops throughout, most of which are upscale. Those who "hit big" in Vegas casinos are often tempted to spend their winnings on extravagancies.

Once upon a time, if you wanted to gamble you went to Vegas or New Jersey. With the rise of Indian gaming and new high end gaming destinations like Macau, gamblers have many more choices than in years before. Las Vegas has seen gaming revenue decline year over year as a general trend. As a result, Vegas has steadily moved away from gaming for many years and into more of a general resort destination mode. This means more retail, more diverse shows, and more upscale dining. I recall hearing a news report after the New Frontier was imploded regarding the new property that was planned for the site. The casino was planned as the smallest portion of the property in terms of both square footage and forecasted revenue. So, yes, it is about rampant materialism, but not just for materialism's sake.

To add to the other excellent answers here-- when someone wins big in your casino and has thousands (or hundreds of thousands) of windfall burning a hole in their pocket, you'd be stupid to not build some expensive stores really close to them. :-) When those winners are finished gambling, you want them to waltz right over to your expensive shops (and/or restaurants) and spend some of that cash in your establishment...

To put it even more simply than Matt, casinos charge rent on the floor space shops use, and almost definitely, the rent is based on the shop's monthly turnover... so the house wins.

My observation, from when I was in Vegas, is the casinos don't want you to leave. As other answers pointed out, you win big and want to spend right away at a fancy establishment, so the house sets up shops to cater to that want and still take some of the profit. However, not everyone wins big or has the money to buy from those shops. I saw that when they provided simple things such as food services, curio shops, even small convenience stores, I was less inclined to leave the casino to get those things. Why go to the gas station across the street when I can buy what I need a few steps from the elevator. Now, I'm spending less time wandering around outside the casino and more time spending money on slots and blackjack, and the house is still getting its take of the profit.