Surge pricing: Why Strip casinos change the prices of water, sunscreen, beer and more
By David Danzis
Aug 29, 2025
A cooler full of drinks with no marked prices is seen at a Strip resort property Friday, August 29, 2025 in Las Vegas. On the first day of her first-ever trip to Las Vegas, Julie Brenner said
the cost of a bottle of water caught her attention. The 29-year-old
from Miami said she remembered the price because even in her hometown,
paying more than $5 for water would seem high. That is why it stood out to her when the very next day, the same bottle from the same store was a different price.
“It was actually cheaper (the second day),” she said, noting the cost
was about $0.15 less in the morning compared to when she arrived at
Paris casino-hotel the prior evening.
“It wasn’t a big deal or anything. But there’s no prices (posted for drinks), so I guess they just charge whatever.”
Scott Rutledge, of Pine Bluff, Ark., said he thought maybe he “had one
too many” when a can of beer from the sundry store inside a Strip casino
cost “$2 or $3 more” on Saturday night than it did earlier that
afternoon. Rutledge said he did not question why the price was
different, but, as he cracked open the Miller Lite and took a few sips,
it struck him as “maybe a bit dishonest.”
“I’m (going to) just go to the CVS from now on or something,” he
said, standing just outside MGM Grand casino-hotel, where he and his
wife, Cindy, were staying. “I’m (going to) buy the beer, and I’m (going
to) pay whatever (the cashier) rings up. It’s Vegas. It ain’t about the
price … it’s the principle.”
What Brenner and Rutledge experienced is often referred to as surge
pricing. It is also sometimes known as dynamic pricing or, more
recently, algorithmic pricing, since computer programs are becoming more
responsible for determining the cost of goods and services.
Regardless of the terminology, the end result is the same: a price
changes due to high demand, limited supply or increased volume.
‘Commonplace in the digital economy’
In truth, there is nothing all that unusual about it.
“Surge pricing, or dynamic pricing or algorithmic pricing, is now
commonplace in the digital economy,” said Mark Tremblay, an assistant
professor of economics at UNLV’s Lee Business School, who noted hotel,
airline and rideshare customers are already likely familiar with the
practice.
Live-event venues have been using surge pricing for years to balance
crowd sizes and profit margins. Even Amazon and select grocery delivery
services change pricing based on factors such as time of day or number
of purchased items.
Tremblay said surge pricing is not going away anytime soon.
“Given that many casinos already adjust their nightly rates based on
demand, the next iteration of this is more frequent price adjustments in
non-digital spaces like sundry stores or even restaurants,” he said.
“The question really becomes, ‘How frequently will physical stores
adjust prices?’ It is clear that this is a trend we will see moving
forward as physical stores begin to use digital price tags more
frequently.”
But in Las Vegas casino sundry stores, where guests might expect a
fixed price for everyday items like bottled water or beer since that is
what most convenience stores do, it can come as a surprise.
“How does the price of a Snickers bar and a Gatorade change?” asked
Jon Dinkler, a self-described “Texan with a Texas-sized love for Vegas,”
who looked confused walking out of a sundry store inside Caesars
Palace. “My wife paid (roughly $10) for the same two things yesterday,
and I just shelled out $14.”
The Review-Journal reached out to multiple Las Vegas casino operators
about how surge pricing is used, if at all, at their properties. Most
did not respond and those that did declined to participate.
Summer interns with the Review-Journal made repeated visits to a
half-dozen sundry stores inside Strip casinos, tracking the prices of
identical items (bottled water, flavored drinks and sunscreen) selected
on different days (Tuesday, Friday and Saturday) at the same times
(check-in, check-out and evening).
Their findings showed that not all stores were using surge pricing,
and those that were did not appear to be adhering to any predictable
timetable or structure for altering prices.
An assistant manager at a casino sundry store said they rarely know
how much something costs since the point-of-sale system updates the
prices automatically.
“I’ve caught myself saying, ‘Wow, that went up’ or asking myself if
the price I’m seeing is real,” said the employee, who was granted
anonymity because they were not authorized to speak with the media. “But
the computer makes the prices, not us. We’re just as surprised
sometimes as the customers.”
Can erode trust
While industry groups defend the practice as a modern tool for
competition, consumer advocates say the lack of transparency can erode
trust. Unlike airline tickets or hotel rooms, where shoppers see the
price before they buy, sundry shops inside Las Vegas casinos rarely post
prices on shelves or refrigerators. Guests only discover what they owe
at the register.
New York recently implemented a state law requiring businesses that
use algorithms to notify customers before a purchase. The day after the
law went into effect, the National Retail Federation, a Washington,
D.C.-based trade organization, filed a lawsuit against New York.
“Far from being a novel or dangerous innovation, algorithmic pricing
is simply the use of tools suited to today’s fast-moving, competitive
marketplace to bring greater efficiency, responsiveness and accuracy to
how prices are set,” Mike Lemon, vice president of legal affairs for the
National Retail Federation, wrote in a blog post on July 11 titled,
‘Algorithmic pricing: Innovation misunderstood,’ in which he argued the
practice benefits all parties involved. “Consumers want fair prices.
Retailers want to provide them. Algorithmic pricing helps make that
possible.”
Las Vegas has a history of testing — and normalizing — new ways of
charging visitors, from resort fees to paid parking. Surge pricing at
sundry stores could be the next trend to spread if it proves profitable
enough.
For now, visitors can choose to look elsewhere for basics like
bottled water and beer. Walgreens and CVS stores along Las Vegas
Boulevard advertise consistent prices, sometimes less than half of what
casino stores charge. For guests, that short walk can mean avoiding the
surprise of a fluctuating checkout total.
That is why it stood out to her when the very next day, the same bottle from the same store was a different price.
“It was actually cheaper (the second day),” she said, noting the cost was about $0.15 less in the morning compared to when she arrived at Paris casino-hotel the prior evening.
“It wasn’t a big deal or anything. But there’s no prices (posted for drinks), so I guess they just charge whatever.”
Scott Rutledge, of Pine Bluff, Ark., said he thought maybe he “had one too many” when a can of beer from the sundry store inside a Strip casino cost “$2 or $3 more” on Saturday night than it did earlier that afternoon. Rutledge said he did not question why the price was different, but, as he cracked open the Miller Lite and took a few sips, it struck him as “maybe a bit dishonest.”
“I’m (going to) just go to the CVS from now on or something,” he said, standing just outside MGM Grand casino-hotel, where he and his wife, Cindy, were staying. “I’m (going to) buy the beer, and I’m (going to) pay whatever (the cashier) rings up. It’s Vegas. It ain’t about the price … it’s the principle.”
What Brenner and Rutledge experienced is often referred to as surge pricing. It is also sometimes known as dynamic pricing or, more recently, algorithmic pricing, since computer programs are becoming more responsible for determining the cost of goods and services.
Regardless of the terminology, the end result is the same: a price changes due to high demand, limited supply or increased volume.
‘Commonplace in the digital economy’
In truth, there is nothing all that unusual about it.
“Surge pricing, or dynamic pricing or algorithmic pricing, is now commonplace in the digital economy,” said Mark Tremblay, an assistant professor of economics at UNLV’s Lee Business School, who noted hotel, airline and rideshare customers are already likely familiar with the practice.
Live-event venues have been using surge pricing for years to balance crowd sizes and profit margins. Even Amazon and select grocery delivery services change pricing based on factors such as time of day or number of purchased items.
Tremblay said surge pricing is not going away anytime soon.
“Given that many casinos already adjust their nightly rates based on demand, the next iteration of this is more frequent price adjustments in non-digital spaces like sundry stores or even restaurants,” he said. “The question really becomes, ‘How frequently will physical stores adjust prices?’ It is clear that this is a trend we will see moving forward as physical stores begin to use digital price tags more frequently.”
But in Las Vegas casino sundry stores, where guests might expect a fixed price for everyday items like bottled water or beer since that is what most convenience stores do, it can come as a surprise.
“How does the price of a Snickers bar and a Gatorade change?” asked Jon Dinkler, a self-described “Texan with a Texas-sized love for Vegas,” who looked confused walking out of a sundry store inside Caesars Palace. “My wife paid (roughly $10) for the same two things yesterday, and I just shelled out $14.”
The Review-Journal reached out to multiple Las Vegas casino operators about how surge pricing is used, if at all, at their properties. Most did not respond and those that did declined to participate.
Summer interns with the Review-Journal made repeated visits to a half-dozen sundry stores inside Strip casinos, tracking the prices of identical items (bottled water, flavored drinks and sunscreen) selected on different days (Tuesday, Friday and Saturday) at the same times (check-in, check-out and evening).
Their findings showed that not all stores were using surge pricing, and those that were did not appear to be adhering to any predictable timetable or structure for altering prices.
An assistant manager at a casino sundry store said they rarely know how much something costs since the point-of-sale system updates the prices automatically.
“I’ve caught myself saying, ‘Wow, that went up’ or asking myself if the price I’m seeing is real,” said the employee, who was granted anonymity because they were not authorized to speak with the media. “But the computer makes the prices, not us. We’re just as surprised sometimes as the customers.”
Can erode trust
While industry groups defend the practice as a modern tool for competition, consumer advocates say the lack of transparency can erode trust. Unlike airline tickets or hotel rooms, where shoppers see the price before they buy, sundry shops inside Las Vegas casinos rarely post prices on shelves or refrigerators. Guests only discover what they owe at the register.
New York recently implemented a state law requiring businesses that use algorithms to notify customers before a purchase. The day after the law went into effect, the National Retail Federation, a Washington, D.C.-based trade organization, filed a lawsuit against New York.
“Far from being a novel or dangerous innovation, algorithmic pricing is simply the use of tools suited to today’s fast-moving, competitive marketplace to bring greater efficiency, responsiveness and accuracy to how prices are set,” Mike Lemon, vice president of legal affairs for the National Retail Federation, wrote in a blog post on July 11 titled, ‘Algorithmic pricing: Innovation misunderstood,’ in which he argued the practice benefits all parties involved. “Consumers want fair prices. Retailers want to provide them. Algorithmic pricing helps make that possible.”
Las Vegas has a history of testing — and normalizing — new ways of charging visitors, from resort fees to paid parking. Surge pricing at sundry stores could be the next trend to spread if it proves profitable enough.
For now, visitors can choose to look elsewhere for basics like bottled water and beer. Walgreens and CVS stores along Las Vegas Boulevard advertise consistent prices, sometimes less than half of what casino stores charge. For guests, that short walk can mean avoiding the surprise of a fluctuating checkout total.
1 comment:
I once heard a drunk fella in Vegas ask a bartender where he could get a good f*cking. The bartender said, "Try the gift shop."
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