Since its big move from the Los Angeles Coliseum to the Las Vegas Motor Speedway in 2011, Electric Daisy Carnival has made a home for itself in the city of sin. Clocking in at over 320,000 event goers in 2012, EDC Vegas is one of the biggest electronic music festivals in the world but 2014 may mark the end of our midsummer night’s dream in the desert.
Until now, Insomniac has been absolved from paying the Live Entertainment Tax in the state of Nevada. But pending recent tax legislation reform that would blanket all forms of ticketed entertainment and remove the exemptions EDC benefitted from, Pasquale Rotella (Insomniac CEO) could be facing a 10% tax increase equaling $9.5 million. With ticket prices starting already at $300 each for GA-3 day passes (excluding handling fees), festival goers can’t be expected to bear the burden.
Rotella released the following statement regarding Electric Daisy Carnival’s future in Vegas:
Insomniac loves doing business in Las Vegas, and right now our primary focus is producing the best show for the fans who will attend Electric Daisy Carnival on June 21, 22 and 23. While we would love to bring another festival to Nevada, we are tabling any further discussions until the state Legislature settles the Live Entertainment Tax issue.”
Last year alone, Insomniac generated more than $207 million in revenue for the Clark County economy and $13.1 million in tax revenue for the state and local governments (the equivalent of 2,018 full time jobs). Between gambling revenue, hotel bookings that surpass that of the superbowl, and dining & entertainment, if EDC is forced out of their new home, Las Vegas will certainly feel the loss.
MGM Grand President Scott Sibella, a new member of the Las Vegas Events Board of Directors, recently stated that resort and tourism officials in Las Vegas have been encouraging Rotella to expand the festival to include two weekends about one month apart to supplement the profit losses, but as you can see from Rotella’s statement to the press, even a single weekend may not be a possiblity.
Source: Las Vegas Sun // Las Vegas Weekly
Photo Credit: Rukes
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