Forget the slot machine-loving retirees — Las Vegas is attracting a new wave of high-rollers.
A surprising group is flocking to the neon-lit desert: millionaires from Seattle.
Their rush to Nevada comes as Washington state lawmakers debate what’s being called the nation’s first wealth tax.
The proposed capital gains tax, currently under review in the state Senate, aims to help close a $13 billion budget deficit over the next four years.
If passed, the measure would impose an additional 1 percent tax on stocks and bonds for those with more than $50 million in such assets.
It would also raise property taxes and introduce a payroll tax for large employers.
Many of those eyeing an escape have built their fortunes at Washington’s biggest companies, including Microsoft and Amazon.
One early mover was businessman Michael Fraser-Vuur, who left Seattle for Nevada in 2021.
Sin City is preparing to welcome an influx of millionaires fleeing the Evergreen state
Fraser-Vuur, who made his fortune founding software company Refactr, told Bloomberg he wanted to make the move before selling his company and potentially facing a large tax bill in Washington.
‘We wanted to make sure we were absolutely Nevada residents before the transaction happened,’ he told the publication.
‘It’s the best state from a tax perspective.’
Even before the current proposals individuals in Washington have face a 7 percent tax on capital gains over $270,000 since 2023.
By contrast Nevada has no capital-gains tax and no estate tax making it an increasingly attractive option for wealthy Washingtonians.
The properties being snapped up by these wealthy home shoppers can cost in the region of $20 million, as one property recently sold by realtor Ryan Tsui did last year.
Another wealthy Washington resident, Rahul Sood left the state for Nevada in 2021 following the tax changes and ahead of the proposed increases.
‘We have to make a choice on where we invest our money,’ said Sood, who worked for Microsoft and then founded his own esports betting company.
As well as its iconic skyline Las Vegas has some premium real estate
Washington millionaires can spend around $20 million on exclusive properties in Nevada
‘We have to make a choice on where we invest our money,’ Sood told Bloomberg.
‘Do we invest our money in more government spending, or do we invest it in the people and the technology that we’re trying to build?’
Despite the fierce debate and departing millionaires the current capital gains tax in Washington affects less than 4,000 people.
In 2023, the first year the tax was collected, the extra tax on those returns brought in $848 million.
Las Vegas is keen to welcome the fleeing millionaire’s and their business acumen as a way of diversifying its tourism dependent economy.
Nevada has even offered to use the state’s venture capital fund to march private investment in startup businesses.
Sine the pandemic La Vegas has lost a series of iconic hotels, monuments and businesses as it struggles to maintain its reputation and attract enough visitors.
