MGM is moving ahead with plans for a 5,000-seat theater at the Monte Carlo casino.
Expected to open sometime in late 2016, the theater will be part of a plaza connecting New York New York and the Monte Carlo, and will join the soon to be completed MGM arena.
Scott Roeben of Vital Vegas told KNPR's State of Nevada that it is "part of a larger plan" for the hotel-casino.
Roeben said the theater is part of an overall rebranding of the hotel, which will include a revamp of hotel rooms.
The theater change will mean a few shows will switch properties, including Strip veterans the Blue Man Group.
Roeben believes the new theater will compete with big names currently at Caesars Palace.
"I think this theater is going to be very much focused on competing with a venue like the Colosseum at Caesars," Roeben said, "These are going to be big name headliners."
Roeben said he hasn't heard any specific names of performers or bands but with the size and scope of the project whoever lands there will be a name that can draw big crowds.
Roeben believes the theater is part of a new way of thinking for MGM Resorts.
"They're embracing this whole concept of letting people go outside the casino, which for many years is just not a thing you would do, you would do everything you could to keep them from going outside," he said.
In one concentrated area of the Strip visitors will be able to find sports, entertainment, dining, shopping and bars.
Roeben said MGM will have some logistics to tackle with the two big venues right next to each other.
"It will be tricky," he said, "It sounds like they've really thought it through."
The new theater and the plaza it will be attached to is part of an effort to give visitors more than just gambling on the Las Vegas Strip.
"You can't just rely on slot machines and gambling to drive your revenue you've got to give people other options," Roeben said.
Scott Roeben, founder & editor, VitalVegas.com