The band joined the likes of Britney Spears and Jennifer Lopez, who have also mounted productions there, reported CNN online.
Backstreet member Nick Carter said new music and a world tour are also happening.
"We signed a deal with Live Nation to do nine shows just to do a test in the market. We've always had interest in performing in Vegas."
The group, which also includes A J McLean, Howie Dorough, Kevin Richardson and Brian Littrell, is in the studio working on a new album.
"When it comes to the music, we want to make sure we have hits," he said.
Dates have not been set for the Vegas residency, but Carter said the group is hoping to release a single toward the end of the year, with the album and tour to follow.
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