The specialist ammunition would have enabled the gambling addict to fire more accurately during his nighttime attack.
But he was unable to buy the bullets, which leave a trail of light as they head for their target, because the vendor at a gun show in Phoenix had run out.
Paddock, 64, fired hundreds of rounds into a crowd attending a music festival from his suite on the 32nd floor of a hotel, injuring almost 500 last Sunday night in America’s deadliest mass shooting.
Art Roderick, a former assistant director of the US Marshals Service, said of the ammunition: “It allows you to keep your weapon on not necessarily a specific target, but a specific area.
“There would have been a lot higher casualty rate if he had tracer rounds.”
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Investigators found 23 weapons in the hotel suite used by Paddock as a sniper’s nest.
And they discovered more than 50lb of explosive materials and 1,600 rounds of ammunition in his car parked outside.
Paddock turned one of his guns on himself as armed police prepared to storm his room.
President Donald Trump has admitted controversial “bump stocks”, which allow semi-automatic rifles to act like fully automatic guns, could be banned in the wake of the tragedy.
Paddock fitted 12 of the devices to his weapons.
America’s influential gun lobby group, the National Rifle Association, admitted the tools should be subject to “additional regulations”.
But they refused to accept greater gun controls, adding: “Banning guns from law-abiding Americans based on the criminal act of a madman will do nothing to prevent future attacks.”