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Venice will charge tourists who don’t spend the night in the city a €5 entry fee
(english.elpais.com)
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Maybe they just need to start charging an entry fee for that area of the city. Keep increasing the fee until the numbers reach a sane level. Supply and demand.
Or, to go the other direction on it, might be possible to convert the street into an arcade with a walkable roof, make the whole thing basically two-story to double the capacity.
I think that the bigger problem is that Europe needs a Las Vegas, because at least from what I've read, a lot of people in Amsterdam don't want to be it, and Amsterdam isn't really in a great position to massively scale up -- but the demand is there.
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You don't know how Amsterdam works, or dutch urbanisation in general.
What Amsterdam needs (and does) is less hotels, less Airbnb's. If tourists can't sleep there's they'll stay away
Also, las Vegas is a horrible god forsaken place. I've been there a number of times and it's like Disneyland with Cancer. People living there live horrible lives on comparison with Dutch cities and the entire place is so artificial that in 20 years from now when the last well is dried out, the city will cease to exist. It's too all the bad that America has to offer