Las Vegas, Nevada, has encountered a challenging start to 2026, with January’s gaming and tourism statistics reflecting ongoing difficulties for the entertainment hub. Data released by the Nevada Gaming Control Board indicates that the state recorded gross gaming revenue (GGR) of $1.34 billion in January, marking a 6.5% decrease compared to the same period last year. The Las Vegas Strip, a critical component of the region’s gaming industry, experienced an 11% year-over-year decline in revenue to $747.6 million, the most significant monthly drop since February 2025. This downturn is particularly notable as baccarat revenue, a key performance measure for the Strip, plummeted 44% to $118.5 million, with the state’s hold percentage falling to 13% from 27% a year earlier.
The broader southern Nevada gaming market also struggled, with downtown Las Vegas, the locals’ market, and Boulder City all reporting revenue reductions of 5%, 3%, and 7%, respectively. Despite these declines, these markets remain positive for the fiscal year. The Las Vegas Convention and Visitors Authority reported a 2% decrease in visitor numbers for January, totaling 3.2 million. Additionally, while occupancy rates generally fell, there were positive trends in average daily room rates and revenue per available room, which increased by 7% and 3.5%, respectively.
Harry Reid International Airport experienced an 8% decrease in total air traffic, exacerbated by a 19% drop in international arrivals. The bankruptcy of Spirit Airlines, a significant budget carrier, resulted in a 74% decline in its traffic, further impacting domestic travel. Major Canadian and Mexican airlines also reported double-digit declines, indicating broader international travel challenges.
In the business realm, Las Vegas has presented mixed financial outcomes as the fourth-quarter earnings season concludes. The city’s largest operators—Wynn Resorts, MGM Resorts International, and Caesars Entertainment—reported declines in their Las Vegas operations for Q4 2025, whereas Red Rock Resorts and Boyd Gaming showed continued strength, highlighting a trend where non-Strip markets have sustained the region’s overall performance. Analyst Chad Beynon from Macquarie had anticipated challenges for Las Vegas segments in Q4 2025, although he noted Boyd Gaming and Red Rock Resorts were expected to exceed consensus estimates. Following the earnings reports, Beynon adjusted his price targets, raising MGM’s while lowering those for Wynn and Caesars, though all three retained “outperform” ratings.
The state’s sports betting sector also faced setbacks. Nevada saw an 11% decrease in sports betting revenue in January, primarily driven by a 27% decline in football betting during the NFL and college football playoffs. The Strip’s sports betting revenue fell 17% to $27.9 million, with a significant 40% drop in football revenue. While February’s complete figures are pending, the Nevada Gaming Control Board reported Super Bowl revenue of $9.8 million, significantly below last year’s $22.1 million. The hold percentage for the Super Bowl in 2025 was 14.6%, the highest in a decade, while the 2026 handle was the lowest seen over the same timeframe. The decline could be partially attributed to the increasing use of prediction markets, which are believed to have drawn away substantial potential tax revenue from the state.
The American Gaming Association estimates that prediction markets have diverted over $560 million in potential state taxes nationwide. Nevada is actively involved in legal proceedings with prediction market platforms such as Kalshi, Crypto.com, Robinhood, and Polymarket, having been the first state to issue cease-and-desist orders to these entities in early 2025.
Looking ahead, Las Vegas stakeholders will be closely monitoring the impact of these economic challenges and regulatory actions on the city’s gaming and tourism sectors. The local industry faces a critical period as it seeks to navigate these headwinds and adapt to the evolving market landscape. With fiscal year data forthcoming, operators and regulators alike are expected to assess strategies to bolster performance and address ongoing competition and compliance concerns.
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