In August, Nevada witnessed a continued increase in gaming revenue, marking the third consecutive month of upward growth, even as Las Vegas tourism continued to decline. The Nevada Gaming Control Board reported that the state earned $1.22 billion in gross gaming revenue, a 5.5% rise compared to the same month last year. Although the fiscal year 2025 started slowly, breaking a streak of three successive record-setting fiscal years, Nevada’s current pace is approximately 5% ahead of the previous year.
Clark County, home to Las Vegas and its surrounding areas, recorded a 5% year-over-year increase in gaming revenue. The performance of various sectors highlights a resurgence of the Las Vegas Strip’s dominance over the locals market, which had thrived over the past 18 months due to providing a more affordable alternative to the Strip’s escalating costs.
On the Las Vegas Strip, often touted as America’s gaming capital, gaming revenue surged to $679.3 million, maintaining a 5% growth trend for the year. In contrast, the locals market experienced a 1% decline, falling to $142.3 million, and is down 2% for the fiscal year, marking it as the weakest among Nevada’s major markets. This is a significant shift from 2024 and early 2025, when the locals market outperformed the Strip.
A key driver for the Strip’s robust performance has been baccarat, where revenue soared 51% year-over-year, reaching $114.4 million in August. This figure surpasses the total revenue generated by any state sector, except for the Las Vegas locals market. The volatility of baccarat is notable; while the Strip’s baccarat revenue has increased 29% over the past three months, it has decreased 3% over the past year.
Despite the uptick in gaming revenue, the continuous decline in Las Vegas tourism has captured national attention. According to the Las Vegas Convention and Visitors Authority, the city saw a 6.7% drop in visitor volume in August, with numbers falling to 3.1 million. Each month in 2025 has witnessed a year-over-year visitor decrease of at least 1%, with many months experiencing drops between 5% and 10%. The last significant increase occurred in September 2024.
Convention attendance, previously a bright spot for the city, decreased by 8% due to the rotation of show schedules. However, upcoming major events like the Global Gaming Expo in October, the Consumer Electronics Show in January, and the industrial Con/Agg show in March are expected to boost future attendance.
Harry Reid International Airport announced a decrease in both domestic and international air traffic through Las Vegas in August, with declines of 6% and 3.7%, respectively. The drop in international visitors is particularly concerning, especially considering the impact of U.S. President Donald Trump’s foreign policy and tariff actions. Canada’s significance as a feeder market has waned, following controversial comments by Trump earlier this year, leading to a 33% and 40% drop in traffic from WestJet and Air Canada, respectively. While Mexican airlines like Volaris and VivaAerobus performed relatively better, domestic challenges, particularly from the struggling budget carrier Spirit Airlines, offset this.
Las Vegas presents a complex picture for analysis. On one side, gaming revenue is rising, and businesses report solid quarterly results with a positive outlook. The AGEM Index, which tracks stocks from top gaming suppliers, increased by 5% in August and 32% year-over-year.
Numerous projects promise to bolster Las Vegas’s future. The former Mirage is set to reopen as the Hard Rock Las Vegas in 2027, adding over 3,500 rooms to the Strip. Construction has begun on the Las Vegas A’s new Major League Baseball stadium, with another resort planned on the same site. The Las Vegas Grand Prix, a significant international Formula 1 event, will return in November. Off the Strip, operators focusing on local markets are experiencing their best performance in several years.
Conversely, factors driving the tourism decline show little sign of abating. The Federal Reserve executed a single interest rate cut in 2025 and warned against future reductions. The personal consumption expenditures price index reported a 2.7% year-over-year increase in August, marking the highest monthly rise since February.
Operationally, casinos face rising labor costs due to new Culinary Union contracts, increasing wages by 10% this year and projecting a 32% rise over the contract’s duration. Many casinos are now leasing their real estate from REITs, facing annual rent increases.
Initially downplaying these concerns, industry leaders now recognize the uncertainty surrounding Las Vegas’s future. MGM CEO Bill Hornbuckle remarked at a recent Bank of America conference that the industry must change the narrative. He emphasized the value Las Vegas offers, stating, “To the idea that Las Vegas is dead, I would say this: We are putting a push on, because we let the narrative get away from us, in the context of value.”
In response, the Las Vegas Convention and Visitors Authority launched a multimillion-dollar advertising campaign and introduced new deals, including the “Fabulous 5-Day Sale,” featuring over 100 offers citywide. Agency representatives also traveled to Canada to encourage visitors to return. LVCVA CEO Steve Hill acknowledged the challenges, noting that many Canadians “are not happy with us right now” but expressed optimism for the region’s future.
“I’m betting on Vegas,” Hill stated in August. “Las Vegas is still the Entertainment Capital of the World. We’re all confident in the future of this city. We’ve met over the last couple of weeks with virtually every property and we’re excited about what we’re hearing. The city is taking steps to address the downturn.”
4.4/5
