For the past three months, rising gaming revenue has helped soften the blow of Las Vegas’s ongoing tourism slump in 2025—but that momentum came to a halt in September.
Data from the Nevada Gaming Control Board shows that the state recorded $1.28 billion in gross gaming revenue (GGR) for the month, a 2.2% decline compared to the same period last year. The Las Vegas Strip, which posted a 5% increase in August, swung to a 5% drop in September with GGR of $687.8 million. Year-to-date, statewide revenue remains up 2%, while the Strip is up 1.5% compared to last year’s pace.
Baccarat continued its turbulent trend on the Strip, plunging 42% year-over-year to $50.6 million in September. Over the past three months, baccarat revenue is still up 22%, but it sits 2% lower over the last 12 months. Overall, table game revenue on the Strip declined 17.5% in September.
After setting three straight fiscal year gaming revenue records from 2022 to 2024, Nevada broke its streak in FY25. Still, the state has been gradually climbing back. September marked the first monthly decline of FY26, putting the focus squarely on the fourth quarter—historically the busiest period for Las Vegas.
However, while gaming revenue has fluctuated, visitor numbers have consistently fallen, with no clear signs of recovery on the horizon.
Troubling visitation, air traffic numbers in September
The Las Vegas Convention and Visitors Authority (LVCVA) reported that 3.09 million people visited the city in September — a 9% year-over-year decline. It has now been a full year since Las Vegas recorded a visitor increase of more than 1%, the last time being in September 2024.
Overall, the data released by the LVCVA paints a concerning picture. Convention attendance dropped more than 18%, and all major hotel metrics — including occupancy, average daily room rates, and revenue per available room — were down. The only bright spots were slight increases in road travel, with highway traffic up 2.5% and Interstate 15 traffic near the California border up 3.4%.
Air travel also continued to struggle. Passenger volume at Harry Reid International Airport fell 6% year-over-year in September, totaling 4.4 million travelers. For the year-to-date, airport traffic is down 5%.
One of the most troubling figures was a 13.5% decline in international visitors — a segment that has been particularly weak throughout 2025. Travel from Canada and Mexico, Las Vegas’s top international markets, has dropped significantly. Analysts attribute this downturn to multiple factors, including the impact of U.S. President Donald Trump’s aggressive tariff and trade policies.
All major Canadian and Mexican airlines serving Las Vegas recorded significant year-over-year declines in September.
- Air Canada (-18%)
- WestJet (-44%)
- Volaris (-9%)
- Aeromexico (-11%)
Big Strip operators reeling?
Financial pressure on the Las Vegas Strip and the shift of visitors to smaller casino operators has become evident in third-quarter earnings reports.
So far, both Caesars Entertainment and MGM Resorts — the two largest operators to release their Q3 results — reported notable declines in their Las Vegas performance, continuing a trend that began in Q2. Wynn Resorts was the only major operator to post gains in Q2, although it has not yet released its third-quarter results.
While Caesars CEO Tom Reeg and MGM CEO Bill Hornbuckle had previously downplayed concerns about weakening demand in Las Vegas, both struck a more cautious tone in their latest earnings calls.
Hornbuckle openly criticized recent pricing strategies, stating that operators, himself included, deserved “shame” for pushing prices too high. He added that MGM is now “proactively working to create initiatives and draw incremental visitation.”
Reeg echoed similar concerns, noting the city is “four months into this step-down in leisure demand for Vegas” and that Caesars is “still not back to where we were on a year-over-year basis.”
Locals and regionals surge amid Las Vegas tourism woes
At the same time, local casino operators and regional markets are experiencing strong performance as the Strip continues to struggle.
Red Rock Resorts reported a 1.5% increase in net revenue for the quarter, with net profit jumping more than 38%. Boyd Gaming also posted growth in both revenue and profit, noting that its Las Vegas locals segment recorded its strongest quarterly performance in over two years. The segment saw year-over-year increases in both revenue and Adjusted EBITDAR, with margins nearing 50%, the company said.
In a note to investors last week, Macquarie gaming analyst Chad Beynon expressed concern that the “softness from the leisure/international customer” in Las Vegas could persist through the end of the year, following a period of strong post-pandemic results.
“On the other hand, U.S. regional markets continue to perform well, and we expect this segment to outperform Las Vegas for the rest of the year,” Beynon wrote.
Attention is now shifting to the fourth quarter, which is typically a key period for Las Vegas tourism. The combination of Thanksgiving and Christmas holidays, along with a packed schedule of sports events, concerts, and conferences, usually helps offset weaker performance during the spring and summer months.
Hopes pinned on F1 to jumpstart new growth
The third edition of the Formula One Las Vegas Grand Prix is scheduled for 20–22 November, and stakeholders are optimistic that the event will help reignite growth.
In 2023, the race shattered records by generating an estimated $1.5bn in economic impact — the highest ever for a single event. By comparison, the 2024 race brought in approximately $934m, coinciding with the early stages of the current downturn.
The Las Vegas Convention and Visitors Authority (LVCVA), led by CEO Steve Hill, is spearheading efforts to promote the race. Hill and his team have faced a challenging year in 2025 as they work to reverse the city’s declining visitor numbers. Their efforts have included promotional trips to Canada, launching a new advertising campaign, and organising a city-wide “Las Vegas Sale” in September. With those initiatives underway, the F1 Grand Prix has now become the next major event in focus.
“We’ve refined access and mobility plans, strengthened communication with residents and employees, and expanded transportation options,” Hill told iGB. “The Las Vegas Grand Prix team also listened closely to feedback from the community, resorts, and fans, resulting in a more collaborative and responsive approach to hosting the race.”
Analysing the factors at play
From a broader market perspective, stakeholders are closely watching several headwinds that could weigh on fourth-quarter performance. While some concerns may be easier to justify, this year could still end on a disappointing note for the industry.
Josh Swissman, managing director at GMA Consulting, told iGB that his outlook depends largely on the underlying causes of the slowdown. He noted that softer year-on-year comparisons due to shifts in entertainment or convention schedules, or even weaker operational results, are more understandable and less alarming than widespread declines in overall visitation.
However, more systemic indicators would be far more concerning. “If poor performance is driven by sustained drops in flight arrivals, departures, or vehicle traffic across the California border — and that continues for, say, 89 out of 90 days in the quarter — then that signals a deeper issue,” Swissman said.
