Nevada’s gaming revenue continued its upward streak for the third consecutive month in August, even as Las Vegas faces a persistent decline in tourist arrivals.
According to the Nevada Gaming Control Board, the state reported $1.22 billion in gross gaming revenue (GGR) for August — a 5.5% increase compared to the same month last year. Although fiscal year 2025 started slower, ending a three-year streak of record-breaking results, Nevada is currently tracking about 5% ahead of last year’s pace.
Clark County, home to Las Vegas and nearby areas, also posted a 5% year-over-year increase overall. However, the numbers suggest the Las Vegas Strip is regaining its edge over the locals market, which had previously seen strong growth as visitors sought more affordable alternatives to the Strip’s rising costs.
On the Strip, gaming revenue rose 5% to $679.3 million, matching its 5% year-to-date growth. In contrast, the locals market dropped 1% to $142.3 million and is down 2% for the fiscal year — its weakest performance among the state’s major regions. This marks a reversal from 2024 and early 2025, when local casinos outperformed their Strip counterparts.
Baccarat remains the standout performer on the Strip and a key contributor to statewide growth. In August, baccarat winnings reached $114.4 million — a massive 51% jump from a year earlier. That total surpassed the entire GGR of most state markets except the Las Vegas locals segment. While baccarat results often fluctuate sharply month to month, the Strip’s take from the game is up 29% over the past three months, though still down 3% over the last 12 months.
Visitation numbers continue to slide in 2025
While the rise in gaming revenue signals strength for Nevada’s casino industry, the ongoing decline in Las Vegas tourism continues to dominate national attention.
Data from the Las Vegas Convention and Visitors Authority (LVCVA) shows that visitor volume fell 6.7% year-over-year in August, with just 3.1 million people traveling to the city. Every month of 2025 so far has recorded a drop in visitor numbers of at least 1%, with most declines ranging between 5% and 10%. The last time Las Vegas saw an increase greater than 1% was in September 2024.
Convention attendance — previously the city’s one consistent bright spot — also fell 8% in August due to rotating event schedules. Still, several major upcoming conventions, including the Global Gaming Expo in October, the Consumer Electronics Show in January, and the massive Con/Agg industrial event in March, are expected to lift attendance numbers in the months ahead.
Adding to the concern, Harry Reid International Airport reported on Wednesday that overall air traffic through Las Vegas dropped in August — with domestic flights down 6% and international arrivals down 3.7%. The decline in international visitors has become a major issue for industry stakeholders, especially amid heightened global tensions following President Donald Trump’s recent tariff policies and foreign relations stance.
Canada, historically one of Las Vegas’s strongest visitor sources, has seen an especially steep decline. Passenger traffic from WestJet and Air Canada plunged 33% and 40%, respectively, following backlash to Trump’s “51st state” remarks earlier this year. While Mexican carriers such as Volaris and VivaAerobus showed relative resilience, their gains were outweighed by domestic struggles — particularly from Spirit Airlines, which saw a staggering 46% drop after filing for bankruptcy.
Sin City’s glass half-full or half-empty?
The mix of business growth and travel challenges has made analyzing Las Vegas’ economic outlook increasingly complex.
On one hand, gaming revenue continues to climb, and most casino operators reported strong Q2 earnings with positive projections for the rest of the year. The AGEM Index — which tracks the stock performance of 10 leading gaming equipment suppliers — rose 5% month-over-month in August and an impressive 32% year-over-year.
Several major projects also promise to strengthen Las Vegas’s future performance. The former Mirage is set to reopen as the Hard Rock Las Vegas in 2027, adding over 3,500 hotel rooms to the Strip. Construction has begun on the Las Vegas A’s new Major League Baseball stadium, which will share its site with a planned new resort. Additionally, the third annual Las Vegas Grand Prix — a major international Formula 1 event — returns this November. Off the Strip, locals-oriented casinos are experiencing their strongest run of success in several years.
However, the factors behind the ongoing decline in tourism show little sign of easing. The Federal Reserve has only cut interest rates once in 2025 and has warned against further reductions. Meanwhile, the personal consumption expenditures (PCE) price index showed a 2.7% year-over-year rise in August — the highest increase since February — signaling persistent inflationary pressure.
Operational costs are also rising sharply for casinos. New contracts negotiated by the Culinary Union have raised wages by 10% this year, with total increases expected to reach 32% over the life of the agreements. In addition, many casino operators now lease their properties from real estate investment trusts (REITs), locking them into rent payments that increase annually.
Together, these dynamics create a complicated picture: Las Vegas’s business fundamentals remain strong, but sustained economic headwinds and rising costs continue to challenge its long-term outlook.
LVCVA looks to reinvigorate Las Vegas tourism
Earlier this year, many CEOs and local officials brushed off concerns about Las Vegas’s softening tourism numbers. Now, however, there’s a growing sense of caution — though optimism still runs high. MGM Resorts CEO Bill Hornbuckle, speaking at a recent Bank of America conference, emphasized that the industry must reshape how people perceive Las Vegas.
“To those saying Las Vegas is losing its spark, I’d respond with this: we’re taking the narrative back,” Hornbuckle said. “We’re reminding people that Las Vegas still offers tremendous value — for every type of visitor.”
In that spirit, the Las Vegas Convention and Visitors Authority (LVCVA) launched a multimillion-dollar advertising campaign aimed at reviving enthusiasm for the city. Reaction to the campaign has been mixed, but the agency doubled down this week with its first-ever citywide promotion — the “Fabulous 5-Day Sale.” The event brought together more than 100 operators and businesses across the city to offer special discounts and packages.
The LVCVA has also turned its attention north, sending representatives to Canada to encourage travelers to return. CEO Steve Hill acknowledged the challenges, admitting that “a lot of Canadians are not happy with us right now” and that “we understand they may not be ready” to visit again just yet.
Still, Hill remains bullish about Las Vegas’s resilience and long-term appeal. “I’m betting on Vegas,” he told CDC Gaming in August. “We’re still the Entertainment Capital of the World. After meeting with nearly every major property in recent weeks, I can say with confidence — the city is taking the right steps to bounce back.”
