Las Vegas is navigating a unique dynamic in 2025, with gaming revenue rising even as tourism declines. In August, Nevada reported $1.22 billion in gross gaming revenue, a 5.5% increase over last year and the third consecutive month of growth. The Las Vegas Strip led this surge, generating $679.3 million, largely driven by baccarat, which experienced a 51% year-over-year increase. Conversely, the locals market declined 1% in August, reflecting a shift in player focus back to the Strip.
Despite this revenue growth, visitation continues to fall. The Las Vegas Convention and Visitors Authority reported a 6.7% decline in August visitor numbers, totaling 3.1 million. Convention attendance was also down 8% due to rotating show schedules, while air traffic from domestic and international markets fell, particularly affecting Canadian travelers.
The tourism slump has sparked national attention, but city officials and casino operators remain optimistic. Major upcoming events, including the Las Vegas Grand Prix and the development of the Hard Rock Las Vegas, are expected to drive future footfall. City-wide promotions, such as the “Fabulous 5-Day Sale,” aim to reinforce Las Vegas as a valuable destination for visitors.
Operators continue to manage rising labour and real estate costs while benefiting from increased gaming revenue. The AGEM Index showed a 5% month-over-month increase in August, reflecting confidence among gaming suppliers. Overall, Las Vegas demonstrates resilience, balancing economic pressures, operational challenges, and the ongoing need to attract tourists while maintaining its position as a leading global gaming hub.
