May saw a significant drop in Las Vegas Strip’s gross gaming revenue (GGR), down by 4% YoY, signaling a potential end to the Strip’s record-breaking performance since the pandemic’s end. As we head towards the close of the fiscal year, the Strip has reported a -3.3% total drop in revenue, the worst of the state’s major gaming markets.
The decline comes despite ongoing investments in new sports stadiums, resorts, and other developments that were expected to fuel growth. However, increasing competition, rising operational costs, and macroeconomic pressures on consumers are causing challenges. Visitation numbers have also started to slip, with a 6.5% drop in May, signaling a decline in foot traffic at both the Strip and Harry Reid International Airport.
The question remains: Is this just a temporary slowdown, or has the Las Vegas Strip entered a new phase? Are the record-breaking years behind us? It’s a tough time for stakeholders as they reassess their strategies in the face of these declines.
