Las Vegas Strip Casino Revenue Falls in 2025: First Bumps

The Las Vegas Strip is on track to record its first annual revenue decline since the COVID-19 pandemic, raising questions about whether the Strip’s post-pandemic boom has finally peaked—or is merely pausing.

According to the latest figures released by the Nevada Gaming Control Board (NGCB) on June 27, gross gaming revenue (GGR) for the Strip fell 4% year-over-year in May, totaling $713.7 million. It was the fourth consecutive monthly decline and the ninth drop in the last 10 months. With just one month left in the fiscal year, the Strip’s GGR is down 3.3% overall—marking the sharpest downturn among Nevada’s major markets.

The state’s broader numbers also declined. Nevada’s total GGR in May came in at $1.29 billion, down 2% from the prior year. For the fiscal year so far, the state is down just over 1%. This performance shift arrives after a historically strong run. In the wake of COVID-19 shutdowns that brought casinos to a halt for 78 days in 2020, the Strip rebounded with a streak of record-breaking revenue years. The resurgence was driven in part by pent-up demand, federal stimulus spending, and major events such as the 2024 Super Bowl.

But now, the tailwinds have slowed.

 

Visitation Slips

Tourism metrics echo the revenue downturn. The Las Vegas Convention and Visitors Authority (LVCVA) reported that overall visitor volume to Las Vegas fell 6.5% year-over-year in May to 3.41 million—extending a streak of monthly visitation declines throughout 2025. Similarly, Harry Reid International Airport reported a 4% decline in passenger volume for May, with notable drops from international carriers like Air Canada (-27%) and Aeromexico (-17%).

While the Strip cools, other regional markets are faring better. Downtown Las Vegas, North Las Vegas, Mesquite, and the locals market all posted positive GGR growth through the fiscal year—up 1.5%, 1.4%, 4.6%, and 5.3%, respectively. Analysts say the shift likely reflects consumer pursuit of value amid rising costs on the Strip, including average daily room rates exceeding $200 and growing resort fees. Industry voices are split on how to interpret the slowdown.

Optimists argue that the current dip is a natural comedown after a historic run, not a cause for alarm. They cite several ongoing investments in infrastructure, including proposed stadiums and resort redevelopments like the Mirage and Tropicana, as signals of long-term confidence. They also note that summer months are typically softer for tourism and gaming revenue.

“There’s an ebb and flow to this,” said Brendan Bussmann, a consultant with B Global Advisors. “It just depends on which lens you want to look through.”

Pessimists, however, point to mounting macroeconomic pressures. These include high labor and operational costs, new union contracts, and intensifying national and international competition as more states legalize or expand gaming. Tariffs and ongoing trade tension under President Donald Trump’s administration have also dented travel from key international feeder markets like Canada and Mexico.

The Federal Reserve’s reluctance to cut interest rates—expected earlier this year but stalled amid tariff-induced inflation—has added to the uncertainty. In a recent appearance in Portugal, Fed Chair Jerome Powell acknowledged that tariffs had directly impacted rate decisions by pushing inflation expectations higher.

Strain Beneath the Surface

Strip operators also face growing regulatory scrutiny. In recent months, Resorts World Las Vegas, MGM Resorts, and Wynn Resorts have been fined a combined $24.5 million for anti-money laundering violations. Each of these cases originated with federal investigations, prompting concerns about the strength of Nevada’s regulatory oversight.

The NGCB, the state’s primary enforcement agency, has seen frequent turnover. Mike Dreitzer became its fifth chair since 2019 in late June, succeeding Kirk Hendrick. The board’s revolving leadership has raised questions about continuity and enforcement consistency at a time when regulatory expectations are rising.

In parallel, several large operators have begun postponing planned capital expenditures. Wynn Resorts delayed $375 million in renovations, citing market conditions. Meanwhile, second-quarter earnings outlooks have been revised downward for Strip operators. In a research note this month, Macquarie analyst Chad Benyon predicted that local-focused companies like Boyd Gaming and Red Rock Resorts would outperform their Strip-based counterparts.

 

There’s an ebb and flow to this—right now, it’s optics more than anything, but the fundamentals are shifting, and the industry has to shift with them.

A Natural Pause—or the End of an Era?

The debate remains unsettled: Is this a short-term reset, or the start of a more protracted slowdown for the Strip? Unlike the early pandemic era, when casino operators slashed costs amid an existential threat, today's challenges are less about survival and more about recalibration. The easy gains from pent-up demand and federal stimulus have faded. Consumers are more price-sensitive. Competition has increased. The Strip now faces the reality of sustaining growth in a tougher, slower market.

Whether the current year ends as a temporary dip or a lasting trend may hinge on broader economic factors—and how the industry adapts. “Right now, it’s optics more than anything,” said Bussmann. “But the fundamentals are shifting, and the industry has to shift with them.”