Las Vegas Gaming Revenue Rises as Tourism Falls

LAS VEGAS – Nevada’s gaming industry continued to post strong revenue figures in August even as Las Vegas visitation numbers fell for the eighth straight month, highlighting a widening disconnect between the city’s casino performance and its tourism base.

The Nevada Gaming Control Board reported Friday that statewide gross gaming revenue (GGR) reached $1.22 billion in August, a 5.5% year-over-year increase. It marks the third consecutive month of gains and places fiscal 2025 about 5% ahead of last year’s pace, following a softer start to the year.

Clark County, home to the Las Vegas Strip and surrounding locals markets, mirrored that trend with a 5% revenue increase. The Strip led the charge, generating $679.3 million in GGR, up 5% from a year ago. Meanwhile, the Las Vegas locals market fell 1% to $142.3 million, continuing a reversal from the pandemic years, when neighborhood casinos often outperformed the Strip’s pricier offerings.

A major driver of growth has been baccarat, a game favored by international high rollers. The Strip booked $114.4 million in baccarat winnings in August alone, a 51% surge from last year. While baccarat’s volatility has historically produced sharp month-to-month swings, the recent spike has helped bolster statewide figures.

 

Tourism Downturn Deepens

Despite robust casino earnings, tourism metrics remain troubling. The Las Vegas Convention and Visitors Authority (LVCVA) reported a 6.7% decline in August visitor volume, with just 3.1 million people traveling to the city. Every month of 2025 has posted year-over-year visitation declines, typically ranging from 5% to 10%.

Convention attendance, once a rare bright spot, slipped 8% due to cyclical scheduling. Airport data echoed the slowdown: domestic passenger traffic at Harry Reid International Airport fell 6% in August, while international arrivals dropped 3.7%.

Canadian tourism has been particularly hard hit amid strained U.S.–Canada relations. Air Canada and WestJet saw Las Vegas passenger traffic plunge 40% and 33%, respectively. Mexican carriers fared better, though industry disruptions — including Spirit Airlines’ bankruptcy and a 46% decline in its Las Vegas traffic — have compounded losses.

The divergence between gaming revenue and visitation has complicated industry forecasts. Optimists point to healthy operator earnings, a 32% year-over-year surge in the AGEM Index of gaming suppliers, and major upcoming events such as the Las Vegas Grand Prix in November and the Consumer Electronics Show in January. Large-scale projects, including the Hard Rock’s redevelopment of the former Mirage and the planned Las Vegas A’s stadium, also signal long-term investment in the Strip’s future. But challenges loom. Inflationary pressures remain stubborn, with the personal consumption expenditures price index up 2.7% in August, its highest level since February. Rising labor costs, spurred by new Culinary Union contracts that will lift wages by 32% over the life of the deal, are squeezing operators. Additionally, most Strip resorts now lease property from real estate investment trusts, locking them into escalating rent obligations.

Amid mounting concerns, executives are seeking to reframe the city’s narrative. MGM Resorts CEO Bill Hornbuckle told investors this month that Las Vegas “remains a huge value for consumers at all levels,” while acknowledging that the industry needs to do more to promote affordability.

 

To the idea that Las Vegas is dead, I would say this: We are putting a push on… Las Vegas remains a huge value for consumers at all levels.

 

The Future

The LVCVA has launched a multimillion-dollar marketing campaign and this week rolled out its first citywide promotional discount, the “Fabulous 5-Day Sale,” involving more than 100 deals from local operators. The agency has also dispatched delegations to Canada to repair strained relations with one of Las Vegas’s most important feeder markets.

“I’m betting on Vegas,” LVCVA CEO Steve Hill said in August. “Las Vegas is still the Entertainment Capital of the World. We’re confident in the future of this city, and we’re taking steps to address the downturn.” For now, the city’s gaming floors remain busy even as fewer visitors fill its hotels and convention halls. Whether rising revenues can outpace declining visitation will be the central question for Las Vegas in the months ahead.