With December figures now finalized, Las Vegas tourism and gaming stakeholders are closing the book on a challenging 2025 marked by declining visitation, uneven gaming performance, and growing economic uncertainty.

New data from state and local agencies show that December continued a pattern seen throughout much of the year, as weakness on the Las Vegas Strip offset strength in surrounding markets and raised questions about the city’s outlook heading into 2026.

Strip Gaming Stalls as Ancillary Markets Gain Ground

The Las Vegas Strip generated $827.7 million in gaming revenue in December, a 6% year-over-year decline that left its calendar-year total flat at $8.8 billion. While the Strip struggled, several Southern Nevada markets posted strong performances, reinforcing a trend that has become more pronounced in recent years.

The locals market grew 4% in December, while downtown Las Vegas rose 5%. Boulder Strip gaming increased 9%, and Laughlin posted a 10% gain. All four markets finished 2025 with year-over-year growth, contrasting sharply with the Strip’s stagnation. Statewide, Nevada casinos produced $1.43 billion in gross gaming revenue (GGR) in December, down 1.5% from the prior year. For calendar year 2025, total GGR rose 1.2% to $15.8 billion, supported largely by non-Strip properties.

Tourism indicators painted a more concerning picture. According to the Las Vegas Convention and Visitors Authority (LVCVA), total visitation fell 9% in December to 3.09 million. Convention attendance was the lone bright spot, increasing 9% year over year, while all other tracked metrics declined. Revenue per available room dropped 12%, total occupancy fell 6%, and average daily room rates declined 5% compared to December 2024.

For the full year, Las Vegas welcomed 38.5 million visitors, a 7.5% decrease from 2024, underscoring the depth of the downturn in leisure travel demand.

Economic and Labor Concerns Weigh on Outlook

Economic sentiment among local business leaders deteriorated late in the year. UNLV’s Southern Nevada Business Confidence Index fell to its lowest level since the Great Recession during the fourth quarter, with respondents citing expectations of worsening national and local economic conditions.

Labor data reflected similar headwinds. The Nevada Department of Employment, Training and Rehabilitation reported a net gain of 2,000 jobs in Las Vegas in December, following losses of 4,700 jobs from September through November. Despite the late-year increase, the metro area still employed 9,800 fewer workers than in December 2024.

Ted Pappageorge, secretary-treasurer of the Culinary Union, said earlier this month that workers were increasingly uneasy about the prolonged tourism slump. He called for a “course correction” and attributed part of the downturn to federal trade and travel policies, which he described as contributing to what he termed a “Trump slump.” Casino operators experienced mixed results in 2025. Wynn Resorts outperformed major Strip competitors MGM Resorts and Caesars Entertainment, while locals-focused operators Boyd Gaming and Red Rock Resorts benefited from strong performance in ancillary markets.

Looking ahead, analysts remain cautious. In a note to investors, Macquarie analyst Chad Beynon said recent data reinforced “that the risk to 4Q25 earnings is to the downside for Vegas segments.” However, Beynon noted that Boyd and Red Rock appear positioned to outperform current fourth-quarter consensus estimates within their retail gaming segments.

Upcoming fourth-quarter earnings reports are expected to provide greater clarity on how operators navigated the year’s challenges. On the Strip, December’s weakness was driven largely by poor baccarat performance. Strip casinos won $156 million on baccarat during the month, a 20% year-over-year decline. While results have been volatile on a monthly basis, baccarat revenue remained flat over the last three months and finished 2025 up 3% overall.

In Northern Nevada, Reno posted December GGR of $64.7 million, down 1.6% year over year. Despite the monthly decline, the market ended 2025 with total gaming revenue of $786.2 million, a 3.6% increase from 2024. Sports betting provided one of the strongest growth areas. Statewide sports wagering GGR surged more than 350% in December to $67.5 million, including $42.5 million from mobile betting. Nevada closed 2025 with sports betting GGR of $601.4 million, representing a 25% year-over-year increase.

While employment ticked up in December, Las Vegas ended 2025 with nearly 10,000 fewer jobs than a year earlier, reflecting ongoing pressure across the tourism economy.

Looking Ahead to 2026

As Las Vegas enters 2026, the data suggest a tourism market under pressure, with declining visitation, soft Strip performance, and cautious economic sentiment offset by resilience in local and regional gaming markets. Whether convention growth, sports betting momentum, and improving employment trends can reverse broader declines remains a key question for the year ahead.