Las Vegas Strip Struggles as Gaming Revenue Falls Amid Fewer Tourists

The Las Vegas Strip’s gaming revenue kept dropping in May, making it the fourth month in a row of decline. Financial worries and fewer visitors have hit the city’s gambling and hotel businesses hard.

Nevada Casinos See May Gambling Revenue Fall to Lowest Since 2021

The Nevada Gaming Control Board’s numbers show that Las Vegas Strip casinos made $713.7 million from gambling in May, 3.9% less than in May 2024. This is the Strip’s worst May since 2021, when it was still bouncing back from COVID-19. Across Nevada, gambling income also went down, falling 2.2% to $1.29 billion.

The drop in revenue matches a wider decline in tourism. Around 3.41 million people visited Las Vegas in May, which is 6.5% less than last year. This downturn stems from decreases in both air and road travel. The number of passengers at the airport went down by 3.9%, while the count of vehicles at the California-Nevada border fell by 5%.

Even with this slump, convention business stood out as a rare positive. The number of attendees jumped by 10.7% compared to the previous year, thanks to events like the Bitcoin Conference, LightFair International, and the NAMA Show. The Las Vegas Convention and Visitors Authority reports that this increase helped to somewhat make up for the decrease in leisure visitors.

Mid-Range Casinos Suffer Big Losses While High-End and Smaller Markets Hold Steady

Even so other signs showed the wider economic slowdown. Hotels on the Strip saw their average occupancy fall to 85.3%, while daily room prices dropped to $198.20, compared to $202.59 last year. Downtown Las Vegas took the biggest hit in room rates, with prices falling 12.4% to $109.39.

The gaming industry’s performance differed across segments. Slot machines caused most of the Strip’s losses, generating $381.2 million, a 5.4% drop, as fewer players and a lower win percentage had an impact. Table games did a bit better, with non-baccarat revenue growing 2.4% to $222.6 million. Baccarat, though, was a weak spot, with revenue falling 10% alongside a 10% decrease in bets.

The revenue crunch hit mid-range casinos hard. While high-end properties like Bellagio and Wynn managed the downturn with only small losses, those earning between $12 million and $36 million monthly saw their income cut by more than half.

Beyond the Las Vegas Strip, smaller gambling spots showed strength. Laughlin saw a 17% jump in gaming win, while Mesquite had a 9.7% rise. Even some areas in Northern Nevada did well, like Sparks, which went up almost 12%.

Experts warn that the industry might have a tough time bouncing back this summer. While business meetings are likely to help a bit, overall interest seems to be dropping. As one industry insider said, things might not start looking up until the end of the year.