Nevada Gaming Revenue Falls as Las Vegas Tourism Declines

Nevada’s gambling industry hit a setback in September, with gaming revenue slipping as Las Vegas continues to wrestle with declining visitor numbers and weaker international travel. The dip highlights how tightly casino performance is tied to the city’s ongoing tourism struggles.

Gaming Revenue Takes a Hit

According to data from the Nevada Gaming Control Board, the state generated $1.28 billion in gross gaming revenue (GGR) during September,  a 2.2% decline compared to the same month last year. The Las Vegas Strip, which often acts as the state’s economic bellwether, mirrored that trend, falling 5% after posting similar gains in August.

While the overall fiscal year-to-date figures still show modest growth,  up about 2% statewide and 1.5% on the Strip, the latest downturn marks the first red month of the 2026 fiscal year. Baccarat was the main drag, plunging 42% year over year, while table games collectively dropped 17.5%. Slot revenue, however, remained relatively steady, preventing a steeper decline.

The slowdown comes after three consecutive years of record-breaking gaming revenue for Nevada from 2022 to 2024. Although FY25 broke that streak, 2025 has largely trended upward to date. Industry analysts say September’s numbers signal the first real test of whether the state’s gaming momentum can withstand ongoing tourism challenges.

Tourism and Air Travel Continue to Lag

Las Vegas’ visitor numbers remain low. The Las Vegas Convention and Visitors Authority (LVCVA) reported 3.09 million visitors in September, a 9% year-on-year decline, marking a whole year since the city last recorded a positive growth month. Convention attendance declined by 18%, and hotel occupancy and room rates also decreased, indicating weaker midweek demand and a decrease in large-scale events.

Traffic data indicate small gains in car arrivals, up around 2.5% statewide, but air travel remains a concern. Passenger numbers at Harry Reid International Airport decreased by 6% to 4.4 million in September, with international arrivals down 13.5%, primarily due to declines in travelers from Canada and Mexico.

Air Canada, WestJet, Volaris, and Aeromexico all reported double-digit decreases in passenger numbers. Analysts link the trend to both high travel costs and ongoing trade policy impacts between the United States, Canada, and Mexico,  the city’s two largest foreign visitor markets.

Strip Operators Feel the Pressure

Major Strip operators are starting to feel the squeeze. Both MGM Resorts and Caesars Entertainment reported softer results for the third quarter, continuing a downward trend from Q2. Executives from both companies acknowledged that higher pricing and lower leisure demand have weighed on performance. Wynn Resorts, which had previously outperformed its competitors earlier in the year, has not yet released its latest results.

Meanwhile, smaller and regional operators are faring better. Red Rock Resorts saw quarterly net revenue increase by 1.5%, with profits surging over 38%. Boyd Gaming’s locals segment also delivered its strongest growth in over two years, with margins approaching 50%.

The slowdown in physical visitation has also drawn renewed attention to online casinos in Nevada, which, while limited under state regulations, are increasingly viewed as a complementary revenue stream. Many operators are now exploring digital integration and partnerships to capture players who prefer the convenience of remote gaming.

Hope Rests on Formula One and the Holiday Quarter

The upcoming Formula One Las Vegas Grand Prix, scheduled for 20–22 November, is being viewed as a potential catalyst for recovery. The 2023 race generated a record $1.5 billion in economic impact, but the 2024 edition fell to $934 million, coinciding with the start of the current downturn.

The LVCVA is banking on the race to provide a much-needed tourism boost, with improved traffic management, expanded transportation options, and enhanced coordination between resorts and local authorities. November and December traditionally bring heavier tourism, with holiday travel, major conventions, and sporting events helping to bolster the city’s revenue.

Outlook: Testing Vegas’ Resilience

Industry observers predict that the final quarter of 2025 will be crucial. Persistent declines in international arrivals and air traffic are putting pressure on an economy still recovering from post-pandemic volatility. While domestic travel remains stable, the lack of international tourists to Vegas, once a key growth driver, could cap recovery potential heading into 2026.

Still, Nevada’s gaming industry remains resilient. September marked the 55th consecutive month that statewide revenue surpassed $1 billion, underlining the enduring strength of the sector even during leaner months.

Las Vegas has weathered downturns before, often reinventing itself in the process. Whether it can do so again amid shifting travel patterns and a cooling economy will define the next chapter for America’s gaming capital.