$37 martinis, $18 water… and now a 50 percent tip drop? Welcome to Vegas 2025

By Kelly Chapman  

Nevada News and Views

In a city built on service, tips are more than just a “thank you.” For thousands of Las Vegas workers, they’re the difference between paying rent and falling behind.

Now, in 2025, those tips have been slashed — in some cases, by nearly half — and the reasons go far beyond bad luck.

A 50 percent Pay Cut for Service Workers

Servers, bartenders, and other tipped employees across the valley are feeling the pinch.

A cocktail waitress told one local forum her per-drink tips have fallen from 80 cents to just a dime. A doughnut shop supervisor said her weekly credit card tips have dropped from $200 to around $100.

Even tattoo artists, like Charlie Mungo, say their income has been cut in half because fewer customers — especially international ones — are coming through the door.

Nevada recently passed a “no tax on tips” law that exempts up to $25,000 in tipped income from personal income tax, but the law doesn’t matter when there are no people to get tips from.

The Culinary Workers Union, representing 60,000 hospitality employees, warns that the situation is already causing reduced hours, hiring freezes, and could eventually threaten full-time jobs.

Fewer Visitors, More Empty Tables

According to the Las Vegas Convention and Visitors Authority, visitor numbers in June were down 11.3 percent compared to last year.

International travel has fallen by about 10 percent, and convention attendance is down 20 percent.

Nearly a million fewer travelers have come to Las Vegas so far this year.

Harry Reid International Airport also reported a 4 percent drop in domestic passenger traffic for the first half of 2025.

This isn’t just a bad month or two; it’s part of a troubling trend.

Why Tourists Are Staying Away

The reasons aren’t hard to find. Visitors complain of being nickel-and-dimed to death.

Think $18 bottles of water, $37 martinis, $25 pancakes, $35 burgers, and $15 beers.

Add in $50-a-day resort fees and $40-a-day parking charges, and that budget weekend suddenly costs twice as much.

A $100-a-night hotel room can balloon to $200 with all the extra fees.

And when people are already paying top dollar, they expect top service.

Unfortunately, more and more guests say service has slipped, with some complaining about rude staff, pushy upselling, and an overall lack of genuine hospitality.

Younger travelers, especially Millennials and Gen Z, are also looking elsewhere.

They’re spending their money on overseas trips, staycations, and experiences that don’t involve gambling or pricey nightclubs.

Is Policy Making Things Worse?

Union leaders and some industry voices point to federal policies, including stricter immigration rules, as making it harder for foreign visitors to come here.

Others blame corporate consolidation in the casino industry, which has reduced budget-friendly offers in favor of chasing “high roller” money.

Either way, the math isn’t working.

Higher prices and fewer perks are driving away middle-class tourists — the bread and butter that kept Las Vegas humming for decades.

The tipping crisis is hitting about 180,000 tipped workers in the Las Vegas area.

Many are cutting back on spending themselves, which hurts local businesses even more.

Locals aren’t flocking to the Strip to fill the gap; they’re staying home, avoiding what they see as overpriced and overcrowded.

Can Vegas Bounce Back?

Some hotels and casinos are now offering deep discounts to boost occupancy, with downtown Las Vegas holding up better thanks to more affordable pricing.

Value-driven deals are still bringing in crowds downtown.

Long-term, industry leaders will have to decide if they want to keep chasing the top 1 percent or win back the everyday visitors who once made Vegas the “Entertainment Capital of the World.”

That means rethinking pricing, improving service, and making sure both tourists and locals feel like they’re getting their money’s worth.

If we don’t fix this soon, the city risks losing more than just a few tips — it could lose the magic that made it famous in the first place.

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Kelly Chapman is the executive director of the Nevada Business Alliance, a candidate for Nevada Assembly District 8, and a 46-year resident of Las Vegas. You can reach her at NevadaBizAlliance@gmail.com or (702) 483-0186. You can follow her on Twitter/X here: @Chapman4Nevada.