Las Vegas strip falters but ‘local’ casinos post up record earnings. Here’s what that means for tourists like you

By Rudro Chakrabarti

Moneywise

While foot traffic slows and room rates tumble on the Las Vegas Strip, a surprising group of casinos is cashing in — and it’s not who you might expect.

Suburban and “locals” casinos across the Las Vegas Valley are having a banner year, even as the Strip itself faces slumping tourism, fewer conventions and mounting pressure from political and economic headwinds.

So what’s behind the boom outside the neon core? And how can savvy travelers take advantage?

A tale of two Las Vegases

Red Rock Resorts — which owns Station Casinos and operates seven off-Strip properties like Red Rock, Green Valley Ranch, and the new Durango Casino Resort — just posted its highest quarterly net revenue in its 49-year history: $526.3 million in Q2, an 8.2 percent year-over-year jump.

“Durango continues to expand the Las Vegas locals’ market, drive incremental play from our existing customer base and attract new guests,” said Stephen Cootey, Red Rock Resorts’ CFO and EVP, in a recent earnings call. The casino added more than 108,000 new customers since opening in December 2023, he said.

Boyd Gaming, which owns properties like Sam’s Town and Suncoast, also reported year-over-year growth for the first time in two years for its Las Vegas locals segment — outpacing previous quarters.

“We’re just not seeing the same level of demand from destination business, but that’s been more than made up by retail and drive-in traffic,” said CFO Josh Hirsberg.

Meanwhile, the Strip is cooling

Compare that to the Strip, where major casino operators are tightening their belts.

Caesars Entertainment reported a 3.7 percent decline in Las Vegas revenue and an $82 million net loss in Q2. Hotel rates at properties like The Flamingo have dipped as low as $18 per night for late August midweek stays.

MGM Resorts also reported a 4 percent decline in Strip revenue, which CEO Bill Hornbuckle attributed to ongoing room remodels and fewer big-ticket events like Adele or Garth Brooks residencies.

“You say Las Vegas is not a value, and that’s just not a complete reality,” Hornbuckle told investors. “Some of the rates out there this next midweek are comparable to things I saw 20 years ago.”

According to the Las Vegas Convention and Visitors Authority’s June 2025 Executive Summary:

—Visitor volume was down 11.3 percent year-over-year

—Convention attendance fell 10.7 percent

—Hotel occupancy dropped to 78.7 percent, down 6.5 percentage points

—RevPAR (Revenue per available room) fell 13.8 percent, to $128.78

Meanwhile, statewide gaming revenue rose 3.53 percent, led by gains in locals markets:

—Boulder Strip: +19.3 percent

—Downtown Las Vegas: +10.5 percent

—Red Rock/Durango suburbs: substantial growth cited by casino execs

Several new federal policies appear to be hitting Las Vegas Strip tourism hard, like the “Visa Integrity Fee” which adds a $250 refundable charge to many international travelers — discouraging some from flying into the U.S. altogether.

Trump’s “Big Beautiful Bill” also changed tax law for gamblers, capping loss deductions at 90 percent instead of 100 percent. Casino owners say some high-volume players are already taking their business offshore. In response, Caesars and MGM say they’re leaning more heavily on databases, loyalty programs and regional marketing to lure U.S. tourists back to Vegas.

Why locals casinos are thriving

Unlike Strip hotels, suburban casinos serve working Nevadans — and that customer base just got a financial boost.

According to Red Rock Resorts, several new federal changes are helping customers spend more. The No Tax on Tips bill is estimated to free up $5 million per year in discretionary income across Clark County. Also, expanded overtime pay and senior tax credits are expected to benefit hundreds of thousands of Las Vegas residents.

That means more frequent visits to local casinos, more spending on slots, food and drinks — and stronger loyalty overall.

What tourists should know

If you’re planning a Las Vegas vacation this year, don’t be surprised if the best bang for your buck isn’t on the Strip.

Deep discounts are now common on Strip hotels midweek — some rates as low as $20/night. Off-Strip casinos like Red Rock, Green Valley Ranch, and Durango offer free parking, lower table minimums, crowd-free gaming floors — along with a heavy focus on food, value and local customer service.

Vegas isn’t going anywhere, but where the action is has shifted. While the Strip deals with tourist slowdown, suburban casinos are booming on the backs of loyal locals and tax policy.

And for budget-conscious travelers? That means this might be the perfect year to visit Las Vegas — just skip the Strip.