New report exposes Las Vegas’ challenges in gaming and tourism

By Dave Grendzynski

Action Network

Not everything that happens in Vegas stays in Vegas.

Especially when the world-renowned entertainment capital is experiencing some bumps in the road.

According to a recent report led by Stephen Miller, a professor of economics and research director at UNLV’s Center for Business and Economic Research, the outlook for Las Vegas’ gaming and tourism sectors through the end of 2025 and into 2026 isn’t as glitzy as one might hope.

Let’s break down what’s happening and what’s being done about it.

A Decline in Visitors and Revenue

The numbers paint a concerning picture.

Visitor numbers to Las Vegas dropped by 6.5 percent year-over-year through May 2025, with gaming revenue on the Strip down 1.1 percent over the same period. The Southern Nevada Tourism Index declined both month-over-month and year-over-year, indicating a downward trend since its peak following Super Bowl 2024.

A key part of the problem is a softening national economy. With uncertainties from tariffs, the business environment, and a reduction in international travel, people are just not visiting as much. In fact, the U.S. expects a 9 percent drop in international arrivals and an $8.5 billion decrease in spending by foreign visitors.

Business confidence is also waning.

Source: UNLV Center for Business and Economic Research (CBER)

The report states: "Southern Nevada business leaders forecasted that Nevada economic conditions will drop with a score of 42.9, lower than last quarter’s score of 100.0. Local business leaders also expressed unprecedented pessimism on U.S. economic conditions with a score of 24.5, which is below 106.5 from the previous quarter and the lowest the component has ever reached since the survey’s start in the second quarter of 2008."

Las Vegas Hotel Occupancy Also Down

Hotel occupancy rates are also down, with overall occupancy in Las Vegas at 83 percent in May.

The Strip saw a decrease to 85.3 percent, while downtown Las Vegas dropped to 74.8 percent. Lower occupancy results in lower revenue, with a 5.7 percent decline in revenue per available room and a 4.5 percent decrease in gaming revenue for May. Downtown casinos are especially hard hit, facing an 11.4 percent decline.

To make matters more challenging, passenger numbers at Harry Reid International Airport fell by 3.9 percent year-over-year, with a significant 8.7 percent drop in international traffic. Canadian visitors, who are important to the local economy, are also visiting less due to financial and geopolitical issues.

Las Vegas Creates Strategies for Recovery

With these challenges, how is Las Vegas planning to rebound?

Resorts are stepping up their promotional activities, especially focusing on locals and boosting loyalty programs. Long-term projects could also help, such as the Brightline West high-speed rail expected in 2028 and the new Hard Rock Hotel set to open in 2027.

Meanwhile, initiatives like the “Locals Unlocked” campaign aim to make Las Vegas more affordable and appealing.

Casinos are also trying to lure out-of-town travelers by eliminating things like resort fees.

Downtown Las Vegas Hotels and Casinos are also offering incentive-laden packages this summer.

Stephen Miller’s report underscores that while economic uncertainty and changing traveler behaviors are immediate concerns, Las Vegas is not sitting idly by. The city is working on ways to adapt and bolster its famous allure for years to come.

So, while Las Vegas faces pressures in gaming and tourism due to broader economic issues and reduced international travel, local efforts and strategic initiatives may pave the way for future resilience and recovery. The city’s ability to adapt could be its strongest asset in overcoming these challenges.

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Dave Grendzynski is a casino writer for Vegas Insider and Action Network. His most cherished casino experience is hitting a royal flush after betting the maximum amount on a machine at Seneca Niagara.