The tourism industry in Las Vegas presents a complex situation: gambling revenue has continued to grow for three consecutive months, while the number of tourists has continued to decline. According to the latest data from the Nevada Gaming Control Board, the total gambling revenue in the state in August 2025 reached $1.22 billion, a 5.5% increase from the same period last year, but the number of tourists during the same period decreased by 6.7% to 3.1 million people.
Gambling Revenue Performance and Analysis
In August 2025, the total gambling revenue in Nevada increased by 5.5% year-over-year to $1.22 billion. Clark County (including Las Vegas and its surrounding areas) overall grew by 5%, with Las Vegas Strip performing particularly well, where gambling revenue increased to $679.3 million.
Baccarat games on the Las Vegas Strip became a key growth driver, with revenue reaching $114.4 million in August, up 51% year-over-year. This figure surpassed the overall revenue of any industry in the state outside the local Las Vegas market. However, baccarat revenue usually has significant monthly fluctuations, rising 29% over the past three months, but falling 3% over the previous 12 months.
Tourist Number Decline Trend
In contrast to the growth in gambling revenue, the number of tourists in Las Vegas continues to decline. According to data from the Las Vegas Convention and Visitors Authority, the number of tourists in August decreased by 6.7% to 3.1 million people. In 2025, the number of tourists each month decreased by at least 1% year-over-year, with most months seeing declines between 5% and 10%.
Air traffic also shows a declining trend. Harry Reid International Airport saw a 6% decrease in domestic air traffic and a 3.7% decrease in international air traffic in August. Canada, as a major source market, was particularly affected, with WestJet and Air Canada seeing a 33% and 40% decrease in passenger traffic, respectively, in August.
Influencing Factors and Market Changes
Several factors are affecting the Las Vegas tourism industry. Attendance at trade shows was a highlight this year, but due to trade show rotations, attendance in August decreased by 8%. Large trade shows such as the Global Gaming Expo in October, the Consumer Electronics Show in January, and the Industrial Exhibition in March are expected to boost the total number of future trade shows.
Economic factors are also having an impact. The Federal Reserve made a rate cut in 2025 and warned that there would be no further cuts in the future. The Personal Consumption Expenditures Price Index in August increased by 2.7% year-over-year, the highest monthly increase since February.
Rising operating costs are another influencing factor. A new culinary union contract took effect this year, leading to a significant increase in labor costs for casinos. Union wages overall increased by 10%, with a further 32% increase over the contract period. Additionally, most casinos lease properties from real estate investment trusts, with rents increasing annually.
Industry Development and Future Outlook
Despite facing challenges, the Las Vegas gambling industry still has some positive developments. The AGEM Index (covering stocks of 10 leading gambling suppliers) rose by 5% month-over-month and 32% year-over-year in August. Most operators announced robust second-quarter results and are optimistic about future prospects.
Several projects are underway. The former Mirage Hotel will reopen in 2027 as the Hard Rock Las Vegas Hotel, adding over 3,500 rooms to the Las Vegas Strip. The new MLB home of the Las Vegas Athletics has begun construction, and the third Las Vegas Grand Prix will return in November.
Official Response and Promotion Measures
The Las Vegas Convention and Visitors Authority launched a multi-million dollar advertising campaign and introduced new promotions "Fantastic Five-Day Sale". Operators and merchants across the city have committed to offering over 100 promotions.
Representatives of travel agencies recently traveled to Canada to persuade potential tourists to return to Las Vegas. LVCVA CEO Steve Hill expressed understanding that Canadians "are now dissatisfied with us," but remains optimistic about the future of Las Vegas.
MGM CEO Bill Hornbuckle stated at the Bank of America conference that changing the negative narrative about Las Vegas is the industry's responsibility. He emphasized that Las Vegas still offers tremendous value for all consumer levels, and the industry is working hard to prove this point.
