The Las Vegas Strip and downtown casinos closed in 2025 with a small increase in gaming revenue despite a significant drop in visitors and signs of price fatigue among patrons, according to public data and industry analysts.
The Las Vegas gaming industry avoided a notable downturn, and experts say the year-end numbers reflect a healthy market that has moved past the post-pandemic surge and entered a more temperate phase.
Amanda Belarmino, associate professor at UNLV’s William F. Harrah College of Hospitality, said “2025 was still a much better year” than others in the post-COVID era, and the latest numbers “show that we are now enjoying a level of gaming revenue that we thought we would never see again after the Great Recession.”
Belarmino added that year-over-year comparisons were difficult because 2024 was a unique year for Las Vegas, featuring “robust convention” attendance and “outstanding events,” like the Super Bowl, that were not replicable in 2025.
“There is every reason to be optimistic about the future because the news of our death has been greatly exaggerated,” she said.
Gambling 2025 with numbers
Statewide gaming revenue shows 2025 was a second record year in a row. Nevada’s unlimited casino licensees won $15.8 billion from players last year, a 1.2 percent year-over-year increase over the previous record of $15.61 billion set in 2024, according to the state’s Gaming Control Board.
Downtown Las Vegas casinos also posted a new annual high in 2025, generating more than $951.2 million, up 2.1 percent from the previous record high of $931.3 million in 2024.
The Strip ended 2025 largely unchanged for the second year in a row, with the resort corridor’s casinos reporting $8.82 billion in revenue, up 0.11 percent from 2024’s $8.81 billion, both of which are down from the record $8.9 billion reported in 2023.
December proved particularly challenging on The Strip, according to Chad Beynon, senior analyst for gaming, lodging and theaters at Macquarie Equity Research.
Strip casinos generated $827.7 million in gaming revenue for the month, down 6 percent from a year earlier. A lower-than-average slot hold of 7.2 percent, which Beynon noted was below the long-term average of 8 percent, offset a 1.4 percent increase in slot volume, while baccarat volume rose 1 percent but faced difficult hold comparisons.
The result was a 7 percent drop in slot revenue and a 5 percent drop in table game revenue for the month.
Nonetheless, December’s gaming revenue on the Strip was the highest monthly total of the year, and Beynon said the company’s forecasts for year-over-year increases of 1 percent and 1.4 percent in the first quarter of 2026 and year-end, respectively, “remain unchanged.”
Non-playing numbers tell a different story
Year-end gaming totals remained stable even as overall visitation and other tourism metrics declined. The contrast suggests that gaming revenue could have been even higher if the number of tourists had remained stable.
According to the Las Vegas Convention and Visitors Authority, 38.5 million people visited the city in 2025, down 7.5 percent from 2024. That’s the first year-over-year decline in the post-COVID-19 era and the lowest total since 2021.
Hotel occupancy fell slightly to 80.3 percent, with Strip occupancy down 3.2 percent and downtown Las Vegas down 3.5 percent, while average daily room rates fell 4.7 percent on the Strip and 5.9 percent downtown. Total number of occupied room nights decreased by almost 6 percent, according to LVCVA.
Anthony Lucas, a professor of casino management at UNLV and a former gaming industry executive, said weaker international visits played a big role in the annual numbers.
“Las Vegas suffered in 2025 from the reality that international travel to the United States was becoming less desirable, especially in critical feeder markets like Canada,” Lucas said. “In general, the further someone travels to Las Vegas, the more they spend. Therefore, any disincentive to international visitation has a disproportionate effect on revenue.”
Optimism abounds for Las Vegas 2026
Despite the slowdown in 2025, top casino executives expressed confidence that Las Vegas will rebound in 2026.
Bill Hornbuckle, president and CEO of MGM Resorts International, and Keith Smith, president and CEO of Boyd Gaming Corp., told business leaders at a recent Vegas Chamber conference that the city’s tourism and hospitality industry remains fundamentally strong.
“The reality is that occupancy is down 3 percent and attendance is down,” Hornbuckle said, before adding, “We’re rock solid. I read headlines that Las Vegas is dead. Stop.”
Smith echoed Hornbuckle’s confidence, saying there is “a core demand for Las Vegas,” and visitors are still spending money.
“There’s no question visitation is down, and it’s not something we haven’t seen before,” he said. “We tend to make more of it than it is. Is it worrying? Sure. But this has happened to us before and it’s not the end of the world.”
Both executives highlighted upcoming conventions, major special events and new entertainment offerings as reasons for optimism in 2026. They emphasized that Las Vegas’ unique combination of world-class entertainment, dining and experiences will continue to draw visitors, even during temporary downturns.
Steve Hill, president and CEO of the LVCVA, shared a similar message the day before when the city’s year-end visitor numbers were released.
“Las Vegas remains a category of one,” he said. “Our focus will continue to be on providing value to our visitors and delivering experiences that elevate our place as the leading leisure and business destination.”
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
