The Las Vegas Strip casino industry took a haircut in 2025 with flat gaming revenues and visitation down nearly 8 percent for the year, but gaming and tourism officials are optimistic that it will be a matter of time for a rebound and that the resort corridor is built to thrive.
The nation’s economy and people’s personal finances that made them pull back on discretionary spending has been talked about by the gaming industry as the cause for the decline on the Strip. That’s counter to a narrative pushed on social media that price gouging and that Las Vegas is no longer a must-go destination, especially for the younger generation, as the reason — a notion disputed by the industry even though casinos offered value deals in the fall.
Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, who spoke after the Jan. 30 Vegas Chamber’s Preview Las Vegas where he moderated a panel with Boyd Gaming CEO Keith Smith and MGM Resorts International CEO Bill Hornbuckle, called what happened in 2025 a dip and described how the city has gone through downturns in the past. In this case, last year was a slowdown in comparison. Last year, the city had 38.5 million visitors, down from 41.6 million visitors in 2024.
“The future in Las Vegas always looks bright,” Hill said. “We remain in a category and remain the easiest product in the world to sell, and we’re excited about the future,” he said. “What has driven the 2025 results has been headwinds out of our control. In order for the market to improve significantly I think those headwinds need to subside, and I’m not sure when that will happen. We know it’s coming.”
Strip occupancy at 83.2 percent was down 3.2 percent. Strip gaming revenue rose 0.3 percent in 2025.
“The reality is occupancy is down 3 percent and visitation is down,” Hornbuckle said. “Over the next 14 to 15 months, we will have more conventions on the books and in our city than in the history of this city. We are as solid as a rock. The city’s gaming revenue on the Strip is flat off an amazing year, and yet I read headlines that Las Vegas is dead. Stop. I made comments in the last quarterly call about value, pricing and water, and you thought I was giving up a baby.”
Convention business is expected to be part of any rebound with casino executives saying that group bookings are at record levels. Tourists still have plenty of reasons to come to Las Vegas with sports and entertainment leading the way.
“We are a well-balanced company and a well-balanced city, and we will get through this,” Hornbuckle said. “It used to be what happened in Las Vegas stayed in Vegas. How about, you can only do it in Las Vegas. We’re the entertainment center. Value doesn’t mean to be cheap. We have evolved to the point where value isn’t about cheap but about experience in what I get.”
Hornbuckle called the Sphere “transformational” in attracting people to the city; and events like the Super Bowl and FI and other experiences drive people off their couches and on an airplane, even though there are casinos everywhere, including online.
“People come to Las Vegas to see Lady Gaga or world-class restaurants,” Hornbuckle said. “They can’t get them in most places. They certainly can’t get the energy and excitement we have here. The idea and even notion of it and all the rhetoric (about Las Vegas in trouble), stop. We’re in great shape, and we have a great future. The sense of value isn’t always about cost. Yes, we have to align properly and yes we as a collective got some things wrong. But at the end of the day we’re down 3 percent. Stop it. There’s nothing like Las Vegas, and there never will be.”
The story of the Strip is quite different for neighborhood casinos that serve local residents. It’s the same for regional casinos across the country where people don’t have to fly and stay in hotels.
Boyd Gaming and Red Rock Resorts, which dominate the locals’ gaming scene, were recently highlighted by John DeCree, director of equity research for CBRE, with strong expectations going forward. While Strip gaming revenue was down 6 percent in December, casinos that serve local residents saw a nearly 6 percent increase.
“We remain upbeat on the Las Vegas locals’ market for 2026 and 2027,” DeCree said in a note to investors.
“Although comparisons get more difficult for the locals’ market in 2026, there are still several catalysts on the horizon that should fuel moderate growth, including tax cuts under the One Big Beautiful Bill Act and recent capital reinvestment from major operators such as Boyd and Red Rock Resorts.”
DeCree said across their coverage universe, the Las Vegas locals’ market should benefit the most from the OBBB Act given the concentration of tipped employees and number of retirees living in Las Vegas, coupled with the city’s propensity to gamble.
“Despite the tax cut tailwinds, some investors are cautious that the softness on the Strip could bleed into the locals’ market,” DeCree said. “While we appreciate the concern, the locals’ market has a 40-plus year track record of outperforming the Strip in economic recessions (save the Great Recession).”
Smith said he has confidence in Las Vegas and that the industry will continue to evolve and be successful along with the community as a whole.
“There’s no question that visitation to Las Vegas is down and it’s not anything we haven’t seen before,” Smith said. “We tend to make more out of it than it is. Is it concerning? Sure. But this has happened to us before and it’s not the end of the world. It will come back. There is a core demand for Las Vegas. People are still spending money, and Las Vegas will continue to rebound over the course of time. I’m confident in the long-term future. This is just a dip. We’ll get through it and to the other side.”
