Fewer Visitors, Bigger Bets: Vegas Gaming Revenue Climbs Despite Tourism Slump

^{The Las Vegas Strip was quieter for tourists in July, but still brought in major gaming revenue, especially from high-rollers on table games. (Photo: courtesy of the LVCVA)}

LAS VEGAS -- Visitation to Sin City declined for a second straight month in July, while gambling revenue increased both on the Strip and downtown compared to last year, according to the Las Vegas Convention and Visitors Authority.

About 3.1 million people visited Las Vegas in July, a 12% drop from last year’s total of just over 3.5 million visitors to Sin City. Over the last year, visitation has fallen by 8%, from 24.6 million to 22.6 million.

Still, statewide gaming revenue rose 4% to $1.36 billion in July, according to the Nevada Gaming Control Board. The Strip accounted for $749 million of that increase, with gaming revenue up 5.6% over the year.

Las Vegas Room Rates Continue to Fall

With fewer tourists in town, hotel occupancy in July dropped 7.6% to 76.1%. Strip occupancy fell to 79.5%, while downtown dipped to just 63%.

To fill rooms, casinos have basically been forced to have slash rates and offer some of the best deals in years. So far this year, the average daily room rate is down 5.1% to $190.85 per night. In July, the average daily room rate in Las Vegas fell even more, dropping 3.4% to $154.76 a night. The last time room rates were this low was August 2022.

Room rates across the Strip and downtown are on the decline as a result of lower hotel occupancy. (Image: courtesy of the LVCVA)

Room rates on the Strip averaged $164.57 in July, while rooms downtown averaged $87.69.

Casino executives are hopeful for a fourth-quarter turnaround, with convention and group travel expected to push revenue upward.

While some leisure travelers may be taking their business outside Las Vegas, convention traffic remains strong. In July, convention visitation rose 10.7%, and for the year, it's up 2.1% to just over 3.5 million attendees.

These guests are especially valuable because they typically pay full price for hotel rooms, charge meals and drinks to corporate accounts, and often travel in large groups that boost revenue.

Baccarat and Table Games Lead Revenue Surge

Strip casinos brought in $749 million this July, a notable 5.6% increase compared to last July. Slots outpaced table games in revenue, generating $428.2 million compared with $320.9 million from live dealers.

While slots still led overall, table games saw a major gain in revenue growth with a 10.5% increase in revenue over the year. Slots rose just 2.2% and dipped across nearly every denomination. The only bright spot for slot machines was multi-denomination games, such as bar top machines.

Baccarat revenue can depend on a handful of high rollers, and that might have been the case in July. The game surged 79% in revenue compared to last year. Without the baccarat boost, Strip gaming revenue would have dropped nearly 9% compared to last July.

Baccarat wasn’t the only game to show a big revenue increase at Strip casinos. Sports betting revenue on the Strip climbed 65% in July. While the percentage increase is large, the revenue was only about 15% of baccarat’s total for the month.

The upcoming Mexican Independence Day weekend is expected to coincide with revenue growth in September, as it’s traditionally one of the busiest times for Las Vegas tourism and nightlife with summer coming to a close. The celebrations, which run Sept. 12–15, typically draw crowds from neighboring states like California and Arizona into hotels and casinos to enjoy a variety of events. 

This year’s festivities also coincide with the highly anticipated Canelo Álvarez vs. Terence Crawford fight, which could significantly lift hotel occupancy and gaming revenue for the month.