Vegas Crowds Shrink, but Baccarat Keeps Casinos Winning

^{The high limit baccarat room at Bellagio was seldom this empty in October. (Photo: courtesy of Bellagio)} 

The story in Las Vegas remains the same in August. Visitation fell compared to last year, while gaming revenue increased thanks to baccarat players losing more money.

According to the Las Vegas Convention and Visitors Authority (LVCVA), 3.2 million people visited the city in August. The 6.7% decrease translates to about 200,000 fewer people than in August 2024.

This was a broad-based decrease in visitation, unlike some recent dips. In addition to fewer leisure travelers, convention traffic was down.

Even though there were fewer visitors for the month, gaming revenue on the Strip climbed 5.5% to $679 million. The increase was largely due to another significant rise in baccarat revenue.

While visitation to Las Vegas was down again, nearby Laughlin and Mesquite saw more visitors and higher gaming revenue.

To boost visitation, the authority started a marketing blitz earlier this month that included hotel room deals at nearly every Las Vegas casino. Many of the deals are available through mid-2026, so it could take time to gauge the impact.

Fewer Visitors Means Cheaper Hotel Rooms!

On one hand, the 6.7% decrease in visitors to Las Vegas isn’t good. However, it’s better than June and July when visitation fell 11.3% and 12%, respectively. 

So far this year, visitation is down a total of 7.8% through August. The drop of about 3 million visitors averages 375,000 people per month, or roughly 13,000 per day.

While convention traffic fell 8% in August, it is essentially flat for the year, up 0.5% from 2024.

The law of supply and demand is real. When Las Vegas is busy, room rates are higher. When it is not, they are lower.

That was the case in August, when only 77.5% of available hotel rooms were occupied. This was 3.7% lower than a year earlier, when 81.2% of rooms were filled.

Lower occupancy usually results in lower room rates to draw more visitors. That was the case as the average daily hotel room rate in Las Vegas fell 7.4% to $162.38. Downtown rates dropped 9% to $90.15, while the Strip declined 7.1% to $172.81.

Some potential visitors may have rerouted to nearby casino destinations. Visitor volume was up 14.5% in Laughlin and 11.5% in Mesquite.

While Laughlin saw a modest 0.3% increase in room rates, Mesquite prices jumped more than 22%. The average daily rates in both markets remain well below Las Vegas. A room in Laughlin averaged $69.68, while Mesquite was slightly higher at $88.49.

Nevada Gaming Revenue Is All About Vegas Baccarat 

Statewide gaming revenue rose 5.5% to $1.22 billion, powered once again by baccarat on the Strip.

Strip gaming revenue increased for the second straight month. Casinos collected $679.4 million from gamblers, up 5.5%.

Repeating a trend from previous months, baccarat revenue on the Strip jumped 51.1% to $114.1 million.

This was by far the largest increase of any table game on the Strip. Table game revenue overall rose 12.8% despite dips in blackjack, roulette and pai gow poker.

When casinos win, players lose. When they make less from a game, players are losing less. There is a reason some players turn to pai gow to stretch their budget.

Sports betting on the Strip also saw a sharp increase. Revenue surged 178%, but the total was still less than $20 million.

Baccarat Is a Snapshot of the Great Vegas Divide

There is a simple explanation for why gaming revenue can increase while visitation decreases: high-end baccarat drives the revenue.

During MGM Resorts’ second-quarter earnings call, CEO Bill Hornbuckle noted “table games volume and record slot volumes at our ultra-luxury properties.” These properties include Aria, Bellagio and the Cosmopolitan.

Last year, he said baccarat accounts for about 30% of the money played at table games. More importantly, he said “the top six or seven players” can swing gaming revenue for a quarter.

Bellagio is one of those properties and might be the most popular casino for high-rolling baccarat players outside of Wynn. Not coincidentally, earlier this year Wynn CEO Craig Billings pointed out that the casino saw a 5% increase in revenue.

He also reminded analysts that Wynn’s a luxury property is not the best reference point because it caters to the highest of high-end visitors. Most leisure visitors come to Las Vegas on a budget and often look for the least expensive hotel rooms and entertainment.

While the masses might be skipping their trip to Vegas, high rollers aren’t and they’re the visitors playing baccarat.