For the past half decade, Las Vegas has been a true boomtown USA. Sin City hit record numbers of visitors, and casinos hit record gambling revenues, month after month in 2023 and 2024. But recently, things have changed. The entire market has taken a bit of a dip, and the brunt of that has been felt by the large casino resort operators of the Las Vegas Strip. However, locals targeting casinos have been doing better than ever. Why is that?

The giant casino resorts of the Las Vegas Strip have long been the primary revenue driver of the Nevada gambling business. And although that continues today, the stats show that revenues for the big players are falling while smaller Las Vegas casino operators are booming. This is the state of the market in Sin City, and what you need to know about it. 

Years of Rising Revenues Saw Market Optimism

In 2023 and 2024, Nevada’s casinos set record after record in terms of revenues, visitation and room rates. The market hit $15.1 billion in 2023 and $15.61 billion in 2024. 

That marked four consecutive years of record revenues. Big ticket events like the Las Vegas Grand Prix, the opening of The Sphere and the first Super Bowl in Nevada at Allegiant Stadium boosted the numbers even higher.

And this was all despite increasing competition from online casinos. Specifically, high production live games that recreate the Vegas experience at home. Although, Las Vegas did get in on the act. Caesars Palace and other famous venues currently host streamed live dealer games you can play right now at any good online casino.
 

The Signs Were There That a Slowdown Could Happen

Although in 2025 Las Vegas’ troubles have been making headlines, the signs were there in 2024. Just a few indicators the market might cool off in 2025, as happened, included:

• Four years of record revenues being very hard to live up
• Despite revenue growing 0.6% across the year, the Las Vegas Strip’s share of the pie actually fell 8% – marking a rare divergence in fortunes
• The online rumblings of visitor fatigue at excessive prices and squeeze on gamblers, including several studies showing exactly how fast the cost of visiting Sin City was rising
• Two large casino resorts – The Mirage and The Tropicana – closing without an immediate replacement

Now in 2025, tourism has dropped off dramatically. Although this month gambling revenue rose slightly, the market is in a definite downturn. 

But one segment is thriving, and without it things could be worse. Casinos serving Las Vegas locals and more budget oriented travellers willing to stay further from the Strip, are booming. 

Locals Casinos Step Into the Market Gap 

As Las Vegas became a boomtown for visitors, so it was for people moving to the area. The influx of well paying jobs at casino resorts funded state investment in bringing other businesses to the valley, and the Sin City metro soon became one of the most attractive areas in the US to move to.

That led to an expansion of its suburbs, which are being built up at a significant rate. Whole new developments like Cadence Crossing are planned in the suburbs between North Las Vegas and Henderson – with a planned local casino to match. 

Casino operators like Red Rock Resorts, its subsidiary Station Casinos, and Boyd Gaming have seen strong growth over late 2024 and into 2025. 

Boyd recently told investors its casinos with a local Las Vegas customer base were seeing up to 50% revenue increases so far in 2025. 

The ease of transportation, the lower costs of food and drink, the smaller crowds and, crucially, the better odds on gambling games have all contributed to locals casinos outperforming their mega casino resort counterparts. But it’s not just locals who are increasingly avoiding the Strip. 

Downtown Las Vegas Also Doing Well For Itself 

Interestingly, the part of Las Vegas that is actually, really, the city of Las Vegas, is still seeing continued growth.

If you didn’t know, the Las Vegas Strip is actually (mostly) in Paradise, Nevada. The casinos of Downtown Las Vegas, around Fremont Street, are the actual Las Vegas. 

Visitation to Vegas is down overall, and when people are visiting more of them are going downtown. 

The more budget-friendly area is also where lots of locals hang out in the evenings, and has a much more easy-going vibe. Cheaper drinks, lower table game minimums and discount hotel rooms abound around Fremont Street.

In a slower US economy overall right now, people are looking to save as many dollars as they can – whether they’re at home or on vacation. 

Las Vegas Strip properties are slowly reacting. A few large casino resorts – such as The Sahara and The Venetian and Palazzo – have lowered table game limits, cut resort fees and boosted their rewards and loyalty programmes. But will it be enough? Only time will tell if the iconic destination resort corridor will recover in 2025, although you wouldn’t bet against them bouncing back in the long run.