Why Vegas Tourism is Hurting

As online gambling has expanded manyfold over the last few decades, we’ve written multiple articles asking, “Is This the End of Las Vegas?” And while we know that Vegas will never truly fold or collapse what we really mean is “Is Vegas shrinking?”

The reports for June 2025 are in and it’s not looking good for the oasis in the desert. Overall tourism is down 11.3% compared to June of 2024. This means a significant drop in tourism and casino revenue for operators.

There are many reasons as to why tourism is down in Las Vegas. Officially, there were 4.3% less crossings from California into Nevada year over year. A big chunk of revenue generated in Las Vegas comes from Californians. Times are harder in California, as you may have heard, as they have the highest tax rate in the union and cost of living is the highest as well. This leaves less disposable income to use for trips across the border to enjoy live shows and to gamble.

Air travel into Las Vegas has decreased 6.3% as well. People are opting to travel to their local tourist spots rather than hopping on a plane for four hours. Can you blame them? Flying in 2025 a nightmare. They jam you into a tiny seat between two fat people and make you pay to drink water. It is truly an unpleasant experience.

Today, you can sit in the comfort of your own home and play casino games or bet at the online sportsbook if that’s why you used to travel to Vegas for. Oh, and gone is the “sin city” aspect of old Vegas. People would travel there to really throw down and party and then be able to hop on a plane to leave it all behind. Nothing stays behind in Vegas anymore, expect maybe your bankroll. It’s a family-friendly destination now.

I go to Vegas every year and I can tell you it just simply isn’t the same. The entire experience is different. It feels like an outdated or semi-obsolete concept. There is really nothing in Vegas that you cannot get in your home state or the one next to it. It’s still a good place to catch a special event like the Super Bowl, championship fight or a convention for work but I don’t think it is attractive in the same way it once was. Others in my industry say the same thing.

You are no longer an individual who gets special treatment. You are a number on a turnstile. Even people who show up with their loyalty rewards cards stand in long lines as soon as they arrive. You are cattle, to be processed and put into a room so they can start syphoning money from you.  Even millionaire whales notice how impersonal it has gotten.

Certain media outlets will have you believe it has something to do with the current administration of state(s) or even at the federal level, but I assure you this has been in the making for quite some time.

Expect to receive a ton of “35% off to stay here” emails from Vegas hotels where you have stayed before. They are starting to pull out all the stops to get the money cattle flowing again. Vegas has taken its visitors for granted for far too long and they are now starting to feel the pain of those decisions.

Not All is Lost

It may seem like I created an article with the soul intent to throw shade at Vegas, but I assure you that wasn’t my goal. Plenty of good times can still be had there. Gambling revenue is not collapsing in Las Vegas. In fact, it’s as good as it has ever been. Vegas is not going away anytime soon, and visitor numbers will bump around and there will be executives scrambling to figure out how to make things better.

Below are gambling revenue numbers for Las Vegas for the last ten years. As you can see, Vegas will be fine.

Approximate Data (in billions of USD)

2016: ~$11.5 (gradual growth)
2017: ~$12.0 (pre-pandemic growth)
2018: ~$12.5 (steady increase)
2019: ~$13.4 (pre-pandemic peak)
2020: ~$8.3 (significant drop due to pandemic)
2021: ~$13.4 (recovery)
2022: ~$14.8 (record year)
2023: ~$15.5 (new record)
2024: ~$15.6 (slight increase, based on partial data)

Las Vegas has been cannibalizing itself for years, long before Trump returned to office. Beloved hotels were torn down in favor of soulless glass towers, free parking vanished, resort fees skyrocketed, and even basic conveniences like an empty fridge were removed unless you paid… pic.twitter.com/Hhj9qGRUSX

— Lionel (@LionelMedia) August 3, 2025

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