Las Vegas buzzed this week with the arrival of US President Donald Trump, who used the occasion to highlight the success of his federal tax reforms, drawing inspiration from the city, while also backing Nevada Governor Joe Lombardo in his upcoming reelection bid.
Delivering a speech at the Red Rock Casino on Wednesday, Trump roamed across topics for an hour, discussing everything from his signature "no tax on tips" provision to foreign relations and his opposition to President Joe Biden. The former president, known for his sharp rhetoric, did not hold back in criticizing Democrats, whom he labeled as "Dumocrats," despite a majority of Nevada’s Congressional members being from that party.
"I’ve been fighting for the people of Nevada like no president ever has before," Trump asserted, praising the state as a "great place" filled with "thousands of proud, hardworking American patriots."
Nevada’s economy, heavily reliant on tourism and hospitality, has the highest proportion of tipped workers in the country. Trump's tax reform, termed the "One Big, Beautiful Bill," passed in July and allows eligible workers to deduct up to $25,000 in tipped income from their federal taxes. The state has experienced job growth over the past year, concluding the last tax season with the fourth-highest average tax refund in the nation, according to Upgraded Points.
In the 2024 presidential election, Trump secured Nevada with a 50%-47% margin, though he lost Clark County, which includes Las Vegas, to Democratic candidate Kamala Harris by the same margin.
"No tax on tips didn’t hurt," he remarked, reflecting on his previous victory in the state.
However, while the tax deduction appears beneficial, some critics claim that Trump's policies have also contributed to a decline in tourism, a cornerstone of the Las Vegas economy. The deduction is temporary, set to expire in 2028, and married couples must share the $25,000 limit.
According to the Las Vegas Convention and Visitors Authority, city visitation dropped 7.5% in 2025, with air traffic to Harry Reid International Airport down 6%. In 2026, three out of six months have shown negative visitation trends, and air traffic has decreased further by 7%.
Previously a primary market for Las Vegas, Canadian travelers have seen a decline in flight services, with Air Canada and WestJet reducing service by 16% and 23% year-to-date, respectively. To counter this, officials from the Las Vegas Convention and Visitors Authority (LVCVA) have traveled to Canada, and local casinos are rolling out promotions to attract back Canadian visitors.
"Canada’s nasty, they are, they’re nasty, nasty leadership," Trump commented during his speech. "I love the people but they’re nasty."
Tariffs were a major topic in Trump’s address, showcasing his strong advocacy for increased tariffs throughout his second term. Beginning in April 2024, he raised tariffs on several major trade partners, labeling the effects as financially rewarding.
"The tariffs have made us rich," Trump declared, although he faced challenges as the initial tariffs were struck down by the US Supreme Court, leading to a $100 billion refund in generated revenue. Trump's revised tariff plans have also sparked legal disputes, leading to rising costs for the gaming supply sector. The Tax Foundation reported that increased tariffs contributed to an average increase of $1,000 in taxes for US households in 2025.
Daron Dorsey, CEO of the Association of Gaming Equipment Manufacturers, noted the industry’s adjustment to these financial fluctuations, stating, "Instead of saying, ‘We’ve been doing it this way for 10 years, let’s keep doing it’, everybody’s trying to be a little bit more efficient."
Among the prominent attendees at the event were Las Vegas figures such as Frank and Lorenzo Fertitta, Phil Ruffin, and Dana White. Trump praised the Fertittas, who lead Red Rock Resorts. "What a beautiful family, aren’t they loaded?" he said.
Despite Red Rock’s performance growth, they reported a decrease in revenue and adjusted EBITDA year-over-year for Q2. The Fertitta family is also reportedly involved in the recent high-profile acquisition of Caesars Entertainment.
Ruffin, whom Trump referred to as "one of the greatest businessmen in the world," owns several casinos and properties. In a nod to Ruffin's wife, he remarked, "I’m more impressed by her."
White introduced Trump at the event, discussing a recent successful UFC fight held at the White House. While supportive of Trump’s tax policies, White had earlier voiced concerns regarding a gambling loss deduction included in Trump's reforms, which was notably absent from the speech.
Trump provided a robust endorsement for Lombardo in the impending gubernatorial race, which many consider critical. Lombardo is competing against current Attorney General Aaron Ford, who holds a popularity edge according to various prediction markets.
Lombardo previously addressed a crowd member who disrupted a moment of silence for local police officer Austin Abdelnabi, who recently passed away in the line of duty, emphasizing the importance of respect during the tribute.
