Recent data from Las Vegas indicates a trend of declining air travel but increasing gaming revenue, continuing into May. While the excitement around Las Vegas remains high, Reno is also experiencing a notable surge in both gaming and tourism.
In May, gaming revenue on the Strip in Las Vegas increased by 13% compared to the same month last year, reaching $807.8 million, according to the Nevada Gaming Control Board. This growth is largely due to a significant rise in baccarat, with the Strip earning $174.3 million from the game, which marks a 59% increase year-over-year. As the fiscal year approaches its end, Las Vegas is about 2.2% ahead of last year’s performance, while the state overall is approximately 2.7% ahead.
Visitor numbers for May totaled nearly 3.5 million, representing a 2% increase compared to the same period in 2024, as reported by the Las Vegas Convention and Visitors Authority. This is the first year-over-year increase of 2% or more in tourism since 2024. While total occupancy rose by 2%, the average daily room rates and revenue per available room on the Strip increased by 6% and 10%, respectively.
However, air travel continues to pose challenges, with an 8% year-over-year decline in passenger counts, totaling 4.5 million in May, as stated by Harry Reid International Airport. Year-to-date traffic has decreased by 6%, identical to the drop seen in 2025. Additionally, international traffic was down 7% in 2025 and has seen a further 12% decrease in 2026 so far.
Contrasting with Las Vegas’s fluctuating performance, Reno has had a strong year, with gaming revenue of $70.5 million in May—up 11% year-over-year. This puts Reno on track to exceed last year's figures by 6% for the fiscal year, making it the top performer among Nevada's major markets.
Reno is also witnessing increased tourism, with Reno-Tahoe International Airport reporting a 4% rise in spring air traffic compared to last year. The airport recorded the highest passenger numbers in April and May over the past two decades, attributable to airlines adding 45,000 additional roundtrip seats in response to demand.
Convention and group business is up 14% year-over-year for the fiscal year to date through April, while April's taxable room revenue reached a new monthly record of $52.6 million, as noted by Visit Reno Tahoe. Visitor counts surged by 17% year-over-year in May, and taxable room revenue rose by 27%.
This spring's success follows the best quarter in Reno’s history, with taxable room revenue in Q1 hitting $106 million, a 3% year-over-year increase.
“Tourism continues to be a major economic driver for our community,” said Mike Larragueta, president and CEO of Visit Reno Tahoe. “These numbers reflect the strength of our meetings and events business, the appeal of Reno Tahoe as an easy-access destination, and the direct impact visitors have on local hotels, restaurants, shops, and small businesses.”
On a broader scale, Las Vegas is generating significant interest across the nation as it experiences a wave of mergers and acquisitions. In May, Caesars Entertainment announced plans to be acquired by Fertitta Entertainment. Shortly after, Barry Diller, MGM Resorts’ largest shareholder, made a buyout offer for the company, possibly fueling more M&A activity in the sector, according to top Wall Street analysts.
Las Vegas is also under consideration for NBA expansion, with discussions having occurred over several years. There is speculation around the financial implications of an expansion franchise, potential buyers, and facility details. A decisive vote on the expansion could occur as early as this month.
Meanwhile, Reno is poised for growth as well. The Grand Sierra Resort, under Alex Meruelo's ownership, is constructing a modern 10,000-seat arena that is part of a larger $1 billion expansion project. Set to house the University of Nevada men's basketball team starting in 2028, the arena reflects Reno's aspirations for the future.
In downtown Reno, Jacobs Entertainment completed Phase One renovations of its J Resort property in May, investing $400 million in upgrades, including new festival grounds, expanded resort entrances, and youth soccer fields. The company has committed over $1 billion in total investments to the region.
Notable performers in the industry include Monarch Casino, the operator of Atlantis Casino Resort, which has seen shares rise by 35% this year, second only to Penn Entertainment, which reported a 48% increase.
