Recent gaming and tourism data from Las Vegas reveals a continued trend of lower air traffic coupled with rising gaming revenue as of May. Despite the hype around Las Vegas, its northern counterpart, Reno, is also experiencing a notable surge in activity.
In Las Vegas, gaming revenue on the Strip reached $807.8 million in May, marking a 13% increase compared to the previous year, according to the Nevada Gaming Control Board. This uptick is largely attributed to a significant performance boost in baccarat, where the Strip garnered $174.3 million, a remarkable 59% rise from last May. As the fiscal year approaches its end, Las Vegas is about 2.2% ahead of last year’s figures, while the entire state shows a 2.7% increase.
Visitor numbers for May approached 3.5 million, reflecting a 2% increase year-over-year, as reported by the Las Vegas Convention and Visitors Authority. This marks the first year-over-year tourism rise of at least 2% since 2024. Overall occupancy in the city also rose by 2%, with average daily rates and revenue per available room on the Strip surging by 6% and 10%, respectively.
However, air travel remains a challenge for the market, extending into 2026. The Harry Reid International Airport reported that May's passenger count dropped to 4.5 million, an 8% year-over-year decrease. Year-to-date passenger traffic has decreased by 6%, mirroring last year's decline. Furthermore, international traffic is down 7% for 2025, with an additional 12% drop noted in 2026 so far.
In contrast, Reno has experienced a remarkably strong year, with May gaming revenue hitting $70.5 million, an 11% increase from the previous year. Reno is currently leading all major markets in Nevada with a fiscal year-to-date growth rate of 6% over the last year.
Reno's tourism figures are at an all-time high, as the Reno-Tahoe International Airport announced that spring air traffic rose by 4% compared to last year, including the highest passenger numbers in April and May in nearly two decades. To accommodate the demand, airlines have added about 45,000 additional roundtrip seats this summer compared to the previous year.
Moreover, convention and group business has surged, increasing 14% year-over-year for the fiscal year through April. April recorded a record taxable room revenue of $52.6 million, while May saw visitor numbers rise by 17% year-over-year, with taxable room revenue climbing 27%.
This impressive performance follows Reno's best quarter ever, with taxable room revenue for the first quarter reaching $106 million, marking a 3% annual increase.
Mike Larragueta, president and CEO of Visit Reno Tahoe, commented, "Tourism continues to be a major economic driver for our community. These numbers reflect the strength of our meetings and events business and the appeal of Reno Tahoe as an easy-access destination."
On a broader scale, Las Vegas is drawing significant attention due to various mergers and acquisitions. Caesars Entertainment recently agreed to be acquired by Fertitta Entertainment in May. Shortly after, Barry Diller, the largest shareholder in MGM Resorts, made a buyout offer for the casino company, potentially prompting increased merger activity in the industry.
Las Vegas is also a front-runner for NBA expansion, with discussions ongoing for several years. A finalized vote on this expansion could occur within the month, raising questions about potential franchise values and ownership.
Reno, too, is on a positive trajectory. The Grand Sierra Resort, owned by Alex Meruelo, is constructing a state-of-the-art 10,000-seat arena. This project is part of a broader $1 billion expansion and will serve as the new home for the University of Nevada men’s basketball team starting in 2028.
Meanwhile, Jacobs Entertainment wrapped up its $400 million Phase One renovations of the J Resort property in May, including various upgrades and new facilities. The company is committed to investing over $1 billion in the region.
Even established operators are thriving, as evidenced by Monarch Casino, which owns the Atlantis Casino Resort. Its shares have risen by 35% this year, ranking second among casino operators, trailing only behind Penn Entertainment’s 48% increase.
