Recent data from Las Vegas highlights a trend of declining air traffic paired with rising gaming revenues. In May, the Strip's gaming revenue increased by 13% year-over-year, totaling $807.8 million, as reported by the Nevada Gaming Control Board. The surge was primarily driven by baccarat, which accounted for $174.3 million in winnings for the month, marking a remarkable 59% rise compared to last May. As the fiscal year approaches its end, Las Vegas shows a 2.2% increase in revenue compared to last year, while the state overall is seeing a 2.7% uptick.
Visitor numbers also improved, with May recording just under 3.5 million arrivals, a 2% increase according to the Las Vegas Convention and Visitors Authority. This represents the first significant year-over-year tourism growth of at least 2% since 2024. Despite these positives, average daily rates and revenue per available room on the Strip saw larger increases of 6% and 10%, respectively, while total occupancy rose by 2%.
Air travel remains a challenge, though. Passenger counts at Harry Reid International Airport fell to 4.5 million in May, marking an 8% year-over-year decline. Year-to-date traffic is 6% lower, with international numbers also dipping significantly.
In stark contrast, Reno is enjoying a solid year. May's gaming revenue in Reno reached $70.5 million, up 11% compared to last year. The city is currently 6% ahead of last year's pace, outperforming other major markets in Nevada.
Reno's tourism sector is thriving, with Reno-Tahoe International Airport reporting a 4% increase in spring air traffic compared to last year. The airport noted record high passenger counts for both April and May in nearly two decades and has added approximately 45,000 additional roundtrip seats in response to increased demand.
Convention business has also seen growth, with a 14% rise year-to-date, and taxable room revenue has hit a record for April at $52.6 million. In May alone, visitor counts surged by 17% year-over-year, leading to a 27% rise in taxable room revenue.
This spring success follows a historically strong quarter for Reno, which recorded $106 million in taxable room revenue during Q1, a 3% increase year-over-year.
Mike Larragueta, president and CEO of Visit Reno Tahoe, emphasized the positive impact of tourism on the local economy, pointing out that the numbers reflect the growing strength of Reno Tahoe as a destination.
Las Vegas remains the focus of significant nationwide attention, largely due to mergers and acquisitions. Caesars Entertainment is set to be acquired by Fertitta Entertainment, while MGM Resorts’ largest shareholder, Barry Diller, recently proposed a buyout for the company. These developments have the potential to energize further M&A activity within the sector.
Additionally, Las Vegas is a finalist for NBA expansion, with discussions ongoing for some time. A decision could be forthcoming this month regarding the establishment of an NBA team in the city.
Reno is also on an upward swing, as plans by Alex Meruelo to construct a 10,000-seat arena at Grand Sierra Resort are underway as part of a $1 billion expansion initiative, slated to house the University of Nevada men's basketball team in 2028.
Downtown Reno has also seen significant improvements, as Jacobs Entertainment completed $400 million worth of renovations at its J Resort property. These updates include interior enhancements and new festival grounds, alongside other infrastructure developments, signaling a commitment of over $1 billion to the area.
Furthermore, established operators are thriving, with Monarch Casino, the operator of Atlantis Casino Resort, seeing its stock rise by 35% this year, second only to Penn Entertainment’s 48% gain.
