This week, Las Vegas welcomed U.S. President Donald Trump, who came to highlight the achievements of his tax reforms, particularly those benefiting workers in the region, and to endorse Nevada Governor Joe Lombardo for reelection in November. The atmosphere at Red Rock Casino on Wednesday was charged, marked by motorcades, heavy Secret Service presence, and American flags as Trump delivered an hour-long speech.
Trump's address covered a wide range of issues, including his signature "no tax on tips" provision, international relations concerning Iran, and critiques of President Joe Biden and the Democratic Party, which he referred to as "Dumocrats." He acknowledged Nevada as a "great state" filled with "hardworking American patriots."
The unique economic landscape of Nevada, heavily reliant on tourism and hospitality, results in the highest concentration of tipped workers in the nation. Trump’s "One Big, Beautiful Bill" introduced last July allows these workers to deduct up to $25,000 in tipped income from their federal taxes, a measure they welcomed amid strong job growth and an increasing average tax refund in the state.
During the 2024 presidential election, Trump secured a victory in Nevada with a narrow 50%-47% margin, though he lost Clark County, which encompasses Las Vegas. Reflecting on this win, he remarked, "No tax on tips didn’t hurt."
The idea for a tip tax exemption emerged during a June 2024 rally in Las Vegas, inspired by a waitress at Trump International Las Vegas who shared her struggles with tax burdens. Trump humorously noted, "It takes a waitress from Las Vegas to give us some good ideas."
Despite the benefits of the deduction for casino employees, critics claim Trump’s broader economic and foreign policies have negatively impacted tourism in Las Vegas. The deduction is only temporary, expiring in 2028, and married couples are required to share the $25,000 cap. Recent figures reveal a 7.5% drop in Las Vegas visitation in 2025 and a 6% decline in air traffic at Harry Reid International Airport. This year, visitation continued to falter with negative numbers in three of six months reported, and air traffic down by an additional 7%.
Canadian visitors, traditionally a key market for Las Vegas, have also been significantly lower, with major airlines like Air Canada and WestJet reporting declines of 16% and 23% respectively. In response, local officials, including LVCVA CEO Steve Hill, have made efforts to entice Canadian travelers back to the city, while Trump remarked, "Canada’s nasty, they are, they’re nasty, nasty leadership."
In his speech, Trump also celebrated the implementation of increased tariffs, a cornerstone of his economic strategy. Since April, he has dramatically raised tariffs on Canada, Mexico, the UK, the EU, and China. "The tariffs have made us rich," he asserted, despite acknowledging the subsequent legal predicaments surrounding the tariffs following the U.S. Supreme Court's ruling earlier this year.
For the gaming industry, these tariffs have resulted in rising costs and unsteady market conditions. The Tax Foundation estimated that households faced an average tax increase of $1,000 in 2025 due to tariffs, a trend that has continued into 2026.
High-profile members of the Las Vegas community such as Frank and Lorenzo Fertitta, Phil Ruffin, and Dana White attended the event. Trump praised the Fertittas, calling them "loaded," while commenting on their successful management of Red Rock Resorts, which has seen record performance recently even amidst slight revenue declines last quarter.
Trump also referred to Ruffin as "one of the greatest businessmen in the world" while acknowledging his various properties, including Circus Circus and Treasure Island. Ruffin's wife, Oleksandra Nikolayenko, garnered attention as well, with Trump adding, "I’m more impressed by her."
Dana White introduced Trump, and while supportive of his policies, also brought up the need to reconsider a controversial gambling loss deduction, which Trump did not address.
Trump’s endorsement of Governor Lombardo was enthusiastic, especially in light of the upcoming gubernatorial race against Democratic candidate Aaron Ford, who is currently favored in prediction markets. Lombardo's campaign must navigate these challenges in a swing state like Nevada, where Ford is actively fighting against prediction markets perceived as threats to the state's gambling dominance.
During the event, Lombardo had to intervene after a crowd member booed during a moment honoring fallen police officer Austin Abdelnabi, emphasizing the need for respect in such solemn instances.
