This week, Las Vegas welcomed U.S. President Donald Trump, who was in town to promote his tax reforms, heavily influenced by the city's economy, and to support Nevada Governor Joe Lombardo in his reelection campaign. During a speech at Red Rock Casino on Wednesday afternoon, Trump ranged widely on topics, from his "no tax on tips" policy to criticisms of Democrats and references to the Iran war.
Trump, who served as both the 45th and 47th President, did not shy away from derogatory remarks about the Democratic party, referring to them as "Dumocrats," even though five of the six Congressional representatives from Nevada currently identify as Democrats. "I’ve been fighting for the people of Nevada like no president ever has before," he said, praising the state and its hardworking residents.
Given Nevada’s strong dependence on the tourism and hospitality sectors, the state has the highest proportion of tipped workers in the country. Trump’s "One Big, Beautiful Bill" introduced last July allows eligible workers to deduct up to $25,000 from their federal taxes on tipped income. With a considerable uptick in job creation over the past year, Nevada recorded the fourth-highest average tax refund in the nation, according to Upgraded Points.
In the 2024 presidential election, Trump won Nevada by a margin of 50% to 47%, even though he lost in Clark County, which includes Las Vegas, to Democratic candidate Kamala Harris. He attributed his victory in part to the "no tax on tips" policy, asserting, "No tax on tips didn’t hurt."
Trump initially proposed the no tax on tips idea during a Las Vegas rally in June 2024 after speaking with a waitress who voiced her frustration over her tax bills. "You hire these people, you pay ’em millions of dollars, they don’t come up with crap," Trump joked about advisors, emphasizing how a simple conversation with a waitress inspired significant tax policy.
However, some analysts contend that Trump’s economic and foreign policies have contributed to a steady decline in tourism to Las Vegas. The deduction, which is set to expire in 2028, also has limitations for married couples needing to divide the $25,000 cap.
Data from the Las Vegas Convention and Visitors Authority reveal a 7.5% drop in visitors to the city in 2025, alongside a 6% decrease in air traffic at Harry Reid International Airport. Early 2026 reports indicate that visitation was negative in three of six months, with a further 7% downturn in air traffic. Historically, Canada has been a key source of travelers to Las Vegas, but airline traffic from major carriers like Air Canada and WestJet is down significantly this year. In response, state officials have traveled to Canada to encourage tourists to return, with some casinos offering promotions aimed at Canadian visitors.
Trump remarked, "Canada’s nasty, they are, they’re nasty, nasty leadership," while expressing his affection for the people.
In his speech, Trump lauded increased tariffs, a cornerstone of his economic strategies during his second term. Since announcing new tariffs on economic partners including Canada and China in April, Trump has underscored their financial benefits, claiming, "The tariffs have made us rich." Yet, many of these tariffs faced legal challenges, including the ones struck down by the U.S. Supreme Court, which resulted in refunds totaling $100 billion. Rising tariffs have created notable challenges for gaming industry suppliers, with tax increases averaging $1,000 per U.S. household in 2025, according to the Tax Foundation.
Several prominent figures from Las Vegas were present at Trump's speech, including business moguls Frank and Lorenzo Fertitta, Phil Ruffin, and Dana White. Trump praised the Fertitta brothers as "loaded" for their successful ventures in the gaming industry, noting Red Rock's record performance over the last two years despite a drop in revenue this past quarter. Ruffin, whom Trump referred to as "one of the greatest businessmen in the world," owns a substantial portfolio that includes Circus Circus and Treasure Island. White introduced Trump at the event and recently hosted a fight card at the White House, emphasizing his support for Trump's policies, including the tax on tips.
As for Lombardo, Trump endorsed him enthusiastically for reelection in an upcoming tight race against Democratic challenger and current Attorney General Aaron Ford. With Nevada’s unpredictable political landscape, Lombardo faces a significant challenge, as polling indicates Ford has a slight advantage in various markets.
During the event, Lombardo had to address audience members who booed during a moment of silence for fallen police officer Austin Abdelnabi, reminding attendees to honor the officer respectfully.
Jess Marquez has reported on the gaming sector since 2022, and is particularly knowledgeable about the region, noting the correct pronunciation of Nevada.
