This week, Las Vegas was abuzz as President Donald Trump arrived to highlight the success of his federal tax reforms, often credited to the influence of the city. During a speech at Red Rock Casino, Trump endorsed Nevada Governor Joe Lombardo, who is campaigning for reelection in November.
The former president delivered an hour-long address, covering a wide array of topics. He touted his provision for a "no tax on tips" policy, touched on foreign relations, criticized his predecessor Joe Biden, and seized the moment to rail against Democrats, referring to them dismissively as "Dumocrats." Interestingly, five of Nevada’s six Congressional representatives are Democrats.
"I’ve been fighting for the people of Nevada like no president ever has before," Trump proclaimed, calling Nevada a "great state" populated by "thousands of proud, hardworking American patriots."
A significant percentage of Nevada's workforce relies on tourism and hospitality, giving it the highest number of tipped workers in the country. Trump’s initiative, dubbed the "One Big, Beautiful Bill" last July, allows eligible employees to deduct as much as $25,000 in tipped income from their federal taxes. Recent reports indicate strong job growth in Nevada, with the state achieving the fourth-highest average tax refund in the country during the last tax season, according to Upgraded Points.
Trump narrowly won Nevada in the 2024 presidential election, securing 50% of the vote compared to Democratic candidate Kamala Harris’s 47%. He remarked on his victory, saying, "No tax on tips didn’t hurt."
The idea for waiving taxes on tips first emerged during a campaign rally in Las Vegas in June 2024. Trump shared a personal anecdote, recalling a "beautiful" waitress from the Trump International Las Vegas hotel who lamented her tax burden while he dined there.
"She was my consultant… You hire these people, you pay ’em millions of dollars, they don’t come up with crap," he joked, adding that it was a simple waitress from Las Vegas who provided valuable insights.
While this tax deduction has provided some assistance to casino workers, critics argue that Trump’s economic and foreign policies have exacerbated a long-standing decline in tourism for Las Vegas. The deduction, however, is set to expire in 2028, and married couples must share the $25,000 limit.
Data from the Las Vegas Convention and Visitors Authority showed a 7.5% drop in visitation to the city in 2025, with a 6% dip in air traffic at Harry Reid International Airport. Six months into 2026, three months have seen negative visitation figures, and air traffic has further decreased by 7%.
Canada has historically been a major source of tourists for Las Vegas, but traffic from airlines such as Air Canada and WestJet has fallen by 16% and 23%, respectively, this year. LVCVA CEO Steve Hill, alongside other officials, has traveled to Canada to address these concerns. Several casinos have initiated Canadian-focused deals to attract travelers.
Trump characterized Canada’s leadership in less favorable terms, stating, "Canada’s nasty, they are, they’re nasty, nasty leadership. I love the people but they’re nasty."
The speech also prominently featured Trump’s praise of increased tariffs—a hallmark of his economic strategy during his second term. Beginning with "Liberation Day" announcements last April, Trump has significantly raised tariffs on major trade partners including Canada, Mexico, the UK, the EU, and China.
"The tariffs have made us rich," he asserted during his address. However, his initial tariffs have faced legal challenges, with the U.S. Supreme Court striking them down in February and refunding $100 billion. Undeterred, Trump has proposed new tariff rates that are also encountering legal scrutiny.
The gaming sector is grappling with the rising costs associated with tariffs. The Tax Foundation estimated that these increased tariffs resulted in an average tax hike of $1,000 per U.S. household in 2025, with a figure of $900 so far for 2026. Tariff rates have fluctuated over 50 times since Trump took office again.
"Instead of saying, ‘We’ve been doing it this way for 10 years, let’s keep doing it’, everybody’s trying to be a little bit more efficient and a little bit more dynamic," remarked Daron Dorsey, CEO of the Association of Gaming Equipment Manufacturers.
Several influential figures from Las Vegas attended the event, including Frank and Lorenzo Fertitta, Phil Ruffin, and Dana White. Trump praised the Fertittas, saying, "What a beautiful family, aren’t they loaded? They own this beautiful hotel, which I’m sure is doing well cause everything they have does well."
Despite the recent decrease in the company’s Las Vegas revenue and adjusted EBITDA by 2% and 5% respectively year-over-year for Q2, Red Rock has performed well in the locals market. Frank and Lorenzo's cousin, Tilman Fertitta, recently acquired Caesars Entertainment for $17.6 billion and also serves as an ambassador in Trump’s administration.
Trump also called Ruffin "one of the greatest businessmen in the world" and acknowledged his ownership of several major Las Vegas properties. He remarked with admiration about Ruffin's wife, Oleksandra Nikolayenko.
White introduced Trump at the event, two months after the UFC hosted a fight card at the White House, exhibiting his support for Trump despite his plea for the president to reconsider the 90% gambling loss deduction from the OBBB, which went unmentioned in the speech.
Trump’s endorsement of Governor Lombardo for reelection reflected the competitive nature of the upcoming race in November. He urged, "Will you please win by a big number?"
As a critical swing state, Nevada could easily shift between Republican and Democrat, with Lombardo facing a strong challenge from Attorney General Aaron Ford, who is currently a favorite to win.
Furthermore, Ford leads the state’s legal opposition to controversial prediction markets, which Nevada views as a significant threat to its gambling dominance. Due to effective legal action, Nevada has shut down several prediction market platforms within its borders. These successes could enhance Ford’s credibility as election day approaches.
During the speech, Lombardo addressed a belligerent crowd member who booed during a moment of silence for fallen officer Austin Abdelnabi, stating, "No, no, we’re not booing him. He’s the officer that passed away here recently."
