The latest data from Las Vegas indicates a familiar trend: while air travel numbers have dipped, gaming revenue has risen significantly. In May, the Strip's gaming revenue climbed 13% year-over-year to reach $807.8 million, according to the Nevada Gaming Control Board. This increase was largely driven by baccarat, which generated $174.3 million—up 59% from the same month last year. As the fiscal year approaches its conclusion, Las Vegas appears to be about 2.2% ahead of last year’s totals, with the state overall seeing a 2.7% increase.
Total visitation to Las Vegas in May reached just under 3.5 million, an increase of 2% from the previous year, marking the first tourism growth of at least 2% since 2024, as reported by the Las Vegas Convention and Visitors Authority. While overall occupancy in the city rose by 2%, the average daily rates and revenue per available room on the Strip saw even larger gains, up 6% and 10%, respectively.
Air traffic trends, however, continue to present challenges. The passenger count at Harry Reid International Airport in May was 4.5 million, which reflects an 8% decrease compared to last year. Year-to-date, airport traffic is down 6%, echoing declines witnessed in 2025. International traffic has also fallen, dropping 7% in 2025 and an additional 12% in 2026.
In contrast to Las Vegas's mixed performance, Reno is enjoying a robust year. The city reported $70.5 million in gaming revenue for May, an 11% increase from last year. Year-to-date, Reno's fiscal performance is now 6% ahead of the previous year, the strongest in Nevada’s major markets.
Reno's tourism numbers have soared, with Reno-Tahoe International Airport noting a 4% year-over-year increase in spring air traffic, witnessing the highest passenger counts in April and May in nearly two decades. Airlines have added 45,000 additional roundtrip seats to cater to increasing demand compared to last summer.
Through April, convention and group business in Reno rose 14% year-over-year. April set a record for taxable room revenue at $52.6 million, while May saw visitor counts increase by 17% and taxable room revenue jump 27% compared to last year. The city's spring success follows a record quarter, with taxable room revenue in Q1 hitting $106 million, an annual increase of 3%.
Mike Larragueta, president and CEO of Visit Reno Tahoe, stated, "Tourism continues to be a major economic driver for our community. These numbers reflect the strength of our meetings and events business, the appeal of Reno Tahoe as an easy-access destination and the direct impact visitors have on local hotels, restaurants, shops and small businesses."
Meanwhile, Las Vegas remains in the spotlight for potential mergers and acquisitions. Caesars Entertainment announced an agreement to be acquired by Fertitta Entertainment in May, while Barry Diller, the largest shareholder of MGM Resorts, has made a buyout offer for the casino giant. Analysts speculate that these significant deals could encourage further M&A activity in the industry.
Las Vegas is also a contender for NBA expansion, with discussions ongoing between the league and potential owners. The situation raises questions about the valuation of an expansion franchise and the specifics of team placement, with a vote expected as soon as this month.
Reno’s momentum includes developments such as the construction of a modern 10,000-seat arena by Alex Meruelo’s Grand Sierra Resort, part of a larger $1 billion expansion planned for the venue. This new arena will serve as the home for the University of Nevada men’s basketball team starting in 2028.
In addition to these major projects, Jacobs Entertainment has completed $400 million in renovations for its J Resort properties, enhancing both interiors and exteriors, including new festival grounds and youth soccer fields. The company has committed over $1 billion to invest in the region.
Established operators are also thriving; Monarch Casino, owner of Atlantis Casino Resort, has seen its shares rise by 35% this year, making it the second-best performer among casino operators, following Penn Entertainment, which has increased by 48%.
