The Shift in Las Vegas: A Tale of Two Markets
While the Las Vegas Strip is experiencing a slowdown in foot traffic and declining room rates, an unexpected group of casinos is thriving. These are not the high-profile, neon-lit establishments that dominate the Strip but rather suburban and "locals" casinos across the Las Vegas Valley. These casinos are having a banner year, even as the Strip grapples with slumping tourism, fewer conventions, and economic challenges.
So, what’s driving this boom outside the neon core? And how can travelers take advantage of this shift?
A Record-Breaking Quarter for Suburban Casinos
Red Rock Resorts, which owns Station Casinos and operates seven off-Strip properties including Red Rock, Green Valley Ranch, and the new Durango Casino Resort, just reported its highest quarterly net revenue in its 49-year history: $526.3 million in Q2, an 8.2% year-over-year increase.
Stephen Cootey, CFO and EVP of Red Rock Resorts, highlighted the success of the Durango Casino Resort in expanding the Las Vegas locals' market, driving incremental play from existing customers, and attracting new guests. Since opening in December 2023, the casino has added more than 108,000 new customers.
Boyd Gaming, another major player in the local market, also reported year-over-year growth for the first time in two years for its Las Vegas locals segment. CFO Josh Hirsberg noted that while demand from destination business has declined, it has been more than offset by retail and drive-in traffic.
The Struggles on the Strip
In contrast, the Strip is facing a cooling trend. Major casino operators are tightening their belts. Caesars Entertainment reported a 3.7% decline in Las Vegas revenue and an $82 million net loss in Q2. Hotel rates at properties like The Flamingo have dipped as low as $18 per night for late August midweek stays.
MGM Resorts also reported a 4% decline in Strip revenue, with CEO Bill Hornbuckle attributing the drop to ongoing room remodels and fewer big-ticket events like Adele or Garth Brooks residencies. “Some of the rates out there this next midweek are comparable to things I saw 20 years ago,” he said.
According to the Las Vegas Convention and Visitors Authority’s June 2025 Executive Summary:
- Visitor volume was down 11.3% year-over-year
- Convention attendance fell 10.7%
- Hotel occupancy dropped to 78.7%, down 6.5 percentage points
- RevPAR (Revenue per available room) fell 13.8%, to $128.78
Meanwhile, statewide gaming revenue rose 3.53%, led by gains in locals markets:
- Boulder Strip: +19.3%
- Downtown Las Vegas: +10.5%
- Red Rock/Durango suburbs: substantial growth cited by casino execs
New Federal Policies Impacting Tourism
Several new federal policies appear to be hitting Las Vegas Strip tourism hard. The "Visa Integrity Fee," which adds a $250 refundable charge to many international travelers, is discouraging some from flying into the U.S. altogether. Additionally, Trump's "Big Beautiful Bill" changed tax law for gamblers, capping loss deductions at 90% instead of 100%. Casino owners say some high-volume players are already taking their business offshore.
In response, Caesars and MGM are leaning more heavily on databases, loyalty programs, and regional marketing to lure U.S. tourists back to Vegas.
Why Locals Casinos Are Thriving
Unlike Strip hotels, suburban casinos serve working Nevadans — and that customer base just got a financial boost. According to Red Rock Resorts, several new federal changes are helping customers spend more. The No Tax on Tips bill is estimated to free up $5 million per year in discretionary income across Clark County. Expanded overtime pay and senior tax credits are expected to benefit hundreds of thousands of Las Vegas residents.
This means more frequent visits to local casinos, more spending on slots, food, and drinks, and stronger loyalty overall.
What Travelers Should Know
If you’re planning a Las Vegas vacation this year, don’t be surprised if the best bang for your buck isn’t on the Strip. Deep discounts are now common on Strip hotels midweek — some rates as low as $20/night. Off-Strip casinos like Red Rock, Green Valley Ranch, and Durango offer free parking, lower table minimums, crowd-free gaming floors, along with a heavy focus on food, value, and local customer service.
Vegas isn’t going anywhere, but where the action is has shifted. While the Strip deals with tourist slowdown, suburban casinos are booming on the backs of loyal locals and tax policy. For budget-conscious travelers, this might be the perfect year to visit Las Vegas — just skip the Strip.
