Las Vegas in Trouble: Casinos Go Quiet as Tourism Plunges

Las Vegas, once hailed as the entertainment capital of the world, is facing a serious downturn. Streets that used to buzz with excitement are now quiet. Casino floors that once hummed with activity now stand oddly still. Tourism, the lifeblood of the city, is in steep decline—and it’s starting to hurt.

Visitors Disappear, Casinos Go Quiet

According to the Las Vegas Convention and Visitors Authority (LVCVA), only 3.1 million people visited Las Vegas in June 2025, marking an 11.3% drop compared to the same month last year. The decline follows a broader trend: tourism is down more than 6% overall for the first half of the year.

Hotel occupancy fell by 6.5%, and average daily room rates dropped by 6.6% to $163.64. By early July, occupancy had sunk to just 66.7%—nearly 17% lower than last year. Even airport traffic is down. Passenger numbers at Harry Reid International Airport dropped 3.4% in April, and international arrivals fell more than 13% in June.

One social media user posted a photo of an empty casino, saying simply, “Las Vegas is dead bro.” Another wrote, “They say casinos are empty… people are being laid off… there is no tourism.” It’s a sentiment echoed across Reddit, where users blame overpricing, summer heat, and a lack of events. One user said bluntly, “Vegas will never recover.”

Workers Feeling the Pinch

The collapse in foot traffic is hitting Las Vegas workers hard. In a city where nearly a quarter of the population is tied to the tourism industry, fewer visitors mean fewer jobs and lower incomes.

Charlie Mungo, a tattoo artist downtown, told the Wall Street Journal his monthly earnings have plummeted to $1,500 – half of what they used to be. He used to count on Canadian tourists for 30% of his business, but they’ve all but vanished. “We’re all starting to freak out,” Mungo said.

Jacob Soto, a supervisor at Pinkbox Doughnuts, reported that his weekly credit card tips fell from $175–$200 to $100–$150. With his base pay at just $15 an hour, tips are essential. “I kinda rely on tips at the end of the day,” he admitted.

Rory Kuykendall, a bellperson at the Flamingo, said his tip income has become “underwhelming.” With the cost of living rising, he’s been forced to cut back on groceries and other essentials. “It really feels off,” he said.

What’s Driving the Decline?

Industry insiders say the drop in visitors is the result of several combined pressures. High costs are scaring away budget-conscious travelers. Rising resort fees, food prices, and taxes have made trips to Vegas feel less like a vacation and more like a financial squeeze.

A cheeseburger with fries at Mon Ami Gabi on the Strip now costs over $30 before taxes and tip, compared to under $17 just four years ago. “Vegas is not fun anymore,” said retail entrepreneur Amrita Bhasin, citing expensive extras that inflate even simple stays.

Meanwhile, international travel is falling due to economic worries and a new $250 visa fee for non-immigrant visitors. Immigration fears, particularly among hospitality workers, are adding further uncertainty. The Culinary Workers’ Union reports that fears of ICE raids have led many to stay away from the job market entirely.

Add to that the impact of President Trump’s tariffs on Canadian goods, which have led many Canadians to boycott American destinations altogether. The results are clear: fewer people, less money, and a quieter Strip.

Industry Experts Weigh In

Tom Reeg, CEO of Caesars Entertainment, recently warned of a “soft summer” during an earnings call. Gaming consultant Bill Zender compared the current pricing model to the over-inflated market of 2008–2009, warning Vegas might be “overpricing the market” once again.

Jeremy Aguero, a senior analyst at Applied Analysis, said Las Vegas’s economy is more dependent on tourism than any other major U.S. city. “Declining tourism is having a ripple effect,” he said. “This is a pretty formidable one-two punch.”

David Schmidt, chief economist with Nevada’s Department of Employment, said the casino industry itself has been stagnant for years. “The casino industry in Las Vegas peaked in 2006,” he said. “Where we’ve seen growth has been in food services.”

A City on Edge

Las Vegas’s $87 billion tourism industry is now facing its biggest challenge in decades. Revenues are falling. Gaming profits across Nevada dropped by 2.2% in May, while the Strip alone saw a 3.87% drop. Real estate is also seeing a shift. Realtor.com reports a 77% year-over-year increase in home listings, as investors start to cash out.

Locals are worried. Some have compared the Strip to a “ghost town.” One Las Vegas worker put it simply: “We’re all starting to freak out.”

Is There Hope for Recovery?

Despite the gloom, not everyone is ready to give up. Economist Schmidt noted that Las Vegas has seen growth in non-casino sectors like food, entertainment, and sports. Jeremy Aguero echoed that optimism, saying, “If there’s one thing Las Vegas has proven, it’s that it is both resilient and resourceful.”

Travel adviser Mallory Dumond told Fox News Digital that with smart planning, visitors can still find value. She recommends visiting from Sunday through Thursday and taking advantage of lunch deals and happy hour specials.

Still, the road ahead will require more than travel hacks. Vegas may need to rethink its identity—beyond gaming—to attract the modern traveler. Whether it can pull off that transformation remains to be seen.

But one thing is clear: the lights are still on in Las Vegas, but the crowds that once gave them meaning are fading fast.

FAM Editor: While I respect the power and prosperity of Las Vegas, I am not a gambler (or rather, I’m a lousy one) and cannot be overly emotional about its woes. Perhaps this will allow for a rebalancing of one of the most expensive and predatory cities in America.

But if you are thinking about investments (and no, we don’t give advice), you might want to watch for dips in the stock prices of major casino-owning entities. Las Vegas is legendary for a lot of things – resilience is one of them.

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