Las Vegas and Atlantic City casinos are under pressure as visitor numbers fall and economic headwinds build. Las Vegas in particular saw a sharp decline in June visitation, leaving convention centers, hotels and casinos with lower foot traffic. Reduced foreign spending has added to the strain, as families cut back on travel. At the same time, real-money online casino gaming continues to grow, offering a stark contrast to the struggles facing traditional venues.
Nevada economists now forecast a decline in both visitors and gaming revenue through 2025 and 2026 if growth continues to cool. According to a news story by The Guardian, that outlook is likely to put more pressure on casino revenues in the coming months, with the industry entering the final stretch of this year on notice.
NV Casinos Face Revenue Drop as Las Vegas Visitor Traffic Plunges
Las Vegas is often described as the canary in the coal mine for the economy, and recent figures highlight why. In June 2025, visitation fell about 11%, or 400,000 fewer visitors compared with 2018.
Economists at the University of Nevada, Las Vegas (UNLV), warn the decline is not temporary. They expect the trend to continue over the next 12 to 24 months. Based on the UNLV projections, southern Nevada visitor traffic will shrink significantly, with gross gaming revenue forecast to drop about 5.4% in 2025 and 4.6% in 2026.
Las Vegas rises and falls with national growth cycles because much of its economy relies on discretionary spending. Conventions are drawing fewer attendees, and hotel occupancy has cooled from 2024 highs. High-end entertainment bookings are proving less resilient as corporate and tourist budgets tighten. Local tourism trackers and hotel reports also cite lower international arrivals as a factor, as reported by Travel Weekly.
Broader economic risks are compounding the pressure. Several banks and brokerages have raised the likelihood of a recession. Some analysts put the odds near 60%, a level that would further weigh on leisure spending and casino gambling, according to Reuters. Convention calendars and consumer confidence are being closely watched by industry leaders as signals for the rest of the year.
AC Casino Revenue Falls Despite $1.66B In-Person Gaming Growth
Atlantic City’s casino industry is sending mixed messages in 2025. On the positive side, in-person gaming has shown notable strength. Through July, retail casino win is up 2.2% year to date, totaling more than $1.66 billion. That surpasses NJ online casino gaming revenue, with brick-and-mortar patrons still spending more.
These gains stem in part from heavy reinvestment in the city’s infrastructure. In 2020, casinos poured more than $1.1 billion into upgrading facilities to improve the visitor experience. As a result, non-gaming revenue topped $1.65 billion in 2024, underscoring Atlantic City’s push to diversify its economic base.
But problems remain. Reports show the city recorded a 5.1% drop in net gambling revenue to $730.3 million. That marked a 15% decline in gross operating profit, costing an estimated $132 million in earnings compared with the same period in 2024, as reported by YOGONET.
April brought a 3% decline in land-based casino revenue and a 15% drop in sports betting income. While the summer uptick offers some relief, Atlantic City’s dependence on discretionary spending leaves it vulnerable to downturns.
U.S. Casinos See Record Revenues, With Online Platforms Outpacing Retail Growth
The U.S. commercial gaming industry closed 2024 on a high note, breaking its revenue record for the fourth straight year. The American Gaming Association reported, total revenue climbed to about $72.04 billion, a 7.5% increase from 2023, fueled by digital and sports betting. Traditional casino operations posted only a modest 1% gain, bringing in roughly $49.9 billion.
Sports betting revenues surged nearly 25% to $13.8 billion. iGaming, including sweepstakes casinos, also boomed, reaching $8.4 billion, a 28.7% increase from the prior year.
This shift highlights a transition: brick-and-mortar casinos are facing headwinds, while online platforms and sports betting continue to capture more market share. The contrast reveals a sector in flux, with slow growth at physical venues offset by surging demand for digital wagering.
U.S. Casino Market Faces Crossroads in 2025 Amid Economic Headwinds
Industry sentiment is split as the year progresses. Some warn the retail casino business will remain soft, while others argue resilience could hold, supported by non-gaming attractions and continued growth in digital and mobile betting.
In Atlantic City, summer investments and strong May performance provide hope for stabilizing visitor numbers. Las Vegas, however, faces an uphill climb, with tourism still unsettled. Recent data show slight year-over-year growth in gaming, but international travel remains a drag.
At the consumer level, leisure spending is likely to remain under pressure until broader confidence rebounds.
Though casinos anchor their local economies, Las Vegas and Atlantic City are navigating a period of transition, balancing innovation against revenue losses. How the remainder of 2025 plays out will depend largely on whether consumer spending can withstand persistent economic headwinds.