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2025 was a rough year for Las Vegas. Visitors, weary of steadily climbing prices, finally voiced their frustrations, with many taking to social media to call out specific casinos for high costs.
Between a cooling global economy, high local prices, and shifts in international travel—including a dip in Canadian visitors—visitation fell 7.5% in 2025. Despite hyperbolic claims that “Vegas is dead,” 38.5 million people visited the city, down from 41.7 million in 2024.
The transition away from being a gambling-first destination is not new. Las Vegas has been heading in this direction since 1999, the first year non-gaming revenue surpassed gambling income on the Las Vegas Strip. By 2024, gaming contributed only 26.1% to the bottom line of Strip casinos, according to the Nevada Gaming Abstract.
Las Vegas ain’t what it used to be, and it will continue to evolve. Let’s look at how we got here.
The explosion of regional gambling across the US
There was a time when travelers had to visit Las Vegas to legally gamble in a casino. That monopoly began to erode when Atlantic City opened its first casino in 1978. In 1990, only four states had casinos; by 1995, that number had grown to 200 casinos across 14 states. Today, there are nearly 800 casinos in 44 states outside of Nevada.
For more than 25 years, gamblers haven’t needed to fly to the desert to play slots or blackjack. To stay relevant, Las Vegas had to offer experiences tourists couldn’t find closer to home.
Two companies, one strip: The death of competition
The era of the “mega-merger” redefined the Strip. MGM Grand Inc. and Mirage Resorts Inc. merged on May 31, 2000, in a $6.4 billion deal—the largest in the industry at the time. In 2005, Harrah’s acquired Caesars, bringing its Las Vegas roster to eight properties.
Today, two companies operate 18 of the 29 Strip casinos. This lack of competition often leads to higher prices and more homogenized guest experiences. Furthermore, because these corporations must report quarterly earnings to investors, there is constant pressure for revenue and profit to exceed those of previous years.
This “corporatization” has led to several shifts:
- Monetization of Space: Fewer areas exist where visitors can gather without paying for food or drinks.
- Worse Odds: Traditional 3-2 blackjack games are increasingly replaced by 6-5 games, which pay out less.
- Triple-Zero Roulette: Casino operators have added a third zero (000) to roulette wheels, significantly increasing the house edge.
These games bleed visitor bankrolls quicker, so players spend less time enjoying gambling and walk away as losers more often.
The rise of non-gaming revenue
By the late 1990s, the geographic monopoly on gambling had vanished. To stay competitive, Las Vegas had to offer reasons to visit that couldn’t be found at a local regional casino.
Non-gaming revenue surpassed gambling for the first time in 1999, a trend that has only accelerated. According to the Nevada Gaming Control Board, hotel rooms, food, beverages, and entertainment now contribute the vast majority of income for Strip properties. In fact, hotel room revenue was the top earner for Strip casinos in 2024.
While gambling remains central to the city’s identity, operators have leaned into high-impact attractions to drive growth. This includes:
- Headline Residences: Major production shows and “A-list” residencies.
- Culinary Tourism: Acclaimed fine dining and celebrity chef partnerships.
- Luxury Amenities: Upscale spas and high-end retail experiences.
This shift means that for the modern casino corporation, the slot floor is often the secondary attraction to the dining and hospitality experience.
Efficiency vs. hospitality: The post COVID shift
While corporate consolidation was a slow burn, the COVID-19 pandemic acted as an accelerant. Las Vegas casinos used the lockdown to streamline processes, leading to increased automation—such as electronic table games, kiosks, and mobile check-ins—and fewer employees to help guests one-on-one.
The MGM 2020 plan to reduce expenses and increase profit was introduced in 2019. The pandemic just moved this along faster.
In 2019, there were approximately 3,433 employees per casino in Las Vegas. By 2024, that number dropped to 3,282, according to the UNLV Center for Gaming Research. While the city thrives on service, “great service” is no longer the baseline for every guest.
Fewer humans to assist human customers is a big shift in how Las Vegas does business.
The math of the high-margin guest
After the peak of the pandemic, many Las Vegas businesses pivoted to a “premium” model. This strategy was designed to recoup lost revenue by generating higher income per person rather than simply trying to attract a higher volume of guests.
While casino operators have long discussed marketing to high-margin customers during quarterly earnings calls, the recent shift takes that strategy to a new level. It effectively prioritizes wealthier high rollers and business travelers over lower-profit vacationers.
The data suggests this strategy is working for the bottom line:
- Wynn Resorts: Despite the 7.5% dip in citywide visitation, Wynn reported greater profits in 2025 than the previous year.
- Station Casinos: The local operator has been aggressively upgrading its properties, focusing on fine dining and high-limit rooms. Even as general visitation fell, the company saw increased revenue for the year.
The corporate logic is straightforward: If a business can generate the same revenue from one premium customer as it can from 20 budget-conscious visitors, it makes financial sense to focus on the one.
This explains why high prices aren’t retreating. While social media is full of complaints about $12 coffee, there remains a large segment of visitors willing to pay some of the highest concert and residency ticket prices in the country.
The industry’s pricing apology
By late 2025, the Las Vegas Convention and Visitors Authority (LVCVA) and casino boards could no longer ignore the pricing backlash. In September 2025, the LVCVA launched the Fabulous 5-Day sale.
During a recent earnings call, MGM Resorts CEO Bill Hornbuckle addressed the criticism directly:
“When we think about pricing and things that got everyone’s attention, whether it’s the infamous ($26) bottle of water or Starbucks coffee at Excalibur that cost $12, shame on us.”
Hornbuckle promised to address the issue, and MGM recently launched “all-inclusive” packages at Luxor and Excalibur. However, during a subsequent earnings call, he noted that those two properties “only represent about 6% of Las Vegas segment adjusted EBITDAR in 2025.”
To put it another way: 94% of MGM’s profit comes from the seven other properties it operates in Las Vegas.
Caesars and Resorts World also launched “all-in” packages this year, but like MGM’s efforts, these appear more focused on improving public sentiment than lowering costs across the board.
Why $12 coffee is the new normal in Las Vegas
Despite recent discounts, there is little evidence of a long-term strategy to lower base prices. A burger and fries at Gordon Ramsay Burger inside Planet Hollywood still costs more than $30.
Las Vegas isn’t getting cheaper; it’s becoming a market where visitors must be more strategic. For those seeking value, the solution may lie in heading off-Strip for better odds and lower prices. Ultimately, travelers must decide how much they are willing to pay for the “Sin City” experience.
