Struggling Las Vegas Strip resort casinos get more bad news

After a massive post-Covid comeback featuring the Super Bowl, a Formula 1 race, an NFL Draft, and some massive conventions, business has slowed on the Las Vegas Strip.

The reasons for that are not that hard to explain. Las Vegas Strip resorts have steadily raised prices, pretty much for everything. I used to be a frequent Las Vegas Strip visitor (maybe 6-7 times a year), but I only went once last year because of the cost.

Airfares are higher partially due to the changing business at Southwest and partially because Spirit Airlines has been cutting service as part of its Chapter 11 bankruptcy. Many of the changes on the Strip, however, just feel like greed.

The latte I buy at Starbucks in Port St. Lucie, Fla. for a little over $5 was nearly $12 at Caesar's Entertainment's Harrah's on the Strip. In addition, many of the restaurants I have visited for years now charge less for smaller portions.

When the Las Vegas Strip is hosting Taylor Swift concerts and Super Bowls, the sky may be the limit for prices, but on a regular visit, it simply pushed too far for me, even with a comped room.

Why people are skipping Las Vegas 

• Rising costs and fees (resort fees, parking, food, etc.) making Vegas less of a value proposition.
• Decreases in international tourism, especially from Canada, Mexico, Asia.
• Economic uncertainty, weaker consumer confidence, fewer major events. 

Source: AP News 

Las Vegas Strip slowdown facts

• Visitor volume in June 2025 dropped about 11.3% compared to June 2024.
• For the first half of 2025, visitor numbers are down roughly 7.3% year-over-year.
• Hotel occupancy on the Strip fell to 81.9% in June, down from 88.3% a year earlier.
• Revenue per available room (RevPAR) dropped significantly, 13.8% in June year-over-year.
• Average daily room rate (ADR) also declined: Las Vegas Strip ADR dropped around 6.7% year-over-year.
• Gaming revenue on the Strip is showing mixed results:
  • In March 2025, Strip casino win (net from players) fell 4.8% YoY.
• • February 2025 saw a 14% drop in Strip gross gaming revenue compared to February 2024.
• Air travel into Harry Reid International Airport is down: in June, ~6.3% fewer passengers than a year earlier.

Source: Casino.org

Las Vegas Strip gets more bad news 

One way to improve foot traffic and visits to Las Vegas is making it easier to get there from the West Coast. It can take 4-5 hours to drive between Los Angeles and Las Vegas. 

A planned high-speed train would cut that time considerably (and you don't have to drive) but that project just hit a major speed bump. 

"The estimated cost of Brightline West’s high-speed rail line connecting Southern California to Las Vegas has surged to $21.5 billion, nearly doubling from its last publicly confirmed estimate of $12.4 billion in January 2025. The updated figure was disclosed in a US Department of Transportation (DOT) report released this week," Casino.org reported.

The increase is primarily driven by rising labor and material costs. In response, Brightline West is seeking a $6 billion federal loan from the Trump administration to replace a previously planned $6 billion bank facility," Bloomberg reported (paywall).

Brightline West Timeline (Short Version)

• 2005-2018: Proposed as DesertXpress, later XpressWest.
• 2018: Acquired by Fortress Investment Group; rebranded to Brightline West.
• 2019-2023: Environmental and design approvals completed.
• Dec 2023: Secures $3 billion federal grant from the Bipartisan Infrastructure Law.
• Apr 22, 2024: Groundbreaking held in Las Vegas.
• Route: 218 miles along I-15, connecting Las Vegas and Rancho Cucamonga, CA.
• Trains: All-electric, 200 mph, zero-emission.
• Target launch: Initially 2028 (LA Olympics); now projected 2029.
• Jobs: 18,000 construction jobs expected.

Source: Brightline

Opinions are mixed on Brightline West

“This project will stimulate economic growth and create jobs, providing lasting benefits for both our state and the region,” Nevada DOT Director, Tracy Larkin Thomason, said in a statement at the time of the groundbreaking.

Not everyone is in favor of the project.

"I think that there's a lot of risk around it failing, and I wouldn't have said that a year ago," Marc Joffe, a former analyst in the financial industry who's now a visiting fellow at the California Policy Center, a conservative-leaning think tank told WJCT News.

Some experts are skeptical over the price, even before the new estimate.

“This is as big a mistake as the California High-speed rail system,” said German passenger railroad consultant Horst Bauer to the California Globe. “To have a successful high-speed line you need several cities to support the system along the way, even if connecting two large Metro areas. Besides a few two city lines in Germany, all high-speed rail here connects more cities. The same goes for Japan, the UK, and even the other Brightline project in Florida.

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