As the federal government shutdown in the U.S. surpasses a month, casino operators and tourism leaders are expressing concerns that this impasse could significantly impact one of the year’s most lucrative periods. Initiated on October 1, 2025, the shutdown has shaken consumer confidence, disrupted travel plans, and dampened the expectations of a gaming industry already facing diminishing visitor numbers leading up to Thanksgiving.
Concerns Grow in U.S. Casino Sector Amid Federal Deadlock
Almost 500 organizations from the travel and hospitality sectors, including prominent gaming companies like MGM Resorts International, Caesars Entertainment, and Delaware North, have aligned with the U.S. Travel Association to urge Congress to take action. In an open letter to Senate and House leaders, they called for the approval of “a clean continuing resolution to reopen the federal government,” cautioning that the economic consequences will be “immediate, deeply felt by millions of American travelers and economically devastating to communities in every state.”
This ongoing shutdown has become the longest on record since 1980, surpassing the 35-day impasse experienced from 2018 to 2019. Political gridlock has left federal agencies operating without budgets, creating a domino effect across multiple industries, with the gaming sector being particularly affected.
No sector has felt these effects more than Las Vegas, where the intersection of gaming and tourism is critical. The Las Vegas Convention and Visitors Authority reported an almost 8% decrease in visitors through September 2025, raising alarms as the holiday season approaches. Airline and casino executives have voiced concerns to Vice President JD Vance, warning that the surge of travel expected after Thanksgiving might collapse if the shutdown persists.
The shutdown has led to unpaid air traffic controllers and TSA officers, resulting in staffing shortages and longer wait times at airports nationwide. Transportation Secretary Sean Duffy has warned that, if the crisis continues another week, “You will see mass flight delays. You will see mass cancellations. And you may see us close certain parts of the airspace because we just cannot manage it due to the lack of air traffic controllers.”
Even minor airport disruptions can have a ripple effect on gaming revenue, as reduced flight availability deters travel to tourist-dependent destinations. International arrivals at Harry Reid International Airport fell over 13% year-over-year in September, applying further pressure on hotel reservations and casino floors. While Las Vegas has avoided significant flight cancellations to this point, airport officials are concerned that issues at other airports could have a quick overflow effect.
Casino Revenue Faces Challenges
The decline comes at a pivotal moment for casinos, which usually experience their strongest quarterly performance during the Thanksgiving and Christmas holidays. Analysts warn that prolonged federal inaction could hinder both gaming and non-gaming revenue sources, including dining, live entertainment, and retail. Even with many operators branching into iGaming and sports betting, physical casinos heavily rely on visitor foot traffic.
According to Sigma, tribal casinos are encountering unique challenges, as some depend on federal grants and regulatory processes now stalled due to the shutdown. While many can operate independently for several months, those reliant on government support are facing increasing uncertainty.
Furthermore, the shutdown has also impacted digital operators regulated by the Commodity Futures Trading Commission (CFTC). With only one active commissioner and numerous staff members furloughed, the regulatory capacity of the CFTC has declined significantly. Prediction market platforms like Kalshi and Polymarket have gained attention during the shutdown but publicly traded sports betting companies Flutter and DraftKings have seen their stock values drop by 30% and 40%, respectively, since September.
Despite the current challenges, long-term indicators for the gaming industry remain favorable. The American Gaming Association noted that commercial gaming revenue hit a record $71.9 billion in 2024, primarily fueled by growth in online and sports wagering. However, casino executives emphasize that “each additional day of uncertainty represents millions of dollars in potential lost spending and a missed opportunity at the onset of the holiday season.”
