Unexpected Winners Amid Las Vegas Strip Challenges
While foot traffic is declining and hotel rates are falling on the Las Vegas Strip, a surprising segment of casinos is thriving—one that may not come to mind immediately.
Surge in Suburban and Local Casinos
Casinos located in suburban areas and serving local residents throughout the Las Vegas Valley are enjoying a remarkable year, even as the Strip grapples with decreased tourism, fewer conventions, and various economic and political challenges.
What’s Fueling the Growth?
Red Rock Resorts, which owns Station Casinos and manages several off-Strip venues like Red Rock, Green Valley Ranch, and the newly opened Durango Casino Resort, recently reported its highest quarterly net revenue in nearly 50 years—$526.3 million in Q2, marking an 8.2% increase from last year.
Increasing Customer Loyalty
Stephen Cootey, CFO of Red Rock Resorts, noted that Durango has significantly broadened the local market, attracting over 108,000 new guests since its December 2023 launch.
Contrasting Trends on the Strip
In stark contrast, major casino operators on the Strip are tightening their budgets. Caesars Entertainment recorded a 3.7% drop in Las Vegas revenue, coupled with an $82 million loss in Q2. Meanwhile, hotel rates at popular venues like The Flamingo have plummeted to as low as $18 per night for certain midweek stays.
Visitor Decline and Economic Changes
The Las Vegas Convention and Visitors Authority reported a 11.3% year-over-year drop in visitor numbers, a 10.7% decrease in convention attendance, and a decline in hotel occupancy rates. At the same time, local gaming revenue increased by 3.53%, led primarily by suburban casinos.
Opportunities for Budget-Conscious Travelers
For those planning a trip to Las Vegas, it may be wise to focus on the local casinos instead of the Strip. While significant discounts are available for midweek stays on the Strip, local casinos like Red Rock and Green Valley Ranch provide advantageous benefits, such as free parking, lower table limits, and a focus on customer service.
