Unanticipated Growth Outside the Strip
As foot traffic decreases and hotel rates plummet on the Las Vegas Strip, a surprising segment of casinos is thriving—those primarily serving local patrons rather than tourists.
Exceptional Performance of Local Casinos
Suburban casinos throughout the Las Vegas Valley are enjoying record years, even as the Strip grapples with declining tourism, fewer conventions, and various economic challenges.
Red Rock Resorts’ Success
Red Rock Resorts, the company behind Station Casinos, achieved its highest quarterly net revenue in nearly five decades, reaching $526.3 million in Q2—a rise of 8.2% compared to last year. Their new Durango Casino Resort has attracted over 108,000 new customers since its December 2023 opening, according to CFO Stephen Cootey.
Boyd Gaming’s Positive Trends
Boyd Gaming, owner of Sam’s Town and Suncoast, also saw growth in its local segment for the first time in two years, focusing on retail and drive-in traffic as tourism wanes.
Challenges on the Strip
In contrast, major operators on the Strip are facing downturns. Caesars Entertainment reported a 3.7% drop in revenue, with some hotel rates at The Flamingo falling as low as $18 midweek. MGM Resorts noted a 4% decline, with CEO Bill Hornbuckle highlighting ongoing renovations and fewer high-profile events.
Strategies for Attracting Locals
Unlike the Strip, suburban casinos cater to the local workforce, which has recently benefited from financial boosts such as the No Tax on Tips legislation. This, along with expanded overtime pay and senior tax credits, has led to increased visits and spending in local casinos.
Insights for Budget Travelers
For those considering a trip to Las Vegas this year, the best value may not be found on the Strip. Many hotels are offering steep discounts during midweek stays, while off-Strip casinos provide free parking, lower table minimums, and a more customer-friendly atmosphere. As the dynamics of tourism evolve, budget-conscious travelers might find this an ideal time to explore local casinos.
