The Las Vegas Strip May Be Getting Prohibitively Expensive for Average Gamblers

Now that the numbers are in for 2024’s calendar year and the financial year 2024/2025 is coming to a close, it’s clear that the casino giants of the Las Vegas Strip have some things to ponder.

Although revenues statewide scraped out 0.5% growth over 2024, the 2024/2025 financial year is currently down 1.89%. Short of an unlikely large uptick in revenue in the next two months, the market looks set to see a contraction in revenues year-on-year for the first time since the pandemic closures in 2019.

Gambling income from the longtime main revenue driving casinos of the Las Vegas Strip was down 1% in 2024, compared to 2023. That’s despite Sin City’s visitation numbers showing around 2% growth for the full calendar and financial year so far. 

So, more people are visiting Las Vegas than ever – but less money is being spent gambling at its famous corridor of casino resorts. Why is that? Well, our report from early 2024 on the rapidly increasing costs of visiting Las Vegas could have some relevance here. 

$15 Water Bottles 

Las Vegas is the U.S. city with the fastest-growing cost to visit, according to several studies from last year. Ask anyone who visited Las Vegas recently – unless they’re rich enough to not notice – and they’ll tell you how ridiculous some prices are. 

$15 for a water bottle in a casino gift shop. $17 draught beers. $50 for the table with a view in the restaurant. $50 resort fees – even though they’ve (sort of) been federally banned.

Just the cost of an average hotel room for the night in Las Vegas has gone up 40% in the last four years. And that’s not including resort fees. 

Of course, Sin City, as an icon of American capitalism and excess built literally in the middle of a desert, has never been truly cheap. But as the prices go up, many of the longtime perks and gratuities the city was famous for have also fallen by the wayside.

Barely any Las Vegas Strip casino resorts now offer free parking of any kind, let alone complimentary valet parking. Table minimums have gone up considerably. Casinos have rolled out hybrid computerized table games, added extra zeros to roulette wheels, and lowered the payouts on blackjack tables. Loss-leading attractions like large in-house buffet offerings have closed in favor of franchised, chain-filled food halls. 

Strip Down, Downtown Up 

Some analysts now believe that all these price increases were reflected in the lower gambling spend across 2024 at Las Vegas Strip properties. 

February’s numbers are unlikely to see a year-on-year rise, as 2024 saw the Super Bowl roll into Las Vegas at Allegiant Stadium, which boosted revenues considerably.

Going further back, 2023/2024 was a record year for gambling revenues, making a slight decline in growth expected. The calendar year also saw two giant Las Vegas Strip resorts, the Tropicana Las Vegas and the Mirage, close their doors for the final time. 

That fall in supply may or may not level out, as the two new casino resorts that are in the works open up over the coming years. However, overall city visitation going up while gambling revenue actually fell on the Las Vegas Strip shows some changing behaviors. 

As the Las Vegas Strip loses momentum, Downtown Las Vegas has been benefiting. Its gambling income grew 3.73% in the calendar year 2024, compared to the slight decline for the mega casino resort corridor. 

Downtown Las Vegas is generally accepted to be the more budget-friendly, old school Sin City vibe, with less expensive accommodations and food and beverage options in general – although more upmarket properties like Circa Casino Resort are creeping in.

If visitation is up overall, but more people are gambling at Downtown casinos instead of the big Las Vegas Strip venues – the giant corporations like Caesars and MGM will soon take notice. 

This story is also illustrated in the tale of two casinos that opened in 2023. The $3.9 billion Fontainebleau on the Las Vegas Strip and the $750 million Durango Casino Resort both opened in late December 2023. 

The former was a luxury resort with the price tags to match, while the latter was a locals-oriented, more budget-friendly resort in the suburb of Henderson. 

The Fontainebleau has now stabilized somewhat, but went through a period of early struggles, with many resort perks cut and executive departures. It was also criticized for its expensive but subpar food, although that has reportedly also improved. 

Meanwhile, the Durango was an almost instant success for operator Red Rock Resorts, and it has already begun work on a $116 million expansion project. 

The House’s Plans 

Of course, everyone that visits Sin City knows the house always wins. Maybe the casino resorts of the Las Vegas Strip have calculated every cost increase to the resilience of the market and customer demand. 

Operators may also point out that two new casino resorts will boost revenues in the coming years. The Hard Rock Las Vegas is set to replace the Mirage, and an as-yet unnamed Bally’s casino resort may open on the old Tropicana site (after a Major League Baseball stadium is constructed.)

However, the former isn’t projected to open until mid-2027, and the latter is in the very early stages of development. Although some declines would have been expected, none of the giant operators will be happy with a full financial year decline across the Las Vegas Strip.

Based on the evidence of the first falling gambling revenue year for operators in decades, and the general public sentiment that high prices are to blame, it could be they’ve missed the play on this one. 

Room rates are an obvious look to be cut if demand is falling. But occupancy is already high – it’s just that people are spending less money gambling. The introduction of the junk fee ban could also see fees transferred directly to room rates. 

Outside of that, it’s hard to see operators cutting prices for consumers in a challenging economic climate. Especially when the alternative is to double down on competing for a smaller number of high-limit, ultra-wealthy clientele, who may spend millions a night on baccarat. 

So, for now at least, $18 bottles of water and $25 soggy nachos look set to stay on the Las Vegas Strip.