Once hailed as the entertainment capital of the world, Las Vegas now stands at a perilous crossroads. A dramatic slump in international tourism and casino revenue has not only shaken the city’s core economy but also placed it in the same dire category as cities like New York, Los Angeles, and Washington D.C.—all suffering under what analysts are calling the “Trump Slump.”

The impacts have been both swift and severe. Visitor numbers are nosediving, hotel rooms are staying empty, and casino floors are becoming noticeably quieter. The economic heartbeat of Las Vegas—its tourism industry—is faltering, and the consequences are spreading well beyond the Strip.

Widespread Fallout in America’s Casino Strongholds

The downturn isn’t isolated to Nevada. Major casino destinations across the U.S. are reporting significant slowdowns in traffic and revenue, according to the analysis published by Travel and Tour World. Atlantic City, once a robust East Coast counterpart to Las Vegas, is contending with shrinking visitor numbers due to tighter budgets and rising inflation. Similarly, Mississippi’s casino towns like Biloxi and Tunica are struggling with low occupancy rates and minimal gaming activity.

In Reno, dubbed “The Biggest Little City in the World,” weekend gamblers from California are growing scarce. Resorts in Louisiana cities like Lake Charles and New Orleans are also under strain, with major properties like Harrah’s reporting declining foot traffic. Even traditionally resilient urban gaming destinations like Detroit and Philadelphia are not immune—both are facing sharp reductions in tourism and casino earnings.

Scenic mountain towns like Black Hawk and Central City in Colorado, previously bolstered by a mix of natural beauty and gambling, are seeing the same troubling trends. As the crisis deepens, the entire ecosystem of American casino tourism appears to be on the verge of structural upheaval.

Las Vegas Strip Faces Unprecedented Labor Strain

Las Vegas’s woes are perhaps the most emblematic. In April 2025, the city saw a 5.1% drop in year-over-year visitor numbers. While seemingly modest, this decline has had an outsized impact in a city built around high-volume tourism. Behind the glamorous façade of neon and nightlife, thousands of hospitality jobs are vanishing.

Fontainebleau and Resorts World are among several major resorts to begin quietly laying off casino dealers. These frontline workers, once synonymous with the Las Vegas experience, are increasingly being replaced by digital gaming systems. According to the Nevada Department of Employment, Training, and Rehabilitation, the city ended 2024 with a 5.9% unemployment rate—the highest among major U.S. metropolitan areas.

“We want those casinos to be successful, active, and robust because that gives our break-in dealers an opportunity to transition, that’s the goal,” said David Knoll, Managing Director at CEG Dealer School, underscoring the deeper consequences for employment pipelines.

The decline in demand has also hit educational institutions. Dealer schools that once trained hopefuls en masse are now reporting severe drops in enrollment, further weakening the industry’s future workforce.

Wage Stagnation and Soaring Living Costs Deepen the Blow

Even among those still employed, financial stress is mounting. In 2024, the average hourly wage for casino dealers in Nevada was $19.96—only marginally above the national average and not among the top five states for dealer pay. Meanwhile, living costs in Las Vegas continue to rise, placing an even greater burden on a shrinking workforce.

Hotel occupancy rates reflect the scale of the slump. Overall occupancy fell 1% in April, with downtown hotels faring worse at a 2.6% decline. These numbers have cascading effects: fewer guests mean lower revenues for entertainment venues, restaurants, and small businesses that rely heavily on tourism.

International Tourism Plummets Amid Political Backlash

The downturn isn’t just economic—it’s geopolitical. Cities like Las Vegas and New York are experiencing sharp declines in international travel, largely attributed to the fallout from trade tensions and immigration policy shifts under the Trump-era tariff strategies. According to recent projections, international tourism spending in the U.S. is set to decline by $12.5 billion in 2025.

New York City alone anticipates a 17% drop in international visits this year, amounting to a potential loss of 2 million foreign tourists. Although these travelers represent just a fifth of total arrivals, they typically account for half of all tourism revenue, making their absence especially painful for urban economies.

Canadians, once the most consistent cross-border tourists, are canceling trips en masse, opting instead for domestic destinations like Halifax and Vancouver. “Tour operators across New York report that Canadian bookings are drying up,” noted a recent industry assessment. In some cases, local tour companies have seen business drop by up to 40% due to these cancellations.

A Tenuous Path Forward

The current crisis is more than a financial downturn—it’s a potential turning point for the future of American tourism. Without strategic interventions, such as targeted incentives, workforce investment, and efforts to rebuild global traveler confidence, the damage could be long-lasting.

Global events like the 2026 World Cup and America’s upcoming 250th anniversary may offer marketing opportunities. However, tourism authorities must act now. Reducing travel friction, addressing geopolitical concerns, and reinvesting in local economies will be essential steps toward recovery.

For Las Vegas, the stakes couldn’t be higher. The city must decide whether to double down on its traditional appeal or evolve into a more digitized, less personal version of itself. The next move could determine whether it reclaims its crown—or continues its slide.