Nevada’s gaming industry achieved a fourth consecutive record-breaking year in 2024, bringing in over $15.6 billion in total revenue. However, this growth was not driven by the Las Vegas Strip, which experienced a 1% revenue decline, marking a rare divergence between the Strip and the state’s overall performance.

According to data released by the Nevada Gaming Control Board (pdf), the state’s overall revenue grew by less than 1% from 2023, marking the slowest percentage increase since 2021. The Strip’s downturn was primarily attributed to a nearly 7% drop in baccarat earnings, which accounted for around $1.4 billion of its $8.8 billion total revenue. While slot machine revenue on the Strip increased by 2.1% to $4.9 billion, this was not enough to compensate for the table game decline.

Beyond the Strip, several markets saw strong growth, propelling Nevada’s total gaming revenue to its record level. Casinos in downtown Las Vegas, Reno, and Clark County’s unincorporated areas reported notable increases. The remainder of Clark County, which includes casinos outside of central Las Vegas, saw a 10.6% jump to $1.9 billion. Reno’s revenue grew nearly 3% to $758.8 million, and downtown Las Vegas casinos marked their fourth consecutive record year with a 2.4% increase, reaching $931.2 million.

Michael Lawton, senior economic analyst for the NGCB, highlighted the resilience of Nevada’s gaming sector, citing a strong domestic and international demand for leisure travel despite economic challenges such as inflation and rising interest rates. “Nevada continued to benefit from consumer’s desire for leisure travel domestically and internationally,” Lawton stated according to The Nevada Independent.

December’s record month and shifting trends

December 2024 proved to be a milestone month for Nevada’s gaming sector, setting a new single-month revenue record of $1.46 billion, surpassing the previous high of $1.43 billion from December 2023. This increase was fueled primarily by slot machine revenue, which surged 14.4% to $981.1 million. However, table games struggled, with statewide revenue from these games dropping 16.5% to $480 million. The Strip alone saw its table game revenue fall 16% to $385.9 million, contributing to its 2.7% overall decline for the month.

Despite the Strip’s weaker performance, many regional gaming markets set new records in 2024. Carson Valley recorded $135.7 million in gaming revenue, up 1.2%, while Mesquite saw a 3% rise to $189 million. These gains reflect a broader shift in Nevada’s gaming landscape, with slot machines increasingly driving revenue, while traditional table games, including baccarat, see declining returns.

Las Vegas tourism and airport expansion plans

Visitor numbers also supported Nevada’s gaming industry in 2024. The Las Vegas Convention and Visitors Authority (LVCVA) reported that 41.7 million tourists visited Southern Nevada, a 2.1% increase from the previous year. In December alone, over 3.4 million visitors were recorded, contributing to higher hotel occupancy rates and increased convention attendance.

Harry Reid International Airport also marked its third consecutive record-breaking year, handling over 58.4 million passengers—a 1.4% increase from 2023. International travel saw significant growth, with passenger volume rising nearly 14% to 3.7 million. Clark County aviation officials attributed this increase to new international routes, including Aer Lingus’ direct flights to Dublin, and expanded services to Europe, Asia, Canada, and Mexico.

However, with consistent growth in air traffic, concerns are mounting over the airport’s capacity. Plans for expansion have been proposed, including adding new passenger gates to alleviate congestion and enhance efficiency. “We’re focused on long-term planning for modernizing and maximizing [the airport],” said Director of Aviation Rosemary Vassiliadis.

Looking ahead: Mixed signals for Nevada’s gaming industry

While Nevada’s overall gaming revenue reached an all-time high in 2024, analysts caution that the rapid growth seen in previous years may be slowing. In the first half of 2024, revenue climbed over 3%, but the latter half of the year saw a 2% decline, raising concerns about future trends.

JMP Securities gaming analyst Jordan Bender pointed out that January and February have historically been two of the most critical months for Las Vegas casino revenue. With Super Bowl LVIII boosting gaming activity in early 2024, he warned that a drop in revenue could occur in early 2025, potentially leading to a 3% decline on the Strip in the first quarter.

Despite uncertainties, the industry is adapting to shifting player preferences, with slot machines continuing to gain market share over traditional table games. The Nevada Gaming Control Board’s upcoming 2025 meetings will likely provide further insights into regulatory adjustments and market strategies aimed at sustaining long-term growth in the state’s evolving gaming landscape.