Las Vegas Declines Further as January GGR Drops 11%

In January 2026, Nevada’s gaming industry reported a total revenue of $1.345 billion, marking a 6.6% decline compared to the same month in the previous year. The Las Vegas Strip, a key driver of this revenue, saw its gaming win drop to $747.7 million, reflecting an 11% year-over-year decrease. This downturn raises questions about the sustainability of the Strip’s appeal amidst changing visitor patterns.

Historical Context

The January figures are particularly striking when viewed against the backdrop of the previous year, which had set unusually high benchmarks. According to Shelley Newell, a senior economic analyst at the Nevada Gaming Control Board, the current figures still indicate that statewide gaming win remains 36.7% higher than pre-pandemic levels recorded in January 2019.

Despite the decline in gaming revenue, tax collections from the gaming sector reached $100.9 million in January, the highest monthly total for the fiscal year 2025-2026. This increase in tax revenue, up 2.1% from the previous year.

The performance of gaming markets across Nevada has been uneven. While the Strip experienced a notable decline, several smaller markets reported impressive growth. For instance, Mesquite saw a 14.1% increase in gaming revenue, reaching $19.8 million, marking a record for the area. Other regions, such as Wendover and Elko County, also reported double-digit growth.

Several factors have contributed to the decline in gaming revenue on the Strip. Analysts have pointed to a decrease in table game performance, particularly in baccarat, which saw a 17.8% drop in revenue. The hold percentage for baccarat also fell sharply.

The performance of table games has been a significant driver of revenue fluctuations. The total drop for table games increased by 7.1% to $3.3 billion, yet the hold percentage decreased from 17.23% to 13.08% compared to January 2025.

Tourism Trends and Visitor Numbers

The decline in gaming revenue coincides with a drop in visitation to Las Vegas. The Las Vegas Convention and Visitors Authority reported that 3.3 million visitors came to the city in January, a 2.2% decrease from the previous year. This marks a continuation of a troubling trend, as visitation numbers have been declining for 12 consecutive months leading into 2026.

Passenger traffic at Harry Reid International Airport also reflected this downturn, with a 7.9% decrease to 4 million travellers. Additionally, vehicle counts on major highways showed a 1% drop in arrivals from California and a 3% decrease from Arizona, further indicating a decline in regional tourism.

The hotel sector in Las Vegas has shown mixed results amid these trends. The occupancy rate fell by 2.4 percentage points to 79.5%, suggesting that fewer visitors are staying overnight. However, the average daily room rate increased by 6.7% to $200.15, indicating that hotels are attempting to capitalize on higher rates despite lower occupancy.