In November 2024, Las Vegas Strip casinos generated $788.7 million in gaming revenue, representing a 3.9% decline from the $820.8 million earned in November 2023
The Las Vegas Strip will show its sixth straight month of falling gaming revenue compared to last year when December’s numbers come out. This kind of drop does not happen often, with the last similar run occurring in early 2019, before COVID-19 hit. Even with this slowdown, industry insiders still feel good about how the Strip will do in 2025.
Las Vegas Strip Revenue Dips Amid Lower Baccarat Wins and Fewer Slot Days
In November 2024, Las Vegas Strip casinos made $788.7 million from gambling, which was 3.9% less than the $820.8 million they made in November 2023. For the whole year, Strip gambling earnings dropped by 0.8%. Experts say this happened because of fewer weekend days for slot machines, counting lower wins from baccarat, and slot machines not keeping as much money as usual.
Carlo Santarelli, an analyst from Deutsche Bank, said December 2024 will be hard to match up to last year, as reported by CDC Gaming. This is because, in December 2023, baccarat games kept a high reaching 22% of bets. He thinks December’s revenue will be about 7-9% lower than last year.
Similarly, Barry Jonas from Truist Securities pointed out that baccarat revenue dropped 18% in November even with a 1% rise in visitors. Yet, the Las Vegas Strip saw revenue per hotel room fall 22% because the 2024 Formula 1 event did not do as well as expected. Jonas stressed that despite these hiccups, operators are set up for good things ahead for 2025, thanks to a packed schedule of events and conferences.
2025 Outlook Brightens for Las Vegas Strip Despite Economic Pressures in 2024
Caesars Entertainment expects its cash room revenue to grow compared to last year in December, with fourth-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) likely to stay the same or get a bit better.
Jonas thinks January 2025 will also show good growth, thanks to many people coming for the CES technology trade show. However, February might not do as well because it will be compared to the big boost from the Super Bowl in 2024.
Industry expert Brendan Bussmann from B Global highlighted the tough times in 2024, like the shaky economy and rising prices, which made people spend less. Still, he noted that the Las Vegas Strip keeps bouncing back, with more people visiting overall. This is because more international tourists are coming even though fewer Americans are traveling.
Bussmann stressed the need to keep a big-picture view pointing out that gaming income has done well in the last four years even during two downturns. Looking forward, he felt sure 2025 would be a “strong year” for the Las Vegas Strip if the economy stays stable. While Las Vegas faced tough times in 2024, those in charge and experts think a promising lineup of events and steady visits from overseas will help the city bounce back and grow next year.
