As the traffic slows down on the Las Vegas Strip, the room rate is stumbled, but the surprising casino is cashing out – it’s not what you might expect.
The suburbs and “local” casinos in the Las Vegas Valley are banners for a year, even as the streets themselves face a sluggish tourism industry, less routine and growing pressure on political and economic headwinds.
So, what is behind the prosperity beyond the core of neon lights? How does a savvy traveler take advantage of it?
Red Rock Resorts owns the station casino and operates seven outside properties such as Red Rock, Green Valley Ranch and New Durango Casino Resort – just released its highest quarterly net income in its 49-year history: $526.3 million in the second quarter, up 8.2% year-on-year.
“Durango continues to expand the market for locals in Las Vegas, drive incremental gaming from our existing customer base and attract new guests,” said Stephen Cootey, CFO and EVP of Red Rock Resorts in a recent earnings call. He said the casino has added more than 108,000 new customers since its opening in December 2023.
Boyd Gaming owns properties like Sam’s Town and Suncoast, which also reported segmented growth in its Las Vegas natives for the first time in two years – surpassing previous quarters.
“We just don’t see the level of demand for the destination business, but that’s far more than the replenishment of retail and driving traffic,” said CFO Josh Hirsberg.
Compare it to the belt where large casino operators tighten their belts.
Caesars Entertainment reported revenue in Las Vegas fell 3.7% and net loss in the second quarter was $82 million. In late August, hotel prices for real estate such as accommodation fell by $18 per night.
MGM Resorts also reported a 4% decline in striptease revenue, with CEO Bill Hornbuckle attributed to ongoing room remodels, and fewer than the big big event in which Adele or Garth Brooks live.
“You said Las Vegas is not a value, and that’s not a complete reality,” Hornbuck told investors. “In the next week, there are some interest rates that rival what I saw 20 years ago.”
According to the Las Vegas Convention and the Bureau of Visitors June 2025 executive summary:
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Visitors fell 11.3% year-on-year
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Meeting attendance fell by 10.7%
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Hotel occupancy fell to 78.7%, down 6.5 percentage points
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Revpar (revenue per available room) fell 13.8% to $128.78
Meanwhile, gaming revenue across the state grew by 3.53%, led by revenue from local markets:
Several new federal policies appear to be hitting the tourism industry on Las Vegas Street, such as the “visa integrity fee,” which adds $250 in refundable fees for many international travelers – preventing some from flying to the United States entirely.
Trump’s “big bill” also changed the tax laws of gamblers, limiting the loss deduction limit to 90%, rather than 100%. Casino owners say some large numbers of players have brought their business to sea. In response, Caesar and MGM said they prefer databases, loyalty programs and regional marketing to attract American visitors back to Vegas.
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Unlike strip hotels, suburban casinos serve Nevadans, while this client base has experienced financial growth.
Several new federal changes are helping customers spend more, according to Redstone Resorts. It is estimated that no tax on the tips bill will release $5 million in disposable income per year in Clark County. In addition, the expanded overtime pay and premium tax credits are expected to benefit hundreds of thousands of Las Vegas residents.
This means more frequent visits to local casinos, spending more on slot machines, food and beverages, and overall stronger loyalty.
If you are planning a Las Vegas vacation this year, don’t be surprised if the best bang isn’t on the striptease.
Now, deep discounts are common in Wednesday’s strip hotels – some are as low as $20. Off-casinos such as Red Rock, Green Valley Ranch and Durango offer free parking, lower table minimums, and crowdless gaming floors – as well as a lot of attention to food, value and local customer service.
Las Vegas won’t go anywhere, but the movements have changed. Despite slowing ties with striptease and tourism, suburban casinos have flourished on the back of loyal locals and tax policies.
For budget-conscious travelers? This means it’s probably the best year to visit Las Vegas – just skip the strip.
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This article provides information only and should not be construed as advice. It is without any warranty of any kind.
