How baccarat is saving Las Vegas
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3 Oct 2025 •
Reading time: 4 minutes In the midst of an August marked by a drop in tourist numbers, Las Vegas found an unexpected lifeline. While hotels and the airport recorded significant declines, the Strip’s casinos saw their revenues soar. The explanation can be summed up in one word: baccarat.
A paradoxical situation on the Strip
According to data from the Nevada Gaming Control Board, all the state’s casinos generated $1.22 billion in gaming revenue in August, up 5.5% on the previous year. The Strip contributed $679.4 million of this total, again an increase of 5.5%.
But behind this glowing figure lies a contradiction: the number of visitors to Las Vegas fell by 6.7% to 3.17 million. Hotels suffered, as did conventions, and revenues from hotel rooms on the Strip fell by almost 7%.
Baccarat, an unexpected driving force
While traditional games (slot machines, classic tables) are struggling to make headway, it is baccarat that is bucking the trend. Despite a drop in the volume of bets, casinos have managed to capture a much higher proportion of profits from this game. The result: $114.1 million in winnings from baccarat, an increase of more than 50% on the previous year.
But how can a table game, often reserved for a wealthy clientele, reverse the curve in a largely unfavourable environment?
In a casino, baccarat is often perceived as a “premium” product – the stakes are higher, and so are the margins. Baccarat players are often more disciplined, less scattered between slot machines and other games, and attracted by the prestige. In a general downturn, these players can provide a more stable base.
What’s more, the risk structure is different: in casinos, although betting volumes have fallen in number, the extra margin that the casino captures on each bet has increased. In other words, players continue to play, but the casino gets a higher percentage of the pot – which compensates for the drop in traffic. This ability to better monetise baccarat becomes a lifeline in times of adversity.
Local and regional resilience
The trend is not uniform across the state. Some areas are showing declines, others marked growth. In the outlying areas of Clark County and North Lake Tahoe, revenues are down. By contrast, downtown Las Vegas saw an 8.4% increase to $63.2 million. Laughlin jumped by almost 11%, Reno by 4.9% and Elko by over 15%.
These disparities testify to the “doping” effect of baccarat in areas where the game is well established, but also to the fragility of areas that rely more on mass tourism and slot machines.
Tourism on the decline, taxes on the rise
The fall in tourist numbers is not anecdotal: over the first eight months of the year, the cumulative number of visitors was down by 8% compared with 2024. Las Vegas airport (Harry Reid International) welcomed 6% fewer passengers, marking the seventh consecutive month of decline. Among the contributing factors, the bankruptcy of Spirit Airlines – once the second busiest airline to Las Vegas – has drastically reduced the number of routes and passengers. In addition, Canadian airlines have reduced their presence, reducing international arrivals.
However, the contrast between the drop in tourism and the growth in sales has resulted in a significant tax windfall. The state collected $77.1 million in gaming taxes, an increase of 34% in one year. For this fiscal quarter, state revenues are already up by more than 16%.
Limits and prospects
The story is not without its darker side. While baccarat looks set to save the day in 2025, the model is showing its limitations. It is heavily dependent on a clientele of very high rollers, who are often volatile, mobile and sensitive to global economic conditions. A macroeconomic crisis or increased regulation could undermine this balance.
Furthermore, dependence on a single gaming segment creates a risk of concentration. If other products or types of games – such as slot machines, poker and sports betting – were to disappear, the casino could lack diversification.
Finally, in the long term, sustainable growth requires a revival of tourism. Vegas cannot remain forever dependent on baccarat to compensate for a drop in visitor numbers. The challenge for operators will be to rekindle the magic of the Strip, to attract crowds once again, while maintaining excellence in high-end segments such as baccarat.