Nevada’s gaming industry has delivered its first encouraging month in over a year. Both state gaming revenue and Las Vegas visitor numbers posted year-on-year gains in February. The convergence marks a potential turning point after more than a year of flat or declining performance across key metrics.

The Nevada Gaming Control Board reported gross gaming revenue of $1.24 billion for February, representing a 1.5% increase year-over-year. The Las Vegas Strip remained essentially flat at $696.2 million. Clark County and statewide figures both hovered within 1% of last year’s performance. Through the current fiscal year, the Strip has declined just 0.9%, suggesting stabilisation after a challenging period.

Tourism Numbers Break Losing Streak

More significantly, Las Vegas recorded its first monthly tourism increase in at least 15 months. The Las Vegas Convention and Visitors Authority reported February visitation of 3.03 million, up 2% year-over-year. Strip properties saw average daily rates climb 4% and revenue per available room increase 6%. Pricing power remains intact despite broader headwinds.

The positive momentum was tempered by continued weakness in air traffic. Harry Reid International Airport recorded a 3% decline in total traffic last month, driven by a 10% drop in international travel. The collapse of budget carrier Spirit significantly impacted domestic capacity. The airline’s traffic plummeted 72% year-over-year. Major Canadian carriers WestJet and Air Canada both recorded declines exceeding 20%.

Baccarat Volatility Drives Strip Performance

A surge in baccarat revenue provided crucial support for Strip operators in February. The high-stakes game generated $119.9 million for Strip properties, a 37% increase over the prior year. The game, favoured by high-rollers and characterised by large average bet sizes, continues to create significant month-to-month volatility. The Strip is down 21% on baccarat over the past three months. But the 12-month decline of just 3% suggests the game remains fundamentally healthy.

Regional markets delivered more consistent growth. Reno posted a 7% increase to $60.6 million and is tracking 4.5% ahead for the fiscal year. Boulder City generated $77 million in gaming revenue, up 3.5%. The Las Vegas locals market climbed 3% to $148 million. Downtown Las Vegas lagged with $69.8 million in revenue, down 4% year-over-year.

Super Bowl Disappointment for Sportsbooks

Nevada sportsbooks endured a challenging Super Bowl period. Statewide sports betting revenue fell 14% to $35.3 million. Football betting revenue collapsed nearly 70% year-over-year to just $4.3 million. Total Super Bowl handle of $133.8 million marked the lowest figure in at least a decade.

Industry observers have partially attributed the decline to competition from prediction markets. Nevada initially failed to prevent Kalshi from offering Super Bowl contracts, though regulators subsequently secured a temporary restraining order. Kalshi has been forced to restrict Nevada users from trading sports, entertainment and election contracts pending a federal appeals court hearing scheduled for 3 April.

Analyst Outlook Shifts Positive

The improved February data has prompted analyst revisions ahead of first-quarter earnings season. Macquarie analyst Chad Beynon upgraded his estimates for Las Vegas segments to the upside, though he maintained a cautious long-term view. The analyst expects higher-end properties, particularly Wynn, to outperform MGM and Caesars.

Caesars continues to face particular pressure. Speculation about a potential sale is intensifying. Meanwhile, locals-focused operators Boyd Gaming and Red Rock Resorts have captured market share as value-conscious customers gravitate towards lower price points. Beynon indicated both companies are positioned to exceed current first-quarter consensus estimates for their retail segments.

The February results offer welcome relief for Nevada’s gaming sector. Beynon cautioned that leisure and international softness may persist throughout 2026 following three years of post-pandemic growth. The data nonetheless suggests the market has found a floor after an extended period of uncertainty.