July 2025 casino foot traffic decreases by 10% compared to previous months, marking it as the second-least busy month of the year
Struggling Casinos Amidst Growing Online Gaming Market
In a recent turn of events, commercial gaming markets are experiencing a decline, particularly in key locations like Las Vegas. According to data, visitor volume has decreased by 7.8% year-over-year as of March 2025, marking the third consecutive month of declining tourism [1]. This downturn has led to a corresponding drop in gaming revenue on the Las Vegas Strip, with a fall of approximately 4.8% over the same period [1].
This decline in physical casino foot traffic has resulted in layoffs, particularly of table game dealers, as resorts experience quieter casino floors amid these visitor declines [1]. However, the story isn't the same everywhere. Jurisdictions like Ohio are witnessing expanding online engagement, with regulated online sportsbooks generating $162 million in tax revenue across seven states [2].
The global casino market is projected to grow at a compound annual growth rate (CAGR) of about 5.6% through 2030, driven by technological advancements, integrated resorts, and evolving consumer preferences [3]. However, this growth is uneven, with traditional brick-and-mortar casinos facing declining visits if they fail to modernize with unique offerings or technology investments [3].
The rise of social gaming and skill-based games captures a younger, tech-savvy audience, further shifting engagement away from traditional casinos. Meanwhile, unregulated online gaming continues to impact the industry negatively, siphoning billions in tax revenue from state governments [3].
The American Gaming Association (AGA) estimates that illegal online casinos and sportsbooks generate annual revenue of $23.6 billion, posing a competitive threat by diverting potential customers from regulated venues [2]. The AGA has called for a national crackdown on the illegal gambling market, with estimates suggesting that it costs states more than $15 billion in lost tax revenue each year [2].
In response to these challenges, the industry is focusing on expanding legal online gaming options to reclaim market share and protect integrity. The regulatory environment, however, remains a concern, with measures proposed against prop bets and calls for reform [2].
In summary, the casino industry is experiencing a bifurcation, with declining physical venue visitation and revenues in major markets like Las Vegas, and online regulated gaming expanding in several U.S. states, generating substantial tax revenues, albeit facing political and regulatory challenges [1][2]. The global casino industry growth hinges on integrating technology and multi-experience resorts, while unregulated online gaming remains a disruptive influence pressuring traditional operations [3].
