While M&A, NBA hype surround Las Vegas, Reno continues to surge

The latest round of gaming and tourism data from Las Vegas saw the familiar theme of lower air traffic and higher gaming revenue continue in May, but despite the ever-increasing level of hype surrounding Sin City, its rival to the north, Reno, is on an extended hot streak itself.

In Las Vegas, gaming revenue on the Strip soared 13% year-over-year in May to $807.8 million, per the Nevada Gaming Control Board. As is usually the case, this surge was mainly attributed to a surge in baccarat performance. The Strip won $174.3 million on the game for the month, up 59% from last May. With the fiscal year nearly complete, America’s gambling capital is about 2.2% ahead of last year’s pace, and the state overall is about 2.7% ahead.

Total visitation for May was just under 3.5 million (+2%), according to the Las Vegas Convention and Visitors Authority. That represents the first YoY tourism increase of at least 2% since 2024. Total occupancy for the city as a whole increased 2% but average daily rates and revenue per available room on the Strip increased 6% and 10%, respectively.

Air travel, however, continues to plague the market well into 2026. May’s passenger count of 4.5 million was an 8% decline YoY, Harry Reid International Airport announced. Its total traffic is now down 6% year-to-date, after falling by the same amount in 2025. International traffic was down 7% in 2025 and is currently down a further 12% so far in 2026.

Las Vegas’ mixed bag has been juxtaposed by a strong all-around year in Reno. Reno’s gaming revenue was $70.5 million in May, an 11% increase YoY. Its pace for this fiscal year is now 6% ahead of last year, the best among Nevada’s major markets.

Reno tourism at all-time highs

Reno’s success this year has included visitation and tourism as well as gaming. Reno-Tahoe International Airport reported in June that spring air traffic increased 4% over last year, including the highest passenger counts in April and May in nearly 20 years. The airport said that airlines have added some 45,000 additional roundtrip seats to the destination compared to last summer in response to the demand.

For the fiscal year-to-date through April, convention and group business is up 14% YoY, and April’s taxable room revenue of $52.6 was a new record for the month, according to Visit Reno Tahoe. In May, visitor counts increased 17% YoY and taxable room revenue was up 27% from last year.

That spring success came after the best quarter in Reno’s history — when taxable room revenue for Q1 hit $106 million, the most ever for the market. On an annual basis, the figures jumped 3% YoY.

“Tourism continues to be a major economic driver for our community,” Mike Larragueta, president and CEO of Visit Reno Tahoe, said in a statement. “These numbers reflect the strength of our meetings and events business, the appeal of Reno Tahoe as an easy-access destination, and the direct impact visitors have on local hotels, restaurants, shops and small businesses.”

New arena, J Resort upgrades

From a nationwide perspective, Las Vegas has been the subject of much attention and intrigue. Much of that has been related to mergers and acquisitions — Caesars Entertainment entered into an agreement to be acquired by Fertitta Entertainment in May. Days later, Barry Diller, MGM Resorts’ largest shareholder, tendered a buyout offer for the casino giant. In turn, the megadeals could spark more M&A activity in the space, top Wall Street analysts assert.

Similarly, Las Vegas is also a finalist for NBA expansion, and the two sides have circled each other for several years. A Las Vegas NBA team has always been treated as a matter of when, not if, but there are serious questions related to how much an expansion franchise might fetch, who might purchase it and where the team would play. A final vote on the matter could come as soon as this month.

In many respects, Reno appears to be on an upward trajectory, as well. Alex Meruelo’s Grand Sierra Resort is building a state-of-the-art, 10,000-seat arena that is part of a broader $1 billion expansion project. The arena will become the new home of the University of Nevada men’s basketball team beginning in 2028.

In downtown, Jacobs Entertainment completed its $400 million Phase One renovations of its J Resort property in May. In addition to the interior upgrades, Jacobs built a new festival grounds, an expanded entrance to J Resort, new youth soccer fields and more in the surrounding area. The company previously committed more than $1 billion in total investment for the region.

Even stalwarts are enjoying success. Shares of Monarch Casino, operator of Atlantis Casino Resort, have jumped 35% so far this year, the second-best total among casino operators behind only Penn Entertainment (+48%).