In 2025, the major casino markets in Las Vegas and New York faced multiple challenges, including economic weakness, tighter regulations, and operational difficulties, dampening the optimistic expectations at the beginning of the year. Industry participants in both locations are now looking towards 2026 for breakthroughs. Relevant U.S. casino regulatory compliance cases can be accessed through the PASA official website.
Las Vegas: Economic Weakness and Anti-Money Laundering Scandals Double Whammy
The impact on Las Vegas has been significant! In 2025, international tourist arrivals decreased by 5% year-over-year, with multiple tourism indicators continuing to decline throughout the year. Additionally, the Trump administration's tariff policies have sharply reduced cross-border visitor flow. More severely, four giants including Resorts World and MGM were fined a total of $32.3 million for anti-money laundering violations, with Wynn also having paid a $130 million fine to the federal government in 2024, setting a record for criminal violations in the casino industry. Despite local operators maintaining performance through cost-effective customer segments, the overall market recovery has been weak.
New York: Casino License Bidding Cools Down, High Tax Rates a Hidden Concern
The heat for casino license bidding in New York cooled down quickly! At the beginning of the year, 11 giants competed for 3 licenses, but due to local opposition and political maneuvering, Las Vegas Sands, Wynn, and two others eventually withdrew, leaving only 3 finalists who were approved. More critically, the tax rate for sports betting in New York is as high as 51%, with the highest tax rates for new casino slots and table games reaching 56%, which has been criticized by the industry as "moving from extreme to typical," significantly increasing the pressure on operators' profits.
2026 Outlook: Regaining Confidence but Challenges Remain
Both locations are hoping for a turnaround in 2026! Las Vegas plans to increase consumer investment and reshape its brand, hoping for the return of international tourists; Resorts World New York is expected to open within the year, potentially bringing much-needed tax revenue. However, challenges such as anti-money laundering compliance in Las Vegas and the attractiveness of casinos in outer boroughs of New York remain to be solved. Whether the industry can warm up again depends on subsequent efforts.
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