Why Off-Strip Las Vegas Casinos May Outperform the Strip in 2026
For years, the Las Vegas Strip has been the headline act with its mega-resorts and record-breaking room rates. But heading into 2026, the quieter story unfolding just off Las Vegas Boulevard might be the more important one. While Strip casinos deal with softer tourism numbers and flattening gaming revenue, off-Strip and locals-focused casinos are positioned to not only hold steady, but potentially outperform their Strip counterparts.
Why Las Vegas Locals Casinos Are Built to Withstand a Strip Slowdown
Two gaming industry analysts, John DeCree of CBRE and Kim Noland of Gimme Credit, are essentially saying the same thing. Both believe that the locals casino market is built for moments like this, and the data backs it up.
Strip gaming revenue dipped late last year, while neighborhood casinos saw year-over-year growth. That divergence isn’t new, it’s just becoming more pronounced. According to DeCree, since 1984, annual gross gaming revenue on the Strip has declined 11 times, compared to just six declines for the locals market. Even more telling is that during COVID in 2020, Strip gaming revenue fell 43 percent, while locals casinos dropped 23 percent. In other downturns, like the dot-com bust, locals gaming revenue actually grew while the Strip slipped.
A big reason for that resilience is who these casinos serve. Locals properties rely on repeat customers, not airfare prices or convention calendars. And thanks to President Donald Trump’s One Big Beautiful Bill Act, that core customer base may have more money to spend. The tax cuts targeting tips, overtime, and senior citizens disproportionately benefit Las Vegas residents, especially in a city packed with tipped workers and retirees who also happen to gamble often.
Reinvestment is another major factor. Operators like Red Rock Resorts and Boyd Gaming aren’t sitting still. Red Rock, in particular, has become the gold standard for locals-focused growth. Its Durango casino expanded the market, pulling in new players and driving higher spend per visit. Meanwhile, upgrades at Green Valley Ranch and Sunset Station are nearing completion, keeping those properties competitive without relying on Strip-level spectacle.
Tax Cuts, Reinvestment, and a Customer Base That Keeps Showing Up
Why off-Strip casinos are set up to win right now:
- A loyal, repeat customer base that isn’t tied to tourism cycles
- Tax policy that directly benefits locals and tipped workers
- Ongoing capital investment instead of massive, risky mega-projects
- A more balanced supply-demand equation, with fewer gaming positions per resident than in the past
Even companies with Strip exposure are leaning on their locals portfolios for stability. Golden Entertainment’s STRAT may continue to feel pressure from softer visitation, but its Arizona Charlie’s properties are expected to benefit from the same trends lifting Boyd and Red Rock.
None of this means the Strip is doomed. But as Vegas navigates a cooling tourism market, the smart money sees strength away from the city’s main drag. For 2026 and beyond, it might be the casinos without fountains and Ferris wheels quietly posting the best numbers.
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