K-Shaped Recovery: Strip Softening, Locals Thriving

Nevada casino profits plunged 34.8% statewide in FY2025, Strip down 81.2% despite stable revenue. Locals properties (Station, Red Rock, Boyd) are outperforming. Boyd's Suncoast renovation exemplifies targeted capital deployment in locals. All-inclusive packages driving 50% first-time visitors at MGM. NBA arena project behind Paris/Horseshoe/Planet Hollywood being pitched by Caesars and VICI; NBA targeting decision by end of 2026. Wynn and Red Rock executives link NBA to tourism lift. LVCVA spending $2.2M on influencers to counter Gen Z's declining gambling interest. Strip resilience seen in Clark County June win topping $1B for third time, lifted by Resorts World. However, some casino operators are being liquidated despite record revenue, highlighting winners and losers.