Executives from downtown Las Vegas casinos have reported that business remains steady despite economic volatility and changes in travel behavior, countering the narrative that the city is losing its charm.

During a recent community forum organized by the Downtown Vegas Alliance, leaders from key downtown establishments indicated that the market continues to enjoy healthy visitor numbers and spending patterns, even though comparisons to the post-pandemic boom years are complex.

“We face challenges. There are some obstacles,” stated Cliff Atkinson, the CEO of the Fremont Street Experience, who previously served as president of Virgin Hotels Las Vegas. “Yet, I have faith in the city’s tenacity. We are evolving, which is what our city is renowned for.”

Leaders recognized worries about inflation, shifting travel dynamics, and a growing “K-shaped economy,” where affluent visitors continue to spend significantly while those with lower incomes are experiencing greater financial strain.

“There’s an abundance of social media and news channels that seem to amplify the narrative around rising costs and the overall affordability issue in Las Vegas,” remarked Joe Woody, chair of the Downtown Vegas Alliance and CFO of El Cortez. “And we are not in favor of that message.”

Although performance has softened when compared to the record growth seen in 2022 and 2023, operators noted that overall demand remains robust.

“Making comparisons is tricky,” noted Jonathan Jossel, CEO of the Plaza hotel-casino. “There’s a saying that trees don’t grow to the sky. While things might not be as exceptional as they were 12 to 24 months ago, they’re still quite positive.”

“We continue to see substantial levels of visitation, significant spending, and strong gaming revenue,” he added.

Operators pointed to differing performance among properties as an indication of economic segmentation among patrons.

“We have been observing for several years that the affluent are becoming wealthier while the less affluent are struggling,” stated Jeff Victor, VP of operations for Circa Hospitality Group. “Circa has thrived, while The D and Golden Gate feel the pressure significantly.”

Conversely, some downtown casinos report an increase in newer, high-spending customers, including those migrating from the Las Vegas Strip.

“Our customer base is evolving. Our core visitors remain strong, and we’re witnessing an influx of higher-end clientele,” Woody commented. “New patrons are entering, and they are typically the higher-spending ones.”

Executives highlighted that downtown’s allure stems from providing a unique experience compared to the Strip, featuring lower minimum bets and a more personalized level of service.

“What distinguishes us downtown is the relationships that people build,” said Jossel. “Whether it’s meeting Kenny (Epstein at El Cortez) or Derek (Stevens at Circa), guests appreciate coming downtown, interacting with the personalities, and developing a rapport.”

He emphasized that downtown leaders believe they can “provide customers with a far more meaningful experience,” compared to their Strip competitors.

“We can make our guests feel truly valued downtown, and we can consistently recreate that.”

Looking to the future, industry stakeholders expressed optimism regarding the area’s long-term potential, referencing ongoing development and its unique character.

“It offers an authentic experience,” Atkinson emphasized. “The history of downtown Las Vegas is irreplaceable.”