Las Vegas, the glittering entertainment hub, is facing a tough year with fewer tourists hitting the Strip. MGM Resorts International’s CFO Jonathan Halkyard just revealed to Nevada regulators that a sharp decline in drive-in visitors from California is the main culprit behind the slump in 2025. But he insists the city still packs plenty of value for travelers. What’s causing this shift, and can Sin City bounce back?
Jonathan Halkyard, CFO of MGM Resorts International, stepped up before the Nevada Gaming Control Board on Thursday to discuss the company’s challenges. He pointed directly to reduced drive-in traffic from California as the reason for lower visitation numbers in Las Vegas this year.
This appearance was part of his licensing process, where the board recommended him to the Nevada Gaming Commission. Halkyard compared 2025 to the strong performances in 2023 and 2024, noting that MGM has seen occupancy dips at some properties.
The drop in California drivers has hit hard, pulling down overall tourist numbers. He stressed that despite these hurdles, Las Vegas remains a top spot for value-driven vacations.
Analysts and industry watchers are paying close attention. Halkyard’s words come amid broader talks about tourism trends, with some experts linking the decline to economic pressures on everyday travelers.
Breaking Down the Visitation Decline
Data from the Las Vegas Convention and Visitors Authority shows a clear picture of the downturn. Visitor counts fell 12% in July 2025 alone, and year-to-date figures are down 8%, meaning about 2 million fewer people have come to the city compared to 2024.
Halkyard explained that drive-in traffic from California, a key feeder market, has softened significantly. This group often includes budget-conscious families and weekend gamblers who drive in for quick getaways.
Without these regular visitors, hotels like those run by MGM are seeing more empty rooms. For instance, rival Caesars Entertainment reported 90,000 unoccupied rooms in recent months, highlighting the industry-wide impact.
Why the drop from California? Rising gas prices and economic uncertainty might be keeping drivers at home. Halkyard noted that while 2023 and 2024 were banner years post-pandemic, 2025 has brought a return to more normal patterns, but with added challenges.
This isn’t just about numbers. Local businesses, from casinos to restaurants, feel the pinch when fewer cars roll in from the Golden State.
MGM’s Optimism Amid Challenges
Even with the setbacks, Halkyard stayed positive during his board appearance. He argued that Las Vegas still offers great deals, from affordable shows to dining options that beat out other destinations.
MGM’s leadership, including CEO Bill Hornbuckle, has echoed this view in recent months. In October 2025, Hornbuckle called negative headlines about the city “silly” and urged operators to focus on value for customers.
History shows Las Vegas rebounds strong, Halkyard said, pointing to past recoveries after economic dips. He referenced how the city bounced back from the 2008 recession and the COVID-19 shutdowns.
To adapt, MGM is pushing digital strategies and eyeing growth in areas like online gaming. Halkyard mentioned potential expansions in new states for iGaming, which could offset physical visitation losses.
The company isn’t alone in this optimism. Industry reports from groups like CDC Gaming highlight that convention business remains a bright spot, even if leisure travel has slowed.
Here’s a quick look at Las Vegas visitation trends over recent years:
| Year | Total Visitors (Millions) | Change from Previous Year |
|---|---|---|
| 2023 | 40.8 | +5% |
| 2024 | 41.2 | +1% |
| 2025 (YTD) | Approximately 32 (projected full year around 38) | -8% |
This table, based on Las Vegas Convention and Visitors Authority data through July 2025, underscores the shift.
Broader Impacts on the Industry and Economy
The visitation dip affects more than just MGM. Smaller operators and local workers are feeling the strain, with some reports of reduced hours for casino staff.
Economists tie this to wider U.S. trends, like inflation hitting middle-class budgets. A July 2025 report from the authority noted an 11.3% drop in June visitors and a 10.7% fall in conference attendance.
If California traffic doesn’t pick up, Las Vegas could see ongoing revenue hits into 2026. Halkyard’s testimony suggests MGM is preparing by diversifying, such as strengthening ties with international markets.
On a positive note, events like major sports games and concerts continue to draw crowds. Halkyard highlighted that while drive-ins are down, fly-in visitors from farther away might help fill the gap.
Experts recommend that tourists watch for deals, as hotels adjust prices to lure back crowds. This could mean better rates for rooms and attractions in the coming months.
Looking Ahead for Las Vegas Recovery
Halkyard’s board appearance followed CEO Hornbuckle’s in October 2025, where similar themes emerged. Both leaders emphasize innovation, like digital betting platforms, as key to future growth.
MGM is also excited about international projects, including an integrated resort in Osaka, Japan, which Halkyard called a top opportunity in gaming as of September 2024.
Challenges remain, but the city’s track record gives hope. Past data from the Nevada Gaming Control Board shows tourism often surges after slumps, driven by marketing pushes and economic upturns.
This story hits home for many who love Vegas trips or work in tourism. It reminds us how connected regional economies are, with California’s woes rippling to Nevada.
