Las Vegas Breaks Records with Over Forty Million Visitors, But Workers Struggle with Rising Costs and Automation—Here’s Why

In 2024, Las Vegas achieved an astonishing milestone, welcoming over 40.8 million visitors and setting new records in tourism and gaming revenue. Projections for 2025 anticipate surpassing 41.5 million visitors, bolstered by major events, including the Formula 1 Las Vegas Grand Prix and a robust convention agenda. While the city’s tourism industry flourishes, a significant disparity reveals that workers in hospitality face mounting challenges that jeopardize their livelihoods.

The Reality: A Thriving Tourism Industry

Las Vegas has long stood as a beacon of entertainment and luxury, but recent achievements have propelled it into uncharted territories. Per the Nevada Gaming Control Board, 2024 marked the state’s highest gaming revenue year, raking in $15.5 billion. The momentum appears to continue into 2025, with future earnings projected to meet or exceed last year’s figures.

What fuels this astonishing growth? The answer lies in high-profile attractions, notably the Formula 1 Las Vegas Grand Prix, paired with a filled convention calendar. These mega-events do not just attract visitors; they draw affluent tourists eager to spend, thereby significantly enhancing the overall tourism metrics.

The Hardship: Why Workers Are Struggling

Amid the celebratory atmosphere surrounding burgeoning tourism numbers, the reality for many hospitality workers tells a different story. Reports from the Culinary Workers Union Local 226, combined with state labor data, highlight three critical factors contributing to the economic hardships faced by these workers.

A. The “Cost of Living” Gap

Despite achieving a 32% wage increase for hospitality workers under the 2023-2024 contracts, the soaring cost of living in Southern Nevada has outpaced wage growth considerably. Recent years have witnessed skyrocketing rent prices in Las Vegas, ranking among the highest in the United States from 2022 to 2025. Alongside escalating housing costs, inflation has driven up grocery and utility expenses, eroding the real value of workers’ earnings gained through historic wage contracts.

B. The “Automation” Threat

Automation has emerged as a significant concern for hospitality workers. Self-service kiosks and automated systems for bartending are being rapidly deployed by casinos, diminishing the demand for human labor. Despite surging tourism, this shift has led to reduced hours for workers in essential departments, particularly in laundry and back-of-house services. The risk of job displacement due to automation looms large, causing anxiety among employees who worry about the long-term implications on their job security.

C. The “Formula 1” Disruption

While the Formula 1 Grand Prix has undeniably enriched the city, it has also posed challenges for local workers. Commute times ballooned during the event, with road closures transforming what was once a 20-minute commute into 2-hour treks for employees. Workers at off-Strip businesses reported a noticeable dip in tips and foot traffic, as the spotlight fell predominantly on luxury resorts catering to F1 visitors. The concentration of such high-spending tourists in select areas further complicates the situation for smaller establishments struggling to attract patrons.

The Current Labor Climate in Early 2026

Despite these economic challenges, the contract held by Culinary Workers Union Local 226 remains valid until 2028, granting some degree of security to workers; however, the absence of timely cost-of-living adjustments is troubling. Nevada’s unemployment rate stands at approximately 5.3%, exceeding the national average and reflecting the labor market’s fragility. In response to these pressing issues, state authorities are weighing new housing measures, including Rent Stabilization, aimed at alleviating the affordable housing crisis for hospitality workers.

The Redistribution of Wealth: A Growing Disparity

The crux of the problem lies not in the influx of tourists or the gaming industry’s performance but rather in the redistribution of wealth. Major casino operators, including MGM, Caesars, and Wynn, are reporting record profits, while countless workers struggle to keep pace with ever-increasing living costs. This wealth disparity is exacerbated by automation that diminishes jobs and by mega-events that principally benefit the luxury tourism segment.

While Las Vegas’s tourism boom may signal a thriving economy, it fails to translate into equitable benefits for the workforce that sustains the industry. A pressing need persists for wages to keep up with rising living expenses and for measures to protect workers from the swift advent of technology. Until these issues are diligently addressed, the gap between the city’s prosperity and its workforce’s struggles will likely continue to widen.

Looking Ahead

As Las Vegas cements its status as a top global tourism destination, it faces an imperative challenge: fostering a harmonious balance between tourism success and the welfare of its workers. Policymakers and industry leaders must proactively tackle the intensifying cost-of-living crisis while ensuring job protection against the encroachment of automation. If these pressing issues remain unaddressed, the bright future of Las Vegas’s tourism industry could potentially be overshadowed by the struggles of those who are its backbone.