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Federal Government Shutdown Could Further Strain Las Vegas Tourism
30 September 2025
Gambling News

Federal Government Shutdown Could Further Strain Las Vegas Tourism

 

Congress is still working in the Capitol to prevent the federal government from shutting down on Wednesday at 12:01 a.m. EST.

To keep the nation operating, Congress needs to adopt a financing package by October 1st, when the federal government's fiscal year begins. Political impasse in Washington, DC, has resulted in numerous short-term continuing resolutions (CRs) to temporarily fund and operate the government, as has been the case in a number of recent years. In 2018, the federal government closed for 35 days, affecting about 800K federal workers.

There are just a few hours left until Congress must deliver a spending measure or CR to President Donald Trump's desk in order to maintain regular operations of the federal government. Tourism may be impacted if it doesn't and a shutdown takes place.

Even though air traffic controllers and TSA agents are regarded as critical workers, they are unpaid during a shutdown. Essential workers will get reimbursement for their time spent once the government is fully financed and operational again.

 

How Travel May Be Affected by Shutdown

Tourism and Las Vegas wouldn't be significantly impacted by a brief federal government closure. However, tourism may suffer if a longer shutdown continues, which is a genuine possibility given the sharp divisions between Republicans and Democrats over important budget bills.

The US Travel Association's president and CEO, Geoff Freeman, says as much. From 2013 until 2018, Freeman served as president and CEO of the American Gaming Association (AGA), a trade organization that represents the interests of Washington's commercial and tribal casino sectors. The US Supreme Court lifted the federal prohibition on sports betting during his tenure.

"The longer a shutdown drags on, the more likely we are to see longer TSA lines, flight delays, and cancellations,” Freeman said. “Nearly nine in 10 Americans agree Congress should work together to prevent a shutdown. Americans deserve better — lawmakers must act before October 1 to keep our government funded and protect jobs, travelers, and our economy.”

According to the tourism expert, the longer a shutdown lasts, the more likely it is that some government employees won't show up for work because they fear they won't get paid for their time. However, a 2019 statute requires Congress to reimburse federal employees for all hours worked during a government shutdown.

According to the US Travel Association, a government shutdown would cost the domestic travel industry $1 billion every week, impacting millions of tourists and companies.

 

The Las Vegas Reeling

There is already a downturn in tourism in Southern Nevada. In comparison to 2024, the number of visitors to Las Vegas has decreased by nearly 8% through August. Through August, Harry Reid International has had a 4.5% decrease in air travelers this year—a difference of almost 1.76 million passengers at the main airport in Las Vegas.

In the case of a government shutdown, 60% of Americans stated they would cancel or avoid flying, according to Tourism Economics. More than eight out of ten people (81%) think that federal government shutdowns negatively impact the economy, and 86% responded that they cause problems for air travelers.

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