Las Vegas is experiencing a notable tourism slump, and its impact is being felt in the room tax revenues that help pay for Allegiant Stadium. According to data from the Las Vegas Stadium Authority, room tax collections dedicated to repaying the $750 million in public funding for the stadium are falling short of expectations.
From July to September, room tax revenue was nearly 6 percent below budget, with $13.4 million collected compared to the $14.2 million anticipated. This aligns with a 9.2 percent drop in visitation reported by the Las Vegas Convention and Visitors Authority over the same period. Year over year, the stadium’s room tax revenue fell by 12.5 percent when compared to the same three months in 2024.
For fiscal year 2025 (July 2024-June 2025), $63.5 million was generated for stadium debt payments. The room tax, created by Senate Bill 1, adds a 0.88 percent charge to hotel rooms in Clark County and has been in place since 2017 to pay off bonds for stadium construction. As of September, the tax has brought in $428 million.
Clark County typically makes two annual bond payments, one in June and one in December. In 2025, those payments total $37.4 million. The room tax is scheduled to remain in effect until 2048, when the final bond payment is due.
A debt reserve fund, currently holding $90 million, is maintained to cover up to two years of bond payments should room tax revenue fall short. This fund was used during the COVID-19 pandemic but has since been replenished.
Despite the tourism downturn, Allegiant Stadium remains a major event hub. Nearly 7 million people have attended events there since 2021, including Raiders games, concerts, and private events. In the most recent quarter, the stadium hosted over 540,000 attendees across multiple events. Concerts accounted for over 233,000 attendees, with high-profile acts like Beyonce and Chris Brown. Raiders games drew 171,901 fans, while the Canelo Alvarez vs. Terrence Crawford fight attracted more than 65,000, with 85 percent of attendees coming from out of state.
Attendance from out-of-town visitors remains strong for major events, with around 70 percent of concertgoers and 61 percent of Raiders fans coming from outside Southern Nevada. The stadium also hosted UNLV football games, which saw over 42,000 attendees, and 27 private events.
The combination of falling tourism and lagging room tax revenue is a concern for the long-term funding of Allegiant Stadium, but safeguards like the debt reserve fund provide a buffer against short-term downturns.