Oyo Las Vegas Halts Alcohol Sales for Second Time in a Year

For the second time in 12 months, Oyo Hotel & Casino has stopped selling alcohol, leaving the off-Strip property in the unusual position of operating a casino without booze.

According to the Las Vegas Review-Journal, the suspension took effect at 9 a.m. Friday, Oct. 23. While Oyo has offered no official explanation, multiple theories have circulated. Casino.org’s Vital Vegas reports that a casino employee attributed the situation to an insurance lapse, while other sources suggested possible tax or licensing issues.

None of these explanations has been independently confirmed, and the property is not responding to media inquiries.

The shutdown echoes a similar incident in October 2025, when Oyo temporarily lost the ability to sell or serve alcohol for about 10 days after terminating its management agreement with hotel operator Highgate.

Highgate held the property’s liquor license, and the split—over Highgate’s handling of a January 2025 cyberattack that exposed the personal information of about 4,700 casino and hotel guests and employees—left Oyo unable to legally offer alcoholic beverages until licensing issues were resolved.

Just When They Need a Drink

Whatever the reason, losing alcohol sales is a significant blow for a casino already struggling to survive amid a damaged reputation.

In August, Oyo found itself at the center of controversy after online travel listings displayed the Oyo under the names “Palette Las Vegas” and “Collection O Las Vegas” on major booking platforms including Expedia and Booking.com. Critics accused Oyo of attempting to distance itself from poor customer reviews associated with its primary brand.

Oyo’s parent company, Prism, said the listings were connected to planned branding changes and should not have been publicly available before renovations were completed. Since then, however, no rebranding has materialized.

Following the controversy, reports surfaced in August that Fifth Street Gaming was preparing to assume casino operations at Oyo, replacing longtime operator Paragon Gaming, pending regulatory approvals.