Las Vegas Tourism Slowdown Hits Boyd Q2 Earnings

Boyd Gaming is juggling declining revenues in Downtown Las Vegas with strategic shifts in its national and online business. While tourism in Southern Nevada softens, the company is redirecting its focus—and funds—from digital investments like FanDuel to other priorities.

Good to know

• Boyd’s Downtown Las Vegas revenue fell over 4% year-on-year in Q2 2025.
• Boyd sold its 5% FanDuel stake for $1.755 billion to reduce debt and fund growth.
• Las Vegas visitor numbers are down every month in 2025 so far, with international travel hit hardest.

Boyd Gaming’s Downtown Las Vegas properties saw another drop in revenue during the second quarter of 2025. The combined income from its three downtown casinos totaled around $55.2 million, down from $57.7 million in Q2 2024. That decline pushed adjusted EBITDAR down 12% year-over-year to $19.4 million.

Company CEO Keith Smith linked part of the drop to the unusual timing of Hawaiian tourism last year. Many regular visitors from Hawaii delayed trips to Q1 2024 due to the Super Bowl’s effect on room prices, which led to an inflated Q2 comparison. Boyd runs dedicated charter flights between Hawaii and Las Vegas, and island travelers are a major part of its downtown customer base.

Even with downtown under pressure, Boyd’s regional and locals casinos saw improved results. Properties outside of central Las Vegas and in other states helped balance the numbers with year-over-year revenue growth.

Tourism trends in Las Vegas show a broader slowdown. Between January and May 2025, visitor volume has declined every month. May saw a 6.5% year-over-year drop, based on Las Vegas Convention and Visitors Authority data. Passenger counts at Harry Reid International Airport also fell nearly 4% during the same period.

Hotel occupancy is also slipping, and the number of rooms filled each night has decreased. Visitors have voiced their frustration online about price hikes, especially on the Strip, where many operators now charge high resort and parking fees. In response, some properties have been scaling those fees back over the summer.

International travel, particularly from Canada, has taken a sharper hit. Analysts suggest this may be tied to broader political and economic shifts, including leadership changes in the U.S.

Amid all of that, Boyd made a major financial move—selling its 5% stake in FanDuel for $1.755 billion. Flutter Entertainment, FanDuel’s parent company, bought back the shares. Boyd plans to use those proceeds to pay off debts, renovate properties outside Nevada, and continue investing in new developments, such as its upcoming casino project in Virginia.

Although Boyd is not a major online gaming player, it has generated revenue through market access partnerships with FanDuel in various states. Those agreements will be revised following the sale. The company expects between $50 to $55 million in AEBITDAR from online operations this year, dropping to about $30 million in 2026.

Boyd still sees digital potential. It runs its Stardust online casino brand in New Jersey and Pennsylvania, and operates a digital sportsbook under its name in Nevada. CEO Smith said they will keep exploring online opportunities, even without equity in FanDuel.

In the earnings call, Smith said: 

“The recently announced transaction to sell our equity stake in FanDuel will further strengthen the company’s financial position as we continue to invest in our properties, pursue growth opportunities, return capital to shareholders and maintain a strong balance sheet.”

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