Caesars Reports Drop in Las Vegas Revenues for Second Quarter

Las Vegas’ long streak of record-breaking numbers seems to be slowing down, and Caesars Entertainment’s latest earnings report makes that trend hard to ignore.

Good to know

• Caesars’ Las Vegas Strip revenue dropped 5% year-over-year in Q2 2025.
• Net income for the quarter fell 22% from $272 million to $212 million.
• Online and regional operations, however, posted record results.

The company revealed that revenues from its Strip properties slipped from $1.1 billion in the second quarter of 2024 to $1.05 billion during the same period this year. Net income also fell sharply, dropping by 22%.

CEO Tom Reeg called the performance “softer market demand in our hospitality verticals,” acknowledging that Caesars expects similar declines in the third quarter. He described the trend as temporary but noted weaker consumer activity, particularly in international visitation.

Visitation Slumps Show in the Numbers

Data from the Las Vegas Convention and Visitors Authority shows fewer tourists, lower hotel occupancy, and reduced air traffic into Harry Reid International Airport through the first five months of 2025. Anecdotal reports and social media chatter have amplified the sense of a quieter Strip, with visitors frustrated by resort fees, high parking charges, and rising prices.

Caesars isn’t the only company feeling the strain. Boyd Gaming recently reported year-over-year revenue declines at its Downtown Las Vegas properties, and MGM—Caesars’ biggest Strip competitor—is set to release its financials this week. Together, Caesars and MGM operate about two-thirds of all Strip casinos.

The declines in Las Vegas were offset by strong results elsewhere. Caesars reported double-digit growth in net revenue and net income at its regional properties. The company’s digital division, which includes online sports betting and iCasino operations, had its best quarter ever.

Digital net income climbed from $4 million in the second quarter of 2024 to $39 million in 2025, a nearly tenfold jump. Adjusted EBITDA in that segment doubled from $40 million to $80 million. Boyd Gaming’s regional operations showed similar growth in its Q2 earnings, pointing to a broader trend where local markets and online offerings are thriving while Las Vegas slows.

Caesars’ financials arrive just three months after many gaming operators publicly projected optimism about the economy and travel demand. But the reality on the ground in Las Vegas is beginning to shift. Visitors are thinning out, and empty-street videos circulating on social media have fueled questions about whether the city’s rising costs are pushing people away.

Despite stock market growth since April, Caesars’ numbers mark one of the clearest signs yet that operators are feeling the impact. MGM’s upcoming results could add more context to whether the Strip’s struggles are temporary or part of a deeper change.

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