For the second time in as many weeks, a major Las Vegas casino operator reported a yearly financial drop, the latest sign that weakening tourism is weighing on the Strip’s biggest companies.
Caesars Entertainment Inc., which operates eight casinos and one non-gaming hotel on the Strip, generated $4.05 billion in net revenue from its Las Vegas operations in 2025, down 4.7 percent year-over-year. Net income for the year fell even more sharply, slipping 19.6 percent to $703 million, according to public filings released Tuesday.
In the final three months of 2025, Caesars’ Strip properties posted $1.04 billion in net revenue, a 3.4 percent drop, with $182 million in reported net income, down 4.7 percent from the same quarter a year earlier.
Caesars CEO Tom Reeg downplayed the 2025 figures during an earnings call Tuesday afternoon. Reeg said “the allure of the (Las Vegas) market has not changed,” adding that he was “optimistic” about the current year and the future.
“I think this is normal economic cycle activity in leisure for us,” he said, noting that the final three months of 2025 were among the best fourth quarters in the company’s history. “So, there’s really no crisis happening in Vegas. It’s normal cyclicality, and it will play itself out.”
Las Vegas saw its first year-over-year visitation decline in the post-COVID era last year. According to the Las Vegas Convention and Visitors Authority, 38.5 million people visited the city in 2025, down 7.5 percent from 2024, and the lowest annual total since 2021.
Caesars’ biggest competitor, MGM Resorts International, which operates nine casinos and four non-gaming hotels on the Strip, suffered a similar fate in 2025 because of the city’s tourism dip. MGM Resorts generated $8.4 billion in net revenue last year from its Las Vegas operations, down 4 percent, and $2.9 billion in core operating earnings, an 8 percent decline from 2024.
Reeg attributed Caesars’ downturn primarily to broader leisure softness and normal economic cycles rather than price fatigue on the Strip. He said Caesars has not seen customer pushback on hotel room rates, resort fees or other pricing, despite growing public criticism about rising costs in Las Vegas.
“We know that the pricing gets focus on social media… But that’s not really what’s driving what’s happening in Vegas,” he said. “There’s nothing unusual happening here. I’d expect it to recover as time goes by, and we’re already seeing that happen over (the) fourth quarter and into (the) first quarter (of 2026).”
Companywide, Reno-based Caesars reported $11.5 billion in net revenue for 2025, up 2.4 percent from the prior year, but the company swung to a $502 million net loss. Executives attributed the shift primarily to the absence of more than $350 million in one-time gains from asset sales recorded in 2024.
Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.