Caesars has reported year-over-year declines in its Las Vegas revenues, another indication of declining visitation to America’s most lucrative gambling destination.
- Las Vegas revenues decline for Caesars: Caesars reported a 5% year-over-year drop in Las Vegas Strip revenue and a 22% decline in net income, citing "softer market demand."
- Vegas visitation trends worsen: Visitor volume, hotel occupancy, and airport traffic in Las Vegas continue to fall, with growing frustration over high fees and prices.
- Online and regional markets thrive: Despite Vegas' struggles, Caesars posted record profits in its digital and regional operations, highlighting shifting customer behavior.
The company announced that net revenues from its Las Vegas Strip properties declined from $1.1 billion in the second quarter of 2024 to $1.05 billion in Q2 2025. Net income declined from $272 million to $212 million during that same time, a 22% drop.
CEO Tom Reeg said the company’s Las Vegas brick-and-mortar assets faced “softer market demand in our hospitality verticals,” in a statement announcing Caesars’ second-quarter financial results on Tuesday.
In a conference call announcing the Q2 results, Reeg predicted the declines in Vegas would be “temporary” compared to long-term growth, but indicated the company would see similar financial drops in the city for the third quarter.
Larger impacts
Tuesday’s earnings report is the latest economic warning sign for Las Vegas.
Las Vegas has seen declining visitor volumes and hotel occupancy in each of the first five months of the calendar year, per Las Vegas Convention and Visitors Authority data. Passenger traffic to the region’s Harry Reid International Airport is also down year-over-year.
Boyd Gaming, which operates several Downtown Las Vegas properties, reported year-over-year revenue declines at those casinos in its Q2 earnings last week. Caesars is the first major Strip operator to show these visitation decreases are hurting major gaming operators’ finances.
Caesars and rival MGM operate roughly two-thirds of Las Vegas Strip casino properties. MGM is set to report its second-quarter results on Wednesday.
Caesars cites "softer market demand" in Las Vegas as part of a decline from $1.1 billion in Vegas net revenues for Q2 2024 compared to $1.05 billion in Q2 2025; net income fell from $272m to $212m; Meanwhile, $CZR saw year-over-year growth in its regional and digital properties
— Ryan Butler (@ButlerBets) July 29, 2025
The second-quarter financials come roughly three months after most publicly traded gaming operators took a publicly bullish stance on the industry’s economic outlook. Gaming leaders shrugged off fears over economic volatility in stock markets and international affairs during the early months of the second Trump Administration.
Stock markets have seen significant growth since hitting a recent low in April, but the troubling declines in Las Vegas are beginning to accelerate.
Along with visitation figures, social media has been abuzz with signs of an “empty” Vegas, including videos of comparatively empty streets along the heart of the Strip, where Caesars and MGM operate their flagship properties. Anecdotal media reports and social media reviews indicate visitors are increasingly fed up with what they see as unreasonable prices and excessive charges, including resort and parking fees.
Reeg said Tuesday that there wasn't "anything particularly concerning" about Las Vegas consumer behavior, with the exception potentially of international visitation.
Industry gains elsewhere
Declining Vegas numbers come as gaming operators are showing record profits in their regional and online divisions.
The company’s regional properties saw year-over-year gains in net revenue and net income for its regional properties in the second quarter of 2025 compared to 2024. This comes after Boyd, which also operates properties outside Nevada, reported similar growth in its regional division.
Caesars also reported its strongest quarter ever for its online sports betting and iCasino division. The company generated $39 million in second-quarter net income in 2025 compared to $4 million in 2024, a nearly tenfold increase. Caesars doubled its digital division’s adjusted EBITDA to $80 million from $40 million during that same time.
This comes the same day MGM’s digital arm also posted one of its strongest second quarters.
Growth in multiple companies’ online and regional brick-and-mortar assets indicates that, despite any economic headwinds, customers are still looking for casino action both digitally and in-person. Larger questions now grow around why Las Vegas is not showing the same.
