Caesars reports $1.05 billion in Q2 Las Vegas revenue, down 3.7% year-on-year

Caesars Entertainment reported lower revenue and income from its Las Vegas operations in the second quarter of 2025, as executives flagged a slowdown in visitation and gaming activity on the Strip. However, the company said it expects a recovery in group bookings later this year and into 2026, while its digital and regional businesses posted gains.

Net revenue from Caesars’ Las Vegas segment fell 3.7% year-over-year to $1.054 billion in the second quarter, while net income dropped nearly 21% to $212 million. For the first half of 2025, net revenue from Las Vegas was $2.057 billion, down 2.8% from a year ago, with net income falling 15.8% to $389 million.

“Vegas started leaking as a market (at the) end of May. That leak accelerated into June,” CEO Tom Reeg said during an earnings call. “I expect the third quarter to be soft.”

Reeg attributed part of the softness to the absence of high-profile entertainment acts like Adele and Garth Brooks, who boosted demand in the same period last year. He added, however, that the decline appeared to reflect a return to “normal seasonality” and that forward bookings for the fourth quarter and early 2026 looked strong.

“It’s like your tire had a leak, and you patched it at this point,” Reeg said. “The fourth quarter, first quarter, and second quarter, we’re projecting a record group year in Vegas for 2025, and 2026 should be another one.”

Las Vegas adjusted EBITDAR stood at $469 million in the quarter, with occupancy at 97%, down from 99% a year earlier. Room rates remained flat. Caesars operates eight casino resorts and one non-gaming hotel on the Strip.

Across the broader Las Vegas market, international visitation is down by double digits, domestic flights into Harry Reid International Airport have declined nearly 4%, and gaming revenue has fallen for four consecutive months. Overall hotel occupancy has dipped below 70%.

President and COO Anthony Carano called the company’s Q2 performance in Las Vegas “solid results in the face of softer demand in our hospitality vertical,” and said the group booking calendar for late 2025 and early 2026 remains “encouraging.”

In contrast to the softness in Las Vegas, Caesars’ regional operations posted a 3.6% revenue increase, helped by the opening of two new properties and growth in same-store gaming revenue. The company expects regional EBITDA to be flat to slightly up for the full year despite construction-related disruptions at Caesars Republic Lake Tahoe, which reopened partially on July 1.

Meanwhile, Caesars Digital delivered a standout quarter, with net revenue rising 24% year-over-year to $343 million. Adjusted earnings reached a record $80 million, doubling the figure from the previous year. Sports betting and iCasino revenues climbed 28% and 51%, respectively.

Reeg said recent U.S. tax legislation is expected to help offset some of the earnings pressure from Las Vegas in the second and third quarters. He also noted that marketing investments in regional markets are being adjusted to favor profitability.

“We are pruning programs that were designed to generate volume but may have done so unprofitably,” Reeg said. “Our rated gaming trends are up 8.5% in the quarter, which is the best we’ve had in three years.”

The company lost approximately 27,000 room nights in Las Vegas during the second quarter, a trend that began in mid-May and accelerated in June. Caesars now expects third-quarter results for Las Vegas to be broadly in line with the second quarter.