Red Rock Resorts posts record quarterly revenue as locals market outpaces the Strip

Red Rock Resorts posted record-breaking second-quarter results with net revenue climbing to $526.3 million and net income rising to $108.3 million, marking the highest quarterly performance in the company’s 49-year history.

The Las Vegas locals-focused operator reported adjusted EBITDA of $239.4 million with a 46.7% margin, driven by strong growth across its casinos, hotels, and food-and-beverage operations, and buoyed by the success of its newest property, Durango Casino & Resort.

Stephen Cootey, executive vice president, chief financial officer and treasurer, described the three months as “easily the best quarter in our company’s history,” highlighting strength across all areas of the business. He attributed the results to a strategy centered on reinvestment in properties and amenities, and to the difference between Red Rock’s locals-focused model and the Strip’s tourism-driven operations.

“We feel locals offer you a better value proposition, which is driving more people to our casinos, which include accessible pricing, convenient locations, and personalized service,” Cootey said. “It not only resonates with our local guests but is starting to resonate with our out-of-town guests as well.”

Revenue from Las Vegas operations reached $513.3 million, up 6.2% year over year, with adjusted EBITDA climbing 7.3% to $239.4 million and margins improving to 46.7%. Cootey credited strong slot play, table games, and spending per visit for the record gaming segment results.

President Scott Kreeger said the company has seen gains across all customer segments, including VIP, core, and non-rewards players, with a 15% increase in visitation from those under 35. Uncarded slot coin-in hit its highest quarterly increase in two years.

The performance of the Durango Casino & Resort, which opened in December 2023, was a key driver. Durango has added more than 100,000 new customers to the company’s database and is on pace to become one of Red Rock’s highest-margin properties.

“The resort remains on a solid trajectory and on pace to become one of our highest-margin properties delivering a return net of cannibalization of more than 15% through the second quarter of 2025,” Cootey said.

Kreeger noted that Durango has attracted a younger crowd and industry workers from the Strip. “We tend to see a lot of industry folks coming off the Strip and stopping off at Durango maybe on the way home,” he said. “I think it’s a function of the incredible food and beverage programming we have there and that it’s kind of a lifestyle-oriented property and you’re seeing it younger.”

Chairman and CEO Frank Fertitta III added that the location in a growing area of the valley is helping to drive demand. Alongside gaming growth, both the hotel and food-and-beverage divisions reported near-record results.

The hotel division delivered its strongest second-quarter revenue and profit through higher occupancy and daily rates. The food and beverage division saw strong cover counts across its outlets.

The company is continuing with major projects, including a $120 million expansion at Durango to add 25,000 square feet of casino space, a high-limit slot room, 230 additional slot machines, and a covered parking structure, with completion expected in December.

Green Valley Ranch is undergoing a $200 million refurbishment of guest rooms and convention areas, scheduled to be finished by the end of the year. Sunset Station is also being renovated with $53 million in upgrades and will introduce a Stoney’s Rockin’ Country venue.

Red Rock declared a dividend of 25 cents per share, payable on September 30 to shareholders of record on September 15.

Cootey also pointed to federal tax changes eliminating taxes on tips and some overtime income as potentially positive for discretionary spending in Clark County. “All of this is fantastic for our company,” he said. Red Rock shares closed Tuesday at $55.01, up 29 cents.