For the second time in as many weeks, a major Las Vegas casino operator reported an annual financial decline, the latest sign that weakened tourism is weighing on the Strip’s biggest businesses.
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 from the previous year. Net income for the year fell even more sharply, falling 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, down 3.4 percent, 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 numbers during an earnings call Tuesday afternoon. Reeg said “the allure of the (Las Vegas) market hasn’t changed,” adding that he was “optimistic” about the current year and the future.
“I think this is normal business cycle activity for us,” he said, noting that the last three months of 2025 were among the best fourth quarters in the company’s history. “So, it’s really not a crisis happening in Vegas. It’s normal cyclicality, and it’s going to 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 due to the city’s tourism decline. MGM Resorts generated $8.4 billion in net income last year from its Las Vegas operations, down 4 percent, and $2.9 billion in core operating income, down 8 percent from 2024.
Reeg attributed Caesar’s decline primarily to broader leisure softness and normal economic cycles rather than price fatigue on the Strip. He said Caesars has not seen customer feedback on hotel room rates, resort fees or other prices, despite growing public criticism about rising costs in Las Vegas.
“We know the pricing is focused on social media… But that’s not really what’s driving what’s happening in Vegas,” he said. “It’s nothing out of the ordinary happening here. I expect it to recover over time, and we’re already seeing that happen in (the) fourth quarter and into (the) first quarter (of 2026).”
Reno-based Caesars reported $11.5 billion in net income for 2025, up 2.4 percent from the previous year, but the company posted a net loss of $502 million. Executives attributed the change primarily to the absence of more than $350 million in one-time gains from asset sales recorded in 2024.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.
