Casino Giants Report Softer Earnings on Vegas’ Steepest Annual Visitor Decline in 55 Years

Posted on: February 19, 2026, 04:33h. 

Last updated on: February 19, 2026, 04:34h.

• Las Vegas saw its steepest non‑pandemic visitation decline in more than five decades last year
• Caesars and MGM reported weaker Strip earnings as tourism softened across 2025
• Caesars’ CEO remains optimistic, citing strong events and a robust 2026 convention lineup
  

  ---

It turns out, not all those YouTubers claiming “Vegas is Dead!” were crying wolf for clicks. For the full-year 2025, Las Vegas recorded its worst decline in annual visitation since the 2020 pandemic: a 7.5%  drop from 2024. That’s the deepest plunge (excluding 2020) since the Las Vegas Convention and Visitors Authority (LVCVA) started tracking these numbers 55 years ago.

The LVCVA’s final tally showed 38.5 million visitors last year — 3.1 million fewer than in 2024 — a shortfall that rippled through every major tourism metric. Hotel occupancy slid 3.3%, average daily room rates fell 5%, and revenue per available room dropped 8.8%. Harry Reid International Airport also felt the pullback, reporting a 6% decline in passenger traffic.

The downturn wasn’t a blip, but a broad cooling of the region’s visitor economy. And now the corporate earnings sheets are reflecting it. For the second time in two weeks, a major Strip operator reported weaker annual results.

Caesars Entertainment, which runs eight casinos and a non‑gaming hotel on the Strip, posted $4.05 billion in Las Vegas revenue for 2025 — a 4.7% decline from the previous year. Net income fell even harder, tumbling 19.6% to $703 million. Fourth‑quarter numbers mirrored the trend: revenue down 3.4%, profit down 4.7%.

Companywide, Caesars generated $11.5 billion in revenue — a modest 2.4% increase — but still ended the year with a $502 million net loss after the absence of one‑time gains that had boosted 2024’s results.

Ignore That Water!

On the company’s fourth-quarter earnings call this week, CEO Tom Reeg played the familiar role of a steady-handed captain insisting that the ship was merely rocking, not taking on water. He framed the downturn as “normal economic cycle activity,” emphasizing that the fourth quarter ranked among the strongest in Caesars’ history.

“There’s really no crisis happening in Vegas,” he said, pointing to record Strip gaming revenue in 2025 as evidence that the market’s core appeal remains intact.

Reeg argued that Caesars’ softness reflects a broader pullback in discretionary travel, not consumer revolt over Strip pricing. Despite rising public frustration over resort fees and room rates, he said the company hasn’t seen meaningful pushback from its customers.

Not Alone in the Storm

Caesars isn’t alone in feeling the slowdown, however. MGM Resorts International — the Strip’s largest operator with nine casinos and four non-gaming hotels — reported similarly disappointing news earlier this month: a 4% decline in Las Vegas revenue last year, to $8.4 billion, with core operating earnings down 8%.

Both companies blamed weaker drive‑in traffic from Southern California and softer demand during non‑event periods as key pressure points.

Even so, Reeg projected confidence heading into 2026, citing a packed convention calendar and improving early‑year trends. A summer dip wouldn’t surprise him, he said, but he expects the market to regain its footing as the year unfolds.

“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),” he said.