Dive Brief:
- Caesars Entertainment saw net revenues in its Las Vegas segment decline 3.4% year over year in the fourth quarter of 2025, according to an earnings report published Tuesday. The operator also saw Las Vegas adjusted EBITDA drop 6.5% year over year during the quarter.
- Meanwhile, Caesars’ regional and digital segments boosted the company in Q4, with net revenues for the sectors increasing 4% and 38.7% year over year, respectively. Overall, the operator saw 4.4% year over year growth in net revenues.
- With the results, Caesars joins Las Vegas competitors MGM Resorts and Wynn Resorts in posting fourth-quarter performance declines in the market. While tourism to Sin City was challenged throughout 2025, Caesars executives remain optimistic about the long-term value proposition of the market.
Dive Insight:
Caesars saw Las Vegas net revenues decline each quarter of 2025, with the steepest losses reported in the third quarter. The performance results came as fewer travelers visited Las Vegas throughout the year.
In 2025, Caesars had a “very, very soft summer in Vegas,” with weakened leisure business, in particular, CEO Tom Reeg said during a Tuesday earnings call. Currently, leisure travel “remains soft on a year-over-year basis, but not as pronounced as it was this summer,” he said.
While Caesars’ Vegas revenues were down in Q4, they improved sequentially over Q3 driven by a strong event calendar as well as solid group and convention demand, Chief Operating Officer Anthony Carano said during the call.
Group business is expected to continue to offset leisure softness in early 2026, Reeg said on the call. CEOs from MGM Resorts and Wynn similarly anticipate solid group and convention business in Las Vegas into 2026, they shared during earlier Q4 earnings calls.
Despite recent declines, Reeg said “the allure of [Las Vegas] has not changed, and we're optimistic as you move through ‘26 and beyond.”
Upcoming capital expenditure projects in the market, including the rebrand of The Cromwell to The Vanderpump Hotel, will also benefit Caesars’ Vegas segment in 2026, Carano said. Elsewhere, the company plans to open the Harrah’s Oklahoma casino and entertainment venue in April in partnership with the Iowa Tribe of Oklahoma.
Late 2024 openings of Caesars Virginia in Danville, Virginia, and the Nobu Hotel Caesars New Orleans bolstered Caesars’ regional performance growth throughout 2025.
