Two of the biggest casino operators on the Las Vegas Strip – MGM Resorts International and Caesars Entertainment – are downplaying concerns over a soft summer, expressing confidence in a rebound later this year.
The optimism comes despite an 11.3 percent year-on-year drop in visitor numbers to Las Vegas in June – the steepest decline since 2021, according to newly released data. The fall in foot traffic has raised questions about short-term recovery. However, both companies highlight the city’s longer-term resilience and a strong lineup of high-volume conventions and trade shows.
“Las Vegas is as solid as ever,” said MGM Resorts CEO and President Bill Hornbuckle during a quarterly earnings call on 30 July 2025. “History gives us confidence.”
MGM, which operates several major Strip properties including Bellagio, Aria, and The Cosmopolitan, reported $2.1 billion (€1.93 billion) in net revenue from its Las Vegas resorts during the second quarter of 2025 – a near 4 percent decline compared to the same period last year. Adjusted EBITDAR fell by 9.1 percent to $710 million (€652 million), according to its financial filings.
Executives said $65 million (€60 million) of the EBITDA drop stemmed from ongoing room renovations at the MGM Grand. The $300 million (€275 million) refurbishment is now expected to be completed by October, ahead of the original schedule.
A poor summer season
Despite the temporary decline, MGM’s management highlighted healthy group bookings, stable room rates, and strong forward reservations. Hornbuckle added that luxury properties continue to perform well even during seasonal dips.
Caesars Entertainment struck a similarly upbeat tone during its earnings call on Tuesday. CEO Tom Reeg said the slowdown reflected a return to normal seasonality not seen in recent years.
“I’ve been around Vegas a very long time… This is normal seasonality. It’s nothing that leaves me concerned,” Reeg remarked.
Caesars, which operates eight casino resorts and one non-gaming hotel on the Strip, reported second-quarter net revenue of $1.054 billion (€969 million), a 3.7 percent decline year-on-year. Net income dropped more sharply, falling 21 percent to $212 million (€195 million).
Reeg noted that while the quarter began strongly in April, business declined in May and June. He attributed some of the softness to the absence of major performers like Adele and Garth Brooks, who contributed to more substantial non-gaming revenue in previous years.
“Vegas started leaking as a market at the end of May. That leak accelerated into June,” Reeg said. “I’d expect the third quarter to be soft.”
Big Beautiful bill may derail Vegas?
However, a looming tax change could pose a longer-term threat. The proposed Federal Big Beautiful Bill aims to reduce gamblers’ ability to deduct their losses from winnings to 90 percent starting in 2026. While the adjustment appears modest, industry experts warn it could push players towards offshore markets with looser regulations.
“This affects everyone in Las Vegas,” said Derek Stevens, owner of The D, Golden Gate, and Circa casinos. “It impacts jobs, visitation, and tourism. It’s an important thing that just needs to be corrected.”
Professional poker player Doug Polk echoed the concern, warning that the change could shrink the legal gambling economy. “There will be fewer people who can gamble, less money to be won, more people going overseas,” he said.
The industry fears that a short-term gain in federal revenue could come at the expense of long-term damage to one of America’s most iconic tourism sectors.
