Optimism on the Strip: Insights from MGM and Caesars Despite Tourism Declines
In recent discussions surrounding Las Vegas’ tourism landscape, the city’s largest casino operators, MGM Resorts International and Caesars Entertainment, have expressed an optimistic outlook even as recent data indicates that visitation levels are starting to wane.
Resilient Performance Despite Challenges
Top executives from both companies recently conveyed confidence about their operations during quarterly earnings calls. Bill Hornbuckle, president and CEO of MGM Resorts, highlighted that their Las Vegas properties performed admirably at the beginning of 2025. Notably, MGM’s net revenue from Las Vegas Strip properties reached $2.2 billion in the first quarter, only slightly down from $2.3 billion during the same period last year. The minor 3% decline, Hornbuckle noted, was largely due to the absence of the Super Bowl—a major event hosted in the city in February 2024—which typically boosts revenue.
Growth in Gaming Revenue
Despite the drop in overall revenue, MGM reported an 8% increase in casino revenue year-over-year, totaling $538 million for the quarter. Hornbuckle pointed out an uptick in hotel room occupancy, which rose by 1%. He emphasized that Las Vegas remains a robust market for MGM, particularly highlighting the success of their luxury offerings. He forecasted record hotel bookings for April, buoyed by strong travel trends.
Air Travel and Future Prospects
Looking ahead, Hornbuckle shared encouraging news regarding air travel. He mentioned that Harry Reid International Airport is expected to maintain record airline capacity for the second quarter, which bodes well for tourism and visitation in Las Vegas. MGM’s sustained investments in their properties further position the company for future success, reinforcing their confidence in the Las Vegas market.
A Similar Optimistic Narrative from Caesars
On the heels of MGM’s earnings call, Caesars Entertainment executives shared a parallel narrative of optimism. Anthony Carano, President and COO, acknowledged the uncertainty in the economic environment due to potential policy changes, yet he remained hopeful about Las Vegas’s prospects. He pointed to solid occupancy trends driven by both leisure travel and group conventions.
Strong Group Bookings Expected
Tom Reeg, the CEO of Caesars, reported that group bookings represented nearly 20% of their first-quarter room base, slightly exceeding the full-year average. Looking forward, he anticipates that 2025 will be a record-setting year for group bookings, particularly in the fourth quarter, signaling strong demand for convention and event spaces.
Steady Gaming Habits Amid Economic Concerns
Reeg also provided insight into consumer behavior, indicating no significant changes that would suggest customer spending is being affected by external economic factors. He noted that while market conditions might raise concerns for some, much of the company’s customer base remains insulated from these issues. Lower gas prices may further encourage discretionary spending, allowing consumers to continue enjoying Las Vegas experiences.
The Impact of Declining Visitation
However, it’s important to acknowledge the backdrop of this optimism: Las Vegas tourism data has shown a notable decline, especially in international travel. In the first three months of 2025, visitation decreased by nearly 7% compared to the previous year. February and March witnessed consecutive declines, marking the first time since the pandemic that Las Vegas experienced three months of dropping visitation levels.
This dual narrative from MGM and Caesars paints a picture of cautious optimism amid evolving market conditions. While the decline in tourism metrics cannot be overlooked, the positive indicators from these major operators suggest a resilient foundation upon which the Las Vegas Strip can rebuild and flourish in the future.