Las Vegas tourism slowdown impacted Caesars Entertainment in Q2 2026. However, executives expect recovery by year’s end and continued growth into 2026.
Las Vegas Tourism Slowdown Affects Earnings
Caesars’ President and COO, Anthony Carano, stressed a 3.7% revenue decline and an 8% decrease in adjusted earnings for the Las Vegas segment. He maintained an optimistic outlook, citing strong bookings for the coming quarters.
Conversely, regional revenue grew by 3.6%, driven by new property openings and same-store gaming growth. The Las Vegas segment reported a 97% occupancy rate, only slightly below last year’s 99%, with stable pricing. Carano hinted at upcoming group bookings potentially setting record earnings by 2025.
Digital Segment Shows Promise Amid Tourism Slowdown
Caesars’ digital division performed exceptionally well, achieving a 24% increase in net revenues year-over-year, and setting an all-time adjusted earnings record of $80 million. In total, Caesars Digital recorded approximately $200 million in adjusted earnings over the past year. Sports betting and iCasino revenues rose by 28% and 51% respectively in Q2.
CEO Tom Reeg commented on the softness in Las Vegas, noting a decline in bookings in May and June. He attributed this to the absence of high-end events like those last year, including performances from Adele and Garth Brooks.
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Reeg forecasted a challenging third quarter due to the Las Vegas tourism slowdown but expressed optimism for a robust fourth quarter and beyond. He pointed out steady forward bookings and a favorable group calendar into 2026, which primarily contribute to this positive outlook.
Regional Properties and Future Outlook
Despite the Las Vegas tourism slowdown, Caesars saw potential growth at its regional properties. Construction challenges at Caesars Republic in Lake Tahoe caused temporary setbacks, but operations are recovering. Reeg anticipates regional properties to perform flat or show slight improvements in adjusted earnings for the year.
Reeg highlighted that despite stable gaming revenues, increased marketing expenses aimed to counter greater competition have masked underlying growth. He expects these investments to pay dividends into Q3 and beyond, with promising rated gaming trends.
The gradual return of bookings and strategic investments reinforce Caesars’ projected record group year in Las Vegas by 2025, bolstered by the reapplication of marketing strategies that maximize profitability.
