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

Updated on: February 19, 2026, 04:46h.

• Last year, Las Vegas experienced its most significant visitation drop outside of the pandemic in over 50 years.
• Both Caesars and MGM reported declining earnings on the Strip due to waning tourist numbers in 2025.
• Despite the downturn, Caesars’ CEO maintains a positive outlook, highlighting major events and a strong convention schedule for 2026.
  

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Contrary to the many YouTubers shouting “Vegas is Dead!”, the reality is that 2025 marked the worst annual visitation drop in Las Vegas since the pandemic in 2020: a notable 7.5% decline from the previous year. This slump represents the steepest decrease (excluding 2020) recorded by the Las Vegas Convention and Visitors Authority (LVCVA) in 55 years.

The LVCVA’s final numbers indicate that Las Vegas hosted 38.5 million visitors last year—3.1 million fewer than in 2024. This absence affected numerous tourism metrics, leading to a 3.3% decline in hotel occupancy, a 5% drop in average daily room rates, and an 8.8% reduction in revenue per available room. Additionally, Harry Reid International Airport reported a 6% decrease in passenger traffic.

This downturn reflects a significant slowdown in the region’s visitor economy rather than a temporary blip, as operational reports from major Strip players reveal troubling trends. In the last fortnight, another major operator confirmed weaker annual results.

Caesars Entertainment, which operates eight casinos and a non-gaming hotel on the Strip, recorded $4.05 billion in revenue in Las Vegas for 2025—a 4.7% drop from the previous year. Their net income plummeted more dramatically by 19.6%, totaling $703 million. The fourth quarter mirrored these trends, with revenue declining by 3.4% and profits down 4.7%.

Overall, Caesars reported $11.5 billion in total revenue, a modest increase of 2.4%. However, they ended the year with a net loss of $502 million after the absence of one-time gains that inflated 2024’s results.

Dispelling the Myths

In this week’s fourth-quarter earnings call, CEO Tom Reeg assured investors that while the company is navigating some rough waters, it’s not sinking. He described the downturn as a result of “normal economic cycle activity,” highlighting that the fourth quarter was one of the strongest periods in Caesars’ history.

“There’s really no crisis occurring in Vegas,” he stated, noting record gaming revenue on the Strip in 2025 as proof that the market’s inherent allure remains strong.

Reeg emphasized that the current challenges facing Caesars stem from a general decline in discretionary travel rather than a rebellion against Strip pricing. Even amid rising dissatisfaction regarding resort fees and room rates, he noted that customer pushback has been minimal.

Weathering the Storm Together

Caesars isn’t the only entity feeling the impact; MGM Resorts International, which operates nine casinos and four non-gaming hotels, also released disappointing results earlier this month: a 4% decline in Las Vegas revenue to $8.4 billion, and core operating earnings fell by 8%.

Both companies specifically pointed to decreased drive-in traffic from Southern California and diminished demand outside of major events as critical challenges.

Despite the downturn, Reeg expressed optimism about the prospects for 2026, citing a bustling convention calendar and early positive trends. While he anticipates a possible summer lull, he is confident the market will stabilize as the year progresses.

“I expect recovery over time, and we are starting to see early signs of that from the fourth quarter into the first quarter (of 2026),” he remarked.