Published on: October 21, 2025, 02:51h.
Updated on: October 21, 2025, 03:01h.
- Q3 earnings expected to mirror Q2 performance
- Q4 shows promise as we approach a potentially thriving 2026
- Analysts predict 2026 convention bookings could catalyze a recovery in Strip casino stocks
As we approach the final months of the year, the dismal state of Las Vegas Strip casinos and their investors’ struggles have been thoroughly reported. With the third-quarter earnings releases on the horizon, stakeholders shouldn’t anticipate significant improvements over the previous quarter.
As evidenced by the lackluster stock performance of MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the overall sentiment around Sin City has been rather grim this year. However, there is potential for a rebound as we near the end of 2025, which could create opportunities for a more significant recovery in 2026.
“During our recent visit to Vegas for the G2E, operators conveyed a slightly improved (though still stagnant) outlook for Q4. They remain optimistic about the Formula 1 event this year, leading into what could be a ‘record year for group business’ in 2026,” stated Truist Securities analyst Barry Jonas in a report released Tuesday.
Jonas highlights the near completion of the Las Vegas Convention and Visitors Authority’s (LVCVA) $600 million expansion, anticipating a spirited showing from the Strip over the next 15 months. This news may be welcomed by those invested in Caesars and MGM, who have endured losses throughout 2025.
2026 Convention Business May Boost Strip Casino Operators
Jonas indicates that operators view convention and meeting business as a vital factor in future growth, noting that revenue generation is crucial for many gaming companies. Caesars particularly falls into the “more essential” category.
“This holds especially true for CZR, as they’ve previously mentioned that leisure travelers account for just 10% of their room mix,” Jonas explains. “Although the International Builders’ Show (~100k+) will be held in Orlando in 2026, Las Vegas is expected to compensate for this loss with a robust event schedule. Fortunately, this conference will resume in Vegas from 2027 to 2039.”
The convention and meeting sector is critical for Strip casino operators, as it generates revenue during typically quieter weekday periods from Sunday to Wednesday before leisure travelers arrive for the weekend. Generally, business travelers are less sensitive to pricing than leisure tourists, but Jonas notes that Las Vegas operators are aware of the necessity to enhance their value offerings.
“We believe Strip operators will be increasingly aware of the need to provide value across their customer base,” remarks the analyst.
Focus on Caesars
With its stock price plummeting by nearly one-third this year, Caesars investors are understandably anxious, particularly amidst concerns about a promotional competition in some markets where the company runs regional casinos.
Jonas reassures that the promotional spending in regional markets is likely to decrease shortly, and describes the term “promotional war” as somewhat exaggerated.
The analyst also notes that Caesars, alongside its landlord VICI Properties (NYSE: VICI), is exploring potential strategies to alleviate investor anxiety regarding the gaming giant’s long-term lease obligations for its regional casinos.