Caesars Entertainment reported a drop in Las Vegas revenue and income for 2025 as softer leisure demand weighed on results, while its digital business posted record quarterly EBITDA and management signalled continued top-line growth.
The casino operator generated $4.05 billion in net revenue from its Las Vegas operations in 2025, down 4.7% year over year. Net income from those operations fell 19.6% to $703 million.
In the fourth quarter, Caesars’ Strip properties posted $1.04 billion in net revenue, a 3.4% decline, while reported net income slipped 4.7% to $182 million.
Companywide, Caesars reported $11.5 billion in net revenue for 2025, up 2.4% from a year earlier, but swung to a net loss of $502 million, primarily due to the absence of more than $350 million in one-time gains from asset sales recorded in 2024.
Chief Executive Thomas Reeg downplayed concerns about Las Vegas demand. “I think this is normal economic cycle activity in leisure for us,” Reeg said. “So, there’s really no crisis happening in Vegas. It’s normal cyclicality, and it will play itself out.”
Reeg added that “the allure of the (Las Vegas) market has not changed,” and said he was “optimistic” about the year ahead.
Las Vegas visitation fell 7.5% to 38.5 million in 2025, marking the first year-over-year decline of the post-COVID period. Rival MGM Resorts International reported a similar slowdown, with $8.4 billion in Las Vegas revenue, down 4%, and core operating earnings of $2.9 billion, down 8%.
Caesars executives said strong group and convention business helped offset softer leisure trends. Reeg noted that “peak events, peak weekends, big conferences…are doing quite well. It’s the shoulder periods…where demand is challenging.”
President and Chief Operating Officer Anthony Carano said “full year same-store enterprise net revenues increased $266 million or 2% year-over-year” and that “our diversified portfolio delivered fourth quarter consolidated net revenues of $2.9 billion, up 4% year-over-year and adjusted EBITDAR of $901 million, up 2% year-over-year.”
In Las Vegas, same-store adjusted EBITDAR was $447 million in the fourth quarter versus $477 million a year earlier. Occupancy stood at 92%, while the average daily rate fell 5%. Carano said there was “a quarterly sequential improvement in occupancy and rate trends as expected, leading to a 6% EBITDA decline in Q4, an improvement versus Q3.”
The digital segment was a bright spot. During the fourth quarter, Caesars Digital delivered net revenue of $419 million and adjusted EBITDA of $85 million, an all-time quarterly record, with hold normalized adjusted EBITDA of $90 million.
Eric Hession, president of Caesars Digital, highlighted 28% net revenue growth in iCasino and said total monthly unique payers increased by 19% to 585,000.
Hession added, “We continue to see a business capable of driving 20% top line growth with 50% flow-through to EBITDA, which keeps us on track to achieve our goals.”
Regionally, revenues rose 4% year over year, though adjusted EBITDAR declined slightly due to poor winter weather in December.
Looking ahead, Reeg said: “First quarter, I’d expect continued sequential improvement versus fourth quarter. The second quarter starts to look even better. The second half of the year is dependent on what happens with that leisure customer.”
Original article: https://www.yogonet.com/international/news/2026/02/18/117660-caesars-flags-record-digital-ebitda-as-vegas-leisure-softness-weighs-on-2025-results
