TLDR
- Las Vegas Strip casino net profits fell 81% year-over-year to $154.2 million in FY2025
- Total Strip revenue dropped 4% to $21 billion, with gaming making up just 26% of that
- Tilman Fertitta agreed to buy Caesars Entertainment for roughly $17.6 billion including debt
- Barry Diller made an $18 billion offer for MGM Resorts, though neither deal is finalised
- Reno was one of the few Nevada markets to grow revenue, running 5.5% ahead of last year’s pace
Las Vegas Strip casinos made far less money in fiscal year 2025 than the year before, according to a new report from Nevada’s gaming regulator. The data comes as two major casino acquisitions are still being negotiated.
The Nevada Gaming Control Board released its annual abstract report for fiscal year 2025 on Wednesday. It covers 305 licensed casinos that each brought in at least $1 million in gross gaming revenue during the year ended June 30, 2025.
Strip casinos posted combined net profits of just $154.2 million. That is an 81% drop from the prior year.
Total revenue on the Strip came in at $21 billion, down 4% year-over-year. Combined gaming revenue was $5.5 billion, meaning the Strip converted only 0.7% of total revenue into profit.
The 51 Strip licensees in the report carried $50.7 billion in combined liabilities. Interest expenses alone topped $2.2 billion for the year. Return on invested capital and return on average assets were both below 4%.
Two Big Deals Still Pending
In May, Tilman Fertitta — owner of Golden Nugget Casinos — agreed to buy Caesars Entertainment at $31 per share, taking on nearly $12 billion in assumed debt. The all-in price comes to roughly $17.6 billion. Caesars’ stock once traded above $100 in 2021.
Shortly after, Barry Diller — the largest shareholder of MGM Resorts — made an $18 billion offer for the company. Diller has said he is drawn to MGM’s physical assets.
Neither deal is done. Caesars’ go-shop period runs through July 11, and Diller’s MGM offer has not been accepted.
Other Nevada Markets Also Struggled
Outside the Strip, results were also weak. Laughlin casinos posted a net loss of $54.7 million in FY2025, a drop of more than 750% year-over-year, on gaming revenue of $348.2 million.
South Lake Tahoe casinos lost more than $50 million, though that was actually a 65% improvement over the year before.
Reno was a standout. Net profits there fell 63% to $47 million, but total revenue and gaming revenue both grew. Reno is currently running 5.5% ahead of last year’s pace in the current fiscal year, outpacing the Strip at 1% and downtown Las Vegas at 3.5%.
Gaming revenue on the Strip has been positive in three of the four months reported so far this fiscal year. But tourism remains soft. International travel from Canada is down, and the collapse of budget airline Spirit has reduced domestic traffic.
What Could Drive Recovery
Las Vegas has several upcoming projects that could boost visitor numbers. The Oakland Athletics are building a stadium on the Strip for their 2028 MLB debut. The city is also being considered as an NBA expansion site, which would add 41 home games per season.
Recurring events like Formula 1, the Super Bowl, WrestleMania, and March Madness continue to draw visitors.
Of the $21 billion in Strip revenue, hotels accounted for more than $7 billion. Food brought in $4 billion, beverages $1.5 billion, and entertainment and other amenities around $3 billion.
