The Las Vegas Strip is seemingly set for a slower third quarter, according to the CEO of one of the Strip’s biggest operators.
During a recent earnings call for Caesars Entertainment, CEO Tom Reeg said that, despite a strong start to the second quarter, income started to slow down and is expected to remain that way into the third quarter.
This comes after the gaming and hospitality company reported a 3.7% year-on-year decrease in net revenue and over a 20% dip in net income, according to publicly available financial reports.
“Vegas started leaking as a market (at the) end of May,” said Reeg. “That leak accelerated into June. I’d expect the third quarter to be soft.”
Nonetheless, Caesars generated $1.054 billion of net revenue from Las Vegas for the three-month period ending in June, 2025 – but that was down from $1.095 billion during the same quarter the year before. That represents $212 million of net income in the second quarter, compared to $268 million last year – a loss of $46 million.
While this shows a worrying picture for the Strip, Reeg still had hope for a more lucrative future in Las Vegas.
“I’ve been around Vegas a very long time…(and) this is normal seasonality that we haven’t seen in a while here,” he said, as reported by Review Journal. “It’s nothing that leaves me concerned.”
The wider landscape on the Las Vegas Strip
Indeed, Vegas has been under pressure to get with the times, with changing revenue streams and expectations from customers, forcing operators to evolve in both their operations and services.
With the rise of online gambling, Las Vegas needs to be able to tempt people to visit the city and its in-person strip, even while similar services are available from the comfort and accessibility of computers and mobile apps.
ReadWrite has contacted Caesars Entertainment for comment.
