Las Vegas’ gaming sector is feeling confident after a series of reports of first quarter earnings that were better than expected. Industry experts agree that despite general concerns about a possible recession and a slowdown in US economic growth, all signs point to a resilient market. Headlines from industry giants such as MGM Resorts International, Boyd Gaming, Caesars Entertainment, and Red Rock Resorts suggest that the Las Vegas gaming sector is showing resilience. This also signals a positive development for the US gaming industry as a whole.
Another driver of growth in the gambling market is the online sector: due to liberalization in increasing numbers of US states and the growing popularity of digital platforms, the industry is experiencing rapid revenue expansion. In the online poker sector in particular, players can easily play poker with Bitcoin online thanks to cryptocurrencies and thus benefit from fast transactions and increased anonymity.
Mobile apps and cryptocurrencies ensure easy access to digital offerings and therefore drive market growth. Providers such as MGM and Caesars are also benefiting from rising user numbers in the areas of casino games and sports betting. Operators use targeted marketing campaigns and data-supported loyalty programs to retain players in the long term and increase profitability at the same time. The data shows that diversifying their offerings across multiple channels is driving long-term success for these companies.
A closer look at recent data from the US Bureau of Economic Analysis reveals that US GDP decreased by 0.3% in the first quarter of 2025. However, Q1 is showing strong results across the gaming industry. A recent Bank of America assessment highlighted that consumer spending remains surprisingly stable. MGM Resorts and Caesars Entertainment both reported first-quarter EBITDA results that exceeded expectations.
MGM Resorts reported a revenue of $4.28 billion in the first quarter and EBITDA of $1.18 billion. These results are exceeding the Bank of America’s estimates of $4.27 billion and $1.14 billion ever-so-slightly. Profits in April contributed to this revenue, even though total revenue in Las Vegas fell slightly year-on-year. According to a report by Reuters, the main contributor to MGM’s revenue was its sports betting business, which also announced a $2 billion share buyback program. According to the report, the upswing in MGM’s share price is partly due to its sports betting business.
Analysts claim further that MGM has plenty of financial flexibility, which helps it stay on track with its goals. The company is putting money into upgrading its current properties, running its operations more efficiently, giving back to shareholders, and growing into new gaming markets and online platforms.
Even though the market has been unpredictable and there’s global uncertainty, MGM is built to handle tough conditions. It’s expected to grow in the next few years as it moves forward with new projects and expands its digital gaming business. At the same time, MGM is buying back more of its own shares and is taking advantage of low prices in the market. Its strong finances give it room to do this while still investing in future growth.
Caesars Entertainment recorded revenue/EBITDA of $2.79 billion/$884 million in the first quarter. This was essentially in line with the market forecast. Stronger advance bookings in Las Vegas and consistent regional demand contributed to this revenue. According to Bank of America, the latter indicates that EBITDA will increase in 2025 compared to the previous year. Additionally, Bank of America notes that revenue from digital platforms, particularly in the iGaming sector, increased by 40% year-on-year.
This revenue helped Caesars Digital achieve EBITDA of $43 million, which is well above the market forecast of $38 million. According to Bank of America, net gaming revenue also increased by over 70% in April. Furthermore, the revenue from online sports betting fell by 7% in the first quarter compared to the previous year. This is a significant improvement over the fourth quarter of 2024, which saw a decline of 15%. This improvement is due to a strategic focus on customer retention and profitability.
Even though people are still worried about a possible recession, Caesars says it hasn’t seen any big changes in how customers are spending right now. What’s even more promising is that bookings for group events and conventions look strong. This helps keep earnings steady in the near future.
As Caesars starts spending less on big projects and its main business stays solid, its digital side is also making more money. Because of this, the company is getting close to a point where it can start bringing in steady profit. Caesars plans to use most of this extra cash to pay off debt, while also keeping the option open to buy back shares if the timing is right.
This consistent upward trend is reflected in broader industry data. In 2024, tourism in Southern Nevada hit a new record for visitor spending. A report by Applied Analysis for the Las Vegas Convention and Visitors Authority (LVCVA) looked at how much tourism, conventions, and events at the Las Vegas Convention Center (LVCC) boosted the local economy.
Las Vegas saw more tourists for the fourth year in a row, with major events playing a big part. The Super Bowl brought 325,000 people to Allegiant Stadium, and the Las Vegas Grand Prix included the new three-night Neon City Festival. The National Finals Rodeo also had higher attendance than the year before. The report shows the attendance of about 170,000 people over 10 shows. This is a significant rise compared to 157,500 in 2023. New resorts like Durango Casino and Fontainebleau also helped bring in more visitors during their first full year in business.
This report underlines Las Vegas’ stability in the gaming sector. 41.7 million people visited Las Vegas in 2024. This is a 2.1% increase from the year before. March was the busiest month, with nearly 3.7 million visitors, and people are spending more than ever.
Las Vegas’ strong gaming industry plays a major role in boosting the US economy. Recent data shared by the American Gaming Association (AGA) shows that gambling is becoming increasingly popular among Americans. In the past year, about 55% of US adults have taken part in some type of gambling. This is the highest level ever recorded. Of those, 28% visited a physical casino, while 21% placed bets on sports.
The AGA notes this rising participation reflects a steady upward trend and growing interest in the gaming sector. In addition, most Americans now view the gaming industry as a positive contributor to the economy.
This data shows that even with some uncertainty in the broader economy, both traditional casinos and online gaming are doing well. That strong performance gives good reason to stay optimistic about the future of Las Vegas and the US gaming industry as a whole.
