MGM Resorts International’s top boss dropped a tough truth on Thursday. Bill Hornbuckle, the company’s president and CEO, said revenue on the Las Vegas Strip took a hit in 2025. This news comes as the city faces a tourism slowdown, but the firm still posted overall gains thanks to strong spots elsewhere.
MGM Resorts wrapped up 2025 with solid numbers across its global operations. The company reported net revenue of $17.5 billion for the full year. That marks a 2 percent rise from the $17.2 billion in 2024.
This growth shows how MGM’s diverse portfolio cushioned the blow from Las Vegas challenges. Earnings climbed 11 percent to $1.2 billion from $1.1 billion the year before. In the fourth quarter alone, consolidated net revenues hit $4.6 billion, up 6 percent year over year.
The firm pointed to record full-year slot machine wins as a bright spot. Luxury offerings drew high-end crowds and boosted casino play. Group and convention business also surged, helping offset weaker areas.
Las Vegas Strip Feels the Pinch
The Las Vegas properties tell a different story. They brought in $8.4 billion in 2025, down 4 percent from $8.8 billion in 2024. This dip highlights broader troubles in the city’s core gaming hub.
The revenue downturn in Las Vegas stems from a tough year for tourism overall. Visitor numbers fell to 38.5 million, a 7.5 percent drop from 2024, according to the Las Vegas Convention and Visitors Authority. That’s the lowest total since 2021 and signals real strain on hotels and casinos.
Hotel occupancy rates slipped too, with average daily room rates holding steady but overall stays shorter. Food and drink sales dropped, and table game wins came in lower than expected. These factors combined to squeeze profits on the Strip.
Key Factors Driving the Las Vegas Slowdown
Several issues fueled the Las Vegas revenue decline. First, ongoing room remodels at key spots like MGM Grand closed off sections and cut available rooms. This led to a 7 percent drop in net revenue for the Strip resorts in the third quarter alone.
Pricing played a big role as well. High fees and resort charges turned off some mid-market travelers. Hornbuckle admitted that aggressive pricing created a negative buzz about the city. Shame on us for letting costs chase away regular visitors, he noted during the call.
Tourism trends added to the pain. International arrivals fell 13 percent, hit by economic woes abroad and travel hesitations. Domestic trips softened too, with families opting for cheaper getaways amid rising living costs. The Las Vegas Convention and Visitors Authority reported a 5.2 percent visitor drop in November 2025 compared to the prior year.
Here’s a quick look at how visitor stats shifted:
| Month/Year | Visitors (Millions) | Change from 2024 |
|---|---|---|
| Full 2025 | 38.5 | -7.5% |
| December 2025 | ~3.2 | -9.2% |
| November 2025 | ~3.1 | -5.2% |
These numbers paint a clear picture of shrinking crowds. Off-Strip casinos held up better, but the iconic Strip bore the brunt.
Economic pressures hit everyday folks hard. With inflation lingering, many cut back on big trips. Conventions provided some lift, but not enough to fill the gap. MGM’s team stressed that mid-tier guests, who make up a big chunk of business, pulled back the most.
Bright Spots and Paths to Recovery
Not all news was grim for MGM. The company’s luxury brands like Bellagio shone bright. They saw steady demand from wealthy patrons who shrugged off the broader slump.
BetMGM, the online betting arm, accelerated growth and raised its full-year guidance. It started sending cash back to the parent company, with payments topping $100 million in the fourth quarter. MGM China also hit records, offsetting U.S. softness with strong Asian play.
Hornbuckle stayed upbeat about fixes. From this reset baseline, we see a path to growth in Las Vegas for the full year of 2026. Renovations will wrap up soon, freeing up rooms and drawing crowds back. The CEO highlighted rising group bookings and convention surges as key drivers.
Analysts agree on potential rebound. They note that August 2025 gaming revenue on the Strip jumped nearly 6 percent, thanks to easy comparisons and baccarat wins. Regional operations and international expansion give MGM tools to weather storms.
Experts predict stabilization by mid-2026. Efforts to tweak pricing and boost marketing aim to lure back families and groups. The city plans big events to spike interest, like major sports tie-ins and entertainment lineups.
This shift matters for workers and locals. Job losses piled up toward year’s end, with thousands shed in hospitality. But a turnaround could bring those roles back and steady the economy.
As Las Vegas shakes off 2025’s rough patch, MGM’s story reminds us how one city’s woes can ripple wide. The glitz and glamour still pull millions, but smart moves will decide if the comeback sticks. Fans of the Strip know the thrill of a win after a loss, and 2026 might just deliver that for resorts and visitors alike.
