The opening of Durango Casino & Resort in late 2023 has given Red Rock Resorts a financial boost, pushing revenue and earnings to historic highs. The company’s fourth-quarter results showed strong growth, with Las Vegas operations leading the charge.
Las Vegas Operations Post Record Numbers
Red Rock Resorts reported a net revenue of $492.6 million from Las Vegas operations in the fourth quarter of 2024, marking a 7.2% increase from $459.4 million in the same period of 2023. Adjusted EBITDA also saw a modest 1.6% rise, reaching $223.9 million, despite a slight dip in EBITDA margin to 45.4%.
Annual results were even more impressive. Revenue from Las Vegas operations hit $1.93 billion in 2024, reflecting a 12.6% increase from the previous year. Adjusted EBITDA climbed 7.4% to $879.4 million, with margins staying near record levels at 45.7%.
Steven Cootey, the company’s CFO, said the fourth quarter was another “strong one for the company by all measures.” He highlighted that Las Vegas posted its highest-ever fourth-quarter revenue and adjusted EBITDA while maintaining margins that were nearly the best in the company’s history.
Durango Casino’s Rapid Growth
Durango Casino & Resort played a key role in the company’s strong results. Cootey noted that the property continues to expand the Las Vegas locals market, boosting both existing customer spending and attracting new visitors.
One sign of Durango’s rapid growth is its ability to draw new players. According to Cootey, over 85,000 customers have been added to the resort’s database since its December 2023 opening.
In terms of financial impact, Durango is expected to generate a 16% return net of cannibalization in 2024, making it one of Red Rock Resorts’ most profitable properties. The company anticipates this number will increase in the coming years as customer engagement deepens.
Expansion Plans in Full Swing
Red Rock Resorts has wasted no time capitalizing on Durango’s early success. The company began construction in December on an expansion that will add:
- 25,000+ square feet of additional casino space
- A new high-limit slot area with 120 dedicated machines
- A bar within the high-limit room
- A new parking garage with nearly 2,000 spaces
The $120 million expansion is scheduled for completion in January 2026. While construction on the south side of the property may cause some temporary disruptions, executives are confident in the long-term benefits.
Impact on the Broader Las Vegas Market
Durango’s success isn’t just benefiting Red Rock Resorts—it’s shaping the entire Las Vegas locals gaming market. Cootey pointed out that the property is helping drive incremental play while drawing in customers from surrounding areas.
There has been some cannibalization, primarily affecting Red Rock Casino. However, executives expect to recapture that lost revenue over time, thanks to strong growth in key Las Vegas areas like Summerlin and Downtown Summerlin, which are projected to see an influx of 34,000 new households in the coming years.
Looking Ahead to 2025
Red Rock Resorts enters 2025 with its focus set on core local guests while expanding its reach regionally and nationally. With Durango exceeding expectations and expansion plans well underway, the company is positioning itself for sustained growth in the years ahead.
