Red Rock Resorts just logged its best quarter in 49 years — and it’s not by chasing high-rollers on the Strip. The casino operator, which caters mostly to Las Vegas residents, has carved out a booming niche far from the glitz and congestion of the tourist corridor.
With net revenue and earnings both hitting all-time highs, Red Rock is riding a wave of steady, loyal local traffic — and increasingly, price-conscious out-of-towners — as the Strip gets bogged down by inflation complaints and slowing visitation.
Locals Drive Growth While Strip Loses Steam
It’s no secret that the Strip has seen better days. Sky-high prices, resort fees, and a general sense of fatigue from tourists are starting to take a toll. Meanwhile, just a short drive away, Red Rock’s properties are buzzing.
Stephen Cootey, the company’s CFO, wasn’t subtle in describing the quarter. “This was easily the best quarter in our company’s history,” he said, calling the results “exceptional” and pointing to performance across every single part of the business.
That’s not marketing spin. The company reported $513.3 million in net revenue for its Las Vegas operations in the second quarter — a 6.2% increase over the same period last year. Even more telling: adjusted EBITDA hit $239.4 million, up 7.3%, with an EBITDA margin of 46.7%, the highest ever.
Cootey attributes this to the company’s tight focus on the locals market. These customers aren’t coming for selfies at the Bellagio fountains. They come to play, often, and they’re loyal.
Four Visits a Month? You Bet.
Red Rock’s secret sauce isn’t really a secret at all — it’s consistency. Most of their customers live nearby, and many of them return more than four times a month. That kind of steady, predictable foot traffic is gold.
“Locals offer a better value proposition,” Cootey said. “Accessible pricing, convenient locations, and personal service — that’s what drives them through the door.”
The Strip’s megaresorts might dominate Instagram feeds, but Red Rock is dominating data. The company saw continued strength in carded slot play — a key metric for loyalty — and robust spend per visit. Table games, often a more volatile segment, also turned in a strong performance.
Tourists Are Starting to Catch On
While locals form the backbone of Red Rock’s business, there’s a growing cohort of tourists who are opting out of the Strip in favour of something… different. And Red Rock’s starting to reap those benefits too.
Cootey hinted that off-Strip casinos like theirs are now attracting a slice of the travel crowd that’s tired of paying £20 for a cocktail and £75 for parking. That’s no exaggeration — visitor surveys have increasingly flagged cost as a deterrent to Strip visits in 2025.
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According to the Las Vegas Convention and Visitors Authority, average visitor spending on the Strip rose 14% year-on-year — but visitation dropped 5.6% in the same period.
This is where Red Rock steps in. Their reinvestment strategy — think better amenities, smarter upgrades, and keeping things polished — means even visitors looking for a “Vegas feel” without the Strip headaches are finding what they want.
Convenience and cost-efficiency are winning over more people than neon and fountains right now.
A Numbers Game That’s Paying Off
The company didn’t just grow. It grew smart. Below is a breakdown of key financials from Red Rock’s standout quarter:
| Metric | Q2 2025 | Q2 2024 | % Change |
|---|---|---|---|
| Net Revenue (Las Vegas ops) | $513.3 million | $483.2 million | +6.2% |
| Adjusted EBITDA | $239.4 million | $223.1 million | +7.3% |
| EBITDA Margin | 46.7% | 46.2% | +47 basis pts |
This wasn’t just one lucky month or a seasonal fluke. Slot play, tables, food & beverage — all saw lift. Even ancillary spending is up.
Notably, these results come at a time when broader economic headwinds, including interest rates and inflation pressures, are causing other casino operators to pull back on guidance. Red Rock seems to be sprinting while others are jogging.
Reinventing What “Vegas” Means
Part of the charm — and success — of Red Rock’s business model lies in its refusal to play by the Strip’s rules. While some operators gamble on concerts, mega-clubs and hotel rates, Red Rock keeps its focus on gaming.
And that strategy appears to be hitting the jackpot.
There’s a deep sense of brand loyalty among locals. Many patrons treat their favourite Red Rock property like a second home — familiar, friendly, easy. It’s a stark contrast to the high-gloss, high-pressure Strip casinos.
Red Rock also keeps its offerings fresh. Ongoing renovations, tweaks to menus, and new promotions mean regulars aren’t bored, and first-time visitors don’t feel out of place.
