The Reno-based gaming giant reported difficult year-over-year comparisons in 2024 due to the impact of the inaugural Formula One Las Vegas Grand Prix in November 2023.
Caesars Entertainment narrowly missed market projections in the fourth quarter of 2024, as net revenue from the company’s Las Vegas and regional properties declined compared to the prior year.
The Reno-based gaming giant, which operates eight casino hotels on the Las Vegas Strip, reported $2.8 million in net revenue for the final three months of 2024, down from $2.83 billion in the fourth quarter of 2023.
For the year, Las Vegas generated a shade under $4.3 billion in net revenue for Caesars, which reported slightly more than $11.2 billion from all market segments. In 2023, Las Vegas casino hotels generated nearly $4.5 billion of the year’s $11.5 billion in annual net revenue.
According to financial documents, Caesars reported more than $1.08 billion in net revenue from its Las Vegas operations in the quarter, a year-over-year decline of less than 1 percent. Hotel room occupancy for the full quarter was 96 percent, down slightly from the prior year.
Caesars and MGM Resorts International, the two largest casino hotel operators on the Strip, both reported difficult year-over-year comparisons in 2024 due to the impact of the inaugural Formula One Las Vegas Grand Prix in November 2023. The race’s second showing in November 2024 was an overall positive for many of the larger properties along Las Vegas Boulevard, but did not match the first year’s returns.
Tom Reeg, chief executive officer of Caesars Entertainment, said, “Fourth quarter operating results reflect stable conditions in Las Vegas with continued high occupancy and strong (average daily rates),” in a statement accompanying the company’s fourth quarter and year-end earnings.
During an earnings call Tuesday afternoon, Reeg said the company was “proud of our performance versus last year’s inaugural F1,” in Las Vegas.
Caesars executives said recent investments at several of its Las Vegas properties were producing positive results, which will be reflected in the first quarter of 2025. During the first three months of this year, the company expects Las Vegas performance to be roughly flat year-over-year, with the recovery in normal table game hold offsetting the loss of the Super Bowl business from February 2024.
Anthony Carano, the company’s president and chief operating officer, said reinvestments at Caesars Palace, such as the new high-limit areas, have been well-received by customers. Carano also noted that capital projects at other Strip properties, such as the Versailles Tower at Paris casino-hotel or the soon-to-be-completed GO Pool at Flamingo casino-hotel should generate “exceptional” returns.
Company executives said group business is expected to increase significantly this year and next, with the addition of the CONEXPO-CON/AGG (North America’s largest construction trade show) in March and the return of the State Farm convention in 2026.
