Las Vegas Strip Faces Headwinds (Image Credits: Pixabay)
Las Vegas – A sharp decline in tourism challenged the city’s resort operators in 2025, yet MGM Resorts International posted overall revenue gains buoyed by robust international operations.[1][2]
Las Vegas Strip Faces Headwinds
The Las Vegas Strip resorts segment recorded net revenues of $8.4 billion in 2025, marking a 4% decrease from $8.8 billion the previous year.[1] Segment adjusted EBITDAR fell 8% to $2.9 billion from $3.1 billion.[1] This downturn coincided with a 7.5% drop in citywide visitation to 38.5 million visitors, the lowest since 2021.[3]
Executives pointed to softer leisure travel, economic pressures, and disruptions from the MGM Grand renovation, which sidelined 700 to 1,000 rooms and cost $65 million in lost business.[2] Hotel metrics reflected the strain, with revenue per available room down and occupancy slipping to 91% in the fourth quarter.[1] Still, the company achieved record full-year slot win on the Strip, fueled by luxury properties.[2]
MGM China Delivers Double-Digit Surge
MGM China’s operations shone brightly, generating $4.5 billion in net revenues, an 11% rise from $4.0 billion in 2024.[1] Adjusted EBITDAR climbed 11% to $1.2 billion.[1] The fourth quarter proved particularly strong, with revenues up 21% and EBITDAR increasing 30%, propelled by a 23% jump in casino revenue.[1]
This performance underscored the value of MGM’s diversified portfolio, as premium mass gaming in Macau offset domestic challenges.[1] Market share in the region held steady above 16% for the year.[4]
Resilient Segments Bolster Companywide Results
Consolidated net revenues for MGM Resorts reached $17.5 billion in 2025, up 2% from $17.2 billion in 2024.[1] Consolidated adjusted EBITDA stood at $2.4 billion, essentially flat but supported by gains elsewhere.[1]
| Segment | 2025 Net Revenues | YoY Change |
|---|---|---|
| Las Vegas Strip | $8.4B | -4% |
| MGM China | $4.5B | +11% |
| Regional Operations | $3.8B | +1% |
| MGM Digital | $654M | +19% |
Regional operations added $3.8 billion in revenues, up 1%, while MGM Digital grew 19% to $654 million, though it posted a larger operating loss.[1] The fourth quarter capped the year positively, with consolidated revenues of $4.6 billion, a 6% increase, and EBITDA up 20%.[1]
2026 Holds Promise for Recovery
Company leaders expressed confidence heading into 2026. President and CEO Bill Hornbuckle noted, “MGM Resorts once again saw the benefit of a diversified operational strategy… As we enter 2026, we are full of optimism for the future.”[1] He highlighted stabilizing trends in Las Vegas, including a solid group and convention base post-MGM Grand renovations.[2]
MGM anticipates mid-single-digit revenue growth on the Strip, aided by new venues like Carbone Riviera at Bellagio.[5] Broader catalysts include BetMGM’s double-digit expansion and the MGM Osaka project.[1]
- MGM’s global diversification mitigated a 7.5% Las Vegas visitation drop.
- China’s 11% revenue growth proved pivotal to 2% companywide increase.
- 2026 outlook points to Strip recovery and sustained international momentum.
MGM Resorts demonstrated resilience amid localized pressures, setting the stage for renewed expansion. What do you think about Las Vegas’s tourism trends? Tell us in the comments.
