By Nate Wolf

Gambling seems to be everywhere, from ritzy East Asian resorts to college kids' smartphones. But Las Vegas and one of its most famous casino brands may get left behind.

Shares of Caesars Entertainment tumbled Wednesday after the casino operator reported disappointing quarterly earnings, driven in part by weak results in Las Vegas.

The company reported a loss of 27 cents a share for the third quarter on $2.87 billion in revenue. Analysts had expected a loss of 9 cents a share and revenue of $2.89 billion, according to FactSet. Caesars is on pace for its fifth annual loss in six years.

While revenue in regional casinos grew, Las Vegas revenue -- it accounts for about one-third of Caesars' business -- dropped 9.8% from a year ago.

"It was a difficult summer," CEO Tom Reeg said on a conference call, adding that there "has been softness in leisure demand for Las Vegas in the summer months."

The weak quarter in Sin City isn't an anomaly, though. The company's Las Vegas revenue has now declined year over year for eight straight quarters. Tourist visits to the city are declining.

Caesars shares fell 12% in early trading Wednesday. The stock was down 34% this year as of Tuesday's close.

The gambling industry is changing rapidly with the widespread availability of online sports betting and prediction markets and the proliferation of casinos beyond places like Las Vegas and Atlantic City. Caesars' reliance on its bricks-and-mortar U.S. resorts appears to be hurting the brand as opportunities to gamble spread.

The company didn't immediately respond to a request for comment.

Casino companies took a hit at the beginning of the decade, when the Covid-19 pandemic shut down swaths of in-person commerce. But some legacy brands have managed to diversify their businesses since then.

MGM Resorts International has leaned into BetMGM, its iGaming joint venture with Entain. BetMGM has posted consistent double-digit revenue growth, proving itself a worthy competitor to online sportsbooks like DraftKings.

Other companies have offset slow traffic in the U.S. with overseas developments. Wynn Resorts' properties in Macau, which account for the majority of the company's business, saw revenue grow nearly 19% from 2023 to 2024. Its Las Vegas business grew just 3.7% that year.

Las Vegas Sands doesn't have a single resort in the U.S. anymore, having sold its domestic properties and concentrated its entire business in Macau and Singapore. This approach has its own risks, but it signals that Sands sees Asia as a better bet than the U.S. when it comes to in-person gambling.

Caesars is aware of these trends. The company has introduced a digital segment that surpassed $1 billion in revenue for the first time last year and continues to grow in 2025. Caesars also bid for one of up to three casino licenses on offer in New York City. A state-commissioned community advisory committee quashed the company's $5.4 billion plan for a Caesars Palace casino in Times Square last month.

For now, though, the company is putting its faith in America's Playground. "We see Vegas coming back strongly," said Reeg, the Caesars chief executive.

Write to Nate Wolf at nate.wolf@barrons.com

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October 29, 2025 10:36 ET (14:36 GMT)

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