\n Posted on: August 23, 2025, 02:12h.\u00a0\n <\/p>\n
\n Last updated on: August 23, 2025, 02:12h.\n <\/p>\n
![\"Avatar](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/07\/my-headshot-50x50.jpeg\")
<\/div>\n<\/p><\/div>\n<\/p><\/div>\n- \n
- Downturn in Las Vegas tourism prompts strategic\u00a0re-assessment on how to attract customers<\/b><\/li>\n
- Canadians travelling to Las Vegas less<\/strong><\/li>\n
- Pro sports boosting casino traffic<\/strong><\/li>\n<\/ul>\n
With Las Vegas casino operators reporting Q2 earnings in late July, a new report by Octus Research<\/a> shone a spotlight on how both MGM and Caesars were experiencing a downturn in the number of customers, prompting a strategic reassessment<\/strong> on how they are attracting and retaining customers, and Canada is a big part of that<\/strong>.<\/p>\n
![\"\"](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/08\/Las-Vegas-Caesars-Palace-exterior-1-858x562.jpg\")
Octus Research released several reports analyzing the softening visitor numbers at Las Vegas casinos, and how a decline in Canadian tourism has had an impact on those numbers. Image\/Mark Keast.<\/figcaption><\/figure>\n Tourism Numbers Have Been Softening<\/h2>\n
Both resorts have been experiencing midweek softness, reduced visitation from international travellers, especially from Canada, and a weakening in their value-tier offerings, the report said, with one of the the key findings from the earnings report being that MGM and the industry in general will have to be more thoughtful about how to attract value-oriented customers.<\/p>\n
There are those in Las Vegas now who scoff<\/a> at the narratives that Vegas is in trouble, that the town is over-priced, and that younger people are less interested in going to there to gamble.<\/p>\n
However Casino.org\u2019s Devin O\u2019Connor has written several pieces<\/a> on the state of Las Vegas tourism, with July being the second-worst month of 2025 in terms of foot traffic.<\/p>\n
Mixed Bag of Opinions on Sin City Tourism<\/h2>\n
According to the Octus report, summarizing the MGM and Caesars earnings, June 2025 visitor volumes fell 11.3%. Las Vegas visitor volumes have declined each month so far in 2025.\u00a0MGM CEO William Hornbuckle suggested during MGM\u2019s call that \u201cvalue-oriented properties\u201d that are more sensitive to economic swings are experiencing relatively greater ADR pressure.<\/p>\n
Caesars reported 97% occupancy compared with 99% in the same period a year earlier<\/strong>. The company started with a \u201cstrong April,\u201d then May and June began to decline. Caesars Entertainment CEO Tom Reeg said during the earnings call that \u201cthe forward booking numbers have stabilized, but that it was not \u2018some huge\u00a0bullish turn.\u2019 Rather, more \u2018as if your tire had a leak and you patched it.’\u201d<\/p>\n
Canada Part of the Challenge<\/h2>\n
There are a lot of factors impacting the decline of travel by Canadians to Las Vegas<\/a>. Canadian airlines like Air Canada and WestJet have reported drops in the number of passengers<\/a> flying to Las Vegas this year.<\/p>\n
According to the Octus report: \u201cReeg said the company\u2019s international business is softer, especially Canada. Caesars was down 27,000 room nights during\u00a0the second quarter, and Canadians were a \u201csignificant piece of that,\u201d even though they are only \u201c3% or 4% of the total pie.\u201d\u00a0He added that when he looks at the business as a whole, the company\u2019s consolidated performance does not suggest that\u00a0there is anything particularly concerning about the U.S. consumer.<\/em><\/p>\n
Steve Hill, President and CEO of LVCVA, said<\/a> that Canadian visitation is down roughly 15% to date<\/strong>.<\/p>\n
Kyle Owusu, CFA, Director of Credit Research at Octus, points to two determining factors regarding a continued Canadian visitation decline: The state of the Canadian economy and the extent to which Canadians remain upset with U.S. President Donald Trump, who has made public comments this year about how Canada would be better off as the U.S.\u2019s 51st state, plus ramping up a tariff war with Canada.<\/p>\n
![\"\"](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/08\/Las-Vegas-10-858x575.jpg\")
Restoring Las Vegas as a value destination will go a long way in reversing downward visitation trends, according to an industry expert. Image\/Mark Keast<\/figcaption><\/figure>\n Trump Anger Factor<\/h2>\n
Canadians are angry, and there has been more of a focus on travelling domestically, or to places like Europe, then travelling into the U.S., on top of a nation-wide movement to \u201cbuy Canadian\u201d<\/a> in grocery stores.<\/p>\n
\u201cMy base case is continued year over year declines through the first half of 2026 before the year over year trends begin to stabilize in the second half of 2026, but it\u2019s hard to forecast destination travel trends from Canada to the U.S. with any degree of confidence given the high degree of human emotion involved,\u201d said Owusu.<\/p>\n
\u201cI think the shift in booking behavior will change how Las Vegas properties market to and price for Canadian visitors, but it depends on the asset,\u201d he said. \u201c\u201cCanadian volumes represent a low-single-digit % of overall Las Vegas visitation so if certain assets are performing well enough with U.S. consumers, or U.S. consumers and other international travels ex-Canada, and operators think they can get away with holding firm with regard to price then they probably will.\u201d<\/em><\/p>\n
Restoring Las Vegas as a value destination as opposed to its reputation as a expensive luxury destination, factoring in criticism over high resort fees and high food and beverage prices, matters a lot, and will entice getting more Canadians to come back,\u00a0Owusu added.<\/p>\n
Restoring Las Vegas as a Value Destination<\/h2>\n
\u201cThat\u2019s hard to quantify percentage-wise, but restoring the value destination appeal matters a lot.\u00a0Vegas has benefitted from price increases for the past four years, especially within the hotel, food and beverage business line,\u201d \u00a0said Owusu. \u201cEventually you start to hit a ceiling regarding how much value you can deliver in relation to how much you\u2019re asking people to pay.<\/p>\n
\u201cIf we are heading into a more uncertain global trade environment, restoring value destination appeal probably matters with regard to most (if not all) destination assets that aren\u2019t catering to high end or luxury consumers, and we appear to be heading into an increasingly uncertain environment, so I think restoring Las Vegas\u2019 value destination appeal is going to be front of mind for operators in 2026.\u201d<\/em><\/p>\n
On a broader note, regarding travel to the Vegas Strip, Owusu mentioned that: \u201cThe key takeaway is for now, casinos catering to luxury customers have been spared from the pressure affecting destination travel.\u201d<\/b><\/p>\n
![\"\"](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2025\/08\/T-Mobile-Arena-Las-Vegas-858x553.jpg\")
T-Mobile Arena, home of the NHL\u2019s Vegas Golden Knights. Image\/Mark Keast<\/figcaption><\/figure>\n Pro Sports Teams Having a Positive Impact<\/h2>\n
Pro sports teams in Las Vegas is another important factor in luring Canadians to the city, according to a Toronto-based marketer, with the NFL\u2019s Las Vegas Raiders about to start a new season, and the NHL\u2019s Vegas Golden Knights ramping up in October.<\/p>\n
The new MLB baseball team is set to land in an exciting new stadium, designed 33,000-seat, fixed-roof ballpark<\/a> on the Las Vegas Strip where the old Tropicana Casino used to be, designed by Bjarke Ingels Group (BIG) and HNTB, an architectural firm, in 2028.<\/span><\/span><\/p>\n
\u201cThe key for us is to bring players into the casinos,\u201d said Lora Green,<\/a>\u00a0one of the managing partners at Casino Marketing Group in Toronto, an exclusive service, where her company puts together white glove, exclusive trips for her network of high-roller gamblers to luxury casinos like Caesars Palace.<\/a><\/p>\n
\u201cSo having NFL, NHL, and MLB in Las Vegas is a great draw for clients. They can enjoy a live sporting event and go back to the casino and gamble, hoping their teams win and they win in the casino as well.\u201d<\/p>\n<\/div>\n
- Canadians travelling to Las Vegas less<\/strong><\/li>\n