Strip Casino Operators Poised for 2026 Resurgence
Posted on: October 21, 2025, 02:51h.
Last updated on: October 21, 2025, 03:01h.
- Q3 earnings unlikely to be markedly better than Q2
- Q4 trending better ahead of what’s likely to be a vibrant 2026
- Analyst says 2026 convention bookings could propel a Strip casino stock rebound
With just over two months remaining in the year, the 2025 tale of woe confounding Las Vegas Strip casino operators and their investors is widely documented, and with third-quarter earnings reports looming, market participants best not hold their breath for material improvement over the prior quarter.
As reflected by the dour performances of shares of MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two largest operators on the Las Vegas Strip, Sin City sentiment has been glum this year, but things could perk up to end 2025, setting the stage for a more earnest rebound next year.
On our recent Vegas trip for G2E operators continued to highlight a better (albeit flattish) outlook for Q4 with a potentially better F1 this year and then leading into 2026 where operators were in agreement for a ‘record year for group business,’” said Truist Securities analyst Barry Jonas in a report out Tuesday.
He notes that the Las Vegas Convention and Visitors Authority’s (LVCVA) $600 million expansion is nearly complete and that the group is expecting a strong Strip showing over the next 15 months. That could be to the liking of frustrated Caesars and MGM investors who have weathered 2025 declines.
2026 Convention Biz Could Lift Strip Casino Operators
Jonas notes operator’s point to convention and meeting business as a “primary driver of inflection” and that revenue is more important for some gaming companies than others. Caesars is in the “more important” camp.
“This is particularly true for CZR, who in the past, have noted leisure at just 10% of its room mix,” adds Jonas. “We also think the loss of the International Builders’ Show (~100k+) in 2026 to Orlando will largely be offset in Vegas given the strong event/convention calendar. Importantly, that conference will return to Vegas in 2027 through 2039.”
Convention/meeting business is essential for Strip casino operators because it generates revenue in the Sunday through Wednesday window before leisure travelers arrive during the Thursday through Saturday span. Broadly speaking, business travelers are less cost-conscious than many leisure tourists, but Jonas notes executives from Las Vegas gaming companies are aware they need to enhance value propositions.
“We think Strip operators at a minimum will be more cognizant of delivering value to all ranges of customers,” observes the analyst.
Caesars in Focus
With the stock having lost nearly a third of its value this year, Caesars investors are rightfully pensive, and those concerns are amplified amid chatter of a recent promotional war in some markets where the company operates regional casinos.
Jonas points out those regional promo expenditures are likely to taper off over the near term, and the phrase “promotional war” overstates the situation.
The analyst adds that Caesars and landlord VICI Properties (NYSE: VICI) are working on potential solutions that could allay investor concerns regarding the gaming company’s long-term regional casino lease obligations.
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