Strong performance in Las Vegas from Golden, contrasted by tourism downturn at Strat Hotel.
Golden Entertainment's Q2 Results: Mixed Performance Amid Challenging Environment
Golden Entertainment, a leading casino and tavern operator, reported mixed results for the second quarter of 2025. While the company's Nevada locals casinos showed resilient performance, its Nevada Casino Resorts segment, including The Strat on the Las Vegas Strip, faced headwinds due to lower occupancy rates [1][3][4].
The Nevada locals casinos demonstrated strong cash flow and operational efficiency, with a 2.8% revenue growth and a 6.7% increase in EBITDA [2][3]. In contrast, the Nevada Casino Resorts segment experienced a 3% revenue decline, primarily due to a drop in occupancy rates. The Strat's occupancy rate stood at 69% in Q2 2025, down from 73% the prior year [1][3].
The overall company revenue was down 2% year-over-year to $163.6 million in Q2 2025, with total operating income decreasing due to higher labor costs and reduced Strip visitation [1][5].
However, the outlook is cautiously optimistic. The company expects to benefit from tax relief legislation in Nevada, known as "Big Beautiful Bill," which is expected to provide $10-15 million in tax benefits, partially offsetting operational pressures [2]. Furthermore, The Strat is experiencing a Strip visitation recovery, with weekend hotel occupancy reaching 90-100% [2].
Golden Entertainment also maintains a conservative balance sheet and continues active share repurchases, signaling confidence in its recovery potential and capital return strategy [2].
Breakdown of Segment Performance
The tavern business experienced the largest declines in revenue in April, due to both declining volume and lower hold than normal [6]. However, tavern EBITDA stabilized in July, as promotional activity in the market has been reduced [7].
Golden's casino segment revenue was down 3% in the second quarter, and the EBITDA was down 5% [4]. EBITDA in Laughlin was negatively impacted by less than 10% hold in table games, resulting in a decrease of $1.5 million [5]. In contrast, the EBITDA of Golden's two Las Vegas locals casinos grew over 9% in the second quarter [8]. Margins improved by 170 basis points for Golden's local properties in the second quarter [8].
Looking Ahead
Weaker Strip demand continued into July, but The Strat is seeing stabilization of bookings in August and remains optimistic about the outlook in the fourth quarter and first quarter of 2026 [9]. Two new tavern builds are scheduled to open over the next six months, and the business volatility of the summer is expected to abate in the fall [10].
In summary, Nevada locals casinos are currently strong and growing, driving cash flow. The Strat and Strip-related properties face headwinds from lower occupancy and guest spending but show signs of recovery. Tax relief and Strip visitation improvements provide positive catalysts for future performance. Cost management and capital discipline remain key components of Golden Entertainment’s strategy going forward [1][2][3][4].
- Despite lower occupancy rates at The Strat, implying challenges in the casino-and-gambling sector of Las Vegas, Golden Entertainment remains optimistic about the outlook, expecting tax relief legislation and Strip visitation recovery to positively impact future performance.
- The mixed financial performance of Golden Entertainment in Q2 2025 was evident in its segments, with the Nevada locals casinos demonstrating resilient growth, while the Nevada Casino Resorts segment, including The Strat, encountered headwinds due to lower occupancy rates.
