Vegas Stakes Ain't Paying Off: Resorts World Las Vegas in Trouble
Recent Financial Slump
Struggling with a 22% decrease in Q1 earnings, Resorts World Las Vegas aims to revive VIP gambling segment following the resolution of a regulatory dispute.
Carlos Castro, now at the helm of Resorts World Las Vegas (RW Vegas), faces a challenging mission to review the property's risk tolerance, as its performance in the three months ending 31 March 2025 doesn't paint a rosy picture, according to Nomura analysts.
In the past year, RW Vegas witnessed a precipitous drop in earnings, with revenue plummeting by 22%, from $214 million to $166 million[1][2], compared to the corresponding period in 2024. Similarly, EBITDA saw an alarming 75% fall, dipping from $40 million in Q1 2024 to $10 million in Q1 2025[1][2].
The decline is largely due to diminished casino hold percentages and a drop-off in visitor numbers, in part because of a high-profile gaming violation and the absence of major events, such as the Super Bowl, which bolstered figures in 2024[1][3]. Furthermore, the resort faced a $10.5 million settlement with Nevada gaming regulators for anti-money laundering compliance violations, impacting its reputation and finances[1][4].
New Leadership, New Vision
In an attempt to tackle operational challenges, RW Vegas brought about a leadership shift, with Carlos Castro taking the reins as president following his appointment as Chief Operating Officer (COO) and Chief Financial Officer (CFO) in February 2025[4]. Previous president, Dixon, now focuses on strategic projects, partnerships, and synergies across the company's properties[4].
The fresh leadership is targeting recovery through heightened marketing and sales initiatives, particularly in the casino segment, which has been underperforming[4]. The convention business, however, remains a strong point, contributing positively despite these challenges[4]. It's time to turn the tables, Vegas! Let's get this slot machine spinning again!
- The precipitous drop in earnings at Resorts World Las Vegas (RW Vegas) has been evident in the casino industry, with revenue plummeting by 22% and EBITDA falling 75%, indicating a need for change in casino-games strategy and finance management.
- The new leadership at RW Vegas, led by Carlos Castro, aims to revitalize the property by focusing on increased marketing and sales efforts for the casino-segment, potentially incorporating lessons learned from casino-culture in Las Vegas to boost earnings and reverse the current slump.
- Despite the challenges faced by RW Vegas in recent times, the resort continues to be an important player in the gambling and entertainment industry, with its convention business still showing positive results, offering hope for recovery and a return to profitability in finance and casino-and-gambling sectors.
