Red Rock Resorts reported the highest quarterly net revenue and adjusted earnings in its 49-year history, showing the divergence between Las Vegas casinos that mainly serve local residents and those that cater to visitors.
Stephen Cootey, chief financial officer, called the quarter “exceptional” and noted that the off-Strip operator is attracting more out-of-town guests as the Strip faces complaints of being overpriced for tourists.
“This was easily the best quarter in our company’s history,” Cootey said. “This strength was evident across all business lines, and we executed our core strategy of reinvesting in properties to enhance amenities.”
Cootey highlighted what he said is the difference between the Strip, which has seen visitation and spending wane in recent months, and the Las Vegas locals market. The Strip relies on tourism, conventions and hotel-driven revenue, while Red Rock is anchored by a “gaming-centric business model” focused on a loyal customer base. Many play over four times a month.
“We feel locals offer you a better value proposition, which is driving more people to our casinos, which includes accessible pricing, convenient locations and personalized service,” Cootey said. “It not only resonates with our local guests but is starting to resonate with our out-of-town guests as well.”
Cootey highlighted the $513.3 million in net revenue for its Las Vegas operations, up 6.2% fro last year’s second quarter. The adjusted EBITDA was $239.4 million, up 7.3% over the second quarter of 2024. The adjusted EBITDA margin was 46.7%, an increase of 47 basis points from a year ago.
Cootey said the company saw continued strength in carded slot play across its database, robust visitation and strong spend per visit coupled with a strong table games business.
“That helped drive the highest revenue and profitability in our gaming segment in the company’s history,” Cootey said.
Red Rock Resorts President Scott Kreeger said the company is seeing strong growth in its VIP and core customers along with regional and national customers. In the second quarter, it also saw significant improvement in its non-rewards customers across the database.
Red Rock saw positive increases in all age ranges with under 35 growing 15%, which Kreeger attributes to the amenities being installed in properties and their marketing.
“When we look at uncarded, second quarter slot coin-in was the highest quarter of increase we have seen in the last two years,” Kreeger said. “As we look into Q3, we’re seeing very similar trends.”
Cootey touted the performance of the Durango Casino & Resort that opened in December 2023. He said it continues to expand the Las Vegas locals’ market and is driving incremental play from its existing customer base and attracting new guests to its Station Casinos brand. Durango has added more than 100,000 customers to the company’s database.
“The resort remains on a solid trajectory and on pace to become one of our highest-margin properties delivering a return net of cannibalization of more than 15% through the second quarter of 2025,” Cootey said.
Cootey said the worst of the lost revenue at Red Rock Casino Resort is behind them from that cannibalization, and that property is well positioned with continued housing development in Summerlin.
Both Red Rock’s hotel and food-and-beverage divisions delivered a strong quarter delivering near record revenue and profitably in the second quarter. The hotel division delivered its highest second quarter revenue and profit by increasing daily rates and occupancy, Cootey said.
The food and beverage division also delivered near record results supported by high cover accounts across outlets.
Cootey said both divisions are expected to be strong in the remainder of 2025 and beginning of 2026.
“As we look to the third quarter, we continue to see stability in our core slot and table games business in the locals’ market and across our carded database,” Cootey said.
Cootey said the $120 million expansion at Durango remains on track, in which the casino floor is being expanded and a parking garage is being built. It’s expected to be completed in late December.
Sunset Station is undergoing a $53 million renovation that includes the casino and will be completed in 2025 and 2026.
Green Valley Ranch has what’s being called a $200 million refresh of guest rooms and suites with work expected to be completed by the end of the year.
“We believe these upgrades will generate strong returns,” Cootey said.
Going forward, Cootey said the federal tax legislation passed should be a boon for the casino industry, with taxes eliminated on much tipped and overtime income, and with a new senior tax credit. That will help enhance discretionary income.
“It’s tough to say how much of this is going to flow to Red Rock,” Cootey said. “With no tax on tips, we estimated $5 million would flow into Clark County [and there will be more coming from] overtime with 1.2 million workers here. There are 390,000 seniors over 65 and just given the median household income we would expect a substantial portion of those qualify for at least part the senior deduction. All of this is fantastic for our company.”
