Strong performance by Golden in Las Vegas, decline in tourism at Strat hotel
Golden Entertainment's Q2 2025 Results: Mixed Bag for Nevada Casinos and Taverns
Golden Entertainment, a prominent name in the Nevada gaming industry, reported its Q2 2025 financial results, showcasing a mixed performance across its Nevada locals casinos and taverns.
The Nevada locals casinos demonstrated resilience, with a 2.8% revenue increase and a 6.7% rise in adjusted EBITDA compared to the same period in 2024 [3][4][5]. This solid operational performance was evident in the EBITDA of Golden's two Las Vegas locals casinos, which grew by over 9% in the second quarter [5].
However, the Nevada tavern segment faced significant challenges. Q2 2025 revenue declined by 6.7%, and adjusted EBITDA fell sharply by 24.5%, primarily due to intensified competition and higher promotional spending by smaller tavern operators [3][4]. The tavern business experienced the largest declines in revenue in April, with lower hold than normal and lower volume during late-night shifts [5].
Charles Protell, Golden's president and chief financial officer, attributed the company's overall revenue decline to a lower table-game hold in Laughlin and a summer slowdown on the Las Vegas Strip [1]. Occupancy at The Strat, one of the company's properties, fell to 69% in the quarter, a 4% decrease from the previous year, with June occupancy plummeting to 60%, down from 76% compared to the prior year [1].
Despite these challenges, Protell remains optimistic about the future, anticipating improved tavern performance in the back half of the year, with increased Strip visitation and the recent tax legislation providing tailwinds for near-term organic growth at all properties [5]. He also expects the segment of local properties to be the biggest beneficiary in 2026 from the recent legislation providing tax relief on tips, overtime, and additional tax deductions for seniors [5].
Looking ahead, Golden Entertainment is focused on strategic operational improvements and shareholder returns but faces ongoing risks. These include continued margin pressure in taverns due to necessary higher promotional spending to retain value-driven local customers and competition from smaller operators [2]. Potential negative impact of inflationary cost pressures such as wage increases and elevated operating expenses could limit profitability and EBITDA growth [2]. Exposure to Nevada economic fluctuations and regulatory changes, including gaming taxes and compliance costs, could affect local casino and tavern earnings [2]. Lastly, the company has limited digital gambling initiatives, which could challenge future growth given the secular consumer shift to online gaming [2].
In conclusion, while Nevada locals casinos remain a relatively strong contributor with modest growth in Q2 2025, the tavern segment is under pressure from competitive and margin challenges. The remainder of 2026 will likely see Golden Entertainment continuing to manage costs aggressively and navigating economic, regulatory, and competitive headwinds in the Nevada leisure market [1][2][3][5].
[1] CNBC [2] Bloomberg [3] Yahoo Finance [4] Seeking Alpha [5] Golden Entertainment Q2 2025 Earnings Release
