Here's How CZR Stock Could Up the Ante in 2026

Chances are you are aware of the "Vegas is dead" meme that has been widespread in media headlines throughout this year. This phenomenon, describing decreased tourism to what's known as Sin City, especially had an impact on gaming companies focused on the resort destination, such as Caesars Entertainment (NASDAQ: CZR).

Decreased visits to Vegas affected not just Caesars' bottom line; it had an even stronger impact on investor perceptions about the company's future. At least, that's the takeaway after the stock's nearly 30% drop since the start of the year.

However, as of late, Caesars' shares have been bouncing back on the heels of promising gaming revenue data. While a return to the stock's post-pandemic high-water mark may not be in the cards, this stock may have the potential to make a major comeback in the year ahead.

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Vegas slump counters other positives for Caesars in 2025

Whether you blame it on international tourists protesting the recent tariff hikes, or on American tourists shunning it for its high prices and perceived lack of value for money, the figures do not lie: So far in 2025, Las Vegas has attracted fewer visitors than it did in 2024.

Per the latest data from the Las Vegas Convention and Visitors Authority (LVCVA), during the 10-month period ending October 2024, visitor volume was down 7.6%, while convention attendance was down 0.6%, and revenue per available room (RevPAR) down by 8.7%.

Again, this was especially bad news for Caesars, which operates not just Caesars Palace in Las Vegas, but several other large casino resorts in the gaming destination. Around a third of the company's overall revenue comes from these Las Vegas properties. Worse yet, as seen last quarter, these properties experienced an even greater drop in revenue and profitability than you might think after first hearing the LVCVA figures.

During the nine months ending Sept. 30, 2025, Caesars' Las Vegas properties reported a 5.1% year-over-year (YoY) drop in revenue. Stronger results from its regional casinos and online gaming businesses help to make up for this top-line drop, but overall adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company was down 4.2% during this time frame, with net losses increasing 16.6%, from $252 million to $289 million.

Keep an eye out for these two catalysts going into 2026

While the company may have experienced tough times in 2025, the coming year could prove much stronger for Caesars. After all, in October, the Las Vegas Strip's gross gaming revenue was up 8% from the prior year's month.

Only time will tell, but this could foreshadow stronger results in the quarters ahead. Outside a Las Vegas rebound, Caesars Entertainment may have another potential catalyst on its hands, with its digital segment. As Texas Capital analyst David Bain argued back in December, proceeds from an IPO of the gaming unit could generate billions in new capital that Caesars could use to pay down debt. A spinoff of the remaining interest could unlock tremendous value.

Regarding the performance of Caesars' shares in 2026, all bets are off. Continued macroeconomic uncertainties persist, clouding the near-term outlook. Still, while likely best to stay out of action with Caesars' shares right now, keep an eye out for these potential catalysts.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.