Resorts World Las Vegas faces challenging Q3 amid revenue, occupancy declines

Resorts World Las Vegas (RWLV), Genting Berhad's US flagship casino property, reported its weakest quarterly performance in two years during the third quarter of 2024. Revenue dropped to $177 million, a notable decline from $218 million in the previous quarter, while EBITDA shrank to $16 million from $50 million.  

The downturn was attributed to multiple factors, including “an abnormally hot summer in Las Vegas and economic uncertainty in an election year,” according to a filing by Genting. The property's hotel occupancy fell to 85.1%, compared to 91.1% during the same period last year, while the average room rate dipped slightly to $244 from $246.  

Despite the challenges, RWLV is pursuing strategic initiatives to attract high-value customers and enhance its offerings. Future projects include expanding dining, entertainment, and retail options, as well as introducing new performances at the Resorts World Theatre.  

The property remains focused on growing its casino and resort customer base, with a particular emphasis on high-net-worth clients and convention groups, Genting said.

Adding to its difficulties, RWLV faces scrutiny from Nevada gaming regulators following allegations of permitting individuals with suspected ties to illegal activities to gamble on-site. Discussions with the regulators are ongoing, with a December 9 deadline to respond to the complaint.  

The challenges at RWLV come as Genting Berhad reports broader financial pressures across its global portfolio. Group-wide revenue for the quarter fell 5% sequentially to MYR6.5 billion (approximately US$1.46 billion), with adjusted EBITDA down 15% to MYR1.86 billion (around US$418 million).  

While RWLV recorded steep declines, Genting's operations in the UK and Egypt saw revenue and EBITDA growth, driven by higher business volumes. However, other properties, including Resorts World Sentosa in Singapore and Resorts World Genting in Malaysia, faced revenue and profitability setbacks due to lower gaming activity and rising costs.  

RWLV is banking on its planned expansions and marketing strategies to recover from the downturn. The broader Genting Group remains optimistic about a continued rebound in international tourism, supported by improved air connectivity and demand.