Century Casinos miss out on gains from Trump's tax reform legislation

Century Casinos Reports Q2 2025 Earnings

Century Casinos, a leading casino operator, has released its Q2 2025 earnings report, showcasing a 3% increase in net operating revenue to $150.8 million and a 16% rise in earnings from operations to $16.6 million. Despite this revenue growth and operational improvement, the company reported a net loss of $12.3 million, reflecting a 70% improvement from the prior year quarter but still missing analyst expectations.

The company's operations in Missouri and Poland supported a modest recovery, while performance in other mature U.S. markets was mixed. The U.S. segment's adjusted EBITDAR was slightly up, showing growth but at a moderate pace. However, there is no clear evidence from the current disclosed materials that tax changes materially impacted the Q2 2025 results.

Century Casinos' Central City, Colorado location experienced a flat quarterly cash flow due to significantly higher gaming and property taxes and high marketing costs. On the other hand, the Mountaineer Casino in West Virginia had an excellent quarter with a 12% rise in cash flow, aided by igaming and facility remodeling.

In Missouri, Century Casinos' Caruthersville casino saw a 24% rise in revenues in the second quarter, with comps and expenses tightly controlled. The new hotel at Century's Cape Girardeau property doubled its revenue in the second quarter, with food and beverage sales jumping 31%. The small hotel at the Central City, Colorado location is seeing full occupancy on weekends.

Century Casinos' Sparks Nugget faced a slump in cash flow due to poor ticket sales at the outdoor event center. However, the company is confident in reaching previous convention booking levels by 2026. Nugget retail rooms were 32% higher priced in August, and the marketing department rolled out a new loyalty program and player initiatives.

Rocky Gap Resort in rural Maryland was challenged by significant weather events, but carded-player revenue and spend per trip increased. The company's customer base in Caruthersville is growing by double digits, with 41% coming from beyond 75 miles from the casino.

Century Casinos plans to execute a letter of intent with an Eastern European buyer next week for the sale of their Polish operations. The company is still committed to exiting Poland, despite recently adding a casino in Wroclaw. Century Casinos is seeing an uptick at their Canadian casinos, partly due to property upgrades and possibly Canadians shunning the United States.

Century Casinos' properties are reported to have never looked better, with no further capex investments planned. The company expects indirect benefits from tax changes affecting tipped workers and senior citizens who patronize their properties in the United States. Co-CEO Erwin Haitzmann reported that Century Casinos is still cautiously optimistic about the return of lower-value players in July.

Century Casinos exited the quarter with a 6.2-times debt-to-cash flow ratio and no debt maturities until 2029. The company perceives a trade-down among casino customers, opting for regional properties over Las Vegas vacations. Century Casinos anticipates no cash infusion from corporate tax cuts passed by the U.S. Congress.

[1] Century Casinos Q2 2025 Earnings Release [2] Yahoo Finance - Century Casinos Earnings Call Transcript [3] Seeking Alpha - Century Casinos Earnings Preview [5] The Wall Street Journal - Century Casinos Misses Earnings Estimates

Century Casinos' Q2 2025 earnings report revealed an increase in casino-games revenue, with the Mountaineer Casino in West Virginia seeing a 12% rise and Century's Cape Girardeau property's new hotel doubling its revenue.
The casino-culture in Century Casinos is also showcasing a shift, with a growing customer base in Caruthersville, Missouri, and a perceived trade-down among casino customers, opting for regional properties over Las Vegas vacations.
In the realm of casino-and-gambling, Century Casinos' personalities like Co-CEO Erwin Haitzmann remain optimistic about the return of lower-value players and the potential impact of lotteries, as they anticipate indirect benefits from tax changes affecting tipped workers and senior citizens who patronize their properties.