VICI Properties disclosed during its second-quarter 2026 earnings call that it is working with Caesars Entertainment on plans to build an arena for a potential NBA expansion franchise on Las Vegas Strip land the two companies jointly own, according to a transcript of the July 30 call published by Investing.com.
VICI President and Chief Operating Officer John Payne said the company and Caesars own roughly 50 acres of land together behind Paris Las Vegas, Horseshoe Las Vegas and Planet Hollywood. “We own, in conjunction with our partner Caesars … 50 acres of land behind Paris Horseshoe Planet Hollywood, and we are developing a plan with Caesars … to house the arena that could be built for the new NBA team,” Payne said. He said VICI is coordinating with Caesars’ Las Vegas operations leadership, including regional president Sean McBurney, on the concept. Payne did not disclose a specific investment amount, financing structure or construction timeline for the arena during the call.
The disclosure is the first public confirmation from either company that they are actively developing plans for an NBA arena in Las Vegas, as the league continues to explore expansion into the market. VICI, an experiential real estate investment trust, owns one of the largest portfolios of gaming, hospitality and entertainment real estate in the country, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, and leases much of that real estate back to operators including Caesars under long-term, triple-net structures. The REIT has increasingly looked beyond its core leasing business for growth, including partnerships tied to experiential and entertainment development on land it already controls.
On the earnings side, VICI reported second-quarter revenue of $1.06 billion, ahead of analyst estimates by about $20 million, and adjusted funds from operations of $0.62 per share, up 4.6% year over year. The company raised the low end of its full-year 2026 AFFO guidance range to $2.45 to $2.47 per share. Chief Financial Officer David Kieske also discussed the company’s capital deployment priorities on the call, noting that lending opportunities in the current rate environment compete favorably with share buybacks: “When we’re putting money out at SOFR plus 825, that’s a much more attractive use of our capital,” he said.
What it means: An NBA arena tied to VICI and Caesars-owned Strip land would mark a significant new development commitment for VICI beyond its traditional triple-net leasing model, which typically involves owning casino and resort real estate rather than actively developing new venues. The disclosure comes as Las Vegas continues to add major sports and entertainment infrastructure — from the Sphere to Allegiant Stadium to a new MLB ballpark — even as the region’s apartment construction pipeline has fallen to a four-year low, reflecting a market where commercial and hospitality development activity has stayed resilient even as residential construction has pulled back. Details on financing, design and timeline for the arena remain unannounced, and any project would still depend on the NBA formally approving Las Vegas expansion.
