Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioCaesars Entertainment struck an optimistic tone in its third-quarter earnings, calling the results “solid.” While executives acknowledged that the summer slowdown in Las Vegas contributed to the Q3 earnings decline, they described it as temporary, highlighting continued strength in digital and regional operations.
Executives stated that “sequential improvements” were already evident by September. They forecast a record Las Vegas EBITDA year in 2025, supported by improved group bookings and convention demand.
Vegas Recovery Underway
On the earnings call, Caesars President & COO Anthony Carano summarized some key financial results, including $2.9 billion in net revenue and $884 million in adjusted EBITDA, or $927 million on a hold-normalized basis.
He said that the Las Vegas segment “posted solid results in the face of softer market-wide visitation.” Carano noted a 92% occupancy rate versus 97% last year and a 5% decline in the average daily rate.
CEO Tom Reeg described the summer as “soft,” which the company had anticipated in its Q2 earnings call. He said, “Hold was down almost 600 basis points in Vegas in the quarter. On a year-over-year basis, it impacted us a little over $30 million.”
Still, he highlighted that the quarter improved by the end: “July was the worst month … August got better. September got better.”
Reeg reiterated that Caesars’ Las Vegas recovery is well underway: “2026 should be a new record for the full year.”
He also pushed back on stories about Strip overpricing. He said, “Most interestingly, while those stories were out there, most days that you read those stories, you could have gotten a room in Vegas for $29 plus a resort fee on the Strip.”
Carano added that Las Vegas is “on track to deliver a record EBITDA year in 2025 due to our strong Q4 booking pace, where group mix should increase to 17%.”
Caesars’ new projects — including the Omnia Day Club at Caesars Palace, a Vanderpump Hotel rebrand of The Cromwell, and Project 10 by Luke Combs at the Flamingo — will further strengthen the city’s offerings.
Digital Segment Maintains 20% Growth Target
The digital segment remained a bright spot in the third quarter. Eric Hession, President of Caesars Sports and Online, reported $311 million in net revenue and $28 million in adjusted EBITDA ($40 million hold-adjusted). The company recorded 29% iCasino revenue growth along with a 15% increase in monthly active unique payers to 460,000.
Hession acknowledged short-term headwinds, including increased state taxes (such as in Illinois), higher acquisition marketing spend, and “some bad debt.”
Still, he reaffirmed Caesars’ long-term goals: “We continue to see a business capable of driving 20% top-line growth with 50% flow-through to EBITDA, which keeps us on track to achieve our long-term goals.”
He also detailed progress on technology integration, such as the digital wallet, which is live in 22 states. Hession noted that Missouri’s sports betting launch in December will be the first with a shared wallet from the outset.
Prediction Markets: Watching the Space
Beyond its core operating results, Caesars also commented on the fast-evolving issue of prediction markets. Executives took a cautious approach, similar to BetMGM CEO Adam Greenblatt’s recent comments.
Hession said, “We’re actively watching it. As we’ve said before, we can’t be out on the lead on this one. We’re going to monitor it, make sure that we’re not left behind if there’s regulatory clarity, and that we have a good plan in place should that outcome happen.”
Reeg added, “We will not put any of our licenses at risk. We believe what’s happening in prediction markets is sports gambling. If there is a path that develops where we can participate in a way that doesn’t put licenses at risk, you should expect we would be, we are preparing and would be prepared to go down that path, but we’re watching it the same as you are.”
Key Q3 Results
Caesars reported consolidated net revenue of $2.87 billion, flat year-over-year, and adjusted EBITDA of $884 million, down 11%. On a hold-normalized basis, EBITDA was $927 million, down 4%.
- Las Vegas: $379 million EBITDA ($398 million hold-adjusted), impacted by a 5% ADR decline and weaker table hold.
- Regional: $506 million EBITDA ($517 million hold-adjusted), supported by growth in new and remodeled markets.
- Digital: $28 million EBITDA ($41 million hold-adjusted), with iCasino and user activity offsetting unfavorable sports results.
The company’s EBITDA margin was 30.8%.
