Caesars Q3: Las Vegas earnings slide while regional and digital units keep growing

Caesars Entertainment grew revenue in the third quarter, but its Las Vegas business lost ground and the group's loss widened. The split between a weaker Las Vegas and growing regional and online operations matters to suppliers and operators that work with large US groups.

Caesars Entertainment’s third-quarter figures show a group pulling in two directions. Las Vegas lost ground on both revenue and earnings. Regional casinos and Caesars Digital kept growing.

Group revenue rose 2.5% to $2.94bn in the quarter. Consolidated adjusted EBITDA still fell, to $865m from $884m. The bottom line moved further into the red.

The quarter also fell short of market expectations. The loss of 61 cents a share compared with analysts’ expectations of an 8-cent profit on revenue of $2.96bn, CDC Gaming Reports said.

Las Vegas weakens as regional casinos and digital grow

Las Vegas net revenue slipped 2.3% to $930m from $952m. Segment earnings fell further than revenue in percentage terms. The picture contrasts with the first quarter of the year. Las Vegas hotel occupancy then stood at 95.3%, with growth in average daily rate. Chief executive Tom Reeg said at the time that trends in the city were improving quarter on quarter.

Regional net revenue climbed 5.9% to $1,627m. Regional adjusted EBITDA increased 3.6% to $524m from $506m. Caesars Digital net revenue grew 4.8% to $326m, and the unit’s earnings also rose.

The same split shows over nine months. Group net revenue was up 2.7% at $8,803m. Consolidated adjusted EBITDA was down 1.9% at $2,672m. Digital adjusted EBITDA was up 19.9% at $181m.

Costs added to the pressure. The Corporate and Other adjusted EBITDA loss widened to $63m from $47m. General and administrative expense rose to $517m from $483m. Managed and Branded revenue fell 20.5% to $58m.

The figures are consistent with growth shifting away from Las Vegas towards regional and online activity. In 2021 Caesars agreed to sell William Hill’s non-US assets to 888 Holdings for about £2.2bn, keeping the US business.

Fertitta deal has shareholder backing but has not closed

Fertitta Entertainment has agreed to buy Caesars in an all-cash deal valued at about $17.6bn. The price includes taking on Caesars debt. At 30 September, debt outstanding stood at $11.7bn. Cash and cash equivalents totalled $864m, excluding $113m of restricted cash.

Shareholders backed the $31-a-share cash merger at a special meeting on 22 September 2026. The 133,313,001 votes in favour equalled about 65.4% of outstanding shares. A total of 4,276,986 votes were cast against.

The deal is due to close by 26 June 2027. After that date, shareholders receive an extra $0.007150 per share for each day of delay.

The next reference point for the US earnings season comes from MGM Resorts International. It is due to report third-quarter 2026 results after the US market closes on Wednesday 28 October 2026. A conference call follows at 5pm Eastern Time.

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