Caesars Entertainment Inc., known for its extensive portfolio of casinos and resorts, has reported its financial performance for the third quarter of 2024. The Nevada-based company revealed a slight decline in overall revenues, alongside a net loss for the period. However, its digital division, Caesars Digital, achieved notable growth, highlighting the brand’s focus on expanding online gaming and sports betting operations.
For Q3 2024, Caesars recorded $2.8 billion in net revenue, a slight dip from $3 billion in the same quarter of 2023, falling short of Wall Street’s projections, which anticipated revenue closer to $2.9 billion. The company posted a net loss of $9 million, contrasting with the $74 million net income it saw during the same period last year. Despite these overall results, Tom Reeg, Caesars Entertainment’s CEO, emphasized that the company “delivered another quarter of $1 billion of same-store consolidated Adjusted EBITDA,” crediting strong performance in Las Vegas hospitality and entertainment segments. Challenges for Caesars’ regional locations, including heightened competition and ongoing construction, have influenced these figures.
Digital Segment Sees Record-Breaking Gains
While the company faced challenges in certain areas, Caesars Digital demonstrated considerable growth. The digital arm, which encompasses both iGaming and online sports betting platforms, saw its quarterly revenue climb to $303 million from $215 million a year earlier, marking an 83% year-over-year increase. Adjusted EBITDA in the digital segment reached a record-setting $52 million, a substantial jump from the $2 million reported in Q3 2023. This surge was attributed to expansion efforts, especially the introduction of the Horseshoe Casino brand in new markets.
This past quarter, Caesars Digital expanded its presence by launching the Horseshoe Casino brand in Michigan, with plans to extend into Pennsylvania and West Virginia. The brand is set to debut in New Jersey and Ontario by the end of the year, indicating a strategic focus on establishing a robust digital footprint. Volume for the iGaming sector increased by 55%, with much of the growth credited to the new market entries and popular brand launches.
The company’s online sports betting division also experienced success, with revenue growth of 36% compared to the previous year. This boost was largely driven by an increased hold rate, which rose to 8.6% from 6.5% a year earlier. According to Caesars Sports and Online Gaming President Eric Hession, app enhancements, including improved parlay and cash-out options, have contributed to this hold rate increase. Hession expressed optimism about reaching “a structural hold above the 10% threshold” over the next few years, indicating continued efforts to strengthen user engagement and retention.
Strategic Sales and Financial Moves
In addition to its Q3 results, Caesars Entertainment disclosed several major financial deals aimed at streamlining operations and focusing on strategic growth areas. Recently, Caesars finalized a $500 million sale of the World Series of Poker (WSOP) intellectual property to NSUS, the parent company of GGPoker. Under this agreement, Caesars retains the right to host the annual summer WSOP series at one of its Las Vegas venues for the next two decades. Caesars Digital will also continue operating WSOP-branded sites across the United States and has secured exclusive rights to host WSOP Circuit events.
Beyond the WSOP sale, Caesars also announced a $275 million deal involving the LINQ Promenade, an iconic retail and entertainment area in Las Vegas. The property will transfer to a joint venture between TPG Real Estate and the Investment Management Platform of Acadia Realty Trust. This transaction, pending regulatory approval, is expected to close before the year’s end and signifies Caesars’ intent to optimize its assets while focusing resources on core areas of growth. Currently, Caesars operates online and retail sports betting in 32 North American jurisdictions.
