Caesars’ Record Digital Performance Boosts Income

In Q1, Caesars Entertainment reported a 2.7% year-over-year growth in group revenue, with more mixed results in both its Las Vegas and regional operations being offset by record quarterly digital performance.

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Group revenue for the three months ending March 31 was $2.87 billion. According to Caesars, this exceeded the $2.79 billion recorded during the same time the previous year, and adjusted EBITDA increased by 0.3% to $887 million. The main driver of the expansion was an 11.6% rise in Caesars’ digital division’s revenue, which reached a record-breaking $374 million in Q1. Additionally, profits increased to 18.4%, and digital EBITDA reached $69 million.

Although sales in the Las Vegas segment stayed flat while revenue from other locations decreased year over year, regional revenue was also somewhat higher.

Executives claimed that the group’s land-based database contributed to digital’s leading financial performance in Q1. During the company’s post-Q1 earnings call, CEO Tom Reeg stated that this is an essential competitive edge in the digital industry, as client acquisition expenses climb throughout the sector. He added that Caesars is less sensitive to these pressures because of its dependence on current customers.

“Our Caesars Rewards database accounts for the majority of our customer acquisition,” Reeg stated. “Prediction markets are driving up acquisition costs, but we’re not in those same pools.” Converting land-based players into digital users still has a lot of potential, Reeg continued. “There’s still a huge opportunity in converting customers in our database… who play digitally elsewhere,” he stated.

In Q1, digital revenue increased by 11.6%

When analysing Caesars’ performance across all of its divisions, digital’s 11.6% revenue rise was mostly due to iCasino’s strength, which saw an 18% increase in revenue due to larger player volumes and more monthly active users. With a greater mix of parlays and multi-leg bets, Caesars also reported better monetization, with average revenue per user up 15% and hold rising to 8.3%. Ongoing technological and product advancements, such as the introduction of Caesars’ universal wallet and new in-house games, have boosted engagement, according to executives on the call. They also mentioned how the Caesars Rewards database and conservative marketing expenditures continue to reduce the cost of acquiring new customers.

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Despite a modest fall in adjusted EBITDAR, Caesars’ Regional business continued to be the operator’s primary source of revenue at $1.43 billion, up 3.0%. Caesars said that the lack of the Super Bowl in New Orleans, which gave it a boost the year before, had an effect on its performance. Except for this, the segment produced growth thanks to increasing player involvement and targeted marketing reinvestment.

Caesars lowers its net loss to $98 million

At $2.37 billion, operating expenses were only slightly higher than the previous year. This resulted in a pre-tax loss of $71 million after deducting $571 million in other expenses, although this was better than the prior year.

Caesars’ net loss of $83 million after paying $12 million in taxes was once again less than the $98 million loss in the first quarter of 2025. In addition, the firm reported $15 million in losses from non-controlling interests, resulting in a net loss of $98 million, lower than the $115 million reported in the previous year.

Looking towards the future

With CEO Reeg repeating long-term growth goals, Caesars is optimistic about the future of its digital business. “Digital looks very strong,” he remarked. “Our long-term plan to reach $500 million or more in EBITDA is still in place.”

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Source: next.io