Caesars Entertainment experienced a significant financial setback in the third quarter of 2026, with its net loss escalating to $123 million, more than doubling from the previous year’s loss of $55 million. This decline coincided with the company's ongoing transition to a privately held entity under Fertitta Entertainment, following the approval of a $17.6 billion merger in September. The lascivious results came amidst a flat net revenue of $2.9 billion, and an adjusted EBITDA decrease from $884 million to $865 million.
For the second consecutive quarter, Caesars opted not to conduct an earnings call, a byproduct of its impending move from a publicly traded status to being a subsidiary of Fertitta Gaming, which is expected to finalize on June 26, 2027.
Although Caesars Digital saw its EBITDA surge to $44 million, a 57.1% increase year-over-year, analysts from Citizens suggest that the division is losing traction in both online gaming and sports betting markets. In the nine months ending September 30, the Digital segment's net loss nearly tripled, climbing from $18 million to $53 million. Citizens’ recent findings indicate that Caesars’ share in the U.S. sports betting market declined from 5.2% to 4.9% over the last year, placing it behind competitors DraftKings, FanDuel, Fanatics, and BetMGM. In online casino operations, Caesars’ market share dropped from 7.1% to 6.4%, ranking it fourth behind FanDuel, DraftKings, and Rush Street Interactive.
During this same period, the Las Vegas segment of Caesars reported a revenue dip of 2.3% year-over-year, totaling $930 million, with adjusted EBITDA falling by 9.5% to $343 million. However, the net loss in this segment improved by 40%, decreasing from $132 million to $79 million. Countering the Las Vegas downturn, the Regional segment posted a 5.9% revenue increase reaching $1.6 billion, while adjusted EBITDA rose 3.6% to $524 million; its net loss increased by 17.9% to $66 million.
CEO Tom Reeg expressed optimism at the Global Gaming Expo regarding recovery in Las Vegas tourism, asserting that both Caesars and the broader Nevada market are progressively returning to pre-pandemic levels. Reeg highlighted the advantages of Fertitta's acquisition, particularly the prospect of merging with a restaurant and hospitality business that has over 400 locations.
Reeg emphasized the long-term operational focus that the take-private deal would facilitate, shifting away from the urgency imposed by quarterly earnings reporting that often impacts business decisions adversely.
On the subject of potential asset sales post-acquisition, Reeg acknowledged that while some non-essential properties might be divested, he does not foresee any significant headlines resulting from such actions. Speculations surrounding possible sales included properties like the Linq or Flamingo in Las Vegas, as well as regional assets in Louisiana.
Experts suggest that following the merger, Caesars might concentrate on refining its portfolio by offloading recently renovated assets. Alex Dixon, a senior advisor at GMA Consulting, forecasted that the upcoming Hard Rock Hotel & Casino could pose a competitive challenge to Caesars more so than to rivals like MGM Resorts. He predicts that under Fertitta's ownership, Caesars could manage through operational losses more effectively, benefiting in the long term from the financial strength of its new parent company.
