Caesars Entertainment reported a widening net loss and lower adjusted earnings for the third quarter of 2026, as weaker Las Vegas operations offset growth in its regional and digital businesses ahead of its $17.6 billion acquisition by Fertitta Entertainment.
The casino operator’s net loss attributable to Caesars more than doubled to $123 million from $55 million a year earlier, while adjusted EBITDA declined 2.1% to $865 million. Revenue increased 2.5% year over year to $2.94 billion but missed analysts’ expectations of $2.97 billion.
Caesars also reported an adjusted loss of $0.61 per share, compared with analysts’ forecast loss of $0.10. Its shares declined approximately 0.49% following the results.
The company’s regional casino operations recorded revenue growth of 5.9% to $1.63 billion, while adjusted EBITDA increased 3.6% to $524 million. However, the segment’s quarterly net loss widened 17.9% to $66 million.
Las Vegas revenue fell 2.3% to $930 million, with adjusted EBITDA declining 9.5% to $343 million. The segment’s net loss narrowed 40% to $79 million from $132 million a year earlier.
For the first nine months of 2026, Las Vegas revenue declined 2%, adjusted EBITDA fell 8%, and net income decreased 21%. Regional adjusted EBITDA, meanwhile, increased 4.5% to $1.4 billion, with net income rising 6% to $69 million.
Caesars Digital reported a 4.8% revenue increase to $326 million, while adjusted EBITDA rose 57.1% to $44 million. Quarterly net income improved to $4 million from a $21 million loss a year earlier.
Despite the improvement, Citizens analysts reported declining U.S. market share across Caesars’ online gambling operations. Its estimated sports betting handle share fell from 5.2% to 4.9%, while sports betting gross gaming revenue share declined from 4.1% to 3.6%. Its estimated online casino market share also dropped from 7.1% to 6.4%.
Caesars currently offers online sports betting in 28 North American jurisdictions and online casino gaming in six. Unlike competitors including DraftKings, FanDuel, and Fanatics, the company has avoided prediction markets, citing potential risks to its retail casino licenses.
At the Global Gaming Expo (G2E), CEO Tom Reeg criticized prediction market operator Kalshi for listing contracts related to Caesars’ potential acquisition. “There was nowhere in their rules that said I couldn’t place a bet,” Reeg said.
Fertitta acquisition raises prospect of casino divestitures
Caesars shareholders approved the $17.6 billion acquisition by Fertitta Entertainment on September 22, following the agreement announced in May. The transaction is expected to close on June 26, 2027, subject to regulatory approvals.
The Federal Trade Commission requested additional merger-related information on September 17, extending antitrust scrutiny by at least 30 days.
The companies compete in several regional markets, including Lake Tahoe, Laughlin, Atlantic City, Lake Charles, Danville, and Biloxi. Caesars operates 54 properties across 20 North American jurisdictions, while Fertitta’s Golden Nugget portfolio includes eight U.S. casinos.
Reeg acknowledged that asset sales could follow the acquisition.
“There are markets that are not particularly material to the whole enterprise, so you shouldn’t be surprised if there’s a property or two that ultimately gets divested,” he said.
GMA Consulting Senior Advisor Alex Dixon identified the Linq and Flamingo in Las Vegas, alongside Louisiana properties, as potential disposal candidates. He also suggested Caesars could face increased competition from the forthcoming Hard Rock Hotel & Casino.
“I think, ultimately, the minute this closes, the deleveraging story starts,” Dixon said.
Caesars ended September with approximately $11.7 billion in outstanding debt, $864 million in cash, and net debt of $10.8 billion. The company has suspended quarterly earnings calls during the acquisition process. Reeg previously said private ownership would allow management to prioritize longer-term decisions.
“We’re forced as public companies to think in 90-day increments far more than is healthy, because that’s not how you run a business,” he said.
Following completion, Caesars will become a wholly owned subsidiary of privately held Fertitta Gaming, and its shares will be delisted from Nasdaq.