Caesars Entertainment reported record profitability from its online gambling division in the fourth quarter, as growth in digital betting and iGaming helped offset softer performance across its land-based casino operations. The US operator marked that Caesars Digital generated a quarterly adjusted EBITDA of $85 million, its highest on record, during the three months ending 31 December. The result formed the strongest contributor to overall earnings momentum despite the company posting a wider net loss for the period.
Group revenue reached $2.9 billion in the quarter, up year on year, while Caesars recorded a net loss of $250 million compared with a profit in the same period a year earlier. The company attributed the shift largely to gains from asset sales booked in the prior year, rather than a change in underlying operating performance.
Digital growth leads quarterly performance
The update highlights the growing operational importance of regulated online gambling within Caesars’ business model. Digital operations, which include online casino and sportsbook products offered across licensed US jurisdictions, delivered revenue of $419 million during the quarter, reflecting continued expansion in online player activity.
Chief executive Tom Reeg said, “Fourth quarter consolidated same‑store Adjusted EBITDA grew year over year, driven by Caesars Digital, which set a new quarterly record of $85 million, stable results in our Regional segment and a quarterly sequential improvement in operating trends in Las Vegas. As we look ahead to 2026, the brick-and-mortar operating environment remains stable, and we are expecting another year of strong Net Revenue and Adjusted EBITDA growth in our Caesars Digital segment. When combined with lower capex and cash interest expense, 2026 is forecasted to deliver strong free cash flow that we expect to use to pay down debt and opportunistically repurchase our common stock.”
Land-based operations show mixed results
Performance in the physical casino markets was more mixed. The Las Vegas market saw a slight decline in revenue year on year, with earnings from Strip properties also easing compared with the same quarter in 2024. The regional casinos, which comprise a large part of the Caesars US operations, saw a modest increase in revenue but flat operating profits.
The results were disclosed under US public market reporting rules, with Caesars presenting both Generally Accepted Accounting Principles (GAAP) financial results and industry-standard adjusted EBITDA metrics commonly used across the gambling sector to measure operational performance. The company reported same-store adjusted EBITDA of $901 million for the quarter, indicating overall operating stability despite pressures in certain land-based segments.
For the full year, Caesars generated revenue of $11.5 billion while posting a net loss of $502 million. Digital operations again showed the strongest improvement, with full-year adjusted EBITDA more than doubling compared with the previous year, underscoring the segment’s increasing contribution to group earnings.
Alongside operational performance, the company outlined its financial position and capital allocation priorities. Caesars ended the year with total outstanding debt of $11.9 billion and cash holdings of $887 million. Management said declining capital expenditure requirements following major property developments are expected to support stronger free cash flow generation.
Chief financial officer Bret Yunker said, “With lower capex following completion of major projects in Virginia and New Orleans, combined with strong free cash flow, we intend to continue to reduce debt and opportunistically repurchase our common stock.”
Digital expansion remains central
Caesars has sportsbooks and online gaming operations in several regulated markets in the US, and online gaming is becoming more integrated into its overall loyalty and customer acquisition strategy. The latest results indicate that online gaming is playing an increasingly larger role in the operator’s bottom line as the traditional casino business stabilises.
The company had arranged an investor conference call to discuss the results and has also set out what is expected in terms of further growth in its digital operations and stable market conditions in its land-based businesses.
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