Caesars narrows loss as it keeps paying down merger debt
Caesars Entertainment has reported a smaller first-quarter loss, helped by growth in its digital division, as the casino and online-betting operator remains at the centre of takeover interest from Tilman Fertitta, a US billionaire businessman and casino owner.
The company generated operating income of $500m in the quarter, but this was outweighed by $569m in net interest expense, leaving it with a net loss of $98m.
The company’s loss was driven mainly by interest costs on its debt, which outweighed operating profit during the quarter. Much of it dates back to the 2020 merger with Eldorado Resorts, which created a larger casino group but also left it with heavy financing costs. Those costs continue to weigh on the bottom line: Caesars made an operating profit in the first quarter, but interest expense pushed it to a net loss.
The results come as Caesars continues exclusive talks over a possible sale to Fertitta, whose proposal would value the company’s equity at about $7bn while also taking on more than $11bn of debt.
Digital growth
Caesars Digital was the clear bright spot in the quarter. Revenue from the division rose 11.6 per cent to $374m, while adjusted EBITDA increased to $69m from $43m a year earlier. The company said digital net revenues were up 12 per cent year-on-year, supported by a 20 per cent rise in iGaming handle, even as sports betting handle fell 3 per cent.
Tom Reeg (pictured above), chief executive of Caesars Entertainment, said: “In the first quarter of 2026 we delivered growth in total net revenues and adjusted EBITDA versus last year. Caesars Digital revenue of $374 million and Adjusted EBITDA of $69 million achieved record first quarter results.”
The company’s investor presentation showed iGaming net gaming revenue rising to $140m in the quarter, compared with $118m a year earlier and $77m in the first quarter of 2024. Caesars also said its digital platform now extends across 34 North American jurisdictions.
The Las Vegas business was flat, with revenue holding at $1.00bn. Adjusted EBITDA slipped to $426m from $433m. Regional revenue rose 3 per cent to $1.43bn, although adjusted EBITDA edged lower to $435m from $440m.
Reeg added: “In our Las Vegas segment, we experienced continued sequential improvement in trends and a significant improvement in the hospitality vertical with occupancy of 95.3 per cent and year-over-year growth in Average Daily Rate.”
Debt still weighs on results
Caesars still carries a large debt burden. As of 31 March, the company had $11.9bn in total outstanding debt and $867m in cash and cash equivalents. Net debt stood at $11.05bn.
That leverage remains central to the Fertitta talks. Previous reports said his proposal would involve acquiring Caesars at about $32 a share and assuming more than $11bn of existing debt.
Bret Yunker, chief financial officer, commented: “On March 3, 2026, Caesars acquired the operations of Caesars Windsor for approximately $54 million and entered into a 20-year operating agreement with the Ontario Lottery and Gaming Corporation. We are excited to add Caesars Windsor to our Regional portfolio.”
Yunker said the quarter showed resilience across the business. “Our first quarter consolidated results demonstrate the stability of our Las Vegas and Regional segments and the continued growth in Caesars Digital. We expect to deliver strong free cash flow in 2026 as a result of continued operating momentum, lower cash interest expense, and lower capex,” he said.
Caesars said it expects full-year cash interest expense of $720m and capital expenditure of $675m. Its investor presentation also said the company had repaid more than $3.5bn of debt since the Eldorado-Caesars merger closed in July 2020.
One City. One Evening. SiGMA iGathering: Road to Mexico hits Fort Lauderdale in Florida on 8 June 2026. Join the industry’s top minds for a high-energy evening where connections happen, and ideas spark.
