Caesars Reports Vegas Revenue Q3 Drop, Strong iGaming Growth

Caesars Entertainment reported another revenue dip in its Las Vegas business during the third quarter, marking continued weakness in the city’s tourism and gaming activity. While the Strip slowed down, the company’s digital division delivered solid growth, offering a partial cushion against falling in-person revenues.

Good to Know

• Caesars’ Las Vegas revenue fell to $952 million in Q3 2025, down from $1.06 billion a year earlier.
• The company’s online sports betting unit was hurt by “lower-than-expected holds.”
• Caesars Digital revenue grew 2.6% year-over-year and remains up nearly 15% for 2025.

CEO Tom Reeg said Caesars expects a stronger close to the year, citing improved hotel occupancy and steady performance in its regional casinos:

“We anticipate improved operating performance given stronger occupancy in Las Vegas, continued momentum in our Caesars Digital segment and stable operating trends in our regional portfolio.”

Las Vegas Continues to Cool Off

The latest figures show Vegas net revenues down roughly 10% from the prior year, with adjusted EBITDA also falling—from $472 million in Q3 2024 to $379 million this year. Caesars’ total net revenue from its Las Vegas segment has dropped 5.1% year-over-year through the first nine months of 2025.

Reeg noted that the company booked nearly 90,000 fewer hotel room nights compared with last year, which impacted not only gaming income but also non-gaming revenue streams like dining and entertainment. Declines in international visitors, rising travel costs, and policy shifts under the Trump administration have all weighed on the city’s visitor numbers.

Caesars, MGM, and Wynn have each reported similar trends, with Las Vegas visitation falling each month of 2025 compared with 2024. Industry leaders remain optimistic that sports tourism and convention traffic will stabilize demand in the coming quarters.

Sports Betting Takes a Hit

Caesars’ sportsbook also faced headwinds in Q3 as NFL bettors enjoyed an unusually favorable season. September’s results saw favorites and overs cashing at above-average rates, leading to widespread losses for operators. Caesars’ online gaming division swung from an $11 million profit in Q3 2024 to a $21 million loss this year, while AEBITDA dropped from $52 million to $28 million.

Still, digital revenue overall continued to rise. Net proceeds from Caesars Digital grew 2.6% year-over-year to $311 million for the quarter and nearly 15% for the first nine months of 2025. The segment’s AEBITDA for the year so far is up more than 55%, rising from $97 million to $151 million.

Digital Casino Platforms Driving Growth

Caesars’ real-money online casino products, such as Caesars Palace and Horseshoe, are fueling much of that momentum. Although online casino gaming remains legal in only four states, digital casino play now generates over one-third of the company’s total digital division revenue.

The company’s progress in iGaming offsets some of the volatility in its sportsbook results, suggesting a gradual shift toward more stable digital earnings even as traditional markets like Las Vegas experience downturns.

FAQ

Why are Caesars’ Las Vegas revenues declining?

Visitor numbers have fallen in 2025, particularly among international travelers, and lower hotel occupancy has affected all revenue streams.

How is Caesars Digital performing?

The division continues to grow, with revenues up 15% year-to-date and AEBITDA increasing more than 55% despite weaker Q3 betting results.

What caused the sportsbook losses?

NFL outcomes favored bettors during several months of 2025, reducing sportsbook holds across major U.S. operators.

Is Caesars optimistic about recovery?

Yes. The company expects better occupancy, stronger digital performance, and steady regional results to lift Q4 earnings.

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