Caesars Entertainment has reportedly received takeover interest from several bidders following its shares falling to a five-year low, according to the Financial Times.
Key Takeaways
- Caesars Entertainment has reportedly been in talks about a possible takeover.
- Those involved include a bid from the CEO of Golden Nugget Casino, Tilman Fertitta.
- If the deal goes through, it would mark the biggest gaming takeover in years.
It has been reported that a number of bidders have emerged for a potential buyout, including Texas gaming and hospitality billionaire Tilman Fertitta, the CEO of Golden Nugget, according to people familiar with the matter.
There are also talks of a possible management-led buyout; however, the discussions have not yet reached a conclusion, with those familiar stating they could collapse.
Since Caesars was absorbed by El Dorado Resorts in a 2020 takeover, it has a debt load of over $20 billion, including lease payments, with a total enterprise value of over $30 billion. However, its shares have sunk to a five-year low, but jumped by 19 cents per share since the Financial Times reported the possible takeover.
The company now has an equity valuation of over $5 billion.
Caesars currently has a free cash flow of over $3 billion, and if the takeover occurs, it would make one of the largest gaming industry takeovers in years.
However, according to the source, due to the significant debt and lease liabilities Caesars faces, if the transaction occurs, it would likely require a financing package from Wall Street Banks, making the possibility of a deal going forward trickier.
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Caesars reports 2025 climb in Las Vegas revenue
While Caesars is in talks about a takeover, it reported its Las Vegas gaming revenue for 2025. Despite the city seeing a decline in visitors, Caesars saw its revenue rise.
In 2025, the company saw net casino gaming revenue reach $6.6 billion across its properties, rising from $6.3 billion in 2024. Despite these figures, however, its company-wide full-year net revenue from its food-and-beverage sector fell, and its hotel division saw room occupancy rates across Vegas fall from 96% in 2024 to 92% in 2025.
The declines, however, were offset by revenue increases from its gaming sector, and the company reported a slight year-on-year increase in revenue.
It follows the company completing a number of large-scale projects in the U.S., including in Louisiana and Virginia, which boosted its growth by nearly 4% in 2025. The company does generate more revenue from its properties outside Las Vegas than from those on the Strip. The rise in revenue in Sin City and the decrease in other areas could indicate a change in the U.S. gambling economy.
Steep declines in Las Vegas tourism have been reported by the city’s tourism officials. However, CEO of Caesars, Tom Reeg, wrote in a letter announcing the company's financial results that it experienced a “quarterly sequential improvement in operating trends in Las Vegas” and expects stability in the operating environment of its brick-and-mortar casinos.
