Caesars Entertainment generated nearly $3 billion in second-quarter revenue as the casino gaming giant prepares to leave the public markets through its pending $17.6-billion acquisition by Fertitta Entertainment.
- Caesars generated nearly $3 billion in second-quarter revenue as it prepares for Fertitta Entertainment's $17.6 billion acquisition.
- Regional revenue increased 9.4% while Las Vegas revenue fell 3.5% and Caesars Digital adjusted EBITDA declined 15%.
- The combined company could face regulatory scrutiny in markets where Caesars and Fertitta’s Golden Nugget operate competing casinos.
Revenue increased 3% year over year to $2.99 billion during the three months ending June 30, according to results released Tuesday. Caesars narrowed its quarterly net loss from $82 million in 2025 to $62 million, though adjusted EBITDA fell 3.7% to $920 million.
The report provides a snapshot of the company Fertitta Entertainment is preparing to take private. Caesars did not hold a quarterly earnings call because of the pending acquisition, eliminating the customary opportunity for executives to discuss the company’s performance and outlook.
Caesars and Fertitta Entertainment announced the definitive agreement May 28. Fertitta will pay Caesars shareholders $31 per share in cash, a 49% premium over the company’s unaffected share price on Feb. 25, the final trading day before reports of a potential transaction emerged.
The approximately $17.6-billion valuation includes the assumption of nearly $11.9 billion in Caesars' debt. The deal requires shareholder approval, regulatory clearances, and other customary closing conditions. Caesars shares will no longer be listed on Nasdaq if the acquisition is completed.
Mixed operating results
The results paint a mixed operating picture ahead of the acquisition. Revenue increased despite weaker performance in Las Vegas and lower adjusted earnings across the company.
Caesars’ Las Vegas segment generated $1.02 billion in revenue, down 3.5% from $1.05 billion in the comparable quarter. Adjusted EBITDA declined 12.6% to $410 million, while net income from the segment fell 26.4% to $156 million.
Regional casinos provided Caesars’ strongest source of growth. Regional revenue increased 9.4% to $1.57 billion while adjusted EBITDA climbed 11.2% to $488 million. The segment recorded $23 million in net income after losing $11 million during the second quarter of 2025.
The results left Caesars’ regional operations with nearly $553 million more quarterly revenue than its Las Vegas properties. Regional adjusted EBITDA also surpassed the Las Vegas total by $78 million.
Caesars Digital, which includes the company’s online sports betting and iGaming operations, produced $351 million in revenue, up 2.3%. However, adjusted EBITDA declined 15% to $68 million, while net income fell 30.8% to $27 million.
Companywide casino revenue rose 5.5% to $1.76 billion during the quarter. Hotel revenue fell to $495 million from $509 million, while food-and-beverage revenue was nearly flat at $426 million.
Caesars continues to carry a substantial debt burden entering the proposed transaction. The company reported $11.81 billion in outstanding debt as of June 30, down from $11.91 billion at the end of 2025. Cash and cash equivalents increased to $965 million, bringing net debt down to $10.84 billion.
Interest expense continued to weigh on results, totaling $573 million during the quarter - more than the company's $513 million in operating income.
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Fertitta’s next moves
Fertitta Entertainment plans to finance the acquisition through contributed equity, assumed Caesars debt, and new debt financing arranged by 10 banks. The transaction is not subject to a financing condition.
Caesars’ management team, including CEO Tom Reeg, CFO Bret Yunker, and president and chief operating officer Anthony Carano, is expected to remain in place after the acquisition. The combined company would include 60 casino resorts and gaming facilities, Caesars’ digital operations, William Hill retail sportsbooks, and more than 600 Fertitta Entertainment locations.
The combined company could be required to divest some Caesars and/ or Golden Nugget properties.
In Atlantic City, the combined company would control four of the city's nine casinos, a concentration that could attract regulatory scrutiny. The companies also operate casinos in Laughlin, Nevada, and Biloxi, Mississippi.
