Caesars reported a continued year-over-year decline in its Las Vegas business in its third-quarter earnings report released Tuesday, following similar year-over-year drops earlier this year.
The Las Vegas revenue decline comes as the company’s online sports betting platform saw “lower-than-expected holds,” CEO Tom Reeg said in a statement announcing the company’s overall financial results.
Key Takeaways
- Las Vegas struggles continue: Caesars’ Las Vegas revenues fell to $952 million from $1.06 billion in Q3 2024, marking sustained year-over-year declines in both revenue and Adjusted EBITDA.
- Sportsbook, digital hit by low holds: Caesars’ online division posted a $21-million loss in Q3 2025 as sportsbook holds lagged due to bettor-friendly NFL results, though total digital revenue rose 2.6% year-over-year and iGaming growth helped offset losses.
- Regional casinos remain bright spot: Caesars’ regional properties generated $1.54 billion in Q3 2025 revenue, up 6.2% from last year, though net income fell sharply due to low gambling holds and broader operational softness.
Continued net revenue growth in the company’s sizable regional casino portfolio was a bright spot in otherwise disappointing Q3 earnings, which Reeg said in the release will be corrected heading into the year’s fourth quarter.
“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,” Reeg wrote.
Vegas sees continued declines
The earnings report from Caesars, one of the three major operators along the Las Vegas Strip, reflects a continued months-long decline in year-over-year visitation and spending to the nation’s gambling epicenter.
For Q3 2025, Caesars Vegas' net revenues declined from $1.062 billion in Q3 2024 to $952 million. Net revenue has declined from $3.191 billion to $3.009 billion through the first nine months of 2024 to 2025, a 5.1% decline year-over-year.
The company’s Las Vegas Adjusted EBITDA declined from $472 million in Q3 2024 to $379 million in Q3 2025. That category declined from $1.426 billion through the first three quarters of 2024 compared to $1.281 billion during that same time in 2025, a more than 9% year-over-year decline.
Along with an unusually low hold in its Las Vegas properties, Reeg said during his company’s earnings call Tuesday, Caesars saw nearly 90,000 fewer hotel room nights between the two quarters, which hurt all other revenues.
Caesars, along with rivals MGM and Wynn, have suffered more than any other operators from Las Vegas' significant visitation declines. Visitation figures such as airline travel and hotel room nights have dropped every month in 2025 compared to 2024, with declines steepest among international visitors.
The drops have been attributed to rising expenses, Trump administration policies, and a host of other concerns. Vegas casino leaders have remained bullish that the declines will reverse in the coming months, driven by sports tourism and convention traffic, but Caesars' latest earnings report is another warning sign for the city.
Sportsbook hit again
Caesars’ online sports betting profits were dinged for the third time in four full months of NFL betting action by a strong run for the betting public.
September 2025 saw NFL favorites and overs hit above historic rates. The NFL is the most-wagered upon league in the U.S., leading to disproportionately negative results for sportsbooks when bettors perform better than expected.
The strong September for the U.S. betting public follows similarly robust results in October 2024 and December 2025. Caesars, and many of its sports betting rivals, pointed to these NFL outcomes as an explanation for lower-than-expected revenues last year.
For Q3 2025, Caesars saw its online gaming division’s net income drop from $11 million in Q3 2024 to a loss of $21 million. AEBITDA fell from $52 million to $28 million during the same time.
The net income and AEBITDA drops come as Caesars saw growth in most other areas of its digital platform, which includes online casino gaming.
Net revenues were $311 million for Caesars Digital in Q3 2025 against $303 million in Q3 2024, a 2.6% year-over-year increase. For the first nine months of 2025, net digital gaming revenues are up nearly 15%, growing from $861 million in Q3 2024 to $989 million.
And despite the year-over-year net income declines in the third quarter, Caesars' total online gaming revenue is up to $18 million for the first three quarters of 2025 compared to a loss of $19 million during that same time in 2024.
AEBITDA for the first nine months of the year is up 55.7% despite the third-quarter results, increasing from $97 million to $151 million.
Caesars has seen continued success from its real-money casino platforms, including Caesars Palace and Horseshoe. Though Caesars' iGaming platforms are only available in four states compared to more than 20 for its mobile sportsbook, the company’s digital casino gaming revenue makes up more than a third of the digital division’s overall proceeds.
Regionals see growth
The Las Vegas and online changes come with continued strong growth from the company’s regional properties outside Nevada.
Third-quarter 2025 net revenue was just over $1.536 billion for regional properties compared to $1.446 billion in Q3 2024, a 6.2% year-over-year growth. For the first nine months of 2025, regional net revenues are $4.359 billion against $4.196 billion during that same time in 2024, a nearly 4% year-over-year improvement.
These revenues did not translate to income, which Reeg also attributed to unusually low gambling hold.
Net income for regional properties dropped from $125 million in Q3 2024 to $56 million in the third quarter of 2025, a 55.2% decline. The rough quarter has dropped Caesars' regional property net income through the first nine months of 2025 to $65 million, a 43.5% decline from $115 million during that same period the year prior.
