Caesars Entertainment Planning Public Spinoff of Caesars Digital

Caesars Entertainment, one of the more popular casino operators in North America, is considering putting Caesars Digital, their online casino games site, on a separate publicly-traded company. This proposition came from CEO Tom Reeg, telling investors during the company’s Q4 earnings call that this move is aimed to drive more value as it continues to grow as a provider of online sports betting and iGaming,

“Operationally, it makes the most sense to keep everything together as one… But when the dichotomy is such that it’s been and is today. We look to drive as much shareholder value as we can,” Reeg added.

Caesars Digital posted favorable year-over-year growth in 2024 but reported slower profits to end the year due to unfavorable outcomes during the second half results of the NFL season that benefitted the public.

According to internal reports, Caesars generated $1.16 billion in net revenue from its real money online casino operations in 2024— approximately 10% of all net revenue. In 2023, its digital operations accounted for approximately 8% of all net revenue.

Moreover, Q4 2024 reports indicate Caesar’s digital business generated $302 million in revenue. In comparison, revenue generated in Q4 2023 closed at $304 million. Caesars Digital posted an adjusted EBITDA of $20 million in Q4 2024, down from $29 million for the same period the year prior.

These numbers from Caesars Digital were adjusted earnings before interest, taxes, depreciation and amortization rose from $38 million to $117 million year-over-year. 

However, Caesars noted that 60% growth in iGaming net revenue for 2024, which it said offset those short-term sports-related losses.

Caesars Entertainment Numbers and Projections

Full-year revenue for Caesars’ entire business operations reached $11.2 billion in 2024. The year prior, the company reported $11.5 billion in total revenue. In 2024, Caesars reported a net loss of $278 million compared to a net income of $786 million for the year prior.

Caesars projects continued growth for its digital business in 2025 as it anticipates to close the year with an adjusted EBITDA of $500 million behind operational enhancements.

During the earnings call, Eric Hession, President of Caesars Digital noted that the continued improvements in technology, structural hold and customer experience will drive another strong year of revenue and EBITDA growth in 2025, and will keep Caesars Digital’s on track to reach their $500 million EBITDA goal.

Given the current direction Caesars Entertainment is steering their digital counterpart to, they are still gunning to be one of the best online casinos in North America. Such moves are geared toward maximizing their assets to further improve their online casino site for their target market and stakeholders alike.