Caesars reports doubled Q3 net loss as Digital gains but loses share

Caesars Entertainment reported that its net revenue for the three months ended Sept. 30, 2026, was flat year over year at $2.9bn, while its net loss more than doubled from $55m to $123m and adjusted EBITDA fell from $884m to $865m. The results were released on Tuesday amid the company's approved take-private merger with Fertitta Entertainment, announced in May and given shareholder approval on Sept. 22.

Financials and takeover timetable

Caesars will delist from the Nasdaq and become a wholly owned subsidiary of privately held Fertitta Gaming after the merger closes. Shareholders voted on Sept. 22 to approve the $17.6bn merger agreement with Tilman Fertitta's company; the deal has a preliminary closing date of June 26, 2027.

The company did not host an earnings call for Q3 2026, marking the second consecutive quarter without one while the acquisition process is under way. That leaves the headline numbers to carry investor messaging: net revenue of $2.9bn, net loss of $123m versus a prior loss of $55m, and adjusted EBITDA of $865m, down from $884m year over year.

Digital performance and market-share data

Caesars Digital's online casino and sports betting arm delivered the largest EBITDA growth within the group, with adjusted EBITDA up 57.1% year over year from $28m to $44m. Online revenue for the segment rose 4.8% to $326m.

Despite the EBITDA gain, Citizens analysts published data on Tuesday indicating Caesars lost U.S. market share in both online sports betting and online casino over the last 12 months. Citizens estimates show Caesars' online sports betting handle share fell 34 basis points from 5.2% to 4.9%, while its sports gross gaming revenue (GGR) share declined 46 basis points from 4.1% to 3.6%.

Those figures place Caesars fifth by sports wagering handle behind DraftKings, FanDuel, Fanatics, and BetMGM, and sixth by sports GGR behind that same quartet plus bet365. In online casino, Citizens estimates Caesars' iGaming market share slipped 73 basis points from 7.1% in Q3 2025 to 6.4% in Q3 2026, leaving it ranked fourth behind FanDuel, DraftKings, and Rush Street Interactive, operator of BetRivers.

For the nine months ended Sept. 30, Caesars said the net loss attributable to the Digital segment nearly tripled from $18m to $53m.

Land-based segments: Las Vegas and Regional results

The Las Vegas segment reported revenue of $930m, down 2.3% year over year, and adjusted EBITDA of $343m, a decline of 9.5%. The segment's net loss improved from $132m to $79m, a 40% improvement.

The Regional segment produced revenue of $1.6bn, up 5.9%, with adjusted EBITDA of $524m, a rise of 3.6%. The Regional segment's net loss widened 17.9% to $66m.

CEO comments and potential divestments

Tom Reeg, chief executive officer of Caesars Entertainment, spoke at the Global Gaming Expo (G2E) in late September and expressed confidence in Las Vegas visitation recovering toward pre-pandemic levels. Reeg framed the Fertitta transaction as a strategic fit with restaurant and hospitality assets, saying:

"What's exciting for me about the combination is we're combining into a restaurant and hospitality business that has over 400 outlets across the country, and you can combine them into a single ecosystem. That's a big opportunity for us." — Tom Reeg

Reeg also welcomed the change in reporting cadence the deal enables, telling CNBC correspondent Contessa Brewer that being private will offer "a longer-term perspective" compared with running a business on a 90-day earnings cycle. He said:

"We're forced as public companies to think in 90-day increments far more than is healthy, because that's not how you run a business." — Tom Reeg

When asked on stage at G2E on Sept. 29 whether Caesars might divest properties after the Fertitta takeover, Reeg said there are markets "that are not particularly material to the whole enterprise," adding that "you shouldn't be surprised if there's a property or two that ultimately gets divested," while cautioning any sales would not be "needle-movers" in headline terms.

GMA Consulting Senior Advisor Alex Dixon, speaking on a separate G2E panel about M&A in Las Vegas, suggested specific assets that could be candidates for sale. He named Nevada assets including the Linq and Flamingo, and referenced regional properties in states such as Louisiana as potential targets. Dixon, a former Caesars and MGM leader and brief Resorts World Las Vegas CEO in 2025, said he expects a deleveraging push once the deal closes and argued there is a short window to monetise recently renovated prime Strip assets.

Dixon also forecast that Caesars may face greater impact than rivals like MGM Resorts International from the opening of the new Hard Rock Hotel & Casino on the former Mirage site, which is under construction. Dixon described Tilman Fertitta as "a well-heeled, well-financed billionaire who can stomach operating losses," and said he expects Caesars to benefit in the long run from the ownership change.

What the numbers say now

Caesars' Q3 2026 report underscores a split outcome: steady consolidated revenue at $2.9bn and a decline in adjusted EBITDA to $865m, while Digital shows headline EBITDA growth to $44m but displays widening losses over the nine-month period and estimated market-share erosion according to Citizens. The approved $17.6bn Fertitta transaction, shareholder vote on Sept. 22 and preliminary close date of June 26, 2027, frame the company's near-term strategic options, including possible selective property divestments after the deal closes.