Regionals and digital sustain Caesars in Q3 while Las Vegas falls

Caesars Entertainment reported in the third quarter of 2026 declines in its Las Vegas business and modest gains in its regional business and Caesars Digital, according to results published on Tuesday. The company is progressing toward closing its acquisition by Fertitta Entertainment, announced in May for $17.6 billion and expected to close around mid‑2027.

Progress of the offer and regulatory timeline

The acquisition offer from Fertitta Entertainment was announced in May for $17.6 billion after months of bidding between Fertitta and investor Carl Icahn. The Federal Trade Commission requested additional materials related to the merger on 17 September, which extended the antitrust review timeline by at least 30 days. Caesars shareholders approved the merger with 65% of the vote on 22 September. No analyst call was held this quarter because of the transaction.

Las Vegas results in Q3

The Las Vegas business recorded a 2% year‑on‑year decline in revenue to $930 million for the quarter. Adjusted EBITDA was $343 million, down 10% year‑on‑year, and net income was $79 million, a 40% decrease versus the same period in 2025. Year‑to‑date 2026, Las Vegas revenue is -2%, adjusted EBITDA -8% and net income -21%.

"It is not healthy to run a business in 90‑day increments because of the obligations of being a public company," Tom Reeg said in remarks at the Global Gaming Expo in Las Vegas.

Reeg added that constant pressure is not the way to manage the business and described the combination with Fertitta's restaurant and hospitality network as a convergence that will generate synergies.

Regional performance

The regional segment was the quarter's strong point. Regional revenue rose 6% to $1.6 billion, while adjusted EBITDA increased 3.5% to $524 million. Year‑to‑date, regional adjusted EBITDA is +4.5% (to $1.4 billion) and regional net income is +6% ($69 million).

Caesars operates 54 properties across 20 North American jurisdictions, of which 46 are considered regional, outside Las Vegas. The Golden Nugget brand, owned by Fertitta, has eight US casinos, seven of them outside Las Vegas. The two companies currently compete in regional markets such as Lake Tahoe (NV), Laughlin (NV), Atlantic City (NJ), Lake Charles (LA), Danville (IL) and Biloxi (MS).

Tom Reeg said at G2E that he would not be surprised if "one or two properties" end up being divested during the transaction, consistent with prior antitrust measures when Caesars was acquired by Eldorado Resorts in 2020.

Financial health and leverage

At quarter‑end, Caesars had $864 in cash and cash equivalents versus total debt of $11.6 billion, which will be assumed as part of the merger with Fertitta. The company will become private once the deal closes; its share price had fallen from highs above $100 in 2021 to around $29 at the report date.

Caesars Digital and online markets

Caesars Digital reported $326 million in revenue in Q3, a 5% year‑on‑year increase, and adjusted EBITDA jumped 57% to $44 million. Quarterly net income moved from a $21 million loss in the same period of 2025 to a $4 million profit in 2026. Year‑to‑date through September, digital revenue is +6%, adjusted EBITDA +20% and net income nearly tripled (+194%).

The company offers online sports betting in 28 North American jurisdictions and iGaming in six. Caesars avoids prediction markets, citing risks to its land‑based casino licenses; Tom Reeg noted at G2E that the Kalshi platform even listed contracts on whether Caesars would be acquired, and said:

"There was no rule that said I couldn't place a bet."

Competitors such as FanDuel, DraftKings and Fanatics have embraced prediction markets and are making heavy investments and customer acquisition campaigns.