Caesars Loss Widens to $123m as Las Vegas Slides Ahead of Fertitta Takeover

Caesars Entertainment's net loss more than doubled in the third quarter as weaker Las Vegas business offset growth in its regional casinos and a better quarter for Caesars Digital. It published the numbers without a call or a word from management while it waits for regulators to clear its sale to Fertitta Entertainment.

• Caesars Entertainment reported a net loss attributable to the company of $123 million for the quarter to 30 September 2026, against $55 million a year earlier, on net revenue up 2.5% to $2.94 billion
• Las Vegas adjusted EBITDA fell 9.5% to $343 million, which Caesars puts down to fewer city-wide conventions and lower leisure visitation, while Regional rose 3.6% to $524 million
• Caesars Digital lifted adjusted EBITDA to $44 million from $28 million on revenue up 4.8% to $326 million, helped by better hold and lower marketing costs, although iGaming handle grew just 1.5%
• Debt stood at $11.7 billion, and the $17.6 billion Fertitta buyout shareholders approved in September still awaits the Federal Trade Commission and state gaming regulators
• Neither Caesars nor Fertitta Entertainment has confirmed reports that Chief Executive Tom Reeg will lead Fertitta's wider leisure group once the deal closes

A Wider Loss on Revenue That Barely Moved

Caesars Entertainment (NASDAQ: CZR), which calls itself the largest casino-entertainment company in the US, reported net revenue of $2.94 billion for the third quarter of 2026, up from $2.87 billion, according to its earnings release filed with the US Securities and Exchange Commission on 27 October. Net loss attributable to Caesars widened to $123 million, or $0.61 a share, from $55 million, or $0.27. Consolidated adjusted EBITDA fell 2.1% to $865 million. The company held no conference call, citing its pending acquisition by Fertitta Entertainment, and the release carries no management comment.

Its quarterly report on Form 10-Q shows operating income falling to $457 million from $513 million as operating expenses rose 5.4% to $2.48 billion. Net interest expense of $570 million exceeded operating income, as it did a year earlier, and the tax benefit shrank to $10 million from $25 million. Corporate costs rose on higher insurance captive costs, and the quarter carried $12 million of merger costs.

Las Vegas Weakens as Regional Casinos Carry the Group

Las Vegas net revenue fell 2.3% to $930 million and segment adjusted EBITDA 9.5% to $343 million, with the margin down to 36.9% from 39.8%. According to the 10-Q, fewer city-wide convention events and lower leisure visitation cut non-gaming revenue, hotel occupancy and room rates. Occupancy was 89.1% against 91.6%, hotel revenue fell 9.3% and food and beverage 12.6%. Casino revenue rose 10.4% to $287 million, helped by table games hold of 21.6% against 17.4% a year earlier.

Regional revenue rose 5.9% to $1.63 billion and adjusted EBITDA 3.6% to $524 million. The company attributes the growth mainly to consolidating Caesars Windsor in Ontario from 3 March 2026 and to recent investment in Lake Tahoe and New Orleans, while labour costs and gaming taxes held the margin at 32.2%.

Digital Earns More on Slower Volume

Caesars Digital, which runs online sports betting in 28 North American jurisdictions and iGaming in six, grew revenue 4.8% to $326 million and adjusted EBITDA 57.1% to $44 million, a margin of 13.5% against 9.0%. Sports betting handle rose 1.2% to $2.51 billion at a hold of 7.9%, and iGaming handle rose 1.5% to $4.83 billion at a hold of 4.0%, up from 3.6%. Over nine months iGaming handle grew 7.8%. Caesars credits higher hold and reduced marketing costs, and says higher gaming tax rates on sports betting and iGaming in certain states lifted expenses.

The Deal Still Waits on Washington and the States

The 10-Q gives no closing date and no update on the review since the FTC asked for more information. A second request issued on 14 September extends the antitrust waiting period until 30 days after both sides substantially comply, and closing also needs gaming approvals. Shareholders are owed $31 a share, the price the board chose over Carl Icahn's $34 go-shop bid, plus a ticking fee if the deal has not closed by 26 June 2027. The agreement's end date is 27 May 2027, extended automatically to as late as 27 November 2027 if only antitrust or gaming approvals are outstanding, and Fertitta would owe a $450 million reverse termination fee in some regulatory failure scenarios. iGaming Business reports that closing is expected by the middle of 2027.

On leadership, the May announcement said Chief Executive Tom Reeg, Chief Financial Officer Bret Yunker and President and Chief Operating Officer Anthony Carano were expected to remain in their roles running the Caesars operations. The August merger proxy says Reeg discussed management equity incentives with Fertitta's representatives, but that no new compensation arrangements had been agreed. Recent reports that Reeg will go on to lead Fertitta's wider leisure group have not been confirmed in any company statement or filing.

The Strip Is Losing Money Off the Casino Floor

Without the swing in table hold, the Las Vegas decline would have been steeper, because the weakness sits in rooms, restaurants and conventions. The Las Vegas Convention and Visitors Authority's July figures show visitors up 2.7% but convention attendance down 5.6%, consistent with Caesars' explanation. Table hold tends to revert and convention calendars do not refill quickly, so the owner expected in 2027 inherits a Las Vegas business whose adjusted EBITDA is down 8% over nine months.

Digital's Profit Is Coming From Spending Less

The margin gain is real, but quarterly digital revenue has fallen from $374 million in the first quarter to $326 million in the third. Part of that is seasonal. Growth in iGaming handle slowed to 1.5% and promotional spending rose to $85 million from $78 million, so the improvement rests on hold and cost discipline rather than volume. In April Reeg said digital remained on the path "toward $500m or more of EBITDA", NEXT.io reported; nine months have produced $181 million.

Fertitta Is Buying the Leverage Along With the Brands

Debt was $11.66 billion at quarter end, down from $11.91 billion in December, against cash of $864 million. A business whose quarterly interest bill exceeds its operating income needs regional growth and digital margins to hold while Las Vegas recovers. Reeg said at the Global Gaming Expo that a property or two might be divested, CDC Gaming Reports noted, and the FTC review is likely to decide how many. Until the companies say otherwise, his wider role remains a report rather than a decision.

The quarter shows a regional and digital business supporting a weaker Las Vegas operation, with interest costs larger than its operating income. Fertitta agreed its price before these numbers, and the regulators now decide when it has to pay it.