Caesars Entertainment is considering a public listing for its online gambling business in an effort to create more value for shareholders.
The Las Vegas-based entertainment and gaming giant has shared with investors and media a potential plan to transition Caesar Digital into its own publicly traded company 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,” said CEO Thomas Reeg during the company’s Q4 2024 earnings call. “But when the dichotomy is such that it’s been and is today. We look to drive as much shareholder value as we can.”
Caesars saw its digital business generate $1.1 billion in net revenue in 2024, up from $973 million for the year prior. Caesars Digital posted an adjusted EBITDA of $117 million in 2024. By comparison, its adjusted EBITDA in 2023 reached $38 million.
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 of the NFL season.
In Q4 2024, Caesar’s digital business generated $302 million in revenue. By comparison, revenue 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.
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 anticipates continued growth for its digital business in 2025 as it projects to close the year with an adjusted EBITDA of $500 million behind operational enhancements.
“Continued improvements in technology, structural hold and customer experience will drive another strong year of revenue and EBITDA growth in 2025 and keep us on track for our $500 million EBITDA goal,” said Caesars Digital President Eric Hession during the call.
Caesars offloads major gaming property
Last August, Caesars announced plans to sell the World Series of Poker (WSOP) to GGPoker parent company NSUS in a deal valued at approximately $500 million.
The deal, finalized in October, sent the intellectual property rights of the WSOP brand to NSUS. As part of the pact, Caesars will maintain a relationship with the poker entity.
Caesars is also considering selling a group of non-core casinos, according to Reeg.
