Caesars CEO Tom Reeg said on Tuesday that spinning off Caesars Digital into a standalone publicly traded company is still on the table as the interactive arm of the business enjoys strong growth.
“Our job is to deliver the numbers that we laid out starting in ’21,” Reeg told investors and analysts on a Tuesday earnings call. “We’re well on that path. The goals are in our windshield now as we approach them. And we’ll see where we’re at when we get there in terms of are we getting value for what we’ve created.
“If the answer is we’ve hit our goals and we’re just not seeing it in the equity, we will look at any and all options to create value for shareholders.”
Reeg was speaking on an earnings call after Caesars Digital reported a 19% rise in net revenue to $335 million during the first three months of 2025. Adjusted EBITDA grew to positive $43 million.
Sports betting net revenue grew 9%, while online casino net revenue surged 53%, following last year’s first-quarter growth exceeding 50%.
Sports betting resilient, online casino rampant
Reeg noted that while Caesars Sportsbook was “not immune” to the customer-friendly March Madness results, it still posted very strong growth year-over-year including a 9% increase in first-quarter net revenue.
Caesars Digital President Eric Hession suggested that net gaming revenue growth was aided by higher hold and less promotional activity, and noted that sportsbook customers are attracted to the parlay and cashout options.
“We’re doing very well in sports betting,” said Reeg. “We’ll generate hundreds of millions of EBITDA in the next 18 months. But iGaming is an even better area for us.”
Across its three online casino brands — Caesars Palace, Caesars Sportsbook & Casino and Horseshoe — net revenue grew 53% in Q1 2025, which Reeg noted is on top of similar growth in the last quarter of 2024.
“Stacking quarters like that on top of each other is particularly gratifying for us,” he noted. Executives said they expect the current growth trend of roughly 50% to continue for the rest of the year. In April, it’s been even better; online casino net revenue was up almost 70% through the first 27 days of the month.
Caesars Palace Online is the digital arm’s highest net revenue-generating app but the newer Horseshoe platform is already contributing 7% of online casino net revenue. Meanwhile, after Caesars launched branded live dealer studios in Pennsylvania and New Jersey, Caesars Digital’s in-house game studio is planning to launch a branded multihand blackjack game in the second quarter, its first internally developed product.
Reeg forecasts iGaming legislation, feels no impact from prediction markets
Asked about the current macroeconomic and industry economic conditions in North America, Reeg voiced optimism that some U.S. states will more seriously consider online casino legislation in the next couple of years as they deal with financial shortfalls.
“I think that’s going to put us in a cycle of iGaming legislation in ’26 and ’27, is going to start to look more appealing to some jurisdictions that are looking to plug holes.”
Finally, on the hot topic of prediction markets, Reeg said Caesars has felt “zero impact” so far from prediction markets. As with all major online sportsbooks, Caesars executives were asked whether that could be a potential avenue for them in the future, pending regulatory clarification.
“If there are ways to drive more EBITDA through our business that open up through legislation or regulation, you should assume that we’re going to look to how we can take advantage of those opportunities to the greatest extent possible for our shareholders,” said the CEO.
