Caesars Entertainment is expecting considerable growth for its digital business as marketing expenses decrease and new states across America consider legalizing online casinos.
The Nevada-based gaming and hospitality giant reported $2.9 billion in net revenue in Q2 2025, up from the $2.8 billion in revenue it generated for the same period last year.
Caesars reported a year-over-year decline in adjusted EBITDA in Q2 2025 at $955 million. By comparison, the company reported an adjusted EBITDA of $1 billion in Q2 2024.
Meanwhile, net losses for Caesars improved during the quarter with a company-wide loss of $197 million in Q2 2025, down from a $280 million loss for the same period in 2024.
Caesars expects to reach its projected run rate of $500 million by the end of the fiscal year behind increased betting action during the college and NFL football seasons and the dissolving of advertising expenses incurred during its U.S. market entries and expansion.
Caesars Digital reports strong first half of the year
Caesars posted favorable growth for its digital business in Q2 2025 with revenue for the sector closing at $343 million. By comparison, revenue in Q2 2024 reached $276 million.
Caesars Digital reported an adjusted EBITDA of $80 million in Q2 2025, a quarterly record for the business. By comparison, its adjusted EBITDA in Q2 2024 closed at $40 million.
“Our Caesars Digital segment posted one of its strongest quarters ever, as momentum continues to build toward the financial goals that we originally laid out in 2021,” said Caesars CEO Thomas Reeg in the company’s latest quarterly earnings report.
The digital business benefited in Q2 2025 from a 51% year-over-year increase in revenue generated by its online casino operations spearheaded by new product launches.
Caesars continues to invest in iGaming as the company recently launched its third online casino live dealer studio. Caesars opened the facility in Michigan in partnership with Evolution building on previous openings in New Jersey and Pennsylvania.
Caesars expects even more opportunities for its online casino business in America.
“As you look forward and think about into ’26, ’27, ’28, where you may have new iGaming jurisdictions, where I would expect our share of a new jurisdiction given our product and the momentum in that business would probably be something like 2x what our share is in the legacy markets, you can start to talk yourself into some pretty bullish outcomes in digital, and we see no indication that anything slowing down,” Reeg told media and investors during a Q2 earnings call.
He pointed to a more streamlined marketing approach that he admitted resulted in a handle dip, but noted those numbers are now on the rise again. He added this streamlined approach will continue to impact bottom lines as deals the company does not plan to renew expire.
“We’ve talked about partnership expenses rolling off. If you look at now through the end of ’27, we’ve got north of $70 million worth of partnership expenses that we are dragging in our business right now that will roll off by the end of ’27 and more than half of those will be gone in the first 4 months of ’26.”
The potential opening of new iGaming markets presents promising revenue-generating opportunities for Caesars as it continues to enhance its online wagering products.
Earlier this month, the company launched a universal digital wallet on the Caesars Sportsbook app in Nevada with plans to expand the functionality to additional markets.
Caesars is dedicated to continuing to expand the reach of its digital business in the U.S.
“If we’re looking at where do we spend our time and effort, there is not an international market that is anywhere close to the opportunity that’s what is here domestically,” added Reeg. “So, while I wouldn’t shut the door, it would surprise me if we saw something internationally that looked anywhere close to the opportunity that we’re pursuing here.”
Caesars is keeping tabs on prediction markets
Caesars may consider prediction markets as another way to boost its digital business.
“We’re actively watching the situation,” said Caesars CFO Eric Hession during the earnings call. “And we’ll make sure that we’re not caught flat-footed on that.”
Caesars is keeping a close eye on the prediction market sector as lawmakers prepare to vote on their nomination for chair of the Commodity Futures Trading Commission (CFTC) after a series of delays. Last week, Kalshi board member Brian Quintenz was expected to have a Senate committee vote on his nomination for CFTC Chair but the vote was postponed due to a delayed flight for a GOP senator. The vote was delayed again on Monday following a request by the White House to cancel for an undisclosed reason.
