Caesars Entertainment released its latest earnings report on Wednesday, touting yearly growth while also identifying future opportunities for attracting new players in its digital segment.
Caesars generated $2.9bn in revenue in Q1 2026, a slight yearly increase from $2.8bn in Q1 2025. The company’s adjusted EBITDA closed at $887m in Q1 2026, up from $884m for the same period last year. Its net loss in Q1 reached $98m, narrowing from $115m in Q1 2025.
Caesars’ Regional segment led the quarterly results with $1.4bn in revenue in Q1, but the company’s digital businesses reported the highest rate of growth during the quarter.
Caesars Digital generated $374m in revenue in Q1 2026. By comparison, it posted $335m in revenue in Q1 2025, marking a 11.6% year-over-year uptick compared to Q1 2026. Caesars Digital’s adjusted EBITDA during the quarter closed at $69m. By comparison, it reported an adjusted EBITDA of $43m for the same period last year.
Net income for Caesars Digital in Q1 2026 was $22m, with no net income in Q1 2025.
What led to growth for Caesars Digital?
During a Q1 earnings call, Caesars Sports and Online Gaming President Eric Hession shared additional insights into how the company’s online gaming business performed.
Sports revenue for Caesars Digital grew by 9% during the quarter compared to Q1 2025. Meanwhile, online casino revenue increased by 18% compared to the same period last year. Caesars attributed the iGaming growth to volume and average monthly active users.
“We continued to elevate our product offering during the quarter to include new in-house games, improved bonusing capability, and incentivized cross-play with brick-and-mortar through our Remote Reels, exclusive product launches, and customer events,” said Hession. “Overall, in Q1, our total monthly unique players increased approximately 2% to 512,000, and average revenue per monthly player was up 15% to $219”.
In Q1 2026, Caesars Digital reported declines in volume despite revenue growth. The segment posted a 3% decline in total volume during the quarter, with a 1% drop for sports. Caesars is continuing to invest in its digital business as it maintains revenue growth.
“Digital looks very strong,” said Caesars Entertainment CEO Tom Reeg. “We’re still on the path that we laid out a long time ago toward $500m or more of EBITDA”.
Caesars Digital is aiming to convert retail casino players to online to spur further growth.
“There’s still a gigantic opportunity in converting customers in our database that are primarily brick-and-mortar with us and play digitally elsewhere and bringing them into the fold,” continued Reeg. “When we first launched our app on the sports side and frankly on the iCasino side before Caesars Palace Online, the experience lagged our peers. That’s no longer the case”.
Potential new opportunities for Caesars Digital
Caesars is also poised to grow as new regulated online casino markets open their doors.
Maine is gearing up to open as a regulated iGaming market later this year after Gov. Janet Mills allowed a January bill that provides tribes with exclusive rights to online casinos to become law.
“We’re doing more in digital, and it continues to get better; that’s an enormous opportunity for our digital business as we move forward and certainly as new states come online,” added Reeg.
Caesars has an opportunity to solidify a footprint in Maine’s online casino market, as it currently partners with Maine’s Wabanaki Tribes for sports betting. DraftKings is also a sports betting partner of the state’s federally recognized tribes.
Under the iGaming bill, tribes with rights to sports betting are allowed to partner with vendors for online casino gaming. The framework of the bill creates an opportunity for direct entry for Caesars.
New opportunity to the north as well
The company is also preparing to launch operations in Alberta later this year.
Alberta provides Caesars with a new North American market for online gambling, where it plans to offer its Horseshoe and Caesars Palace brands.
“They [Alberta] actually have a fairly high average wealth per person, but it is on the smaller side in terms of the size of the province,” said Hession. “That said, it’s both sports and iCasino, so we’re very optimistic that it’ll be a great market”.
