Company: CZR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001590895-25-000110
Chunk: 134

Company: Caesars Entertainment, Inc.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 134
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 Hold related to these operations was 11.0% and 9.8%, for the three months ended March 31, 2025 and 2024, respectively. Sports betting handle includes $10 million and $11 million for the three months ended March 31, 2025 and 2024, respectively, related to horse racing and pari-mutuel wagers.

Caesars Digital’s net revenues, net loss, Adjusted EBITDA, and Adjusted EBITDA margin improved significantly for the three months ended March 31, 2025, as compared to the same prior year period, primarily due to higher iGaming handle and iGaming hold coupled with improved sports betting hold. The improved sports betting hold reflects the benefit of the continued investment in our sports betting platform. Increases in both iGaming handle and iGaming hold have followed the launch of Caesars Palace Online Casino in August 2023 and Horseshoe Online Casino app in October 2024.

As sports betting and online casinos expand through increased state or jurisdictional legalization, new product launches, and customer adoption, variations in hold percentages and increases in promotional and marketing expenses in highly competitive markets during promotional periods may negatively impact Caesars Digital’s net revenues, net income, Adjusted EBITDA and Adjusted EBITDA margin in comparison to current or prior periods. 

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Managed and Branded Segment

Three Months Ended March 31,Percent Change(Dollars in millions)20252024VarianceNet revenues:Other$67 $68 $(1)(1.5)%Net revenues$67 $68 $(1)(1.5)%Adjusted EBITDA$16 $18 $(2)(11.1)%Adjusted EBITDA margin23.9 %26.5 %(2.6) ptsNet income attributable to Caesars$16 $18 $(2)(11.1)%

We manage several properties and license rights to the use of certain of our brands. These revenue agreements typically include reimbursement of certain costs that we incur directly. Such costs are primarily related to payroll costs incurred on behalf of the properties under management. The revenue related to these reimbursable management costs has a direct impact on our evaluation of Adjusted EBITDA margin which, when excluded, reflects margins typically realized from such agreements. The table below presents the amount included in net revenues and total operating expenses related to these reimbursable costs.

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