Company: CZR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001590895-25-000130
Chunk: 129

Company: Caesars Entertainment, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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9 million and $10 million for the three months ended September 30, 2025 and 2024, respectively, and $31 million and $32 million for the nine months ended September 30, 2025 and 2024, respectively, related to horse racing and pari-mutuel wagers.

Caesars Digital’s net revenues, net income (loss), Adjusted EBITDA, and Adjusted EBITDA margin improved significantly for the nine months ended September 30, 2025, as compared to the same prior year period, primarily due to higher iGaming handle and iGaming hold coupled with improved sports betting hold. For the three months ended September 30, 2025, as compared to the same prior year period, increases in iGaming handle and hold drove an increase in net revenues. Customer friendly sports betting outcomes resulted in sports betting hold at the lower end of our expected range which offset growth in sports betting handle. Net income (loss), Adjusted EBITDA and Adjusted EBITDA margin were negatively impacted by: (i) the loss of highly profitable licensing revenue in connection with the sale of the WSOP trademark, (ii) additional processing fees, platform costs, and gaming taxes resulting from increased iGaming volumes, and (iii) recent increases in online gaming tax rates in certain states. 

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 may negatively impact Caesars Digital’s net revenues, net income (loss), Adjusted EBITDA and Adjusted EBITDA margin in comparison to current or prior periods.

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Managed and Branded Segment

Three Months Ended September 30,Percent ChangeNine Months Ended September 30,Percent Change(Dollars in millions)20252024Variance20252024VarianceNet revenues:Other$73 $68 $5 7.4 %$214 $206 $8 3.9 %Net revenues$73 $68 $5 7.4 %$214 $206 $8 3.9 %Adjusted EBITDA$18 $19 $(1)(5.3)%$51 $54 $(3)(5.6)%Adjusted EBITDA margin24.7 %27.9 %(3.2) pts23