Company: CZR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001590895-25-000130
Chunk: 159

Company: Caesars Entertainment, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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 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) pts23.8 %26.2 %(2.4) ptsNet income attributable to Caesars$18 $19 $(1)(5.3)%$52 $54 $(2)(3.7)%

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.

Three Months Ended September 30,Percent ChangeNine Months Ended September 30,Percent Change(Dollars in millions)20252024Variance20252024VarianceReimbursable management revenue$53 $49 $4 8.2 %$159 $152 $7 4.6 %Reimbursable management costs53 49 4 8.2 %159