Company: CZR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001590895-25-000130
Chunk: 102

Company: Caesars Entertainment, Inc.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 Balance Sheets.The following table summarizes the activity related to contract and contract related liabilities:Outstanding Chip LiabilityCaesars RewardsCustomer Deposits and Other Deferred Revenue(In millions)202520242025202420252024Balance at January 1$47 $42 $79 $86 $549 $693 Balance at September 3033 35 92 85 509 573 Increase / (decrease)$(14)$(7)$13 $(1)$(40)$(120)Customer deposits and other deferred revenue decreased in 2024 primarily due to a reduction in both advanced ticket sales and gaming deposits.Lease RevenueLodging ArrangementsLodging arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of the fees charged for lodging. The nonlease components primarily consist of resort fees and other miscellaneous items. As the timing and pattern of transfer of both the lease and nonlease components are over the course of the lease term, we have elected to combine the revenue generated from lease and nonlease components into a single lease component based on the predominant component in the arrangement. During the three months ended September 30, 2025 and 2024, we recognized lease revenue of approximately $485 million and $515 million, respectively, and during both nine months ended September 30, 2025 and 2024, we recognized approximately $1.5 billion, which is included in Hotel revenues in the Statements of Operations.ConventionsConvention arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of fees charged for the use of meeting space. The nonlease components primarily consist of food and beverage and audio/visual services. Revenue from conventions is included in Food and beverage revenue in the Statements of Operations and during the three months ended September 30, 2025 and 2024, lease revenue related to conventions was approximately $12 million and $14 million, respectively, and during the nine months ended September 30, 2025 and 2024, lease revenue related to conventions was approximately $41 million and $39 million, respectively.Real Estate Operating LeasesReal estate lease revenue is included in Other revenue in the Statements of Operations. During the three months ended September 30, 2025 and 2024, we recognized approximately $32 million and $38 million, respectively, and during