Caesars Weighs Separate Listing for Digital Gaming Arm
Las Vegas-based gaming and entertainment giant Caesars Entertainment is weighing a potential public listing for its digital gaming arm.
LISTEN TO THIS ARTICLE:In a strategic move to drive growth and increase value, Caesars Entertainment has unveiled plans to potentially spin off its Caesar Digital division into a separate, publicly traded entity.
The move was disclosed to investors during the company's Q4 2024 earnings call on Tuesday. Caesars believes that its digital assets, including online sports betting and iGaming, have been undervalued due to their being bundled with the company's larger brick-and-mortar casino business.
Operationally, it makes the most sense to keep everything together as one. But when the dichotomy is such that it’s been and is today. We look to drive as much shareholder value as we can.
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Caesars Digital 2024 Perfomance
Caesars Entertainment generated $1.16 billion in digital net revenue in 2024, which represents around 10% of its total net revenue, up from 8% in 2023. The digital segment saw a 208% year-over-year increase in adjusted EBITDA, from $38 million to $117 million.
Furthermore, the operator reported a 60% increase in iGaming net revenue for 2024, which helped counterbalance the hit it took from 2024 NFL game results that favored the public.
Q4 2024 digital revenue for Caesars totaled $302 million, a 0.7% decrease from the $304 million reported in Q4 2023. Adjusted EBITDA for the division slipped to $20 million in Q4 2024, down 31% from the $29 million reported in Q4 2023.
Caesars expects its digital business to maintain momentum in 2025, forecasting an adjusted EBITDA of $500 million by year-end, driven by operational improvements.
Continued improvements in technology, structural hold and customer experience will drive another strong year of revenue and EBITDA growth in 2025 and keep us on track for our $500 million EBITDA goal.
Caesars is among the group of sportsbook operators vying for market share behind leaders FanDuel and DraftKings, which collectively dominate nearly 70% of the U.S. online sports betting market.
According to recent data, Caesars currently chases BetMGM for third place and is now running virtually even with Fanatics in the competitive industry.
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