written and last updated by
Sam Smith at
26 Feb 2025
Journalist, Editorial Department
Caesars Entertainment (CZR) is considering spinning off its online gaming business into a separate company, according to CEO Tom Reeg. He noted that the segments of sports betting and iGaming are undervalued due to their association with land-based casinos.
"If market dynamics remain the same and the digital business continues to grow as it has, we will begin exploring various opportunities for its development," Reeg stated. He emphasized that the company will consider all available avenues to maximize the value of its assets and increase revenue.
In 2024, Caesars Entertainment reported net revenue from its digital operations of $1.16 billion, accounting for approximately 10% of the company's total revenue. In comparison, digital operations contributed about 8% of total revenue in 2023. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the online segments surged from $38 million to $117 million year-over-year.
Like other sportsbook operators, Caesars Entertainment faced losses due to NFL game outcomes in 2024, which were more favorable for bettors. However, on Tuesday, the company announced a 60% increase in net revenue from iGaming for 2024, helping to offset short-term losses related to sports betting.
Currently, in the sports betting market, Caesars Entertainment ranks third, trailing only FanDuel and DraftKings, which together control nearly 70% of all online sports bets placed in the U.S.
Meanwhile, Caesars Entertainment has relaunched the Tropicana online casino in New Jersey.
