Caesars Entertainment has reported a record period for its digital operations in the second quarter of 2025, fueled by engagement in its single wallet tech and marketing redefinition.
During the operator’s earnings call, CEO Tom Reeg described digital performance in Q2 as “fantastic”, noting that Caesars is on track to deliver $500m-plus EBITDA in 2026, expressing optimism in that projection thanks to historical Q2 and Q4 comparisons and its single wallet tool for customers.
Updating investors, Reeg praised digital’s momentum, which has benefited from Caesars redefined approach to targeted marketing to customers, resulting in a handle reduction that has since rebounded and continued growing beyond the quarter’s end.
The CEO said: “Handle grew, handle is growing in July on the sports side, mid-single digits. We continue to grow in iCasino about two times the rate of our peers, extraordinarily pleased with the way that is coming together.”
Single wallet success
During the Q&A portion of the call, Caesars was asked about the key drivers behind the growth of digital in Q2, to which Reeg spotlighted the single wallet rollout in Nevada.
The CEO said: “For us, the rollout of single wallet in Nevada is a wonderful customer acquisition tool. If you recall, before that, all the customers who would come to our properties in Nevada and open a Caesars Sports account, so they could bet while they were in Vegas, would go home and have to open a separate account, which is obviously less than ideal.
“So we think from a customer acquisition standpoint outside of Nevada, that’s going to be a powerful tool and add to the momentum that we’ve got going in this space.”
The rollout of the single wallet has reached 19 jurisdictions so far and is expected to continue across all of Caesars’ operational markets through Q1 next year, including the US states of Michigan, Missouri, New Jersey and Pennsylvania, as well as the Canadian province of Ontario.
Digital growth
Caesars’ digital revenue at the end of Q2 stood at $343m, up 24.3% year-over-year (Q2 2024: $276m), while its net income was $39m (Q2 2024: $4m). Adjusted EBITDA for the segment at the end of the period was $80m (Q2 2024: $40m).
For the first half of the year, digital revenue rose by 21.5% YoY to $678m (H1 2024: $558m), while its net income was $39m (H1 2024: $30m loss). Adjusted EBITDA for the segment at the end of the period was $123m (H1 2024: $45m).
“If you look at versus the prior year quarter, the $40m we did in the prior year had about $8m worth of World Series of Poker EBITDA that we sold,” noted Reeg.
“So the true comp is versus $32m of EBITDA last year, we did $80m. There’s another $8m of that World Series headwind in the third quarter EBITDA number, but we would expect to top the fully loaded number by a significant amount.”
Reeg continued: “We’ve talked about partnership expenses rolling off. If you look at now through the end of 2027, we’ve got north of $70m worth of partnership expenses that we are dragging in our business right now, that will roll off by the end of 2027, and more than half of those will be gone in the first four months of 2026.
“All of that flows straight to EBITDA. So that business is ramping quickly toward that $500m number. We certainly expect that, that’s not an end game for us that we’re going to continue growing well past that as we move forward.”
‘Pretty bullish outcomes’
Caesars was also asked about the outlook for digital, to which Reeg responded that while he wouldn’t go into figure specifics, July has been strong so far, while Q4 is usually around two times better than Q2 due to American Football and other sports resuming.
As a result, the operator is very optimistic about the future of its iGaming operations for the rest of the year and beyond, believing that “pretty bullish outcomes” are possible thanks to potential new iGaming jurisdictions and the operator’s product standing in existing markets.
Reeg continued: “I’ve taken so much grief over the $500m target that we’re right on the precipice of, I’m hesitant to immediately put another target out there. But I’d say we’re going to generate substantially more than $500m of EBITDA from digital, if you’re looking out a few years here.”
Q2 Performance
Although Caesars’ digital operations performed well, less could be said about its overall and other vertical figures.
The operator’s overall Q2 net revenue stood at $2.9bn (Q2 2024: $2.8bn), but net income still came in at a loss of $82m (Q2 2024: $122m loss), while adjusted EBITDA came in at $955m (Q2 2024: $1bn).
For H1, overall revenue stood at $5.7bn (H1 2024: $5.6bn), net income was a $197m loss (H1 2024: $280m loss), and adjusted EBITDA came in at $1.8bn (H1 2024: $1.9bn).
Q2 performance across Caesars’ verticals was as follows:
Las Vegas
- Q2 revenue – $1.1bn (Q2 2024: $1.1bn)
- Q2 net income – $212m (Q2 2024: $272m)
- Q2 adjusted EBITDA – $469m (Q2 2024: $514m)
Regional
- Q2 revenue – $1.43bn (Q2 2024: $1.38bn)
- Q2 net income – $11m loss (Q2 2024: $51m loss)
- Q2 adjusted EBITDA – $439m (Q2 2024: $469m)
Managed and Branded
- Q2 revenue – $74m (Q2 2024: $70m)
- Q2 net income – $18m (Q2 2024: $17m)
- Q2 adjusted EBITDA – $17m (Q2 2024: $17m)
Corporate and Other
- Q2 revenue – $1m (Q2 2024: $2m loss)
- Q2 net income – $340m loss (Q2 2024: $364m loss)
- Q2 adjusted EBITDA – $50m loss (Q2 2024: $40m loss)
Caesars had an aggregate principal amount of debt outstanding of $12.3bn as of June 30, 2025, with total cash and cash equivalents at $982m, excluding $104m in restricted cash.
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