Caesars Entertainment announced its third-quarter financial report, with a net revenue of $2.9 billion, flat compared to the same period last year. However, net revenue from Las Vegas operations fell by 10% to $952 million, and net profit plummeted by 40%. Regional market revenue grew by 6% but profits fell by 55%, and digital business revenue slightly increased by 2.5% yet turned from profit to loss. The company's stock price has fallen over 40% year-to-date, and CEO Tom Riggs acknowledged the ongoing weak demand for leisure in Las Vegas and exceptionally low profitability at gaming tables, also stating that the company has not actively sought to sell Las Vegas assets, but does not rule out the possibility. The performance pressure mainly stems from a decline in tourism, inflation, and multiple adverse regulatory factors.
Performance of Various Business Segments
Caesars Entertainment's total net revenue for the third quarter was $2.9 billion, flat year-over-year. Las Vegas operations had a net revenue of $952 million, down 10% year-over-year, with a net profit of $132 million, a sharp drop of 40%; regional market revenue was $1.5 billion, up 6% year-over-year, but profits were $56 million, down 55% year-over-year; digital business revenue was $311 million, up 2.5%, with profits turning from a profit of $11 million in the same period last year to a loss of $21 million. The continuous decline in the company's stock price, with a year-to-date drop of over 40%, reflects market concerns about performance trends.
Market Challenges and Management Response
CEO Tom Riggs pointed out that leisure demand in Las Vegas has been declining for four consecutive months, and abnormal profitability at gaming tables led to a loss of about $30 million in the third quarter. At the macro level, weak tourism, inflationary pressures, tariffs, and the risk of government shutdowns collectively suppress consumer spending. Riggs acknowledged that balancing regional market spending and cost cuts needs long-term adjustment, but he remains optimistic about the trend improving. The company has not actively sold Las Vegas assets but maintains an open attitude. Additionally, the digital business is affected by multiple factors such as the sale of WSOP rights, increased gambling taxes in multiple states, and unfavorable sports event outcomes.
Forecasting Market and Regulatory Risks
Caesars Entertainment faces competitive pressure from the rise of forecasting markets (such as Kalshi, Robinhood), and the Nevada Gaming Control Board has warned licensed operators that offering sports forecasting markets may jeopardize their license qualifications. The company stated it would not risk its license but is preparing resources to wait for clear policies for legal participation. The company's total debt is $11.9 billion, with $546 million in debt repaid this quarter and $100 million in stock repurchased, ending with cash and equivalents of $836 million.
