Dive Brief:
- Caesars Entertainment saw net revenues in Las Vegas decline 3.5% year over year during the second quarter of 2026, according to an earnings report published Tuesday. The company also posted a 12.6% year-over-year decline in adjusted EBITDA in Las Vegas for the quarter.
- Overall, the company saw 3% year-over-year growth in systemwide revenues in Q2, bolstered by solid revenue gains in its regional and digital segments. While its regional segment saw adjusted EBITDA increase during the quarter, its digital segment saw a steep decline in the metric.
- The results came amid the operator’s pending acquisition by Fertitta Entertainment, which is set to buy Caesars in a deal valued at $17.6 billion.
Dive Insight:
Caesars announced it would not host a Q2 earnings call due to Fertitta’s pending acquisition, and company executives did not provide written statements in the Tuesday earnings report. Upon completion of the transaction, Caesars’ common stock will no longer be listed on the Nasdaq Stock Market, with the company becoming private, per the earnings report.
Caesars entered a definitive agreement to be acquired by Feritta on May 28. The deal is slated to combine the companies’ portfolios, including roughly 60 domestic casino resorts and gaming facilities; online and retail sports betting platforms; and more than 550 Fertitta Entertainment outlets, including some 450 Landry’s full-service restaurants.
Fertitta will have to overcome several hurdles before completing the acquisition, company executives shared during a suitability review by the Nevada Gaming Control Board earlier this month. These challenges include obtaining antitrust clearance from the Federal Trade Commission and gaining approval from Caesars shareholders, Steven Scheinthal, executive vice president and general counsel for Fertitta, said during the review.
Fertitta must also gain approval in each jurisdiction where Caesars has a gaming operation, which could take up to 10 months, according to Scheinthal. One of Caesars’ latest gaming operations to open is the Caesars Republic Lake Tahoe Hotel & Casino, which debuted earlier this month in the popular mountain destination.
Caesars’ Q2 results come after the company reported improving performance fundamentals in Las Vegas in the first quarter of this year.
Hotel and gaming competitor MGM Resorts International is slated to report its Q2 earnings results July 29. MGM is similarly facing a possible acquisition, after Barry Diller-owned media conglomerate People Incorporated made an $18 billion bid to buy the resort operator in June.
