Caesars CEO Says Company Won't Pursue Prediction Markets at the Risk of Gaming License
Caesars Entertainment CEO Tom Reeg reiterated a cautious stance toward prediction markets during the operator's third-quarter 2025 earnings call on Oct.28.
Reeg told investors that Caesars "will not put any of our licenses at risk" by entering the unregulated contract-trading space, which several state regulators have equated with sports wagering.
Reeg added that Caesars would only explore such opportunities "if there's a path that develops" that avoids regulatory conflict. He noted that the company is closely monitoring developments in the emerging sector.
Caesars Digital President Eric Hession confirmed that the company is in the "planning stages" of evaluating prediction market integration but suggested that Caesars may wait to observe how competitors roll out similar offerings before committing to its own platform. Hession said the regulatory environment remains uncertain, citing recent letters from state agencies warning operators against involvement in event-contract trading. Accordingly, Caesars has been carefully calculating its steps, as other gambling operators have been moving into prediction markets through acquisitions.
Authorities in Nevada, Pennsylvania, Michigan, and Arizona have all issued notices asserting that prediction markets constitute gambling and could breach state licensing laws. The statements have led major operators to proceed cautiously in this area, and some have halted operations in those states until there is clearer clarification on the legal standing of prediction markets.
Earnings stagnate
During the same call, Caesars revealed its updated financial situation. Its flat quarterly revenue of $2.9 billion marked one of the few bright spots in its Q3 results, as both its Las Vegas and regional operations underperformed amid softer consumer spending and economic uncertainty.
The company's shares closed down 2% on Tuesday at $22.09 and slid further to $19 the following day, extending a year-to-date decline of over 40%.
Las Vegas revenue has trended downward throughout 2025, prompting investor concerns about the outlook for the coming quarters. Reeg, who had previously downplayed the slowdown, acknowledged in recent months that "leisure demand for Vegas" remains below 2024 levels. He said the operator is seeing gradual improvement but not a full recovery.
Reeg estimated that poor table-game hold in Las Vegas cost Caesars around $30 million during the quarter. The upcoming Formula One Las Vegas Grand Prix, scheduled for Nov. 20–22, is expected to outperform last year's event but fall short of the 2023 levels, which generated an estimated $1.5 billion in local economic impact.
Las Vegas segment revenue fell 10% year-over-year to $952 million, with net profit down 40% to $132 million. Regional markets generated $1.5 billion in revenue, a 6% increase, but profit declined 55% to $56 million. Caesars Digital posted a $21 million loss on $311 million in revenue, though year-to-date adjusted EBITDA rose 55% to $151 million.
In a recent report published by the Nevada Gaming Control Board, the state’s casinos generated $1.28 billion in revenues in September, 2.26% less than the $1.31 billion earned in September 2024.
