Caesars Entertainment CEO refuses to rule out digital division spin-off 

Caesars Entertainment CEO Thomas Reeg remains open to the idea of spinning off the operator’s digital arm as a separate entity. 

The Nevada-based firm’s chief highlighted the possibility of “doing something strategically” with the digital division back in February, should the market dictate.

Two months on, Reeg has discussed the prospect of Caesars Digital, which includes Caesars Sportsbook, Caesars Palace Online Casino, and Horseshoe Online Casino, becoming its own publicly listed company. 

Pressed for an update, Reeg kept his cards close to his chest and adopted a wait-and-see approach. 

“As I said on the last call, our job is to deliver the numbers that we laid out starting in 2021. We’re well on that path. The goals are in our windshield now as we approach them,” he explained. 

“We’ll see where we’re at when we get there, in terms of ‘are we getting value for what we’ve created?’ If the answer is we’ve hit our goals, we’re moving through them, and we’re just not seeing it in the equity – I’ll tell you, we will look at any and all options to create value for shareholders. 

“But, we are mindful that the first thing we need to do is continue to deliver the numbers on the path that we have.” 

In February, Reeg said it would be his preference to keep all segments of the business together as “operationally, it makes the most sense,” and was reluctant to rule out the prospect of a digital spin-off entirely. 

At the time, he remarked: “Operationally it makes the most sense to keep everything together as one. But when the dichotomy is such that it’s been and is today […] we look to drive as much shareholder value as we can.

“This is why it’s important for us to own everything in the business, the entire tech stack, not [to] have partners, have our own PAM – which we’re in the middle of rolling out. 

“But it’s a natural time to start to think about should you be doing something else strategically that allows investors a path to investing in that business on a pure-play basis.” 

Reeg’s latest comments came on an earnings call following the release of Caesars Q1 2025 results, which saw the company’s digital division produce an 18.8% year-on-year (YOY) revenue rise. 

Caesars Digital posted $335m in revenue for the three months ending March 31, a significant increase from the $282m posted in the corresponding period last year. 

Taking into account all other segments of the business, including Caesars land-based efforts, the operator generated $2.8bn in revenue for the first quarter of 2025, representing a 2.1% YOY climb. 

It was a similar story for Caesars Digital’s adjusted EBITDA, which totaled $43m, a steep rise from the $5m generated by the segment in Q1 2024. 

Group-wide, Caesars adjusted EBITDA total sat at $884m, marking growth of 4.1% YOY. 

The first three months of this year proved to be a record quarter for the Caesars Digital, as outlined in Reeg’s company-wide assessment of the reporting period. 

“During the first quarter of 2025, consolidated adjusted EBITDA grew 4% over prior year driven by significant gains in our digital segment which delivered a new Q1 record: growth in our regional segment with strong contributions from recently opened properties and a solid quarter in Las Vegas against a tough Super Bowl compared to last year,” he noted. 

In other Caesars news, the group’s sportsbook has integrated pari-mutuel horse race wagering in Kentucky and Colorado ahead of the Kentucky Derby.

Customers will be able to toggle between the Caesars Sportsbook app and the Caesars Racebook, which is powered by NYRA Bets.