USA Top 10 crypto casinos in Ohio

  • Casino News
  • USA News

Digital Surge in Q2 Prompts Caesars to Weigh Spin-Off

Caesars Entertainment’s digital revenue jumps 24% in Q2 as Las Vegas and regional casino earnings soften. CEO Tom Reeg hints at a possible digital spin-off in 2026 if $500M EBITDA target is reached.
facebook twitter twitter

Branimir Ivanov | Senior News Contributor

Updated: Jul 31, 2025

Digital Growth Fuels Spin-Off

Caesars Entertainment may soon take a significant step toward reshaping its business model. On Tuesday's Q2 earnings call, CEO Tom Reeg hinted at the possibility of a digital spin-off in 2026—if internal performance targets are met. The announcement comes as the company’s digital division continues to outpace its traditional business units by a growing margin. While Caesars’ Las Vegas and regional operations delivered flat or declining year-on-year results, its online business once again broke records in both revenue and profitability.

 

Digital Division Drives Growth

In Q2 2025, Caesars reported total net revenue of $2.9 billion, up 3% from the same period last year. Regional operations rose 3.6% to $1.4 billion, while Las Vegas revenue dipped 3.7% to just over $1 billion. The standout, however, was the digital segment, which surged 24% year-on-year to $343 million. Adjusted EBITDA mirrored the same divide. Las Vegas fell 8% to $469 million, regional dropped 6% to $439 million, but digital doubled to $80 million.

Year-to-date figures reinforce the widening gap. In the first half of 2025, Caesars has posted $5.7 billion in revenue—up 2.5% from the same point in 2024. The digital segment alone grew 21.5%, contributing $123 million in adjusted EBITDA, a 173% increase. In contrast, Las Vegas and regional earnings declined 4.7% and 2.5%, respectively.

Reeg highlighted the division’s rapid expansion in Tuesday’s call: “The momentum in digital is extraordinary, both from a volume and an EBITDA perspective,” he said, noting Caesars is outperforming competitors in iGaming growth and increasing its sports betting handle year-on-year. In 2021, Caesars set a target of $500 million in annual digital EBITDA by 2026. That figure now appears within reach. Reeg declined to set a new long-term goal but suggested earnings could “substantially” exceed $500 million within a few years.

 

Spin-Off Speculation Intensifies

Reeg’s comments added fuel to speculation that Caesars is preparing to spin off its digital unit. While no decision has been finalized, he acknowledged the company is laying groundwork internally. “There is internal plumbing that needs to happen to be in position to separate,” Reeg said. “We would absolutely pursue a separation if we believed it would drive significant value to our shareholders.”

The idea of a spin-off is not new. Industry observers have raised the possibility for several quarters amid growing performance gaps. The approach could unlock shareholder value and follow a broader trend in the gaming sector, where operators are reevaluating digital strategies. Boyd Gaming recently sold its stake in FanDuel, while Wynn Resorts shut down its digital operations in 2023.

Caesars, by contrast, is quickly becoming an outlier—with activist investor Carl Icahn once again playing a quiet but potentially pivotal role. Icahn increased his stake in the company earlier this year and placed two allies on the board. Reeg previously confirmed that Icahn views the digital unit as undervalued, though no activist push has been made public.

While digital soared, Caesars’ traditional assets underperformed. The company described results in Las Vegas and regional markets as “soft,” a theme Reeg repeated several times. He cited year-on-year comparisons and seasonal patterns—particularly during summer—as contributing factors, and forecast continued softness into Q3. However, he suggested the worst may be over. “It’s as if your tire had a leak and you patched it,” Reeg said, noting that downward trends from the spring have since stabilized. Still, external risks remain. Analysts have pointed to international resistance to U.S. tariffs and growing economic pressure on consumers, which could affect travel and discretionary spending into late 2025.

 

We remain on track to deliver half-a-billion-plus of EBITDA in [2026]. The momentum in digital is extraordinary, both from a volume and an EBITDA perspective.

 

What Comes Next

With one eye on a shifting macroeconomic climate and the other on digital momentum, Caesars appears to be at a turning point. If the company hits its $500 million digital EBITDA goal in 2026 as expected, a spin-off may no longer be hypothetical. “We’ll take a look at what we think of value at that point,” Reeg said. “We would absolutely pursue a separation if we believed it would drive significant value to our shareholders.” For now, Caesars’ strategy remains wait-and-see. But if trends hold, the company’s digital arm could soon stand on its own.

The Hottest USA Casinos 2025

American Eagle
All-American Casino
SlotsandCasino Casino logo

SlotsandCasino Casino Review

USARated 99.98/100%

welcome bonus

300%/$1,500 + 100 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
10
Min deposit
25
US Players
Accepted
burger
American Favorite
Cafe Casino logo

Cafe Casino Review

USARated 98.12/100%

welcome bonus

250%/$1,500

40x wagering (Deposit Only)

Play
Number of games
150+
Payment methods
8
Game providers
3
Min deposit
20
US Players
Accepted
bonus (2)
Big Bonus
Extreme Casino logo

Extreme Casino Review

USARated 99.05/100%

welcome bonus

200%/$1000

1x wagering (Deposit & Bonus)

Play
Number of games
30+
Payment methods
7
Game providers
1
Min deposit
20
US Players
Accepted
Popularity Icon
Trending in the USA
DuckyLuck Casino logo

DuckyLuck Casino Review

USARated 99.97/100%

welcome bonus

500%/$2,500+ 150 Free Spins

30x wagering (Deposit & Bonus)

Play
Number of games
11+
Payment methods
6
Game providers
10
Min deposit
25
US Players
Accepted
trending topic
Hot in USA
Bovada Casino logo

Bovada Casino Review

USARated 99.12/100%

welcome bonus

100%/$1,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
4
Game providers
3
Min deposit
20
US Players
Accepted
growth
Growing in USA
Ignition Casino logo

Ignition Casino Review

USARated 98.11/100%

welcome bonus

300%/$3,000

25x wagering (Deposit Only)

Play
Number of games
10+
Payment methods
5
Game providers
4
Min deposit
20
US Players
Accepted
USA Icon
US Players Accepted
Avantgarde Casino logo

Avantgarde Casino Review

USARated 99.56/100%

welcome bonus

400% Weekly Promotion

35x wagering (Deposit & Bonus)

Play
Number of games
20+
Payment methods
14
Game providers
5
Min deposit
25
US Players
Accepted
USA Icon
US Players Accepted
Slots LV Casino logo

Slots LV Casino Review

USARated 98.13/100%

welcome bonus

200%/$3,000 + 30 Free Spins

35x wagering (Deposit & Bonus)

Play
Number of games
150+
Payment methods
4
Game providers
73
Min deposit
20
US Players
Accepted
Betonline Casino logo

Betonline Casino Review

USARated 99.18/100%

welcome bonus

100 Free Spins

Play
Number of games
70+
Payment methods
7
Game providers
8
Min deposit
25
US Players
Accepted
USA Icon
U.S. Choice Champion
JazzSports Casino logo

JazzSports Casino Review

USARated 97.96/100%

welcome bonus

200%/$2,000

40x wagering (Deposit & Bonus)

Play
Number of games
83+
Payment methods
7
Game providers
36
Min deposit
10
US Players
Accepted
10/ 10 (100%)

Related News

Sweet Bonanza Super Scatter

Pragmatic Play Expands Sweet Bonanza Series

MultiBlitz 7s

Kalamba Games Expands Feature-Driven Design with MultiBlitz 7s

Reel Warriors

Reel Warriors: A Slot Inspired by Arcade Action Is Live

hide-html