By Dan Bernstein
Assistant Editor
Caesars Entertainment (CZR) will consider splitting its online gaming business into a separate publicly traded company, CEO Tom Reeg told investors Tuesday.
Reeg said Caesars believes its digital properties—online sports betting and iGaming—have been undervalued because they are grouped with its much larger brick-and-mortar casino business.
“If the market dynamics remain the same, and the [digital] business continues to grow as it has, you should expect that we would look at any and all avenues in terms of how we can drive the most value,” Reeg said on a call reviewing Caesars’ Q4 and 2024 performance.
Caesars reported $1.16 billion in net revenue from its digital operations in 2024— approximately 10% of all net revenue. In 2023, its digital operations accounted for approximately 8% of all net revenue.
The digital arm’s adjusted earnings before interest, taxes, depreciation and amortization rose from $38 million to $117 million year-over-year.
The company’s stock price remained flat after-hours Tuesday night.
Like other sportsbook operators, Caesars took hits from 2024 NFL game results that benefitted the public. However, Caesars on Tuesday reported 60% growth in iGaming net revenue for 2024, which it said offset those short-term sports-related losses.
The company is part of the group trailing leaders FanDuel and DraftKings in sportsbook market share. FanDuel and DraftKings take almost 70% of the legal online sportsbook handle in the U.S.
Caesars trails BetMGM for the third place position and is now neck-and-neck withFanatics, according to data collected by Legal Sports Report.
Total sports betting wagers reached a new high in 2024. An American Gaming Association report shows U.S. sports betting revenue reaching an annual record of $13.71 billion in 2024—an increase from $11.04 billion in the year prior.
Caesars’ stock declined less than 1% on Tuesday trading to $34.87, an overall decline from a high of $119 in 2019.
—With assistance from Eben Novy-Williams.
Get our latest stories in the feed of your favorite networks
We want to hear from you! Send us a tip using our anonymous form.
Sign up for our daily newsletter
Sportico is a part of Penske Media Corporation. © 2025 Sportico Media, LLC. All Rights Reserved.