Company Reports

Caesars agreed to be acquired by Fertitta Entertainment for $31 per share in cash on May 28. The $17.6 billion transaction adds casinos under the Golden Nugget brand to Caesars' existing portfolio of roughly 50 casinos. Caesars' management team is expected to remain with the new company.

Caesars' second-quarter revenue increased 3%. Adjusted EBITDA declined 4%, weighed by higher general and administrative expense. The company did not host a conference call due to its agreement to be acquired by Fertitta Entertainment in May.

On May 28, Caesars agreed to be acquired by Fertitta Entertainment for $31 per share in cash. The $17.6 billion transaction adds casinos under the Golden Nugget brand to Caesars' existing portfolio of roughly 50 casinos. Caesars' management team is expected to remain with the new company.

On May 28, Caesars agreed to be acquired by Fertitta Entertainment for $31 per share in cash. The $17.6 billion transaction adds casinos under the Golden Nugget brand to Caesars' existing portfolio of roughly 50 casinos. Caesars' management team is expected to remain with the new company.

Despite higher gas prices due to the Iran war, Caesars' Vegas demand is benefiting from an improved convention calendar in 2026 and the start of multiyear artificial intelligence, onshoring, and infrastructure investment. We expect Caesars to hold a leading high-single-digit revenue share of the $79 billion domestic commercial casino gaming market for the foreseeable future, given its strong asset position in the region. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculations.

Caesars' first-quarter revenue increased 2.7%, with flat Las Vegas performance, 3% growth in regional assets, and an 11% increase in the digital business. Adjusted EBITDA margins decreased to 30.9% from 31.6%, partly due to one-time events.

Following our late February reporting of a potential acquisition of Caesars, The Wall Street Journal reported on March 11 that both Tilman Fertitta and Carl Icahn have made offers for the casino giant, according to people familiar with the matter. Shares rose 11% in after-hours trading.

Caesars' Vegas demand is hindered by softer leisure visitation that is affected by near-term economic uncertainty. But we expect Caesars to hold a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market for the foreseeable future, given its strong asset position in the region. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculations. These tie-ups have elevated Caesars' EV/adjusted EBITDA ratio, which we estimate at 5.9 times in 2026.

Caesars' shares closed 19% higher on Feb. 26 trading, after rumors surfaced that the casino resort giant could be sold. The company has had a long history of changing hands, with Apollo taking it private in 2008 and merging with Eldorado in 2020 shortly after emerging from bankruptcy in 2017.

Caesars' fourth-quarter revenue was up 4.4%, sparked by 39% growth in online gaming and a healthy 4% rise in regional assets, but weighed down by a 3% decrease in the Las Vegas region. Total adjusted EBITDA dropped 2.2%, with strong online contributions offsetting cost pressures in Las Vegas.

Debt levels have remained elevated for several casino operators. Caesars' and Penn's 2024 debt/adjusted EBITDA ratios were 6.7 times and 8.7 times, respectively, and interest coverage has been limited. Caesars and Penn reported EBIT/interest coverage ratios of 0.9 and 0.2, respectively, in 2024.

Caesars' Vegas demand is hindered by softer leisure visitation that is affected by near-term economic uncertainty. But we expect Caesars to hold a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market for the foreseeable future, given its strong asset position in the region. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculations. These tie-ups have elevated Caesars' EV/adjusted EBITDA ratio, which we estimate at 5.9 times in 2026.

Caesars' Vegas demand is hindered by softer leisure visitation that is affected by near-term economic uncertainty. But we expect Caesars to hold a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market for the foreseeable future, given its strong asset position in the region. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.

Caesars' third-quarter revenue was flat, as softer Vegas industry visitation drove sales down 10% in the region. Digital revenue increased just 3% due to transitory lower industry hold. Recent renovations helped regional sales grow 6%. EBITDA was down 12%.

Although travel and gaming demand could be negatively impacted by tariff policy in the near term, we estimate Caesars holds a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.

Caesars' sales increased 2.9%, led by stout digital growth of 24%, offset by a 4% drop in Vegas in the second quarter. EBITDA decreased 4% despite digital margins increasing to 23.3% from 14.5%, as Vegas margins fell 219 basis points to 44.5%.

Although travel and gaming demand could be negatively impacted by tariff policy in the near term, we estimate Caesars holds a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market. The Eldorado acquisition in 2020 roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.

Caesars' first-quarter revenue increased 2% driven by 19% growth in its digital segment, as new products resonate with users. EBITDA grew 4% to $884 million due to digital profitability expanding to $43 million from $5 million in the year-ago period, aided by lower promotional activity.

As a result of the acquisition of the legacy Caesars business by Eldorado and its leading omnichannel presence, we estimate Caesars holds a high-single-digit revenue share of the $72 billion domestic commercial casino gaming market. The acquisition roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.

Adjusting for customer-friendly sport outcomes seen across the industry, no-moat Caesars' fourth-quarter results were in line with our estimates, while pointing investors to improving Las Vegas and regional results in 2025. Despite continued solid execution, Caesars’ shares have fallen 15% during the past year. We largely attribute the performance to ongoing sour investor sentiment toward companies with leveraged balance sheets, amid enduring inflation that currently shows little signs of easing, which could keep Caesars’ shares undervalued in the near term.