Caesars Posts Record Q3 Earnings Driven by Improved Sportsbook Performance

Caesars Entertainment has reported record third-quarter adjusted EBITDA earnings of $1 billion. The group revenue grew by 6.4% to $2.88 billion, thanks to earnings gains across all three of its core business segments. Caesar's Digital division, which houses Caeres Sportsbook and online casino, saw its Q3 revenue soar to 121% YoY rise from the $96 million earned in Q2 2021. The legal sports betting unit reported $63 million in net losses, a 66% improvement over the previous year's $190 million.

Parlays boosted hold rates and profits at Caesars Entertainment. Caeresars made improvements on the technology to make it easier for customers to place parlay bets.

Caesars Sportsbook's losses have reached an "inflection point" Reeg believes that the losses recorded by the digital division are reversing. The company adopted a more conservative approach this year regarding promotional spending in most big states. Caesar's market share for sports betting in New York fell by 21% as of September. Caeres wound up spending more than $250 million on promotional activities this season.

Spin-off and asset sale were discussed during the conference call. Caesars Sportsbook will remain 100% owned by the parent company. Caesar's Sportsbooks is tied to the existing business and Caeresars Rewards database.