Caesars Entertainment is preparing to enter the sports prediction market if regulators establish a clear legal framework, signaling the company’s intent to adapt as new wagering formats emerge. Executives discussed the potential move during a recent earnings call with Wall Street analysts, coinciding with Caesars’ release of its third-quarter 2025 financial results.
Watching the Market, Protecting Licenses
Responding to Truist Securities analyst Barry Jonas, Caesars executives confirmed that the company is monitoring developments in sports prediction platforms, such as Kalshi, which sell event-based contracts under the oversight of the U.S. Commodity Futures Trading Commission (CFTC). These markets have become a competitive threat to online sportsbooks, sparking lawsuits from states and tribal entities that view them as unregulated gambling operations diverting revenue.
“We’re going to monitor it, so we’re not left behind if there’s regulatory clarity and that we have a good plan in place should that outcome happen,” said Eric Hession, president of Caesars Sports and Online.
Hession added that regulators in Nevada and other states have advised licensed operators to stay out of prediction markets until legal clarity is established.
Caesars CEO Tom Reeg reinforced that stance, saying the company will not take unnecessary risks. “We will not put any of our licenses at risk,” he said. “We believe what’s happening in prediction markets is sports gambling. If a path develops where we can participate in a way that doesn’t put licenses at risk, we are prepared to go down that path. We’re watching it the same as you are.”
Despite the growing attention prediction markets are receiving, Hession said Caesars has not seen any significant financial impact. “I suspect most of the volume is coming from states that don’t have legalized sports betting and legalized states that we might not have been able to access anyway, like 18- to 21-year-olds,” he said.
Digital Segment Maintains Growth Momentum
Jonas’s investor note emphasized that Caesars’ digital performance remains strong despite temporary setbacks. The company’s Caesars Digital Adjusted EBITDA reached $28 million in the third quarter, compared with $52 million a year earlier, due mainly to reduced licensing revenue following the sale of the World Series of Poker, a weak NFL hold in September, and higher fees and gaming taxes linked to increased igaming volume.
“Despite the headwinds, growth was seen across both igaming and online sports betting,” Jonas said. Online betting handle grew 6% year-over-year, and igaming revenue jumped 29%. Caesars also plans to unveil its revamped Horseshoe-branded online casino in the fourth quarter.
Q3 Financial Results and Outlook
Caesars reported GAAP net revenues of $2.9 billion for the quarter ending September 30, 2025, unchanged from last year. The company posted a GAAP net loss of $55 million, compared with a $9 million loss in the prior-year quarter. Same-store Adjusted EBITDA declined to $884 million from $996 million in 2024.
“Our Las Vegas segment Adjusted EBITDA declined during the quarter due to lower city-wide visitationand poor table games hold. Volumes in our Caesars Digital segment were strong, driven by continued product improvements while Adjusted EBITDA was negatively impacted by lower-than-expected sports hold during September,” Reeg said.
Source:
“Caesars making plans to enter sports prediction market”, cdcgaming.com. Oct 29, 2025
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