Caesars Entertainment has reported a robust start to the 2026 fiscal year, with group revenue rising 2.7% to $2.87 billion during Q1.
The primary engine of this growth in Q1 was the Caesars Entertainment’s digital division, which achieved a record-breaking $374 million in quarterly revenue, an 11.6% increase year-over-year.
The Caesars Rewards Advantage
During the post-earnings call, CEO Tom Reeg emphasized that the company’s massive land-based database is its most potent weapon in a market defined by soaring customer acquisition costs. By converting retail casino visitors into digital users through the Caesars Rewards ecosystem, the operator avoids the expensive “acquisition pools” currently being contested by prediction markets and pure-play digital brands.
Digital profitability saw a significant jump, with EBITDA reaching $69 million. This performance was fueled by an 18% surge in iCasino revenue, driven by higher player volumes and the successful deployment of the “universal wallet.” Average revenue per user (ARPU) rose by 15%, while the sportsbook hold reached a healthy 8.3%, thanks to a higher mix of multi-leg parlays.
Regional Resilience and Future Targets
While the Las Vegas segment remained flat, the Regional business contributed $1.43 billion (up 3.0%). Management noted that these results were achieved despite the lack of a Super Bowl in New Orleans, which had boosted the previous year’s figures. Caesars also succeeded in narrowing its group net loss to $98 million, compared to $115 million in Q1 2025.
Tom Reeg remains firm on the long-term digital trajectory:
“Digital looks very strong. Our Caesars Rewards database accounts for the majority of our customer acquisition. Prediction markets are driving up acquisition costs, but we’re not in those same pools. Our long-term plan to reach $500 million or more in EBITDA is still in place.”
