Caesars Entertainment CEO Tom Reeg has said he views prediction markets as gambling and reiterated that the multichannel operator won’t be expanding into offering event contracts anytime soon.
Speaking on Caesars’ Q4 2025 earnings call from Las Vegas last night, 17 February, he insisted the company won’t put its gaming licences in jeopardy over prediction markets.
He explained: “To me, this is clearly gambling. I think it will take a couple of years to wind its way through the courts, and you’ll have a patchwork of states where they’re not allowed [and] states where they’re allowed.
“In the current regulatory environment, you shouldn’t expect us to be participating in prediction markets.
“Some of our most valuable assets are our gaming licences in each of the states that we operate, and it’s been made clear to us in a number of states that if we pursue that avenue, some of our bricks-and-mortar licences could be at risk. You shouldn’t expect us to do that.”
Yet, if there was a way of offering prediction markets that wasn’t at odds with state regulators, Reeg said Caesars would explore that opportunity.
“If there becomes clarity that there is a legal path for prediction markets that satisfies the regulators on the bricks-and-mortar side, we will find a way to participate.
“But I would tell you, unequivocally, we view this as gambling […] we’ll let that play out in the courts.”
The comments on prediction markets coincided with Caesars’ online arm, Caesars Digital, announcing a new quarterly high of $85m (£63m) in adjusted EBITDA for the final three months of 2025.
That compared with $20m for the corresponding period in 2024. Adjusted EBITDA for full-year 2025 more than doubled to $236m.
Meanwhile, Q4 net revenue jumped 39% year on year (YoY) to $419m, while net revenue for the whole of the year rose 21% to $1.4bn.
Caesars, which operates a multi-brand strategy through Caesars Sportsbook, Caesars Palace Online Casino and Horseshoe Online Casino, reported further gains in igaming handle to $19bn in 2025.
That figure compares with $14.9bn in 2024 and $10.6bn in handle generated in 2023. Net igaming revenue jumped 28% YoY to $140m in Q4.
Meanwhile, sport betting hold came in at 8.1% across 2025, up from 7% in 2024. Along with the introduction of higher-margin products like same game parlays, hold has increased every year since 2021, when it was just 4.3%.
The long-term structural hold target is 10% – an aim Caesars Digital president Eric Hession said on the call he was “very confident” of achieving. “Hopefully we’ll do better than 100 basis points in 2026,” he added.
Average revenue per monthly player (ARPMUP) amounted to $207, a 12% increase YoY, while monthly unique players (MUPs) were up 19% to 584,823, the company revealed.
Lastly, Chad Beynon, head of US research and sell-side analyst at Macquarie Capital, asked the leadership team if the prospect of spinning off Caesars Digital remained on the table.
In response, Reeg seemed lukewarm to the idea given the hit to valuations of public companies in the industry of late.
“We will do what maximises value to shareholders over the long term,” he said. “I would say given what we have seen in valuations in the space over the past six to nine months, this doesn’t seem like a market that screams ‘You should come and offer some equity of any kind.’”
“So, unlikely you see something in the near term […] in the current market environment, it’s unlikely you should see us pursue a separate transaction.”
Caesars shares were up more than 4% to $18.95 yesterday and rose another 4% in after-hours trading following the earnings announcement.
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The post Caesars Entertainment CEO: We unequivocally view prediction markets as gambling first appeared on EGR Intel.
Tom Reeg reveals state gaming regulators have warned the operator’s bricks-and-mortar licences “could be at risk” if event contracts were to be offered
The post Caesars Entertainment CEO: We unequivocally view prediction markets as gambling first appeared on EGR Intel.