Caesars Entertainment CEO Thomas Reeg has said a spin-off of the company’s digital arm as a standalone listed entity could come post-H1 2026.
Speaking on the operator’s Q2 earnings call, Reeg shed further light on plans to separate Caesars Digital from the wider business to reflect what bosses deem to be its true value.
Reeg has noted on consecutive earnings calls that the possibility to maximise shareholder value via a spin-off was on the table, and provided further details on the timeline yesterday, 29 July.
Bosses are targeting EBITDA for the arm to hit $500m. Adjusted EBTIDA for H1 2025 for Caesars Digital hit $123m, up from $45m in H1 2023.
Revenue for the division in the first six months of the year was up 21.5% year on year from $558m to $678m.
Online casino was the main driver with $655m in revenue, sports betting and other verticals making up the remainder.
Reeg said: “Job one is to deliver on the numbers we have laid out. We’re well on our way to that. There is internal plumbing that needs to happen to be in a position to separate.
“When we hit our numbers for our initial targets, we’ll take a look at what we think of value at that point; whether we’re getting it reflected.
“But we would absolutely pursue a separation if we believed that it would drive significant value to shareholders. We think we’ll be in a position where we’re at our targets at some point in the first half of 2026. So that’s what you should be thinking about in terms of timeframe.
“I think our stock is looking particularly attractive. I’d like to own more of it ahead of Digital’s value being recognised, whether that’s within Caesars’ current equity or whether it’s part of the separation transaction.”
Reeg was also asked if Caesars would consider pushing its digital operations outside of the US. The firm currently runs retail and/or online sports betting in 33 North American jurisdictions.
MGM Resorts International has expanded outside of the US, pushing the BetMGM brand across the globe, but Reeg said the US opportunity was the primary focus for Caesars.
He added: “We’re always open to what will drive shareholder value. If we’re looking at where we spend our time and effort, there is not an international market that is anywhere close to the opportunity that is here domestically.
“While I wouldn’t shut the door, it would surprise me if we saw something internationally that looked anywhere close to the opportunity that we are pursuing here.”
The post Caesars Digital spin-off could come post-H1 2026, says CEO first appeared on EGR Intel.
Thomas Reeg notes that when interactive arm achieves its targets, wheels will be set in motion to explore a separate listing for the digital division
The post Caesars Digital spin-off could come post-H1 2026, says CEO first appeared on EGR Intel.