CEO of Caesars Affirms Potential Monetization of Digital Assets Remains Under Consideration
Posted on: April 29, 2025, 09:57h.
Last updated on: April 29, 2025, 09:57h.
Todd Shriber @etfgodfather Financial Gaming Business Mergers and Acquisitions Caesars boss says digital unit performing well, but it's not reflected in share price* No commitment to a spin-off, but options for monetization remain on the table
Some good news for Caesars Entertainment (NASDAQ: CZR) as their online gaming unit, Caesars Digital, stirred some excitement with a whopping 19% surge in Q1 revenue. With sales of $335 million and an adjusted EBITDA of $48 million, the online gaming arm looks promising—yet the stock price hasn't quite caught up.
Enter Truist Securities analyst Barry Jonas, who wondered aloud about the possibility of a spin-off for Caesars Digital. Caesars' CEO, Tom Reeg, wasn't ready to commit, but made it clear they were keeping all their options open.
"Our job is to deliver the numbers we've laid out, and we're well on that path. The goals are in our windshield now as we approach them," said Reeg. "We'll see where we're at when we get there in terms of creating value for shareholders."
No Love for Caesars from the Shareholders
Reeg's right. Caesars' shareholders don't seem to appreciate the company's digital division as the stock price has dipped 35.93% over the past month, reaching pandemic-era lows. The digital division, however, continues to perform well.
"We've hit our goals, and we're moving through them, and we're just not seeing it in the equity," said the CEO during the conference call. "Again, I'll tell you, we will look at any and all options to create value for shareholders."
Gaming and Gambling Numbers That Impress
Despite some fantastic results like a 9% increase in revenue for Caesars Sportsbook on the Super Bowl and NCAA Tournaments, digital revenue is still struggling to gain traction with shareholders. Still, Caesars Digital is making progress. The Horseshoe app, for one, is already making 7% of iGaming revenue, and Live Dealer Studios in Pennsylvania and New Jersey are also receiving praise from management.
"In iGaming, CZR posted another record quarter with revenue growth of 53% driven by 28% handle growth, higher hold, and lower reinvestment," added Jonas.
While a spin-off isn't on the table just yet, the future of Caesars Digital remains a topic of fascination for analysts and shareholders alike. If the digital unit continues to shine like it has, it may only be a matter of time before it spins off and finds a more appreciative following.
- Rumors swirl about a potential spin-off for Caesars Digital, an underappreciated financial gem within Caesars Entertainment (NASDAQ: CZR), following a significant 19% surge in Q1 revenue for the online gaming unit.
- The online sports betting and iGaming division, Caesars Digital, reported impressive numbers such as a 9% increase in Caesars Sportsbook revenue during the Super Bowl and NCAA Tournaments, yet the stock price struggles to gain traction.
- The CEO of Caesars Entertainment, Tom Reeg, hints at exploring various monetization options to create value for shareholders, while acknowledging the digital division's strong performance that outshines the company's overall stock price.
- Despite the coronavirus pandemic's impact, handling well-regarded applications like the Horseshoe app and Live Dealer Studios in Pennsylvania and New Jersey, Caesars Digital continues to drive growth in iGaming.
- Todd Shriber, known as the etfgodfather, focuses on Financial Gaming Business Mergers and Acquisitions, pointing out Truist Securities analyst Barry Jonas' curiosity about the prospects of separating Caesars Digital from the main Caesars Entertainment business.
- In the NASDAQ trading scene of 2025, Caesars Entertainment shareholders remain unmoved by the digital division's success, leaving room for speculation on the untapped potential and possible future growth of Caesars Digital as a standalone entity.