Caesars was the latest major U.S. sportsbook operator to post a down 2024 Q4 for its online gaming division. That was offset by its growing iCasino platforms.
Caesars Digital, the company’s combined online sports betting and casino gaming division, on Tuesday reported adjusted EBITDA of $20 million in the fourth quarter of 2024, a decline of $29 million from the same period in the year prior. The decline comes as Caesars Digital reported net revenue increases of $288 million for the last quarter of 2024 against a loss of $8 million in Q4 2023.
The decline in Caesars Digital’s revenue can be attributed to “sports betting customer friendly outcomes in both October and December,” Caesars CEO Tom Reeg said in a statement announcing the company’s Q4 and full year 2024 results.
NFL favorites hurt another sportsbook
The struggle for Caesars comes as its major rivals including DraftKings and BetMGM also announced year-over-year sports betting revenue declines driven by an unusually strong showing by NFL favorites near the end of 2024. In its 2024 corporate filings, DraftKings projected NFL favorites won at a rate not seen in at least four decades during last year’s season.
Bettors have increasingly turned to parlay betting and tend to stack favorites into multi-leg bets. Sportsbooks tend to struggle when favored teams win.
The rough fourth quarter for Caesars’ sportsbook comes despite a strong year-over-year gain overall for its digital division.
Caesars Digital generated $1.2 billion in net revenues in 2024, a nearly 20% increase from $973 million generated in 2023. The company’s 2024 net income from its digital sportsbook and iCasino grew to $269 million, up from a loss of $91 million in 2023.
Online casino remains key
This growth was keyed by Caesars’ continued strength from online slots and table games.
The projected No. 4 national sportsbook operator by market share with an estimated 3% of the U.S. sports betting handle, Caesars has shown strength from its iCasino brands. Caesars Palace Online Casino has been among the nation’s most prominent iCasinos since its 2023 launch and the new Horseshoe brand has also shown strength since its go-live date last year.
In the earnings statement, Reeg said iGaming net revenues increased by more than 60% from Q4 2023 to Q4 2024.
Caesars Sportsbook is the latest US operator to report a strong Q4 2024 for the American betting public as AEBITDA for the period declined to $20 million against $29 million for Q4 2023
— Ryan Butler (@ButlerBets) February 25, 2025
Caesars online casino platforms are only live in the four states with competitive iGaming: New Jersey, Pennsylvania, Michigan, and West Virginia. Like other U.S. market share leaders including DraftKings, BetMGM, and FanDuel, Caesars has still seen revenue growth in 2024 despite no further competitive iGaming market launches since Michigan in 2021.
These companies could be hurt by increased taxes in the few legal iGaming jurisdictions. New Jersey, where online gaming has eclipsed brick-and-mortar gaming revenues, Gov. Phil Murphy is introducing legislation that would increase the gross gaming revenue taxes from 15% to 25%.
In-person gaming sees minor declines
In Nevada, as well as regional markets including New Jersey, Caesars has seen slight year-over-year declines in in-person gaming revenues despite the online gains.
The company’s Las Vegas property’s net revenues declined from about $1.9 billion in Q4 2023 to around $1.8 billion in Q4 2024. Regional markets, which include Caesars’ three New Jersey casinos, declined from about $1.36 billion in net revenues to $1.34 billion during those same periods.
