Caesars Entertainment isn’t jumping into prediction markets anytime soon. CEO Tom Reeg made that clear during the company’s Q3 earnings call on October 28.
“We will not put any of our licences at risk,” Reeg told investors. The operator sees prediction markets as sports gambling. Period.
But they’re interested. Eric Hession, president of Caesars Digital, said the company’s in the “planning stages” of potentially adding contract trading. They just won’t be first.
“We can’t be out on the lead on this one,” Hession explained. “There’s still uncertainty. I’m sure you’ve seen some of the letters from the regulatory agencies.”
Why Operators Are Treading Carefully
Multiple states have already drawn clear lines. Nevada, Pennsylvania, Michigan and Arizona all sent warnings to licensed operators. The message? Sporting event contracts look like wagering to regulators.
That puts operators in a tough spot. Prediction markets are getting attention. But state gaming commissions aren’t ready to approve them. And nobody wants to test those boundaries.
Hession’s comments suggest Caesars will watch competitors first. See how regulators respond. Then decide if there’s a safe path forward.
What Caesars Reported for Q3
The operator posted a $55m net loss for the quarter. That’s a big jump from the $9m loss in Q3 2024.
Net revenue barely moved. It grew just 0.1% to hit $2.9bn for the period.
Reeg blamed “lower city-wide visitation and poor table games hold” for the weak results. Las Vegas properties took the hit.
The prediction markets discussion came up during questions from analysts. It wasn’t the main focus of the call.
How This Affects Market Entry Plans
Caesars is taking a wait-and-see approach. They’re watching regulatory developments closely. And they’re watching other operators too.
If someone finds a path that doesn’t risk licenses, Caesars will follow. “You should expect we would be prepared to go down that path,” Reeg said.
But right now, that path doesn’t exist. State regulators have made their position clear. Sporting event prediction markets fall under gambling laws in most jurisdictions.
So Caesars sits tight. They’ve got the infrastructure ready if regulations change. They’ve done the planning work. They’re just not willing to test state gaming commissions.
The cautious stance makes sense given the Q3 results. The last thing Caesars needs is a licensing issue while dealing with weaker property performance.
