The Interest Bill Is Still Larger Than Everything the Casinos Earn

“Consolidated net revenues increased for the three and nine months ended September 30, 2026, as compared to the same prior year periods, mainly due to higher casino revenues.”

Across nine months, operating income was $1,470 million and net interest expense was $1,712 million. The gap is $242 million, a 15M calculation, and the nine-month net loss is $231 million against $202 million.

The Tax Note Says the Quiet Part

“The income tax benefit for the three and nine months ended September 30, 2026 differed from the expected income tax benefit based on the federal tax rate of 21% primarily due to an increase in federal and state valuation allowances against the deferred tax assets for excess business interest expense and nondeductible expenses.”

“Excess business interest expense” is interest a company cannot deduct because there is too much of it relative to earnings. The allowance against those deferred assets went up.

The debt itself keeps a steady toll on the same line: “Net amortization of the debt issuance costs and the discount and/or premium associated with the Company’s indebtedness totaled $7 million for both the three months ended September 30, 2026 and 2025 and $20 million for both the nine months ended September 30, 2026 and 2025 and is included in Interest expense, net in the Statements of Operations.”

Digital Grew, Las Vegas Did Not

Caesars Digital turned $326 million of net revenues into $44 million of Adjusted EBITDA against $28 million, a 57.1% increase on a 15M calculation.

Las Vegas went the other way, to $343 million from $379 million, down 9.5%. Regional rose to $524 million from $506 million.

What that measure contains is defined in the filing: “Adjusted EBITDA is defined as revenues less certain operating expenses and is comprised of net income (loss) before (i) interest income and interest expense, net of interest capitalized, (ii) income tax (benefit) provision, (iii) depreciation and amortization, and (iv) certain items that we do not consider indicative of our ongoing operating performance.”

The company continues: “This increase in casino revenues was primarily driven by growth in iGaming handle coupled with improved sports betting hold in our Caesars Digital segment. In addition, incremental revenues attributable to the consolidation of Caesars Windsor beginning March 3, 2026, increased visitation in northern Nevada due to a national tournament throughout the second quarter of 2026, and positive results from our capital investments in Lake Tahoe and New Orleans contributed to the increase.”

The Hold Ranges It Publishes

The filing sets out what it expects to keep: “Sports betting hold is typically in the range of 7% to 11% and iGaming hold typically ranges from 3% to 5%.”

The digital footprint behind those numbers is set out in the same terms: “We operate and conduct retail and online sports wagering across 35 jurisdictions in North America, 28 of which offer online sports betting. Additionally, we operate iGaming in six jurisdictions in North America.”

The segment growing fastest is also about a fifth of the quarterly interest bill.