Caesars Entertainment reported a 2.5% year-over-year increase in total net revenue to $2.94 billion for Q3 2026, but net loss widened to $123 million as Adjusted EBITDA fell 2.1% to $865 million.

Revenue growth came from Regional casinos and Caesars Digital, even as Las Vegas underperformed with revenue down 2.3% and the Strip’s EBITDA margin narrowing to 36.9%.

Caesars Digital delivered an improved Adjusted EBITDA of $44 million, up from $28 million a year earlier, offsetting some weakness elsewhere.

Forward-looking statements warn of risks including the pending merger, economic conditions, cybersecurity, leverage reduction, competition and other factors, with no obligation to update.

Caesars continues pursuing its $17.6 billion acquisition by Fertitta Entertainment, announced in May, aiming to close by mid-next year, though the timeline has been extended by at least 30 days for antitrust review.

The merger is expected to close by mid-2027, subject to approvals and potential divestitures, with Fertitta’s CEO noting antitrust scrutiny from the FTC.

The deal is an all-cash agreement at $31.00 per share, positioning Caesars to become privately held post-merger.

Shares traded around $28.84 and remained flat after results, signaling muted investor reaction.

The market backdrop included a buoyant AI-driven session and a busy earnings calendar, with the Federal Reserve anticipated to keep rates steady amid persistent inflation signals.

CEO Tom Reeg criticized Kalshi’s prediction market listings during G2E, saying there is no prohibition on bets under their rules.

Caesars’ stock rose slightly in after-hours trading on merger-arbitrage dynamics tied to the pending acquisition.

Investors appear to view Caesars as a merger-arbitrage play, with a $31 offer creating valuation boundaries that limit near-term upside and downside.