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It has been about a month since the last earnings report for Caesars Entertainment (CZR - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Caesars Entertainment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Caesars Q2 Earnings Miss Estimates on Higher Costs, Revenues BeatCaesars Entertainment reported second-quarter 2026 results, with the bottom line missing the Zacks Consensus Estimate and revenues beating the same. The top line increased year over year, while the bottom line improved from the prior-year quarter’s figure.

CZR’s Q2 Earnings & Revenue DiscussionFor the quarter, the company reported a loss per share of 30 cents, narrower than the year-ago quarter’s loss of 39 cents but below the Zacks Consensus Estimate of earnings of 4 cents. This translated to a negative earnings surprise of 850%.

Net revenues of $2.99 billion rose 3% year over year and beat the $2.96 billion consensus mark by 1.1%. Growth was driven by strength in the Regional segment and higher casino revenues, with Regional slot handle rising 6.7% year over year. However, weakness in Las Vegas and higher operating costs weighed on profitability, as consolidated adjusted EBITDA declined 3.7% to $920 million.

Q2 Segmental Performance of CaesarsLas Vegas: Net revenues totaled $1.02 billion, down 3.5% year over year. Adjusted EBITDA declined 12.6% to $410 million. Lower city-wide leisure visitation, reduced non-gaming revenues, lower hotel occupancy and weaker table games volume and hold affected results. Slot handle increased 5.4% to $2.67 billion.

Regional: Net revenues increased 9.4% to $1.57 billion, while adjusted EBITDA advanced 11.2% to $488 million. Results benefited from the consolidation of Caesars Windsor, increased visitation in northern Nevada related to a national tournament and positive results from capital investments in Lake Tahoe and New Orleans.

Caesars Digital: Net revenues rose 2.3% to $351 million. Adjusted EBITDA decreased 15% to $68 million. Sports betting handle increased 2.9% to $2.57 billion, while iGaming handle rose 2.7% to $4.83 billion. Higher gaming tax rates and lower sports betting hold weighed on profitability.

Managed and Branded: Net revenues declined 23% to $57 million, while adjusted EBITDA fell 5.9% to $16 million. Caesars Windsor's management fees and reimbursable revenues shifted from this segment to Regional following the March 3 transition. Corporate and Other recorded negative revenues of $2 million and an adjusted EBITDA loss of $62 million.

CZR's Expense and Profitability TrendsTotal operating expenses increased 4.2% year over year to $2.48 billion. Casino expenses rose 7.7% to $955 million, while general and administrative expenses increased 9.2% to $521 million. Higher gaming taxes, Caesars Windsor consolidation and higher property taxes contributed to the increase.

Operating income declined to $513 million from $526 million. Interest expense, net, decreased to $573 million from $579 million, primarily owing to lower outstanding debt and lower variable-rate interest expense, partly offset by increased lease-related interest expense.

CZR's Liquidity and Fertitta Deal Remain in FocusAs of June 30, 2026, cash and cash equivalents were $965 million, up from $887 million at 2025-end. Total outstanding indebtedness declined to $11.81 billion from $11.91 billion, while net debt fell to $10.84 billion from $11.02 billion. Total liquidity was $2.93 billion.

For the first six months of 2026, operating cash inflow totaled $675 million versus $680 million a year earlier. Capital expenditures fell to $335 million from $453 million, with another $310-$390 million expected for the remainder of 2026.

Caesars also remains subject to its pending all-cash acquisition by Fertitta Entertainment. Shareholders are set to receive $31 per share, and the transaction was valued at approximately $17.6 billion, including assumed debt. The deal remains subject to shareholder and regulatory approvals, and Caesars intends to delist its shares from Nasdaq after completion.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -85.46% due to these changes.

VGM ScoresAt this time, Caesars Entertainment has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Caesars Entertainment has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Sometimes a stock looks cheap for a reason. Most of the time, the reason is macro trends affecting the industry the stock is in. No matter how nice it looks on paper, no matter how much value you perceive…it could get worse. Beware of those value traps. One way to avoid them is by leaning on the Zack Rank. Stocks in the bad graces of our Zacks Rank often have earnings estimates moving in the wrong direction.

Today’s Bear of the Day is one of those names. It’s Zacks Rank #5 (Strong Sell) Caesars Entertainment ((CZR - Free Report) ). Caesars remains one of the biggest names in gaming, operating iconic Las Vegas resorts alongside a massive portfolio of regional casinos and a growing digital sportsbook business. But despite its recognizable brands, the investment story continues to be weighed down by one overwhelming issue, debt.

The company carries approximately $11.9 billion in debt, and that's before factoring in billions more in long-term lease obligations tied to its casino real estate. Those financial commitments translate into roughly $2.3 billion in annual interest expense, making it difficult for Caesars to consistently generate meaningful profits even when business conditions are favorable.

The result has been a string of disappointing bottom-line results. Caesars posted another loss in the first quarter of 2026, missing Wall Street earnings expectations as higher interest costs continued to eat away at operating performance. While revenue has remained relatively stable, growth has been sluggish, and adjusted EBITDA has largely stalled despite continued consumer spending.

That's a problem because gaming is an inherently cyclical business. Las Vegas visitation fluctuates with the economy, regional casinos depend heavily on discretionary consumer spending, and digital sports betting remains an intensely competitive market with high customer acquisition costs and evolving regulatory hurdles. If the economy slows, consumers typically cut back on vacations, casino visits, and entertainment spending long before reducing essential purchases.

The stock has missed earnings expectations for six consecutive quarters, helping to prompt analysts all over Wall Street to cut their estimates. The Leisure and Recreational Services industry ranks in the Bottom 16% of our Zacks Industry Rank. There are a few stocks within this industry that are in the good graces of our Rank. These include Zacks Rank #1 (Strong Buy) The Marcus ((MCS - Free Report) ) and Zacks Rank #2 (Buy) Pursuit Attractions and Hospitality ((PRSU - Free Report) ).

Expanded partnership builds on sports wagering collaboration and positions Caesars and its tribal partners for future online casino launch

AUGUSTA, Maine--(BUSINESS WIRE)--Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars”) today announced the expansion of its existing partnership with three Wabanaki Nations: the Houlton Band of Maliseet Indians, the Mi’kmaq Nation and the Penobscot Nation, to include online casino gaming in Maine. The long-term agreement positions Caesars and its tribal partners for a potential iGaming launch in the state in 2026, pending regulatory approvals.

Under the expanded agreement, Caesars plans to bring a portfolio of three online casino brands to Maine: Caesars Palace Online Casino, Caesars Sportsbook & Casino and Horseshoe Online Casino. Each brand offers a distinct digital experience tailored to different player interests.

This expanded partnership builds on the successful launch of Caesars Sportsbook in Maine in 2023 and reflects the shared commitment between Caesars and the three Wabanaki Nations to deliver a best-in-class, responsible digital gaming experience while supporting tribal communities across the state. Caesars will invest in local workforce development by employing, training and developing members of each nation and will provide meaningful financial support to help fund tribal community programs and initiatives.

“As we look ahead to the launch of online casino gaming in Maine, we’re proud to expand our partnership with the Houlton Band of Maliseet Indians, the Mi’kmaq Nation and the Penobscot Nation,” said Eric Hession, President of Caesars Digital. “Together, we’ve built a strong and responsible sports wagering experience, and this next phase reinforces our commitment to our tribal partners and to delivering a differentiated, localized digital gaming experience for Mainers. We’re grateful to Gov. Janet Mills, the Maine Legislature and the Maine Gambling Control Unit for their continued leadership and thoughtful approach to gaming in the state.”

“Penobscot Nation is proud to continue and expand our partnership with Caesars as we look toward the future of online gaming in Maine,” said Chief Kirk Francis of the Penobscot Nation. “Our experience working together on sports wagering has demonstrated the value of aligning with a partner that respects our sovereignty, understands our communities and is committed to long-term success for the Wabanaki Nations. This next phase represents a meaningful opportunity to build on that foundation.”

“The Mi’kmaq Nation values the strong relationship we have built with Caesars and our fellow Wabanaki partners,” said Chief Sheila McCormack of the Mi’kmaq Nation. “Expanding into online casino gaming allows us to continue creating economic opportunities for our people while ensuring that any future platform is developed in a responsible, well-regulated manner that benefits the tribes and the state.”

“The Houlton Band of Maliseet Indians is pleased to deepen our partnership with Caesars as we prepare for the next chapter of gaming in Maine,” said Chief Clarissa Sabattis of the Houlton Band of Maliseet Indians. “This long-term agreement reflects our shared commitment to strengthening Maine’s rural communities and is vital to the Houlton Band’s self-determination and economic self-sufficiency. Internet gaming revenues will provide our tribal government with a more secure, long-term source of revenue that will help us provide essential services and make critical investments in community infrastructure.”

Caesars’ online casino platforms will bring a premier digital entertainment experience to Maine, combining an expansive portfolio of slot titles, table games and live dealer offerings, subject to regulatory approvals, with seamless technology and user-friendly design. Each brand is tailored to meet different player preferences while upholding Caesars’ high standards for quality and Responsible Gaming. The platforms in Maine will integrate with Caesars Sportsbook and feature a single login and wallet experience, powered by Caesars’ Universal Digital Wallet, enabling seamless play across Caesars’ digital offerings.

Integrated with Caesars Rewards®, the company’s industry-leading loyalty program, eligible play will unlock Reward Credits that can be redeemed for unforgettable experiences across Caesars’ destinations nationwide, including stays, dining, entertainment and more.

Caesars Entertainment is an industry leader in Responsible Gaming, known for pioneering Responsible Gaming awareness and education. In 1989, Caesars became the first commercial casino company to address problem gambling by launching the industry’s first Responsible Gaming program, Project 21. Today, the Company’s commitment to ensuring all players are aware of Responsible Gaming resources remains steadfast and spans all of Caesars’ digital platforms and world-class destinations in which it operates. Caesars Entertainment proudly enforces an enhanced 21+ gaming policy that prevents individuals under the age of 21 from using Caesars Rewards and restricts access to its gaming products for individuals under the age of 21.

In March 2024, Caesars Sportsbook received the prestigious RG Check accreditation from the Responsible Gambling Council in Ontario, Canada, which recognizes companies that achieve the highest standards for their Responsible Gaming practices. Just a few months later, the Company was awarded the National Council on Problem Gambling’s award for Corporate Social Responsibility. For more information about Caesars Entertainment's Responsible Gaming program, please visit https://www.caesars.com/corporate.

About Caesars Entertainment, Inc.

Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment Company in the U.S. and one of the world’s most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.’s resorts operate primarily under the Caesars®, Harrah’s®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the Company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.

Responsible Gaming in Maine

Must be 21 or older to gamble. Know When To Stop Before You Start®. Gambling problem? Call 1-800-GAMBLER.

About the 3-Wabanaki Nation Coalition

The Penobscot Nation is a sovereign Indian Nation, whose headquarters are located on Indian Island, Maine. The Tribe has been located here since time immemorial and continues to practice its ancient traditions, including hunting and fishing. Penobscot owns over 150,000 acres of land plus over 220 islands in the Penobscot River. The Tribe operates over 110 programs including law enforcement, health care, natural resource and wildlife management, housing, social services, youth programs and its own school system. The Penobscot Nation is very active in sustainable management of its natural resources, lands and waters, including operating a sustained yield foresting program. Additionally, the Tribe participated in the Penobscot River restoration project removing several dams and opening up over 1,200 miles of habitat for over a dozen sea run fish species.

The Houlton Band of Maliseet Indians is a federally recognized Indian tribe located in Aroostook County, Maine. We are a riverine people who have used our ancestral territory since time immemorial for fishing, hunting, and gathering fiddleheads for food, ash for basket weaving, and birch for canoes. We call our Band “Metahksoniqewiyik” or People of the Meduxnekeag River, a tributary of the St. John or “Wolastoq” that flows through the Town of Houlton. Together, the Maliseet people of the United States and Canada are the “Wolastoqewiyik” or People of the Beautiful, Flowing River. The Maliseets and Mi’kmaqs were signatory to the first treaty entered by the United States—the Treaty of Watertown on July 19, 1776, just 15 days after the Declaration of Independence—sending 600 of our warriors to fight alongside General Washington against Great Britain. Today, our tribal government provides essential services to our community including a medical clinic, courts, low-income housing, child welfare and elder care programs, behavioral health and substance use services, an addiction recovery home, Boys and Girls Club of Maliseet, food distribution, domestic violence and sexual assault services, Head Start and adult education, vocational rehabilitation, emergency management, and natural resources management and protection. We are a statewide leader in Atlantic salmon restoration and work closely with the Towns of Houlton and Littleton and other local governments on road, bridge, water, and other critical infrastructure projects that support jobs for the people of Aroostook County. The Houlton Band of Maliseet Indians invites you to visit our beautiful homeland at Wilderness Pines Campground in Monticello. To learn more about our tribal government and businesses, please visit https://maliseets.net/ and https://www.wildernesspinescampground.com/.

The Mi’kmaq Nation is a federally recognized tribe with 1,633 members in Aroostook County, Maine. The central village and governmental seat is known as the "Bon Aire Village" and is located in the town of Presque Isle. The southern "Littleton Village," is located approximately 45 miles south of Bon Aire, and the northern "Connor Village," is located 25 miles north of Bon Aire. After receiving federal recognition in 1991, the Tribe’s name was officially changed from the Aroostook Band of Micmacs to Mi’kmaq Nation. The Mi'kmaq Nation has created numerous programs to provide its members with support services, housing, infrastructure and a medical clinic. To further benefit their community, Mi’kmaq tribal leaders continuously seek to create a more vibrant economy sensitive to cultural traditions and values. The Mi'kmaq Nation views Maine's Internet Gaming Law as an important opportunity to increase our capacity to deliver essential governmental services to our citizens and to advance the self-sufficiency and self-determination of our Nation.

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