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Caesars Entertainment is taking a careful approach to the fast-evolving prediction markets trend, with CEO Tom Reeg stressing that the company has no intention of jeopardizing its gaming licenses.
Good to Know
During the company’s Q3 2025 earnings call on October 28, Reeg addressed growing investor curiosity about Caesars’ potential involvement in event-based contract trading. He made it clear that any participation would depend on regulatory clarity.
“We will not put any of our licenses at risk,” Reeg said. “We believe what’s happening in prediction markets is sports gambling. If there’s a path that develops where we can participate in a way that doesn’t put licenses at risk, you should expect we would be prepared to go down that path, but we’re watching it the same as you are.”
Prediction markets, which allow users to trade contracts tied to the outcome of real-world events, have drawn attention from both regulators and traditional gaming operators. Platforms like Kalshi and Polymarket have been the subject of ongoing discussions at both state and federal levels, and the line between contract trading and sports betting remains a major point of debate.
Eric Hession, President of Caesars Digital, confirmed that the company is in early planning to potentially integrate prediction market products. However, he emphasized that Caesars would prefer to observe how others handle regulatory challenges before taking action.
“As we’ve said before, we can’t be out on the lead on this one,” Hession told analysts. “There’s still uncertainty. I’m sure you’ve seen some of the letters from the regulatory agencies.”
Several U.S. regulators—including those in Nevada, Pennsylvania, Michigan, and Arizona—have issued warnings that trading contracts tied to sports outcomes could fall under gambling definitions and therefore require a wagering license. These letters have made major operators cautious about entering the space too quickly.
Financially, Caesars reported a net loss of $55 million in the third quarter of 2025, compared to a $9 million loss in the same period last year. Revenue for the quarter was flat at $2.9 billion, up just 0.1%. Reeg attributed the results to “lower city-wide visitation and poor table games hold.”
Prediction markets let users trade contracts based on real-world events, such as sports results or political outcomes. Their legal classification varies across jurisdictions.
Caesars operates under strict state licenses and wants to avoid any regulatory conflict that could affect its gambling credentials.
Regulators in Nevada, Pennsylvania, Michigan, and Arizona have warned that event-related contract trading could be treated as gambling under existing laws.
Not immediately. Caesars executives said they are monitoring the space and planning internally but will not launch ahead of clear regulatory guidance.