Inside Gaming: What should Caesars do to unlock value as it falls off S&P 500?
Atlantic City casinos enjoyed their best summer in more than a decade, according to state gaming regulators.
In-person gambling revenue reported by Atlantic City’s nine casinos exceeded $855 million for the months of June, July and August, an increase of more than 5.5 percent over the same three months in 2024. Year-to-date, the city’s casinos have won over $1.97 billion from in-person gamblers, nearly 3 percent ahead of last year’s pace, according to data from the New Jersey Division of Gaming Enforcement.
When online casino and sports wagering are added, New Jersey’s gaming industry has generated more than $4.56 billion of revenue in 2025, a nearly 10 percent year-over-year increase.
“Atlantic City finished the summer strongly in August,” said N.J. Casino Control Commission Chairman James Plousis in a statement. “Competitive gaming options and first-class in-person experiences provided a memorable summer in Atlantic City, and it is well-positioned for continued momentum in the fall season.”
Atlantic City’s positive momentum is encouraging for casino operators in the East Coast gambling mecca, who will soon face increased competition from a trio of New York City-area casinos. The increase in in-person gaming revenue is a bonus since online casinos had been matching or exceeding retail production in 2025.
“August 2025’s monthly gross gaming revenues came as a breath of fresh air for Atlantic City’s casino operators,” said Jane Bokunewicz, faculty director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton University (N.J.). “Early this year, concern was raised when internet gaming revenues exceeded brick-and-mortar. The peak summer season in Atlantic City seems to have reversed that trend.”
Wall Street analysts say be patient with Caesars Entertainment stock
Caesars Entertainment started the week on a sour note, falling out of the S&P 500 at Monday’s open. The stock is trading near a five-year low, with short interest climbing to its highest level in as many years.
That has investors wondering if management should take big swings to unlock value. A new J.P. Morgan note lays out three options: spin off Caesars’ digital business, sell off its real estate and lease it back, or simply stay the course.
The first two moves, J.P. Morgan’s analysts said, might provide a short-term boost but come with long-term costs. A digital spin would strip Caesars of its fastest-growing division, while a full sale-leaseback would pile on rent obligations that could limit upside.
Instead, J.P. Morgan argues Caesars should keep it simple and use the $3 billion in cash the company is expected to generate through 2027 to pay down debt and buy back shares.
“(Caesars Entertainment) should stay the course,” the analysts wrote. “Financial engineering is not a substitute for execution, and we do not see any obvious, overly compelling strategic option that would be in the best long-term interest of the company and shareholders.”
MGM Osaka
The price tag for MGM Resorts International’s MGM Osaka project in Japan has ballooned to more than $10.24 billion.
Osaka’s prefectural government last week said MGM, partnering with Japan’s Orix Corp., now has an equity commitment of more than $2.9 billion and now controls a 44 percent stake in the project up from the previous 41 percent.
The government said the increase was due to rising costs of building materials and labor.
Ground was broken on the MGM Osaka project in April with completion expected in summer 2030 with a fall 2030 opening.