Caesars Entertainment (NASDAQ:CZR) saw its stock price plummet 7.70% in after-hours trading on Tuesday following the release of its third-quarter earnings report that fell short of analyst expectations. The casino operator reported a wider loss and a significant decline in its key Las Vegas business, disappointing investors.

For the third quarter, Caesars posted a loss of $55 million, or $0.27 per share, compared to a loss of $9 million, or $0.04 per share, in the same period last year. This result significantly missed the analyst consensus estimate of a $0.01 per share profit. Revenue remained relatively flat at $2.87 billion, slightly below the $2.89 billion analysts had projected.

The company's Las Vegas segment, a crucial part of its operations, saw revenue decline by 9.8% to $952 million. CEO Tom Reeg attributed this drop to lower city-wide visitation and poor performance in table games. Reeg noted, "It was a difficult summer," citing declines in average daily room rates and occupancy, particularly at lower-tier properties. On a more positive note, Caesars' digital gambling unit experienced a 2.6% increase in revenue, reaching $311 million, driven by continued product improvements and strong volumes. The regional segment also showed growth, with revenue up 6.2% to $1.54 billion.

Despite the disappointing results, Reeg expressed optimism for the future, stating that travel trends in Las Vegas have improved so far in the current quarter, buoyed by an uptick in group and convention-related travel. He expects this trend to continue into the first quarter of next year, potentially leading to a healthier market outlook for 2026.