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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue RecognitionThe Company’s Statements of Operations present net revenue disaggregated by type or nature of the good or service. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below. Refer to Note 15 for additional information on the Company’s reportable segments.
Three Months Ended September 30, 2022
(In millions)Las VegasRegionalCaesars DigitalManaged and BrandedCorporate and OtherTotal
Casino and pari-mutuel commissions$323 $1,096 $187 $— $(1)$1,605 
Food and beverage264 147 — — — 411 
Hotel335 209 — — — 544 
Other155 78 25 70 (1)327 
Net revenues$1,077 $1,530 $212 $70 $(2)$2,887 
Three Months Ended September 30, 2021
(In millions)Las VegasRegionalCaesars DigitalManaged and BrandedCorporate and OtherTotal
Casino and pari-mutuel commissions$329 $1,096 $85 $— $— $1,510 
Food and beverage221 125 — 1 — 347 
Hotel303 208 — — — 511 
Other164 63 11 78 1 317 
Net revenues$1,017 $1,492 $96 $79 $1 $2,685 
Nine Months Ended September 30, 2022
(In millions)Las VegasRegionalCaesars DigitalManaged and BrandedCorporate and OtherTotal
Casino and pari-mutuel commissions$929 $3,264 $255 $— $(2)$4,446 
Food and beverage775 397 — — — 1,172 
Hotel959 487 — — — 1,446 
Other470 200 56 210 — 936 
Net revenues$3,133 $4,348 $311 $210 $(2)$8,000 
Nine Months Ended September 30, 2021
(In millions)Las VegasRegionalCaesars Digital Managed and BrandedCorporate and OtherTotal
Casino and pari-mutuel commissions$870 $3,241 $197 $— $— $4,308 
Food and beverage476 318 — 3 — 797 
Hotel660 462 — — — 1,122 
Other363 152 24 203 10 752 
Net revenues$2,369 $4,173 $221 $206 $10 $6,979 
Accounts Receivable, Net
(In millions)September 30, 2022December 31, 2021
Casino and pari-mutuel commissions$218 $168 
Food and beverage and hotel136 100 
Other152 204 
Accounts receivable, net$506 $472 
Contract and Contract Related Liabilities
The Company records contract or contract-related liabilities related to differences between the timing of cash receipts from the customer and the recognition of revenue. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by a customer, (2) Caesars Rewards player loyalty program obligations, which represent the deferred allocation of revenue relating to reward credits granted to Caesars Rewards members based on certain types of customer spend, including online and retail gaming, hotel, dining, retail shopping, and player loyalty program incentives earned, and (3) customer deposits and other deferred revenue, which primarily represents funds deposited by customers related to gaming play and advance payments received for goods and services yet to be provided (such as advance ticket sales, deposits on rooms and convention space, unpaid wagers, iGaming deposits, or future sports bets). These liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within accrued other liabilities on the Company’s Balance Sheets.
Liabilities expected to be recognized as revenue beyond one year of being purchased, earned, or deposited are recorded within other long-term liabilities on the Company’s Balance Sheets.
The following table summarizes the activity related to contract and contract-related liabilities:
Outstanding Chip LiabilityCaesars RewardsCustomer Deposits and Other
Deferred Revenue
(In millions)202220212022202120222021
Balance at January 1$48 $34 $91 $94 $560 $310 
Balance at September 3040 34 95 96 662 446 
Increase / (decrease)$(8)$— $4 $2 $102 $136 
The balances above exclude contract liabilities related to liabilities held for sale recorded in 2022 and 2021, where applicable. See Note 3. The change in customer deposits and other deferred revenue during the period ended September 30, 2022 was primarily due to expansion of the Caesars Digital segment from the legalization of retail and online sports betting in new jurisdictions.
Lease Revenue
Lodging Arrangements
Lodging arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of the fees charged for lodging. The nonlease components primarily consist of resort fees and other miscellaneous items. As the timing and pattern of transfer of both the lease and nonlease components are over the course of the lease term, we have elected to combine the revenue generated from lease and nonlease components into a single lease component based on the predominant component in the arrangement. During the three months ended September 30, 2022 and 2021, we recognized approximately $544 million and $511 million, respectively, and during the nine months ended September 30, 2022 and 2021, we recognized approximately $1.4 billion and $1.1 billion, respectively, which is included in Hotel revenues in the Statements of Operations.
Conventions
Convention arrangements are considered short-term and generally consist of lease and nonlease components. The lease component is the predominant component of the arrangement and consists of fees charged for the use of meeting space. The nonlease components primarily consist of food and beverage and audio/visual services. Revenue from conventions is included in Other revenue in the Statements of Operations and during both of the three months ended September 30, 2022 and 2021, lease revenue related to conventions was approximately $4 million and during the nine months ended September 30, 2022 and 2021, lease revenue related to conventions was approximately $23 million and $4 million, respectively.
Real Estate Operating Leases
Real estate lease revenue is included in Other revenue in the Statements of Operations. During the three months ended September 30, 2022 and 2021, we recognized approximately $42 million and $46 million, respectively, and during the nine months ended September 30, 2022 and 2021, we recognized approximately $125 million and $111 million, respectively, of real estate lease revenue.
Real estate lease revenue includes $17 million and $16 million of variable rental income for the three months ended September 30, 2022 and 2021, respectively, and $45 million and $35 million for the nine months ended September 30, 2022 and 2021, respectively.