Caesars Entertainment Inc. Revamps Its Spending Plan

Caesars Entertainment Inc. Revamps Its Spending Plan

On Tuesday, Caesars Entertainment Inc. revamped its spending strategies on the back of Q4 revenue earnings of $9.6 billion. In addition, it announced a roll-back on sportsbook advertising, having achieved expected customer acquisition ‘targets.’ But spending would continue strategically in the new States that it hopes to have a presence!

Dramatic curtailment

When talking to Bloomberg, Caesars Entertainment Inc CEO Tom Reeg said that the company would “dramatically curtail traditional media spend effectively immediately… since it set out to become a significant player and it happened significantly quicker than expected.”

This decision came on the back of intense competition among operators offering incentives and high spending on advertisements to gain market leadership.

Caesar Sportsbook Tops New York Mobile Market

With Caesar Sportsbook now firmly entrenched as the leader of the mobile online gaming line-up, New York, this big operator now wishes to rework its spending on advertisements.

As Reeg reiterates, “Caesars Sportsbook continues to exceed our expectations for new customer registrations, deposits, and market share, especially in recently launched jurisdictions.”

Q4 Results

Caesar sportsbook subsidiaries too suffered the industry-wide losses caused by the 2020-21 pandemic. As a result, it reported a net loss of $434 million for Q4, much less than the $555 million net loss reported in 2020.

Addressing investors, Reeg stated,

“Our quarterly operating results reflect new fourth-quarter records for Adjusted EBITD and Adjusted EBITDA margin in both our Las Vegas and Regional segments.”

The financial year saw same-store Adjusted EBITDA grow from $1.1 billion in 2020 to $3 billion. Additionally, Caesars Digital reported earnings of $3.5 billion, increasing from $981 million in 2020.

Strip Asset Sale imbroglio

The continued postponement of Caesars’ strip assets due to pandemics has been a source of embarrassment for the digital gambling operator.

Commenting on the status of the sale, Reeg said,

the next time we talk to you about a Strip asset sale, it will be to announce that sale.”  

However, the Q4 results showed a slow recovery in Strip asset operations – Occupancy rates had increased in 2021 to 86% from 2020 markups, with weekend rates averaging 94% highs.

Mobile Wagering on the rise

However, the big push for Caesar Entertainment has been mobile Wagering on Caesar’s sportsbook in 16 states. Caesars sportsbook subsidiaries are operational in 22 states.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.