Caesars Entertainment Parts Ways with Neo Games

Caesars Entertainment Parts Ways with Neo Games

Harrah-based Caesar Entertainment sold out on all the shares it held in the Israeli online lottery company, NeoGames. The ensuing stock value loss for Neogames was inevitable. Previously, this online lottery small-cap gaming stock was extensive for large operators to hold substantial stakes.

The news of the shares sales was filed as part of SEC regulatory requirements under Form 13D/A thus:

“On March 14, 2022, Caesars consummated a block sale of an aggregate of 2,151,310 Ordinary Shares at $13.19 per share, fewer discounts, and commissions (the ‘Sale’). Following the Sale, Caesars beneficially owns 0 Ordinary Shares. 

The total income proceedings from the sale for Caesar were $28.37million before the payout of commission.

NeoGames Stake came about with William Hill buy

The investment in the online lottery developer was not direct for Caesar. NeoGames was part of the purchase of William Hill in 2021. By default, the Las Vegas Operator held a 24.5% stake in the Israeli online gaming operator for a $3.69billion payout to William Hill. However, as per the SEC filing, Caesar declared its short-term investing position in the internet lottery firm in the initial stages!

Will Caesar’s debts management improve with this sale?

The company is yet to issue directives on how this cash from the sale of NeoGames equity would be used next. Currently, the status is as reported on December 31, 2020, in which the total principal debt outstanding is $14.3 billion for Caesar. In addition, the reported gross cash and cash equivalents are $1.1 billion and exclude ‘restricted cash’ of $642 million.

A likely play out of the cash could be reducing the debt burden that Caesar currently holds. It is one of the most significant such debt in this category for a gambling operator in the country.

For analysts, the wait-game is on to understand Caesar’s following plans of action concerning liabilities. The second section of the online casino industry believes that the iGaming Operator is undervalued despite substantial sports wagering.

The majority of the analysts find Caesar to be an excellent stock to remain invested in and encourage investing in what is perhaps one of the oldest operating online casino stocks.


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.