Caesars Entertainment grew in all three segments during the third quarter, the hotel, casino, and online gaming company announced Tuesday.
That growth included the digital side that houses the online legal sports betting operations, as Caesars announced a 14% increase in sports betting handle for Q3, thanks in large part to new innovations despite rolling out a new mobile app during this period.
“Keep in mind we didn’t have our app basically, with the exception of one month as we were putting it in for two months of the new quarter,” Eric Hession, president of Caesars Digital, said during the company’s conference call on Tuesday. “Most of the upside from the new app is going to accrue in the fourth quarter and into next year.”
For the quarter ending Sept. 30, Caesars Digital, which includes the online sportsbook and new online casino, reported a positive adjusted EBITDA of $2 million compared to the $38 million loss incurred during Q3 of 2022.
That aided an overall adjusted EBITDA revenue of $2.99 billion, and Caesars produced total net income from its Las Vegas, regional, and digital segments of $74 million.
This was the best quarter in Caesars’ history.
'Quite competitive'
Despite the trend that has Caesars Digitial in the positive for a 12-month basis, Hession said revenue on that side in Q3 was affected by a lower year-over-year hold than anticipated.
Still, Caesars has sports betting operations in 30 North American jurisdictions, including 24 via mobile that is being driven by enhanced products.
“As we head into 2024, we believe that our product in both sports betting and iCasino are significantly improved from prior periods and quite competitive."
- Eric Hession, president of Caesars Digital
Caesars launched a new “Watch and Bet” feature through the NFL, “Same Game Parlay” offerings for college football, a bet with rewards feature, and improved payment options.
“As we head into 2024, we believe that our product in both sports betting and iCasino are significantly improved from prior periods and quite competitive,” Hession said. “We have an exciting and robust technology plan which will have a focus on retention enhancements.”
'Under development'
Caesars has plans in the final quarter of 2023 and beyond to enhance the user experience for customers, including wallet improvements and a faster, easier-to-use mobile app.
There are also plans at some point to expand the “Watch and Bet” feature, which currently allows users to see nationally broadcast NFL games on the Caesars app.
“We’re very excited to be one of the few operators to basically trial this for the NFL and our partners,” Hession said. “We do see an uptick in terms of customers watching it on our app. The next big step is going to be able to overlay wagering opportunities while customers are watching it. That we don’t have yet. It’s under development.”
Caesars is “interested” in integrating this technology with other sports as well.
“It really depends on what the leagues’ policies are and what they plan on utilizing that service,” Hession said.
