Evolution announces multiple new live studios with Caesars in US
Caesars and Evolution will partner in establishing studios across a number of US states, including one in Caesars’ New Jersey-based Tropicana Casino. The Tropicana studio will be Evolution’s third live casino studio in Atlantic City.
Evolution and Caesars will also join forces on launching additional studio space within Evolution’s Pennsylvania and Michigan studios. Caesars players will have access to Evolution’s live casino games from its brands, including NetEnt and Red Tiger.
In the announcement, Evolution chief executive for North America Jacob Claesson said: “Caesars’ expansion in the market is remarkable and noteworthy. We’re impressed by Caesars’ dedication and look forward to collaborating with them as they continue to expand their branded studio presence.”
Matthew Sunderland, Caesars Digital’s senior vice-president and chief igaming officer, added: “Elevated live dealer experiences are an area of opportunity and something online casino players are continuing to show an affinity for.
“With this in mind, partnering on a deeper level with Evolution, the market leader in live casino offerings, made a lot of sense.”
Responding to rise in demand
Caesars’ deal with Evolution should help it respond to its current issue of demand outstripping supply in its live casino sector.
Caesars generated $1.6bn in casino revenue for Q4, taking it to $6.4bn for its 2023 financial year. Its move with Evolution will help to boost those revenue figures even further, combatting the flattening in growth evident in Q4.
The Evolution partnership will satisfy Caesars’ urgent need for new studios in order to meet the growing demand for its live casino sector, with both companies seeing the benefits across North America.
Caesars also announces Michigan tribal deal
It’s been a busy week for Caesars, with its Caesars Entertainment sector also announcing a deal to acquire WynnBet’s Michigan igaming business.
Caesars revealed a long-term extension of its agreement with the Sault Ste. Marie tribe of Chippewa Indians. That deal will give Caesars access to the igaming market in Michigan.
Caesars gains access to the Sault tribe’s igaming skins, allowing it to operate additional brands in Michigan. Existing WynnBet customers will be transitioned to Caesars’ Michigan igaming platform.
Sunderland commented: “As we continue to grow our igaming franchise, the assumption of WynnBet’s igaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play.”
The move comes as part of WynnBet’s roll-back in the US. It exited Massachusetts last week having already ceased operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. Penn Entertainment agreed to acquire its New York sports betting licences, while WynnBet is still active in Nevada.
Mixed 2023 results for Caesars
Caesars reported a 6.5% year-on-year rise in revenue for 2023, largely driven by growth in its digital division.
Revenue was higher across all divisions, with group revenue hitting $11.53bn (£9.12bn/€10.66bn). This growth also helped the group return to a net profit.
However, Caesars’s Q4 saw only 0.1% in revenue growth. That stagnation to end the year is perhaps an indicator of what is to come.
While down from the $0.66 loss per share in Q4 2022, Caesars still recorded a GAAP loss of $0.34 per share in the final quarter of 2023. Gross margin was also down 2.8% from Q4 FY2022.
The previously impressive momentum of the company has taken a hit. Caesars’ FY2022 and FY2023 failed to live up to the strong growth seen in the two years prior.
At the close of the market on Tuesday, Caesars Entertainment was trading at $41.65 per share in response to the company’s Q4 and full FY2023 results. This was down 2.02% on the previous day’s close.