A leading provider of live dealer games, Evolution Gaming, has joined forces with Caesars Entertainment to aggressively expand into the North American marketplace.
They are planning to establish new studios in multiple US states, including one at Caesars’ Tropicana Casino in Atlantic City. This will mark Evolution’s third live casino studio in Atlantic City.
Evolution and Caesars are also set to expand their existing studios in Pennsylvania and Michigan. Caesars’ patrons will have access to Evolution’s live casino games through their brands, such as NetEnt and Red Tiger.
Jacob Kleis, the head of Evolution in North America, emphasized the significance of Caesars’ growth in the market. He expressed enthusiasm about collaborating with them as they construct additional studios.
Matthew Sunderland, a key figure at Caesars Digital, highlighted the substantial opportunity to enhance live dealer games, emphasizing the strong appeal of these games among online casino players.
Given the circumstances, collaborating with Evolution, the industry leader in live casino offerings, is a smart decision.
To satisfy the increasing demand, Caesars has forged an alliance with Evolution, which will help resolve the supply-demand disparity in its live casino operations.
Caesars’ fourth-quarter casino income was $1.6 billion, with total revenue for fiscal year 2023 reaching $6.4 billion. The partnership with Evolution will contribute to further enhancing these revenue figures, counteracting the trend of decelerating growth in the fourth quarter.
The collaboration with Evolution will address Caesars’ pressing need for new studios to meet the escalating demand for its live casino business, with both entities anticipating advantages in North America.
Caesars also disclosed an arrangement with the Michigan tribe.
It has been an active week for Caesars, with its Caesars Entertainment division also announcing an agreement to acquire WynnBet’s online gambling operations in Michigan.
Caesars unveiled the long-awaited agreement with the Sault Ste. Marie Chippewa Indian Tribe. The agreement will grant Caesars access to the Michigan online gambling market.
Caesars has secured the Sault Tribe’s online gambling license, enabling it to operate more brands in Michigan. Existing WynnBet patrons will be transitioned to Caesars’ Michigan online gambling platform.
Sunderland stated, “As we continue to broaden our internet gambling business, obtaining WynnBet’s online gambling operations in Michigan will enable us to enter a key market and customer base, which is vital for us to develop digital products and provide players with more ways to participate.”
This action is part of WynnBet’s reduction in the US market. Last week, the company withdrew from Massachusetts, having previously stopped operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, and West Virginia. Penn Entertainment agreed to acquire its New York sports betting permit, while WynnBet still operates in Nevada.
Caesars Entertainment had a mixed year in 2023.
Caesars Entertainment reported a 6.5% year-over-year revenue increase in 2023, primarily driven by growth in its digital division.
Revenue increased across all segments, with the group reporting revenue of $11.53 billion (£9.12 billion/€10.66 billion). This growth also aided the group in returning to profitability.
However, Caesars Entertainment’s fourth-quarter revenue only grew by 0.1%. This year-end slowdown could be an indication of what’s to come.
While down from a loss of $0.66 per share in the fourth quarter of 2022, Caesars Entertainment still recorded a loss of $0.34 per share in the fourth quarter of 2023. Gross profit margin also decreased by 2.8% compared to the fourth quarter of fiscal 2022.
The company’s previously impressive momentum has been affected. Caesars Entertainment’s performance in fiscal 2022 and fiscal 2023 has failed to match the strong growth of the previous two years.
Caesars Entertainment’s share price took a small dip on Tuesday, ending the day at $41.65 per share. This represents a 2.02% decline from the previous day’s closing value, likely influenced by the company’s recent financial report covering the final quarter and full year of 2023.
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