Caesars lays out Horseshoe icasino launch plans as online revenue jumps 28%
Digital chief says second standalone gaming brand will launch in Michigan in September and Ontario in Q1 2025 as revenue rises to $276m
Caesars Digital president Eric Hession has said the Horseshoe icasino app will launch in Michigan next month but tempered expectations by warning that it won’t “command the market share” like Caesars Palace Online Casino.
Following the release of the firm’s Q2 figures, Hession addressed the future of the firm’s soon-to-launch secondary standalone online brand during the financial results call.
Caesars completed the acquisition of WynnBET Michigan in June and Hession confirmed the operator will launch its Horseshoe online app in the Great Lake State in September.
He added that there will be further market launches, including Ontario in Q1 2025, and that it will enter markets differently to how the Caesars Palace Online Casino app has in the past.
However, he eased expectations on the Horseshoe and reiterated Caesars Palace Online Casino, launched in August 2023 as a separate entity to Caesars.com, is the firm’s “flagship brand.”
Hession said: “We’re launching it slightly different than we did with Caesars Palace, where we’re going to effectively do one state at a time.
“Pending regulatory approvals, we’re going to launch in Michigan in September. We’ll roll out into other states throughout the year, ending in Ontario in Q1 .
“From that standpoint, it will be a little bit different. I also would temper the expectations. Horseshoe is a great brand and we feel like it’s going to resonate with a lot of customers.
“But Caesars is an even better brand and, quite frankly, that’s going to be the flagship app that we have, and it’s got a year’s lead over Horseshoe.
“I would expect Horseshoe to perform very strongly but I don’t think it will command the market share that Caesars app will.”
An iconic US casino brand with a legacy stretching back to 1951, Caesars Entertainment operates 10 Horseshoe properties across America including Las Vegas.
Looking at the business’ Q2 performance, Caesars Digital posted net revenue of $276m, a 27.8% year on year (YOY) increase from Q2 2023.
The online division posted adjusted EBITDA of $40m, up from $11m a year ago, driven by “strong revenue growth and solid flow through.”
Net income for the quarter came in at $4m, compared with a loss of $22m the year prior.
Overall, group revenue remained flat in Q2, landing at $2.8bn, as Las Vegas operations returned $1.1bn in revenue and the firm’s regional casinos accounting for $1.4bn.
However, group net loss soared to $122m, having posted a positive net income of $920m in Q2 2023.
Management pointed to a $364m loss related to “corporate and other” costs on the P&L.
Caesars said the reason for the switch came about primarily due to the “release of $940m of valuation allowance against deferred tax assets associated with our REIT leases in the prior year.”