Caesars pushes forward on digital via acquisition of Wynn’s Michigan igaming business
Digital growth spurred by online casino and sports betting the highlight of gaming giant’s Q4 and full-year 2023 results as it gears up for fresh push in Wolverine State
Caesars Entertainment has reported continued growth in its digital division for 2023 while also announcing it had agreed to acquire the igaming operations of WynnBET in Michigan.
The deal provides Caesars, which is already operational across both online casino and sports betting in Michigan, with additional skins through the Sault Ste. Marie Tribe of Chippewa Indians.
If approved by regulators, the acquisition would enable Caesars to transition current WynnBET customers to its igaming platform while expanding the number of digital brands it currently operates in the Wolverine State – while accordingly reducing the number of competitors in a key igaming market.
“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,” said Caesars SVP and chief gaming officer Matt Sunderland.
“We are honored to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan.”
Caesars confirmed both it and Wynn would receive “non-cash consideration, including extinguishment, reductions, and assignment of certain contractual obligations related to both parties’ businesses” in relation to the deal.
Caesars has allocated significant resources to its aforementioned digital products, notably standing up a second online casino – Caesars Palace Casino – this past August to complement its core Caesars Casino offering.
The decision from Wynn to shed its Michigan igaming presence comes one week after agreeing to sell its New York sports betting license to PENN for $25m.
Elsewhere, the focus on digital was evident in both the Q4 and full-year 2023 results for Caesars Entertainment, with across-the-board growth for the division.
Digital revenue for the quarter amounted to $304m, a 28% year-on-year (YOY) increase, while adjusted EBITDA was $29m – in contrast to a $5m loss during the same period of 2022.
Full-year revenue stood at $973m for Caesars Digital, a nearly-78% jump from $548m in 2022. The division’s adjusted EBITDA surged to $38m from a loss of $666m the prior year.
“The core icasino slot customer has responded positively to our significantly improved offering,” said Caesars Digital president Eric Hession. “Igaming remains a critical component of our digital growth strategy for 2024 and beyond.”
Despite the impressive results on the digital side, overall growth for the group stagnated, with net revenue up just 0.1% YOY in Q4 and 6.5% for the full year.