It’s no secret that FanDuel, BetMGM and DraftKings take up the majority of Michigan’s online gambling sector. But Caesars believes that a 10% market share is enough to succeed in Michigan.
There is plenty of room for platforms to create a niche in the space. And Caesars Palace Michigan does not concern itself with the lofty expectations of Michigan’s big three.
Market share is not everything to Caesars as top executives discussed at the SBC Summit this week in New Jersey. Eric Hession (above), CEO of Caesars Digital, told SBCAmericas:
“When we set our market share objectives, we think we’re going to be at around 10%. We can have a great business at a 10% market share. We think the focus on market share is a little misguided.”
Market share not as important for smaller operators
Caesars has cemented itself as a top five online casino platform in the Great Lakes State. The operator produced $11.3 million in March revenue, finishing behind FanDuel, BetMGM, DraftKings and BetRivers, good enough for 5.3% market share.
With FanDuel and BetMGM generating monthly totals of $57.6 million and $54.7 million of revenue, respectively, it’s easy to write-off the smaller companies, such as Caesars and even BetRivers.
But Caesars is growing market in Michigan. Though, it has a long way to go to reach 10%.
Since online casinos launched in the state in 2021, Caesars has grown its yearly share of revenue from 1.1% to 5.5%
Lifetime, Caesars has online casino revenue market share of 3.8% and ranks sixth in the state.
But, the operator is grabbing a much bigger piece of the pie in 2024.
Caesars sportsbook losing market share in Michigan
Caesars Sportsbook Michigan is in a similar boat, capturing about 6.3% market share in March. Though, its percentage of the Michigan sports betting market has slipped since its peak in 2022.
Despite the lower totals Caesars produces, the digital department of its business is profitable. The digital business reported adjusted EBITDA of $5 million in Q1 2024 compared to a $4 million loss from the year prior.
Caesars to supply three online casino platforms soon
Caesars is doing everything possible to expand its footprint in Michigan. There are going to be three ways players can access Caesars’ games:
- Standalone online casino
- Online casino merged with Caesars Sportsbook
- Purchase of WynnBet license
The Michigan Gaming Control Board (MGCB) told PlayMichigan in March that any operator is able to offer a maximum of two separate brands within the state.
Caesars will be the first to do so, after it acquired WynnBet’s online casino and sports betting license in the Great Lakes State.
New Caesars app launching in Michigan in 2024
Heisson announced during a Q1 2024 earnings call that Caesars plans to launch the new app “before the end of the year pending regulatory approvals.”
PlayMichigan has speculated the different brands that Caesars could use, which include Harrah’s or Tropicana.
Any brand that the operator uses is going to give itself another chance to employ a strong customer retention strategy. Caesars finished about $1.5 million shy of BetRivers for fourth place in March.
Should Caesars knock this out of the park, it’ll not only increase its own profitability, but more operators would likely follow suit. That would set up for an even stronger gambling market in Michigan.
