Caesars Entertainment is close to launching another online casino platform in Michigan. During a Q2 earnings call on Tuesday, Caesars announced that Horseshoe online casino will be live in the Great Lakes State in September.
The last earnings call in May, Caesars believed the new platform would be up “by the end of the year,” which would indicate a Q4 launch. However, by completing the acquisition of WynnBet‘s license, Horseshoe will launch sooner rather than later.
Caesars Palace Michigan has been ascending as of late, as the Horseshoe brand should only help the operator’s market share.
Horseshoe online casino to launch in September
Caesars initially purchased WynnBet’s license to bring an entirely new platform to Michigan in February. So, this news has been brewing for awhile.
President of Caesars Sports and Online Gaming, Eric Heisson, confirmed on the call:
“We successfully completed the acquisition of WynnBet’s operations in Michigan in June which sets the stage for the introduction of our new iGaming app, which will be branded the Horseshoe in early Q3.”
Horseshoe had been a top choice all along for Caesars to use in the Great Lakes State. PlayMichigan set odds on the newest brand back in February, and Horseshoe had the third-best:
- Harrah’s: +300
- Tropicana: +350
- Horseshoe: +500
- Eldorado: +600
- Flamingo, Planet Hollywood: +1000
- Isle: +1200
While the Horseshoe ticket cashed for +500, Heisson also announced the timeline of the Michigan online casino launch. It plans to go one state at a time.
“So pending regulatory approvals, we’re going to launch in Michigan in September time frame,” Heisson said. “And then we’ll roll out into the other states throughout the year, ending in Ontario in Q1.”
The September period coincides with football season beginning, which is likely the best time to launch a new product.
Horseshoe “is going to resonate” but tamper expectations
Caesars obviously wouldn’t launch a brand that isn’t going to be great. However, Heisson mentioned that Horseshoe shouldn’t outdo the Caesars Palace platform.
“I also would tamper the expectations just Horseshoe is a great brand, and we feel like it’s going to resonate with a lot of customers,” he said. “But Caesars is even a 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. So I would expect the Horseshoe to perform very strongly, but I don’t think it will command the market share that Caesars has.”
Caesars is a top five online casino in Michigan, behind BetMGM, FanDuel, DraftKings and BetRivers. In June, it produced $11.5 million, which is considerably higher from the $9.1 million it recorded last November.
While Caesars is growing in Michigan, its iGaming business is growing at a 50% rate, according to Heisson. Horseshoe may not be as strong as the original brand, though it will definitely play a role in the company’s growth.
“Expect that the Horseshoe brand, the second brand in iCasino, can help us build on the gains that we’ve had since we rolled out Caesars Palace online,” Heisson said. “So momentum in digital is quite strong for us and all of the targets that we’ve laid out in the past still seem well within our grasp.”
Caesars now has two brands in Michigan, along with the online casino attached to its sportsbook, which the Michigan Gaming Control Board has allowed.
Caesars Digital posts positive adjusted EBITDA
Net revenue, along with net income was up for Caesars in Q2 2024 compared to the year prior. The digital brand also recorded adjusted EBITDA of $11 million compared to the $69 million loss last year.
“The second quarter of 2023 reflected continued strength in our business,” CEO Tom Reeg said in a statement. “Demand remains strong in both Las Vegas and our regional markets. Caesars Digital posted its first quarter of positive adjusted EBITDA since our rebranding to Caesars Sportsbook in the third quarter of 2021. Our capital investments are generating stronger than expected returns based on recent new property openings.”
Caesars stock price is $40.22, which is up 6.54% over the last month. Zacks Equity Research provided the following analysis:
“The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.”
