Caesars Entertainment, Inc. Completes Previously Announced Acquisition of Michigan iGaming Operations from Wynn Resorts
Caesars Entertainment (NASDAQ: CZR) has completed the acquisition of WynnBET's Michigan iGaming operations. The deal includes a long-term extension of iGaming market access rights with the Sault Ste. Marie Tribe of Chippewa Indians. Caesars will continue using the WynnBET brand, ensuring no disruption for customers. The acquisition is expected to boost Caesars' iCasino net revenue and improve EBITDA.
In the second half of 2024, Caesars plans to launch a new online casino brand and transition WynnBET's operations to its own Michigan iGaming platform, subject to regulatory approval.
- Completed acquisition of WynnBET's Michigan iGaming operations.
- Long-term extension of iGaming market access rights with the Sault Ste. Marie Tribe of Chippewa Indians.
- Expected growth in iCasino net revenue.
- EBITDA accretive transaction.
- Transition of operations pending regulatory approvals, which introduces uncertainty.
Insights
Caesars Entertainment's acquisition of WynnBET’s Michigan iGaming operations holds significant implications for the company’s financials. The extension of iGaming market access rights with the Sault Ste. Marie Tribe expands their reach in a burgeoning sector. For investors, the key term here is EBITDA accretive, meaning this acquisition is expected to improve the company's earnings before interest, taxes, depreciation and amortization. This suggests a positive outlook for future profitability, assuming the integration goes smoothly.
From a short-term perspective, there may be initial costs related to the integration and brand transition. However, the transaction’s promise of no interruption in customer experience indicates a well-planned strategy, potentially minimizing revenue disruption. In the long term, the acquisition is likely to enhance Caesars’ competitiveness in the iGaming market, aligning with broader industry trends. The market’s growth trajectory in Michigan, combined with strong regulatory support, further supports a positive outlook for stakeholders.
Analyzing the broader market implications, this acquisition strengthens Caesars' position within the iGaming industry, particularly in Michigan—a state known for its robust online gambling market. The mention of a new online casino brand in the latter half of 2024 signals a strategic move to consolidate and enhance brand presence. Investors should understand the competitive leverage this provides, potentially attracting a larger customer base and driving revenue growth.
Moreover, the collaboration with the Sault Ste. Marie Tribe of Chippewa Indians exemplifies a successful public-private partnership, which is critical in navigating the regulatory landscape. This partnership may lead to further collaborative opportunities, both within Michigan and other states, solidifying Caesars’ market penetration and expansion.
Caesars Entertainment will announce a new online casino brand and the transition of the WynnBET iCasino operations to Caesars’
“Caesars Entertainment would like to thank the Sault Ste. Marie Tribe of Chippewa Indians and the Michigan Gaming Control Board for their collaboration through this process,” said Eric Hession, President of Caesars Digital.
About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the US and one of the world’s most diversified casino-entertainment providers. Since its beginning in
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "anticipates," "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. Forward-looking statements include all statements other than statements of historical fact, including statements regarding market performance and expected timing of consummation of operations. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond Caesars' control and could materially affect actual results, performance, or achievements. Although Caesars believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Caesars cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Caesars does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
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Investor Relations:
Brian Agnew, bagnew@caesars.com
Charise Crumbley, ccrumbley@caesars.com
800-318-0047
Media Relations:
Kate Whiteley, kwhiteley@caesars.com
Brad Harwood, bharwood@caesars.com
Source: Caesars Entertainment, Inc.
FAQ
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