Caesars has confirmed that it will “dramatically” cut back its marketing spend throughout the US in its full year 2021 and fourth quarter results investors call.
Caesars reported growth in each of its sectors for the full year, with revenue rising 168.7% to $9.57bn (£7.02bn/€8.43bn). Fourth quarter revenue totaled at $2.59bn.
In speaking about the company’s digital segment, Tom Reeg, CEO of Caesars, spoke of the impact of the company’s acquisitions last year.
“We were behind,” said Reeg. “We were buying William Hill last year, so we effectively sat out the first full football season in a number of jurisdictions. We had ground to make up.”
“We launched our brand and we went from that afterthought in the market… We couldn’t be happier with where we are in digital in terms of the pace that we have become a meaningful players in the states, and the ability to start pulling back levers and move us to profitability.”
Reeg added that Caesars’ media presence would be downsized as a result of the launch’s success.
“You are going to see us dramatically curtail our traditional media spend effective immediately,” said Reeg. “We have accomplished what we set out to do. We set out to become a significant player, and it’s happened significantly quicker than we thought.”
“You’re going to see our commercials largely disappear from your screens. There’s some media spend that we couldn’t get out of, coming into March Madness in a couple of states, but we will be largely off traditional media.”
In moving on to Caesars’ performance in newer markets, Reeg praised the company’s launch in New York. Caesars was one of nine operators that were approved to launch mobile sports betting in the state in January.
“New York was obviously an eventful launch,” continued Reeg. “The volumes were about two times what we were anticipating, as was the market share.”
“We signed up half a million customers since launch. New York is approaching as large as the rest of the business and Caesar’s Digital combined.”
Reeg also revealed that Caesars plans to sell a strip asset in Las Vegas in early 2022, the timing of which will be laid out by VICI, the real estate investment trust that owns many Caesars properties.
“You should expect that that is is in motion, and the next time we talk to you about the asset sale it will be to announce [it],” he said.
When asked if gambling could become available at Caesar’s Dubai location, Caesars Palace at Bluewaters, Reeg said that it was expected but not in place yet.
“That was the original thought, when Caesars struck that deal in Dubai, that ultimately the UAE would have gaming in the Caesars Palace in Dubai that we manage,” answered Reeg. “So if there’s an opportunity, you should expect that we would be active. Our brand and building is already open.”
Last month Wynn Resorts confirmed plans to open an integrated resort in Ras Al Khaimah, United Arab Emirates with partners Marjan and RAK Hospitality.
The resort is to be located in Al Marjan, which is approximately 65 miles from Dubai, and will feature 1,000 hotel rooms, a gaming floor and convention utilities.
