Caesars Entertainment: From Racing to Rolling Dice
2024 is a Rough Ride for the Casino King
Since the start of 2024, Caesars Entertainment has been juggling debt like a circus performer with too many balls in the air. With creditors and obligated payments piling up, the company’s foot hasn’t been steady on the Vegas Strip.
Labor Negotiations Adding Extra Squeal
Negotiations with the Culinary Union and other labor groups sent a few extra ripple effects through the casino’s operations. While many companies love a smooth dance with labor, Caesars found itself in a stuck dance that bumped its financials.
The Grand Prix That Didn’t Quite Kick Off the Economy
Las Vegas started 2024 with a splash at the Grand Prix on November 18, 2023. Forecasts promised a hot-firing boom: 7,700 jobs and a $1.2 billion boost for the local economy. But that grand idea faced a twist.
According to CBRE Capital Advisor analyst John DeCree, the crowd that flocked in for the Formula One atmosphere wasn’t the high‑roller type that fills Caesars’ halls. They were more aligned with mid‑price tier accommodations like Aria, Bellagio, and the Cosmopolitan – all owned by MGM Resorts International.
- High‑rollers might stay at Caesars Palace, but rarely visit other Caesars Strip properties (Flamingo, Harrah’s, Horseshoe).
- Instead, the venue patrons drifted toward competitors’ mid‑priced rooms.
Quarterly Numbers: Bits of Boredom and Blessings
In Q4/23, Caesars netted $2.83 billion in revenue but faced a $72 million loss. Over the entire year of 2023, the company earned $11.5 billion and posted a tidy $786 million profit. Revenues in Las Vegas alone stood at $4.47 billion. By year‑end, the debt load surfaced to a jaw‑dropping $12.4 billion.
With the stock down 16.2% year‑to‑date, Caesars didn’t just need a plan; it needed a playbook for resilience.
F1’s Forecast: A Mere $25 million Burst
Contrary to expectations, the Formula One event didn’t bring a windfall. Instead, Caesars is turning its eyes toward other growth avenues, especially the exciting world of iGaming.
iGaming: The Future’s Fast Lane
In February, Caesars snagged Michigan’s iGaming rights from Wynn Resorts – price undisclosed, but optimism is high. “Online and mobile gambling is growing at an exponential rate,” notes Ziv Chen of the solitaire.com. While the sector still lags behind physical revenue numbers, it’s a vibrant path forward.
Data speaks: Caesars Digital’s net revenues jumped from $548 million in 2022 to $973 million in 2023. The bank vaults of the future are already brimming.
Land‑Based Gold Mines
Beyond digital, Caesars is busy putting its bricks in prime spots. The new casino in Danville, Virginia, and the fresh rebrand of Harrah’s New Orleans to Caesars Palace aim to lasso high‑rollers back into the fold.
According to CEO Tom Reeg, the rebrand has already paid dividends: “We saw a 50% YoY revenue jump, with February only at $40 million.” The plan is to wrap the new location in a smart mix of gaming, dining, and entertainment to bring the cash flow home.
What’s Next?
While the Grand Prix’s buzz fizzled, Caesars is pivoting to a mix of online and on‑ground strategies that promise a payoff. The next few years could see the casino great hustling with branding, tech, and a… well, a few more spins of the slot machine. Stay tuned for the next chapter of this high‑stakes adventure.
