Caesars Revenue Falls 42.5% In 2020
After an AGA report about the decline in gambling revenue in 2020, Caesars revealed its annual gross gaming revenue, showing significant losses. Caesars’ report bolsters the AGA’s overall portrait of how the world of American gambling was impacted during the COVID-19 pandemic, when visitation to retail gambling locations plummeted due to capacity limits, declining tourism globally, and sporadic lockdowns. Caesar’s biggest gains came from its new partnership with sportsbook William Hill.
Caesars experienced significant losses in its retail gambling business in 2020. ©Mariamichelle/Pixabay
In 2020, Gambling Revenue Falls In The US As A Whole
The onset of the COVID-19 pandemic and ensuing restrictions and lockdowns around the United States have caused the gambling industry to decline in revenue, a trend which hasn’t been seen since 2003. In total, nationwide gambling revenue decreased 31% year-over-year between 2019 and 2020.
Online Gambling And Sports Betting Surge
While the gambling industry experienced losses overall in 2020, two sectors have continued to show promising growth — a trend that has been consistently reiterated by a number of the gambling industry’s biggest corporations, from Wynn to MGM: the promise of online gambling and sports betting.
Now, Caesars Reports Its Annual Revenue
In late February, a spokesperson from Caesars Entertainment announced that the company — like most gambling companies in the United States — had experienced significant revenue loss in 2020. Overall, in the 12 month period of January to December 2020, annual same-store retail gambling revenue capped out at $6.1 billion, a 42.5% loss from 2019.
In 2019, Caesars raked in an impressive net gain of $81 million annually. In 2020, the company experienced only net losses, with pandemic-related losses culminating at a staggering $1.8 billion. Caesars CEO Tom Reeg pointed to the fourth-quarter reinstatement of lockdown in states across the US after an alarming surge in COVID-19 cases nationwide.
Pointing To Promising Ventures With William Hill
Caesars Entertainment has been collaborating with leading sports betting operator William Hill to offer sports betting in the US. Today, the William Hill sports betting offering is one of the most prominent in the US, with operations active in 15 US states and the District of Columbia.
The Partnership Was Concretized in Fall 2020
In the fall of 2020, Caesars finalized its plans to take over William Hill, a sports betting company originally based in the UK. The deal was finalized to the tune of £2.9 billion — the equivalent of more than $4 billion (USD). Prior to this deal, Caesars already controlled a 20% stake in William Hill’s business.
Once Caesars made clear its plans to get involved in William Hill’s sure-to-be-lucrative American business, competitor Apollo, a private equity firm also based in the US, set out making a rival offer. Eventually, Caesars won out on the deal, seamlessly becoming one of the US’s leading sports betting providers essentially overnight.
A Trend Among Leading US Gambling Cos: Sports Betting Ventures
In the last year, some of the biggest American gambling corporations have worked to make moves into the online, mobile, and sports betting space. This has proved to be an invaluable lifeline to these organizations, as business to American casinos continues to plummet and — despite the vaccine rollout — the return to normal remains unknown.
BetMGM: A Force To Contend With
One of the most prominent up-and-coming iGaming offerings in the US started by a leading American gambling corporation is BetMGM, the iGaming and sports betting offering created by MGM. Throughout 2020, BetMGM continued to offer MGM a vital source of much-needed growth, as the brand branched into a number of US states where sports betting is legal.
Gamblers in states including Iowa and Pennsylvania now have access to BetMGM, which also boasts partnerships with sports teams like Philadelphia’s basketball team, the Philadelphia 76ers, as well as Pittsburgh football team the Pittsburgh Steelers. BetMGM also recently partnered with popular retail golf company Topgolf.
WynnBET: Making Big Moves In 2021
In 2020, BetMGM may have had the lead over other competing sports betting wings freshly started by leading gambling corporations, but WynnBET is making sure to briskly pick up the pace. In just the first few months of 2021, WynnBET has already gone live in a total of 9 US states, with hopes to expand into 19 states total.
As of early March, 2021, WynnBET has secured access to offer its platform in states including Iowa, Massachusetts, Nevada, Indiana, New Jersey, Colorado, Michigan, Tennessee, and Ohio. WynnBET’s Tennessee activity came paired with the announcement that the company had partnered with local NBA team, the Memphis Grizzlies.
Caesars-William Hill Has Greatest Reach Of All
While WynnBET and BetMGM are working to expand state by state, Caesars swiftly cut to the front of the line after acquiring William Hill. Now, Caesars has active sports betting business in fifteen US states, plus Washington D.C. This, plus the vaccine rollout, encouraged a Caesars spokesman to offer an optimistic prediction for 2021.
More Growth In Sight
According to its February report, Caesars may well expand still further into the world of sports betting. The corporation has reportedly acquired a minority strategic investment in another sports betting company in the US, SuperDraft, Inc. This, plus the return of regular tourism to Las Vegas casinos, could mean better business than ever — but when?
