Here’s Why Caesars Entertainment’s Share Prices Fell This Week

Caesars Entertainment And Stock Market Background

By all accounts, 2021 has been one of the most successful years in history for the US casino industry. Some companies ended up struggling over the year’s third quarter, though. It seems that a tough third-quarter ended up having a major impact on Caesars Entertainment’s share prices.

Now is a great time to look at how much money this company brought in over April, May, and June. We’ll also discuss what quickly led to its stock prices increasing again.

Let’s get into it.

Quarterly Revenue Reports Leads to a Drop in Caesars Entertainment’s Share Prices

Caesars Entertainment has been one of the most successful casino operators for decades. Back in 2020, the company’s massive merger with Eldorado Resorts was completed. Together, these companies formed a powerhouse in the US casino market.

2021 has seemed to be a tremendous year for the company. Over the year’s second quarter, revenue figures were increasing and executives claimed they were interested in expansion. Revenue reports on 2021’s third-quarter earnings have just surfaced and some were surprised to see that the company lost $233 million over April, May, and June.

This news immediately sent Caesars Entertainment’s share prices down. These prices dropped by as much as 8% leading into a company conference call. Shortly after this call, the company’s stock prices started to increase as news of an upcoming Las Vegas casino sale broke.

Specifically which casino Caesars plans to sell is currently unknown. This company owns a huge number of successful casinos on the Las Vegas Strip. The sale of one of these properties has been confirmed to take place in “early 2022.”

Caesars Entertainment is not the only casino company to recently release revenue reports. Let’s look at how some of the other gaming operators in the US are faring right now.

More Casino Companies Release Release Quarterly Revenue Reports

The events that unfolded in 2020 took a devastating toll on the US casino industry. All of the country’s casinos were forced to remain closed for months out of the year. Many began to reopen over the summer, yet the amount of revenue these properties was able to bring in remained extremely low.

2021 has proven to be much different. Several major casino companies have just released their revenue reports for the year’s third quarter. It’s clear that some of these companies fared better over this time period than others.

Golden Entertainment is one casino operator to experience revenue surges over 2021’s third quarter. The company managed to bring in $282.4 million over the quarter, with a net income of $29.1 million and Adjusted EBITDA of $73.4 million. Executives seem pleased with these results and expect a highly successful fourth quarter.

MGM Resorts International gave its shareholders reason to be optimistic, too. This company just revealed that it had a Q3 net income of $1.4 billion. Net revenue from MGM’s properties in Las Vegas increased by 187% when compared to the same time period in 2020.

Caesars Entertainment’s share prices dropped due to the third-quarter revenue drop. It will be interesting to see how the stock prices of the companies listed above change over the next few weeks. Stay tuned for updates!

Sports Betting Revenue Remains High Around the United States

Casinos across the United States have been reporting large revenue increases throughout the year. Sports betting revenue figures have been going up throughout the year, too. 2021 has already proven to be the best year in history for the US sports gambling industry.

This past August proved to be a slow month for this industry. Things have completely turned around in September, though. Just about every state with regulated sports gambling options has been reporting large revenue increases.

Virginia is one of those states. The sports gambling operators here managed to bring in $30.9 million over the course of the month. Sports betting launched here in January and has already proven to be hugely popular.

September was also a historic year for the sports betting industry in New Jersey. It was this month that the state’s sportsbooks saw more than $1 billion in total sports betting handle. Most of these wagers were placed on the NFL season.

Were you surprised to see Caesars Entertainment’s share prices falling? How will the year’s fourth quarter be for US casino companies? Let us know in the comments section below.