Reports on Caesars’ Third-Quarter Earnings Are Finally Out!

Building to Caesars Palace Casino in Las Vegas

Caesars Entertainment is having a busy year. A lot has been changing with the company, and analysts have been eagerly awaiting to see its financial reports for July, August, and September. This week, the reports on Caesars’ third-quarter earnings were finally released!

There’s obviously a lot that is impacting these revenue reports. Today, we’ll look at how the company fared during 2020’s Q3. We’ll also talk about some of Caesars’ plans for the future.

Let’s get into it!

Looking Back at Caesars’ Recent Sales and Purchases

Caesars Entertainment has been one of the biggest, most successful casino companies since the 1950s. Over the past few decades, the company has seen massive dips and surges in revenue. In recent years, the company began experiencing a large downward trend and officials hinted they could be looking at a sale.

In mid-2019, news broke that Eldorado Resorts had agreed to pay $17 billion to acquire Caesars Entertainment. It was the largest casino sale in history. Before the merger could be completed, however, the companies needed to jump through several hoops.

Finally, this summer, the deal was complete. Not long afterward, officials within Caesars announced they had agreed to purchase William Hill. It’s a huge move into the sports betting industry and gives Caesars Entertainment control of the company’s US assets.

Another big move took place in October. Officials at Twin River announced they were taking over Bally’s brand from Caesars Entertainment. This gives the company permission to rebrand nearly all of its properties with the Bally’s name.

It’s been a fascinating year for this company. Casino revenue has been extremely low, yet officials here still seemed determined to expand. Now, we’re finally hearing more about Caesars’ revenue figures for the year’s third quarter.

Here’s where things stand.

Here’s What Caesars’ Third-Quarter Earnings Reports Say

As most are already aware, all major US casino companies have seen sharp declines in their quarterly earnings reports this year. Some are faring better than others, yet it could take years before things get back to pre-pandemic levels. Today, Caesars Entertainment finally released its reports on Q3’s revenue.

According to these reports, the company managed to bring in $1.4 billion in net revenue over the year’s third quarter. This represents a solid 52% increase on a GAAP basis. Unfortunately, it’s a 34% decrease in year-on-year net revenue.

As we just detailed, these months were extremely busy for the company. CEO Tom Reeg spoke about these new reports to the media this week.

“Our third quarter was a busy period for the company. We officially closed our merger with Former Caesars on July 20, 2020,” Reeg said. “We announced a recommended offer to acquire William Hill plc on September 30, 2020 and successfully raised $1.9 billion of new equity that closed on October 1, 2020. Additionally, 55 out of our 56 properties have now reopened and operating results continue to improve sequentially. Regional markets continued to outperform destination markets and we remain optimistic regarding an eventual recovery of travel and tourism in the U.S. and especially in Las Vegas.”

Certain parts of the company fared better than others. Operations in Las Vegas saw a revenue loss of 60% during 2020’s Q3.

Most expect things to improve in 2021. Caesars’ acquisition of William Hill is almost guaranteed to help the company bring in more money. We’ll continue offering updates on Caesars’ plans over the next few months.

How Are Things in Las Vegas Right Now?

When most people think of US casino destinations, Las Vegas comes to mind. This city remains the biggest gambling destination in the country. A huge number of incredible casino-resorts are operating here and all are working hard to bring in more players.

Things haven’t been easy for the city and state of Nevada. While revenue seems to be increasing, it’s still low year-on-year. Hotels are operating at a limited capacity. Some have been forced to limit their operating hours out of health concerns.

The casino companies are still struggling. Wynn Resorts and Las Vegas Sands are seeing record-low revenue figures. The latter recently announced that it’s interested in selling some of its major US properties.

Caesars Entertainment, however, seems optimistic about the future. The aforementioned Tom Reeg touts high hotel occupancy as a sign that things are improving. He’s confident that things will be better than ever once the Covid-19 pandemic has come to an end.

“When we get into a post-COVID world, the pent-up demand you are going to see for gaming in general and Las Vegas in particular is going to be beyond your wildest dreams. The flow-through you are going to see in the sector is unlike anything that will happen historically in this space,” Reeg said to the media. 

Are you surprised at Caesars’ third-quarter earnings? When do you expect Las Vegas to return to normal? Let us know in the comments section below!

Here’s a Look at the Biggest Casino Company in the US

The massive merger between Eldorado Resorts and Caesars Entertainment has officially been finalized. It took more than a year and an incredible amount of effort. With the deal now done, Eldorado and Caesars have formed the biggest casino company in the US.Eldorado And Caesars Logo

This is a historic moment for the US casino industry. Many analysts are now looking at how this merger will affect different states moving forward. We’ll also look at ways this new company plans to deal with the current issues plaguing land-based casinos.

Let’s get into it!

With Final State Approval, Eldorado and Caesars Could Finally Merge

Eldorado Resorts and Caesars Entertainment first announced they planned to merge back in June of 2019. Obviously, this news spread like wildfire. Eldorado agreed to pay $17.3 billion to acquire Caesars; the most expensive purchase in the history of casino companies.

State gambling commissions around the country took notice. Before these two companies could merge, they would need approval from all the commissions they operate in. These government bodies want to ensure the newly-merged company would not result in a monopoly.

Gaining state approval became priority number one. Both Eldorado and Caesars were forced to sell many of their properties in order to get the green light from various commissions. As the months went on, more and more of these commissions approved the merger.

Last month, the FTC finally gave it the go-ahead, as well. This was a crucial step for both companies. Only three more commissions were needed to approve the deal. Eldorado and Caesars arranged meetings with members of these commissions in Las Vegas earlier this month.

First Nevada approved the deal. Not long afterward, Indiana did the same. Late last week, New Jersey’s gaming commission finally gave it a thumbs up, too. With that final approval, this massive deal could finally conclude.

The Biggest Casino Company in the US has Just Been Formed

After more than a year, the massive deal between Eldorado Resorts and Caesars Entertainment has concluded. These companies are now under one banner, making this the biggest casino company in the US. That’s a big statement when considering some of the other casino companies here such as MGM Resorts International and Las Vegas Sands.

Moving forward, the company will keep the Caesars name. It will take control of all 55 properties across many different states. Tom Reeg, CEO of the newly-merged company, has some interesting ideas to immediately boost revenue. Much of his strategy involves cutting down on unnecessary costs.

It’s being reported that most of the company’s properties outside of Las Vegas will remove buffets. These are said to cost an estimated $3 million per year. Ultimately, the juice is not worth the squeeze.

Anthony Carano, COO of the company, also gave some insight on how it plans to make up for its $13 billion debt. He claims most properties outside the US will be sold. It’s possible that several more US casino sales will also take place.

This is a very interesting time for the US casino industry. The biggest casino company in the US has just been formed, yet many gambling venues around the country remain shut down. What are analysts saying about the future of this industry?

Experts Predict More Tough Months Ahead for Casino Companies

The world is in an unprecedented time right now. Never before have entire economies been shut down like they have been over the past few months. The land-based casino industry in the US has been hit particularly hard due to the regulations set in place.

In many states, only Native American casinos are able to operate. These venues sit on sovereign land and do not need to abide by state regulations. Commercial casinos, like the ones found in Las Vegas, can be shut down at a moment’s notice.

Obviously, all US casino companies have been keeping a close eye on new regulations. Some parts of the country are allowing these venues to operate. Others have not yet given the green light for casinos to reopen.

Most analysts predict another tough six months ahead for these casino companies. Even the casinos now reopened are seeing much lower revenue earnings than they did back in January. Some may be forced to close again if rates of Covid-19 don’t begin to decrease.

This obviously isn’t great news for the biggest casino company in the US. Caesars will now be looking to adapt to this market, with an emphasis on online sports betting, in particular. We may see this entire industry evolve as the months go on.

Stay tuned for more US casino news!