Every operator wants an advantage over their competitors in the online casino sector. Caesars pushed to do just that this week, purchasing WynnBet’s Michigan license.
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With the purchase, Caesars wants to join Michigan’s new online casinos with a distinct app from Caesars Palace Michigan.
This will provide three distinct iGaming (internet casino) choices in Michigan:
- The legacy online casino is accessible via the Caesars Sportsbook app.
- The standalone, more powerful Caesars Palace online casino app.
- The WynnBet online casino will be relaunched by Casears sometime in 2024.
Let’s speak about #3 for a second. What will this new online casino look like, and how will it impact Caesars’ Michigan business?
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Caesars Plans A New Online Casino Brand
In recent months, Caesars has already had a minor advantage in the Michigan online casino sector. Initially, Caesars Sportsbook Michigan only offered an online casino option. However, Caesars decided to open Caesars Palace in August.
Caesars Palace is a standalone iGaming app that differentiates it from Caesars’ sportsbook offerings. Despite only having one license with the Grand Traverse Band of Ottawa and the Chippewa Indians, Caesars has been allowed to operate both online casino choices since August.
Now, by obtaining the WynnBet license from the Sault Ste. Caesars will be able to cooperate with the Marie Tribe of Chippewa Indians as well.
This does not increase the number of lawful online casino licenses in Michigan, which remains limited to 15. Caesars presently holds a Michigan license that allows them to operate both the online casino and the Caesars Palace app. It purchased a second license as part of the WynnBet agreement.
The WynnBet option will be part of a larger rollout across numerous states, as Caesars has possession of multiple licenses. However, the new choice will be under a brand different from Caesars Palace.
“Another exciting thing that we announced (Feb. 20) is the second branded product that we’ll be able to launch,” said Caesars Sports and Online Gaming President Eric Hession during the company’s Q4 investor conference call.
“We expect it to be a unique brand in all of the markets where we run, and we want to debut it before the end of the year. It will provide an alternative for some consumers, whether they prefer that brand over Caesars Palace online or prefer to switch between brands.”
The new brand’s name has yet to be announced, but it is planned to premiere before the end of 2024.
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Caesars Expects to Earn More Than $87 Million from Online Casinos in 2023
Caesars’ increased focus on building its iGaming branch has proven successful in Michigan.
In 2023, the merging of Caesars Palace and Caesars Sportsbook generated $87.4 million in online casino revenue for the corporation. That was a 32.1% increase above $66.2 million produced in 2022 with only the casino option on Caesars Sportsbook.
It was also determined that Caesars peaked near the conclusion of the year. It generated $9.1 million in online casino revenue in November, a new record. In December, another new record was set with $9.6 million.
Then came January, with $10.2 million in revenue, setting another new record. It was also the first time Caesars exceeded the $10 million barrier in monthly revenue.
“The core iCasino slot customer has responded positively to our significantly improved offering, and we’re pleased that the new product (Caesars Palace) and brand resonate much better with our Caesars Rewards database than our casino associated with the Sportsbook,” Hession stated in a press release. “IGaming remains a critical component of our digital growth strategy for 2024 and beyond.”
WynnBet generated 2.7% of Michigan’s online casino revenue in 2023. This equated to $52 million.
If Caesars can maintain or increase revenue, it will be in a position to begin closing in on Michigan’s three major online operators (BetMGM, FanDuel, and DraftKings).
Why is Caesars Using Another Name for the WynnBet Purchase?
Why is Caesars choosing to employ the WynnBet license for a whole new brand over another Caesars Palace platform?
Hession argues that variety is the most excellent technique in this circumstance.
“We liken it a lot to the Las Vegas Strip where a customer that comes to town, they’re going to stay at one property, but they’re going to visit multiple properties just because they want a different feel, they want a different experience, maybe to change their luck or whatever the reason is,” he said.
“We believe that customers have a similar behavior inclination online. We see this in New Jersey, where we currently run many brands. A company like ours, with numerous well-known brands, we decided it was only natural to have a second product for those clients.”
Though the new online casino will have a different logo, Caesars intends to use the same engineering underpinning the site, making the launch much more inexpensive.
“We don’t believe there will be cannibalization between the two. Furthermore, we’ll be using the same platform and a lot of the same game content and connectors, so the cost of launching a second brand will be far lower than the expense of having a single brand in the market,” Hession stated.