The live dealer giant Evolution announced that it has signed a strategic partnership with Caesars Entertainment to expand its presence in North America.
Caesars and Evolution have partnered to establish studios in several US states. One of these will be located in Caesars Tropicana New Jersey Casino. This will be Evolution’s third studio for live casinos in Atlantic City.
Evolution and Caesars are also collaborating to launch additional studios within Evolution’s Pennsylvania and Michigan Studios. Caesars’ players can now access Evolution’s live casino brands including NetEnt, Red Tiger and Red Tiger.
Jacob Claesson, Evolution’s chief executive officer for North America said in an announcement: “Caesars expansion is notable and remarkable.” Caesars has shown a dedication to their brand and we look forward to working with them to continue expanding.
Matthew Sunderland is Caesars Digital’s Senior Vice-President and Chief Igaming Officer. He added that: “Elevated Live Dealer Experiences are an opportunity, and online casino players continue to demonstrate an affinity towards them.
It made sense to partner with Evolution as the leader of live casino games.
Response to rising demand
The deal between Evolution and Caesars should allow it to address the current problem of a demand that exceeds supply within its live casino industry.
Caesars Casino generated $1.6bn of revenue in Q4, bringing it up to $6.4bn by 2023. The move to Evolution is expected to help boost revenue even more, reversing the stagnant growth in Q4.
Both companies will benefit from the partnership, as it meets Caesars urgent need to build new studios for the live casino industry.
Caesars announces Michigan Tribal deal
Caesars has had a very busy week. Its Caesars Entertainment division also announced a deal for the Michigan igaming operation of WynnBet.
Caesars announced a multi-year extension to its contract with Sault Ste. Marie Chippewa tribe. This deal gives Caesars the opportunity to enter Michigan’s igaming industry.
Caesars now has access to Sault Tribe’s skins for igaming, which will allow it to run additional brands in Michigan. WynnBet’s existing customers will move to Caesars Michigan igaming.
Sunderland said: “As part of our continued growth in our igaming business, WynnBet’s Michigan igaming operation allows us to tap into an important market and customer-base, providing a vital step forward for growing our digital product and offering more ways to play.
This move is part of WynnBet’s US rollback. Last week, it ceased its operations in Massachusetts, after having done so previously in Arizona, Colorado. Indiana, Louisiana. New Jersey. Tennessee. Virginia. Penn Entertainment has agreed to purchase its New York Sports Betting licences while WynnBet remains active in Nevada.
Mixed 2023 results for Caesars
Caesars has reported an increase of 6.5% in revenues for 2023 compared to the previous year, driven largely by its digital division.
Revenue was higher across all divisions, with group revenue hitting $11.53bn (PS9.12bn/EUR10.66bn). The group returned to net profit as a result of this growth.
Caesars, however, saw only a 0.1% revenue increase in Q4. This stagnation at the end of last year may be a sign for what’s to come.
Caesars recorded an GAAP loss in the fourth quarter of 2023 of $0.34, which is down from $0.66 per share during Q4 of 2022. Gross margins were also 2.8% lower than Q4 FY2022.
The company’s previously impressive growth has been halted. Caesars FY2022 and FY2023 did not match the growth of the previous two years.
Caesars Entertainment’s shares closed at $41.65 on Tuesday in response to its Q4 results and the full fiscal year 2023. The share price was $2.02 lower than the day before.
