written and last updated by
Sam Smith at
10 Apr 2023
Journalist, Editorial Department
A meeting took place between Deutsche Bank analyst Carlo Santarelli and executives from Caesars Entertainment, including CEO Tom Reeg and Senior Vice President of Corporate Finance Brian Agnew. Santarelli praised the company for its "operational prudence," stable performance in Las Vegas, successful online operations, and a strong focus on debt reduction.
Caesars representatives indicated that they expect a $25 million increase in cash flow, approximately 2.06 billion rubles, thanks to Formula 1 events. The operator also stated that it will not participate in any potential consolidation of the Las Vegas Strip in 2023, neither as a buyer nor a seller. Significant investments in upgrading existing properties in the area are also not planned.
The company has set much more ambitious goals in the iGaming market, aiming to double its market share and achieve an annual cash flow of $500 million, or about 41.3 billion rubles. To enhance profitability, Caesars plans to cut economically unviable partnerships and promotional campaigns.
The operator is still in the running for one of the casino licenses in New York, having partnered with SL Green and Roc Nation. Together, they propose to build a gaming and entertainment center in Times Square. However, there are negative forecasts regarding this project, citing potential overcrowding in the area and zoning issues.
Caesars also highlighted its Horseshoe complex in Lake Charles, Louisiana, which opened in December 2022 and is projected to generate $60 million in annual revenue, roughly 4.96 billion rubles. The only concern is the number of hotel rooms, currently at 170, which is fewer than competing properties, prompting Caesars to consider building an additional hotel tower.
Meanwhile, Melco's casino in Macau has opened gaming areas exclusively for foreign visitors.
