Caesars Online App Gaining Favour with Michigan Players, Q3 Report Shows

Jessica Aletor
By:
Jessica Aletor
03/11/2023/
Industry
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Highlights

  • Online Casino platform reels in $7.2 million in revenue in first full month post-launch.
  • Desired demographic more accepting of the standalone app.
  • Revenues expected to grow over the next few quarters.

Caesars Palace just published their Q3 2023 earnings report, and the signs are positive for their digital category. Having turned a profit for the first time in Q2, the digital offerings maintained their strong showing in Q3 after the launch of the standalone online casino app.

Caesars had revealed plans to launch the app during their Q1 investor call and followed through with it in mid-August. The goal of launching the standalone app was to appeal to more of their retail customer demographic. Early signs show that players are taking to it nicely.

Caesars Palace Now Offering Standalone Online Casino to Michigan Players

Since August 2023, Michigan pure casino lovers have been able to enjoy online casino games on a standalone Caesars Digital offering for the first time. This app is different from the Caesars Sportsbook app, launched since 2021, which offered both sports betting and casino games.

The brand observed that their pure casino customer demographic, made up mostly of older people and women, had not been using the sportsbook app as much as the sport betting demographic – mostly young men. In turn, Caesars rolled out the standalone casino games app in a bid to reel in the pure casino loving demographic. The early signs have been positive.

With the new app, Michigan casino gamblers can also enjoy a wider range of Casino games not previously available on the Sportsbook App and their web-based online casino which has been in operation since 2013. Now up to 564 games from 234, Caesars believes that their customers will enjoy the increased competitiveness of the app, even as it continues to add more games to its options.

Strong Showing in First Full Month Post-Launch

The online casino app has posted a strong showing so far despite just rolling out in mid-August. In September 2023, Caesars Online Casino Michigan earned around $7.2 million from its standalone app and its Sportsbook Casino. This is up 28% YoY from its September 2022 earnings, and it’s second highest online Casino earning in 2023 behind the $8.7 million made in April.

Its $7.2 million in online casino earnings in September also posts a positive sign for the future as it is expected to perform better when considering the fact that summers are a characteristically slow period for online gambling. Hence, early signs show that Caesars is reactivating casino lovers who might have dropped off in the past with its new app. They expect revenues to continue to grow.

In total, Caesars Online Casino has pulled in $62.8 million in total revenue in the nine months of 2023, which is significantly higher than the $49.4 million it had recorded by September of 2022. This performance also contributed to lower the losses from its digital category, as it dropped to $29 million from $68 million in Q3 2022.

Caesars also reported observing increased visits to their onsite casino locations from pure casino gamers who were reactivated from the app. This is as investors were concerned that the launching of a standalone online casino product may lead to a drop in walk-in gamblers, a phenomenon known as cannibalisation. These early signs should calm those fears.

What Michigan Casino Players can Expect from Caesars Going Forward

Caesars Palace recently integrated the full suite of mobile casino games offered by Digital Gaming Corporation to their online portfolio taking it to 564.

Caesars aims to grow its online casino offering in Michigan to the level of its Sports betting market dominance where it ranks only behind DraftKings Casino MI and FanDuel in market share. However, they are aware that they must expand their portfolio even more to achieve this. Their current portfolio of games puts them in 8th place in the online casino space.

Caesars also intends to expand the features on the app, to allow for a more seamless and exciting mobile experience. This expansion will occur concurrently with increasing the apps responsiveness, stability and speed. They hope that this will result in higher customer retention on their app.

With this new release, Michigan casino lovers of Caesars Palace can now enjoy a more traditional casino experience on mobile than was previously possible on the Sportsbook app. Caesars certainly hopes you will love it well enough to visit their brick-and-mortar locations.

Jessica is a news contributor to Gamble Online Michigan. She holds a Bachelor's degree in Economics but has over three years of experience working in the hospitality and gambling industry. Despite her core finance and investment banking background, she has been a casino feature writer for N1 Interactive Limited and multiple gambling affiliate sites. Her work has been featured on the bet365 blog, casino.zone and Max Force Racing. She spends her time between Michigan and California, staying up-to-date on the latest industry developments