Caesars Entertainment Levels Up iGaming with Launch of New iCasino App

Summary:

• The new iCasino app will be rolled out in the third quarter
• It will help drive better customer engagement and boost Caesars’ iGaming revenue
• Caesars’ digital segment showed strong performance in Q1 of 2023

Caesars Entertainment is set to introduce a standalone icasino app in the third quarter after seeing significant growth in its net digital revenues. The latest digital offering from the American hotel and casino entertainment company aims to drive better customer engagement as it strives to improve its iGaming business.

Strong Q1 Performance from Caesars Digital

The upcoming launch of the new mobile casino app was announced during the company’s Q1 earnings call where it revealed that its digital business Caesars Digital, which covers the company’s iGaming and sports betting operations, performed well during the first three months of 2023, generating $238 million in net revenue, up from the $53 million reported in the same period last year.

The digital segment’s adjusted EBITDA loss for Q1 of 2023 sat at $4 million, compared to $554 million for Q1 of 2022.

Overall, Caesars generated $2.8 billion in total revenue across all segments during the first quarter of 2023, up from $2.3 billion in Q1 of 2022. The company attributes its strong Q1 performance to its effective targeted promotional investment within its existing customer base as well as in the new markets where it recently launched its gaming operations.

New App Seen as iGaming Revenue Booster

Caesars is looking to increase its iGaming revenue further with the launch of the new icasino app. Eric Hession, president of Caesars Sports and Online Gaming, said the new app will include new proprietary offerings and improved marketing capabilities which will enable the company to increase customer engagement.

The company is launching the app with the ultimate goal of taking its US online casino business to a whole new level, bringing it on a par with its sports betting business which has a betting app already (pictured).

Caesars’ digital segment nearly broke even in the first quarter, even with fresh launches this year in Ohio and Massachusetts, according to CEO Tom Reeg. He said the company is looking at getting its iGaming revenue to reach the same level as that of sports betting.

Reeg said they’re happy with the Q1 performance of their digital business as it coincides with their expectations. He noted though that it would still take until 2025 before Caesars could see a significant recovery on the $1.1 billion cumulative losses it recorded when Caesars Digital was launched. The launch of the new icasino app will greatly contribute to that recovery.