(Bloomberg) — Caesars Entertainment Inc. is predicting that its online betting business will be profitable in 2023, after generating cumulative losses of more than $1.1 billion.
(Bloomberg) — Caesars Entertainment Inc. is predicting that its online betting business will be profitable in 2023, after generating cumulative losses of more than $1.1 billion.
Tom Reeg, Caesars’ chief executive officer, made the prediction Tuesday on a call with investors, saying the company has steadily narrowed losses in the business and sees a profit this year before interest, taxes, depreciation and amortization.
“We’re anticipating that digital on a full-year basis will be an Ebitda contributor for us this year,” Reeg said, adding he expects both sports betting and online casino play to contribute.
Earlier, Caesars reported a $5 million loss excluding certain items in its digital operations in the fourth quarter. The largest owner of casinos in the US, the company sees a “modest loss” from digital in the current period, including the expense of launching sports betting in Ohio, Reeg said.
The company has cut back on its marketing efforts after an initial push in new markets such as New York, Reeg said on the call. Caesars didn’t have a sports-betting ad on the Super Bowl, he said.
The digital business, which includes sports betting and online casino games, could be generating half a billion dollars in annual profit by 2025, Reeg said.
For the fourth quarter, Caesars reported sales and adjusted earnings of $2.82 billion and $957 million, respectively, exceeding analysts’ expectations.
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