Caesars Entertainment announced the launch of its new Caesars Palace online casino brand during an investor presentation alongside the news that its online operations had turned profitable in Q2. Caesars Online Casino, a longstanding iGaming brand in the US, has quietly rebranded to Caesars Palace Casino in several states.
More important than the new name, the transition brings with it a new standalone casino app. Creating a separate product for its pure casino users is a move that Caesars first announced during its Q1 investor call. Players can use their existing credentials to access the new app and website. In addition, their information, including their bankroll, will automatically transfer.
The new Caesars Palace website and app are now live in most jurisdictions where Caesars operates, including:
- West Virginia
- Ontario, Canada
According to Caesars, the rebranding will come to New Jersey shortly.
The company noted that users can still access casino games using the Caesars Sportsbook app for the foreseeable future. However, the standalone app will include a much broader selection of games than the company offers its sports betting users.
Additionally, Caesars shared that it anticipates introducing an in-house player management system, which will launch state-by-state later this year. That will eventually lead to a shared wallet, which Caesars expects to roll out in 2024.
The New Casino Will Be More Competitive
During the company’s Q2 earnings Call, Caesars representatives acknowledged that the old casino product was not competitive. Having debuted as a web-based casino in 2013, it lacked the technology to keep up with modern competitors.
Caesars believes the new casino is the first step towards increasing its iGaming market share to match what it enjoys in the sports betting space. Nationally, it is behind only DraftKings and FanDuel in online sports betting.
Eric Hession, President of Caesars Digital, said Caesars Palace Casino is a significantly improved product with “enhanced marketing capabilities.” He added that the new casino is better connected to the Caesars Rewards loyalty program. The new app will allow easier transfer of rewards points for customers to use in-person at Caesars properties. Additionally, with the improved connection, Hession believes loyal Caesars Rewards customers will move to the new product.
Another area where the old casino fell behind the competition was the size of its games portfolio. For example, the Caesars Casino offered 234 games in Michigan, while some competitors had much more. The new Caesars Palace Casino features an expanded selection of over 500 games, including:
- 486 slots
- 23 jackpots
- 15 live dealer games
- 37 table games
Caesars Palace also has separate tabs for slot categories like steppers, exclusive slots, game shows, showbiz, and Megaways, making it easy for players to find their favorite game. One potentially negative change is the lack of demo play, which was available at the old product.
Rebrand Coincides With Caesars Digital’s Profitable Quarter
In addition to the launch of Caesars Palace, other big news from the company is that Caesars Digital, which includes Caesars Sportsbook and Casino, was profitable in Q2. The division posted positive adjusted earnings before interest, taxes, and amortization (EBITDA) of $11 million. For comparison, it posted a loss of $69 million for the same quarter last year.
According to Caesars Entertainment CEO Tom Reeg, the result is significant, as it’s the first quarter with profitable adjusted EBITDA since William Hill rebranded to Caesars Sportsbook in 2021. The result puts the company to a positive $7 million in adjusted EBITDA in the first half (H1) of 2023. That’s considerable compared to the massive $623 million loss in H1 2022.
Other positive results from the Digital division include net revenue of $216 million, which equaled a 42.1% increase year-over-year. Additionally, iGaming posted a 27% increase in handle.