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Casino giant Ceasars Entertainment moves to rebrand its newly-bought retail sportsbooks to Caesars; the new name will be Caesars Sports. The renaming process will take place during the fall.
Tom Reeg, Caesars Entertainment CEO, made an official announcement during one of the analyst conference calls on Wednesday about the rebranding from William Hill to Caesars. The online betting app will also change its name to Caesars Sports. This is a move that should take place before the upcoming football season.
Reeg said that Caesars is going to rebrand the sportsbook alongside the app as Caesars Sports. He also indicated that the business would be tied into the Caesars Rewards database. It was all announced while Reeg was giving details about the first quarter earning period. He added that sports analysis proves that there is something to be optimistic about as there is an excellent correlation between market share and spend.
The CEO’s announcement comes less than two weeks after Caesars sportsbook sealed the deal of $3.7 billion to purchase British-based bookmaker William Hill. Caesars is planning for the handover to take place at the start of NFL season.
According to Reeg, the NFL has become “the big Kahuna” of sports betting in the US and beyond. Therefore, the main goal is to ensure that rebranding happens before September. He also conceded that one of the main issues would be that the “single wallet” will not be up and running before the football season begins. Reeg believes that there is a great potential for growth for Caesars in the sports betting arena now that William Hill was fighting singlehandedly.
Reeg also made it public that Caesars was earning over $100 million in free cash flow monthly and that some of the money will be aggressively used for building up its sports betting offering. He cited MGM’s success in Michigan and noted that Caesars would strive to employ a new software system that will be used in its platform nationwide while taking advantage of the company’s extensive customer database.
He indicated that the company has one of the largest loyalty databases in the industry as they bar no one. Reeg also cited that Caesars is a “low-cost producer” and can make new acquisitions at a competitive price, and the resulting cash flow will be put to use to invest aggressively moving forward.
However, Reeg did not disclose a specific target that they intend to capture regarding getting a specific market share percentage. He acknowledged that the company would invest considerably more compared to what they have invested in before. Nevertheless, the CEO was confident that investment could be managed effectively following the acquisition of William Hill.
Reeg noted that the company will not be throwing away money to help in buying the market share and that it will be building its investment thoughtfully. He mentioned that people should expect to see significant improvement in investment.
According to Reeg, the company is still in its early stages and has a great hand to play. He added that they are confident in their ability to operate and seek to be a leader in the industry, and that is what they are planning to do.
The Advantage Of Preexisting Content Deals
Tom Reeg, Caesars CEO, expects the company to utilize its recent content deals further to fuel its growth. One of such deals made in April made it to become one of the three NFL official sports betting partners alongside FanDuel and DraftKings. Another deal closed in September with ESPN gave William Hill the advantage of becoming the sole odds provider for the Disney-owned sports network company. He indicated that these deals have helped catapulted Caesars into a prime spot.
Reeg said that Caesars told partners and users that they expect to see a continued convergence on the media platform. He added that they are the only significant player at the moment. Now that William Hill was purchased, it means that they control everything. Caesars is a one-stop-shop. He also added that if others are looking to get into business, Caesars would be willing to work with them as long as they can get more value for the company.
Reeg indicated that Caesars will sell the non-US assets of William Hill over the next year. He asserted that the company isn’t good at running non-US businesses, arguing that other companies might be good at it. Reeg added that the selling of the assets would provide additional capital that will be used to divide returns to shareholders.