In partnership with the Sault Ste. Marie Tribe of Chippewa Indians, Caesars Entertainment has agreed to acquire the operations of WynnBET’s Michigan igaming business.
The agreement, which is pending regulatory approvals, will give Caesars access to the Sault Tribe’s igaming skins, which will enable the company to operate additional digital brands in Michigan.
Both Caesars and Wynn will receive non-cash consideration, including extinguishment, reductions and assignment of certain contractual obligations related to both parties’ businesses.
“As we continue to grow our igaming franchise, the assumption of WynnBET’s igaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play,” said Matt Sunderland, SVP and chief igaming officer for Caesars Entertainment.
“We are honoured to work with the Sault Ste. Marie Tribe of Chippewa Indians and look forward to growing with them in Michigan.”
The news comes as Caesars puts out its Q4 and end-of-year 2023 financial results. The report shows Q4 GAAP net revenues of $2.83bn, up against $2.82bn for the comparable prior-year period. GAAP net loss was $72m compared to a net loss of $148m for the comparable prior-year period. Caesars’ Digital Adjusted EBITDA also grew to $29m versus $(5)m for the comparable prior-year period.
The full year figures showed GAAP net revenues of $11.5bn, up from $10.8bn in 2022, GAAP net income of $786m up from a net loss of $899m, and a Digital Adjusted EBITDA of $38m up from $(666)m.
CEO Tom Reeg said: “Our fourth quarter operating results demonstrated consolidated net revenue growth, reduced net loss and stable consolidated Adjusted EBITDA year over year. Results were driven by a 28 per cent year-over-year increase in Caesars Digital net revenue that generated a 10 per cent Adjusted EBITDA margin in the quarter.
“Full year results benefited from a 78 per cent increase in Caesars Digital net revenues to approximately $1bn, and an over $700m improvement in this segment’s Adjusted EBITDA.”
