Caesars: selling digital division is an option

  • Wednesday 2 November, 2022
Caesars: selling digital division is an option

Caesars Entertainment stated the option of selling the digital sector of their business to drive shareholder value is possible, though not desirable.

Shortly after publishing their latest quarterly report, the gambling and hospitality corporation released an earnings call with their chief executive officer Tom Reeg speaking. He stated that since the launch of their digital division, the company has been constantly making improvements to optimize their spending.

This quarter the online sector of the firm had its first major period of growth after half a year of decline. Reeg said that the growth came from some significant experimentation that took place over the course of two months, which led to greatly optimized shareholder value.

With further expansion planned for the sector, such as projected launches in a couple of new states in America, the chief executive was asked about its future and whether it could potentially be spun off into its own brand.

In my opinion our success is tied with our highly recognizable brand and our past experience with retail gambling. Additionally, our rewards database has had a sizable impact as well, so staying fully under control would be the best path for our digital division. However, as it is always our aim to increase the returns for our shareholders, the decision to spin our online operations off would not be out of the question if the market conditions were right and it would benefit our investors.

remarked Tom Reeg, answering the question.