Posted on: October 14, 2024, 02:30h.
Last updated on: October 13, 2024, 08:43h.
Caesars Entertainment’s (NASDAQ: CZR) fourth-quarter financial results could derive benefit with some help from pop star Taylor Swift.
In a recent report to clients, JPMorgan analyst Joseph Greff noted the casino operator’s eponymous New Orleans property could be boosted by three dates of Swift’s “Eras Tour.” Those concerts are scheduled for Oct. 25 through Oct. 27 at Caesars Superdome. The gaming company’s relationship with the Superdome is primarily naming rights, but Greff says the Swift concerts could be positive catalysts for the operator’s casino hotel in the city.
Management called out significant strength at its New Orleans property for opening weekend, with more credit out for the weekend than for Super Bowl weekend, largely driven by Taylor Swift’s slate of shows at the Caesars Superdome,” observed the analyst.
The commentary on credit implies Swift fans aren’t just coming to New Orleans to see her. Some are visiting New Orleans with the intent of wagering at the revamped Caesars gaming venue.
Caesars Could Be Reexamining UAE Opportunities
Following meetings in Las Vegas with Caesars management, Greff said the operator could be reconsidering expansion plans in the United Arab Emirates (UAE).
“Given Wynn’s investor event was focused on its Middle East opportunity, we believe Caesars, like others, is actively pursuing something in the region,” added the analyst.
Greff’s comments arrived 13 months after Caesars scrapped plans for a non-gaming hotel in the UAE. Regulators there recently approved the region’s first-ever casino license, granting it to Wynn Resorts (NASDAQ: WYNN) and MGM Resorts International (NYSE: MGM) has said it will also pursue a gaming permit in the emirates.
When Eldorado Resorts announced plans to acquire old Caesars in 2019, CEO Tom Reeg — now at the helm of the Caesars — said that international opportunities would have to be “stupendous” for the combined company to consider expansion outside the US. “Stupendous” is subjective, but there’s no denying the UAE is widely viewed as compelling within the global gaming industry.
Parlays Helping Caesars Sportsbook
Indicating that the acquisition of ZeroFlucs, announced in July, is paying off for Caesars Sportsbook, Greff noted the operator has boosted its parlay mix to the low 20s percent range this football season up from the mid-teens last year.
The analyst pointed out that Caesars is nearing the completion of its capital investment cycle in its digital unit and with those expenditures drawing to a close, online gaming could be an important earnings driver for the gaming company in the years ahead.
Greff also noted that Caesars executives don’t expect any new states to approve iGaming legislation in 2025. Currently, just seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia – permit that form of wagering.
