Caesars Entertainment Corporation Reports $1.20bn Net Loss in 2019

Last week, Caesars Entertainment Corporation (CEC) reported its financial results through the 12 months finishing on December 13. The company announced that it had turned a $1.20 billion net loss over the period.

Net revenue over the 12 months reached $8.74 billion or up 4.2% on the plus side. The positive developments in the financial department had been occasioned by a strong performance in Las Vegas, Nevada.

Nevertheless, Caesars admitted that interest in Atlantic City has fallen and that the New Jersey gaming hub was now less important to the company in terms of revenue, and even the potential to generate sufficient revenue.

Net revenue increased throughout other states, however, Caesars said. A small positive sign for the company was the fact that Q4, 2019 actually came along with a 2.6% year-over-year (YOY) increase in net revenues.

Meanwhile, the Mississippi Gaming Commission has given the green light for the acquisition deal between Eldorado Resorts and Caesars. The regulator joins other gaming watchdog in expressing its endorsement, including the Pennsylvania Gaming Control Board (PGCB) and the Iowa Racing and Gaming Commission.  

In Other news

Republican Senator Tom Cotton Tries to Curb Expansion of iGaming

Senator Tom Cotton, a member of the Republican Party, has submitted a new bill to the U.S. Senate. Entitled S.3322, the bill will seek to curb the proliferation of online gambling, arguing that the use of smart devices to place online bets goes against the grain of the Unlawful Internet Gaming Enforcement Act (UIEGA).

Fairly unperturbed by UIEGA, many states have adopted mobile betting and gambling solutions, which the Senate should now study in detail, Senator Cotton argues. The Senator has also urged that themes such as fairy tales and cartoon characters should not play part in any gambling products as they could be misleading to children and affect them negatively.

He also urged the Senate and Commissions established thereof to also pay attention to misleading marketing campaigns that use mobile platforms to promote gambling products. Sen Cotton previously tried to overturn the Obama Administration’s Opinion of the Wire Act, something that was finally achieved in 2019.

Galaxy Gaming Sets out to Acquire Progressive Games

Consolidation continues in iGaming with Galaxy Gaming now vowing to pay up to $12.4 million to acquire Progressive Games, a rival developer studio. Galaxy will buy up 100% of the equity interest in Progressive.

The pair are hoping that by bringing their operations under the same roof, they will be able to explore new opportunities into the growing iGaming market in the United States. Online gambling is a key development in the future of both operations, Todd Cravens, Galaxy’s Chief Executive and President said in the official press statement.

Meanwhile, Chris Reynolds, PGP CEO has argued that Galaxy’s games have been one of the biggest drivers of revenue for the company and that it made sense to strengthen the relationship between the two companies by brining their businesses closer together.

Churchill Downs Incorporated Sees Better Revenues in 2019

Churchill Downs’ results in 2019 saw one-third of a year-over-year increase, occasioned by the expansion of real estate property and marketing the company’s product in more states. Over the 12 months leading to December 31, the company posted $1.33 billion in net revenue, or up 33%.

A number of casinos have been adding to the sterling results reported by CDI. The leading properties have been Presque Isle in Erie, PA, and Lady Luck Nemacolin in Farmington, PA.  Both properties were purchased in January, 2019, indicating the strength in the company of making adequate market-geared decisions that bring immediate results.

CDI’s Presque Isle was a great success for both brands as the casino posted its strongest results to date. In places like Mississippi and Florida still kept steady results, although it took a slight dip in Oxford Casino in Maine. Nevertheless, gaming remained strong.

In fact, even land-based operations seemed to do well, proving that it’s fairly easy for a well-established company to continue pushing both its online and land-based segment side-by-side.

MGM Springfield Casino Employment Rate Lower Than Expected

While iGaming has been making good strides, the land-based segment has also been trying to keep its end of the bargain. With the US hosting hundreds of casinos, MGM Springfield Resort Casino has failed to meet pre-set employment standards.

According to the original projections, the casino was supposed to provide employment for as many as 3,000 people, but as per the Q4 report the casino released last week, the current employment level stood at 2,000 people. The report was submitted to the state regulator, the Massachusetts Gaming Commission.

As per the official document, 1,479 people are presently employed on a full-time position with another 525 people working part-time. Interestingly, a research presented at the Gaming Commission also indicated that the MGM Springfield casino was generating as much crime as “a large mall,” putting another potential issue in focus.

Boston Appeals Court Says No to Mashpee Wampanoag Tribe Appeal

The U.S. Court of Appeals in Boston has turned down the appeal by the Mashpee Wampanoag Tribe, which had sought permission to build a casino on what would have been its own sovereign land.

However, the Court of Appeals had decided that the law didn’t apply to the Mashpee Wampanoag Tribe due to the nature of the Indian Reorganization Act law which only came into effect in 1934.

The tribe has described the ruling as a “grave injustice” and stated members’ determination to continue and pursue the matter in court. Meanwhile, opponents of the proposed casino project have said that the ruling is justice served.

However, the tribe reminded that the ruling was a dangerous precedent, and the first time The Federal Government has decided to take away land from Native Americans, setting a dangerous legal precedent for the future.