Monday, February 6, 2023

Caesars Entertainment Continues to Bleed Cash

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Despite record breaking revenue numbers for Nevada and Las Vegas, Caesars Entertainment in hemorrhaging cash. While the company was able to generate $2.3 billion in revenue, which is up from $1.8 billion the year before, their net losses somehow increased from $423 in 2021 to $680 million this year.

Part of the reason for the counterintuitive results lies in the fact that Caesars operational expenses are up over 45%. Those expenses came to $2.3 billion, which was their exact revenue that the company reported. Additionally, they lost $53 million from their digital segment, which had been profitable to the tune of $39 million last year.

Caesars Entertainment CEO Tom Reeg stated “Our first-quarter operating results reflect sequential improvement each month of the quarter in revenues… Consumer trends remain healthy and we are optimistic for the balance of the year.”

One way the company could raise some capital and reduce operating expenses would be the sale of one of their Las Vegas properties. Caesars Entertainment has confirmed that talks are underway to sell one of their casinos on The Strip, and speculation that was on Planet Hollywood being the odd property out. Now, however, that has shifted to the Flamingo being sold.