While the company has been hemorrhaging cash for several years, Caesars sports betting is now expected to be generating a profit for the company by the fall of 2023. This according to their CEO, Tom Reeg .
In a story reported on Yahoo! Finance, Caesars online gaming and sports betting lost over $550 million in just the first quarter of this year. But according to Reeg, the company has a plan. First up, they will cut their marketing spend, saving over $250 million.
The second step in the recovery process is for Caesars to narrowly target their more “profitable customers” with specialized marketing offers. That move, the company believes, will help to build loyalty with those customers while simultaneously drive profitability.
Reeg went on to state that while the Caesars sports betting marketing spend has been cut, there has thus far been “…no degradation in the sports betting handle share”. If the company is on the right side of this gamble, then it would be possible that they could become profitable by the close of 2023.
After all, during the first quarter of this year the company generated net revenue of about $2.3 billion. That is a somewhat significant increase over the $1.8 billion the company made over the same period in 2021. So, if Reeg is correct… and if the company manages to reduce debt… and if their marketing plan is successful… then look for Caesars sports betting to help push the company back towards success.