The second-biggest U.S. gambling operator, Las Vegas-based Caesars Entertainment, this week reported its Q1 2024 results.
They’re not looking too good. Caesars reported a net loss of $158 million for the quarter, with revenues of $2.7 billion. That’s compared to a net loss of $136 million on $2.8 billion in revenues in Q1 2023.
Despite record overall gambling revenues in Nevada in February and March, Caesars actually reported a loss in its home segment over the quarter.
The operator’s revenues for its Las Vegas properties hit $1.03 billion, with a net income of $198 million. Both numbers are down on last year’s $203 million net income and $1.1 billion in revenues from the same period.
“Operating results during the first quarter in Las Vegas are a combination of record occupancy, driven by the Super Bowl and international visitation for Chinese New Year, offset by lower-than-expected hold,” said Caesars Entertainment CEO Tom Reeg in a company earnings announcement published on Tuesday.
In a call with company investors that same day, Reeg was much more blunt in his assessment.
“This was kind of a repeated butt-kicking, broadly based throughout the quarter,” he said.
The Numbers
The biggest decline in revenues was in Las Vegas, where Caesars properties made 9.1% less than they did in Q1 2023.
Despite record occupancy rates during the Super Bowl at the city’s Allegiant Stadium, Caesars failed to translate that into higher revenues.
It probably also didn’t help that one gambler hit no less than seven jackpot slot wins of $100,000 or more in one week in early April at the operator’s Caesars Palace property, totaling $1.7 million.
Caesars U.S. casinos outside of Las Vegas also saw falling revenues, but not as substantially as those in Sin City. Its so-called regional casino operations posted $443 million net on revenue of $1.47 billion.
Revenue in that segment was down 1.7% on Q1 2023’s $1.39 billion.
On the other side of things, online gambling via Caesars Digital was booming. Caesars Palace Online Casino and Caesars Sportsbook saw a combined revenue rise of 18.5% over the same period last year.
But again, that didn’t translate into revenues. Caesars said that its expensive launch in the North Carolina online sports betting market pushed it to a loss-making quarter of $34 million in the digital segment.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
