Caesars Sportsbook was the first sports betting operator to secure its place in Kentucky.
But it won’t come in first when it comes to promotional spending in the Bluegrass State.
In their quarter two earnings call Tuesday evening, executives from Caesars Entertainment touted reduced costs related to bonus offers and an “overall lower level of marketing” as one a key reason for the company’s net revenue of $2.9 billion in Q2, compared to $2.8 billion last year.
For digital, which includes Caesars’ mobile sports betting and casino platforms, Q2 revenue was up to $216 million compared to $152 million last year.
Eric Hession, the CFO of Caesars Entertainment, told investors to expect promo spending to continue to reduce. Logic dictates that includes a reduced amount dedicated toward promoting Caesars when Kentucky sports betting launches in September.
“(Revenue will) be juiced by the fall-off of the fixed marketing expenses that we have in the cost structure,” he said.
Look at Caesars’ spending in Ohio
In Ohio, for instance, Caesars Sportsbook spent just $287,950 on promotions in June. That was just the seventh-most among all Ohio apps. Meanwhile, Caesars reported the fifth-highest revenue — $1.2 million.
Expect much of the same with Caesars Sportsbook Kentucky. Caesars will likely throw a chunk of money at its Kentucky product surrounding launch to get it off the ground, but the promo spending will likely fall of dramatically after that.
Kentucky not brought up at all
In fact, there was zero mention of Kentucky during Caesars’ Q2 earnings call. Nothing. Not once.
Caesars CEO Tom Reeg was asked about new revenue-driving opportunities on the horizon, and he didn’t even discuss his Caesars launching a retail sportsbook and online sportsbook in Kentucky this September. Instead, he touched on the issuance of licenses for retail casinos in New York.
So … that pretty clearly suggests Caesars’ spending on Kentucky sportsbook promos will be insignificant.
