Don’t Expect A Flood Of Caesars Promotions When It Launches In Kentucky

Written By Matthew Bain on August 2, 2023
Caesars low promotional spending in Kentucky

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.

Photo by Shutterstock
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Matthew Bain

Matthew Bain started as a Content Manager for PlayKentucky and other Catena Media sites in 2022. He covered the launch of Massachusetts sports betting and the Prop 26 vs. Prop 27 battle in California. Before that, he spent six years as a sports reporter and then deputy sports editor for the Des Moines Register, during which time he won nine statewide journalism awards, including the Genevieve Mauck Stoufer Outstanding Young Iowa Journalists Award. As deputy sports editor, Matthew oversaw the Register's recruiting coverage while also innovating the outlet's high school sports coverage. Matthew graduated from San Diego State and grew up in California, but he's somehow a Boston Celtics fan. Long story.

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