Caesars Considers Taking iGaming Business Public

Given the success that online casino operators are experiencing, it was just a matter of time before it would open the door to new possibilities. That is exactly what seems to be happening in the boardroom at Caesars Entertainment.

For those who don't know, Caesars Entertainment Interactive runs iGaming operations in states like Michigan, New Jersey, and Pennsylvania. The currently available iGaming sites include Caesars Sportsbook and Casino and Horseshoe Casino. After several years of smashing success, the company is considering the separation of its iGaming business from the rest of Caesars Entertainment's other gambling operations.

The news came during a recent company investor presentation, covering the company's financial results for the 4th quarter of 2024 and the fiscal year ending December 31, 2024. With iGaming operations coming in at record levels, Caesars Entertainment CEO Tom Reeg brought up the possibility of creating a separate publicly traded iGaming company with the Caesars brand behind it.

The topic was brought up by investors who were wondering if there were ways the company could exploit the success of its digital operations (sports betting and online casino gambling). The discussion of this topic seems timely due to the information recently provided by the American Gaming Association. In a release of data for 2024, the association reported that the nation's overall iGaming revenue has risen to a record $8.4 billion, with promises of higher numbers in the future.

According to Reeg, in response to the question during the presentation:

"If the market dynamics remain the same, and the business continues to grow as it has, you should expect that we would look at any and all avenues in terms of how we can drive the most value."

Why an iGaming IPO Might Help the Company

With iGaming revenue on the rise in all seven (7) states where such activities are permitted by law, the time is ripe to take advantage of the windfall. By segregating iGaming operations, it would allow Caesars to bring in a massive cash infusion. That's something the company is going to need based on its current overall growth trajectory.

Indeed, the time could be right. While the U.S. iGaming market is currently confined to seven (7) states, there are as many as six (6) other states that are currently considering the legalization of online casino gambling. Among those six (6) states are Illinois, Indiana, and New Hampshire. As the field of states grows, one would assume revenue would also grow proportionately.

The fact that investors are showing favor to digital gambling operations only adds to the intrigue. It's always a good idea to strike these kinds of deals when the iron is hot.

Caesars has not yet mentioned any timeline for a potential iGaming IPO. With that said, now might be the right time to pull the trigger. As word is getting out that something might be in the works, it seems to be catching the interest of investors.