At this time last year, Caesars Entertainment CEO Tom Reeg sent a warning to the sports betting industry on the perils of a cutthroat ad-spending war that he viewed as spiraling out of control.
A frenetic period of irrational spending on advertisements and promotions could not be sustained, Reeg emphasized, pointing to the outsized losses incurred by the company’s digital segment. As a result, Caesars pivoted by cutting advertising costs considerably, while temporarily shelving a popular commercial series featuring football’s Manning brothers.
A year later, Reeg struck a different tone on Tuesday’s 2022 year-end earnings call. Caesars Digital, which runs its online sports betting and iGaming segments, shaved $300 million in losses over last year’s fourth quarter as the division moves toward anticipated profitability in 2023. Caesars Digital nearly broke even on the quarter, reporting an adjusted EBITDA loss of $5 million for the three-month period ended Dec. 31.
Caesars reports strong quarter for Las Vegas, digital business loss narrows dramatically https://t.co/Sj8rkuduN6 pic.twitter.com/nKf6OSOE72