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In February, Caesars (NASDAQ: CZR) announced a move that would bolster its position in one of the hottest online casino markets in the country.
This week, the company completed the move. Caesars acquired WynnBET’s online casino operations in Michigan. Michigan is one of only three states in the US online casino market to generate $200 million in iGaming revenue in a month.
Through the acquisition process, Caesars extended the contract of WynnBET’s gaming partner, the Sault Ste. Marie Tribe of Chippewa Indians. In a press release, Caesars Digital President Eric Hession expressed his gratitude about the process:
“Caesars Entertainment would like to thank the Sault Ste. Marie Tribe of Chippewa Indians and the Michigan Gaming Control Board for their collaboration through this process.”
PlayUSA contacted Caesars directly about the WynnBET purchase but did not receive a response. In its statement about the acquisition, Caesars noted it will run the existing WynnBET platform and customers shouldn’t experience any interruptions.
Key takeaways
- Caesars has completed its acquisition of WynnBET’s Michigan online casino operations.
- The acquisition brings an added customer base to Caesars’ Michigan iGaming portfolio.
- The revenue it earns from WynnBET’s customer base could propel Caesars ahead of BetRivers for the fourth spot for monthly online casino win in Michigan.
Caesars’ acquisition of WynnBET Michigan is all about customer base
There are seven states in the country with active iGaming markets, with Nevada also offering online poker. Michigan, New Jersey, and Pennsylvania are the top three states for online casinos.
All three routinely post win numbers above $180 million per month. Michigan online casinos have raked in over $400 million over the past two months.
As a highly competitive market, operators find advantages in several ways, one of which is customer base. Big-name brands like FanDuel, DraftKings, and Caesars can bank on their brand name’s popularity, while smaller brands like WynnBET have to be creative about finding customers.
Finding customers is a whole lot easier when you can buy a competing operator, which is exactly what Caesars did.
When Caesars first announced the acquisition in February, SVP Matt Sunderland made the company’s motivation clear:
“As we continue to grow our iGaming franchise, the assumption of WynnBET’s iGaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play.”
Where Caesars now stands in the Michigan online casino race
Michigan has five major revenue players: BetMGM, FanDuel, DraftKings, BetRivers and Caesars. Here’s where each of those operators’ win stood in May:
- BetMGM: $51,625,144
- FanDuel: $51,502,950
- DraftKings: $34,921,178
- BetRivers: $12,518,670
- Caesars: $11,841,619
Caesars Casino typically meanders between the fourth and fifth spots. However, with its WynnBET acquisition, the company could take a firm grip on the fourth position.
For example, in May, WynnBET brought $2,573,666. That would be enough to vault Caesars past BetRivers and position the company to grow to at least $15 million monthly.
