Caesars: Online Gaming Will "Compete" With Land-Based Casinos
According to a report by the Associated Press, online bets could have adverse effects on Caesars Entertainment’s four land-based casinos in Las Vegas, Nevada and Atlantic City, New Jersey.
In a filing to regulators on Wednesday, Caesars wrote that online gambling could reduce visits to its casinos in both New Jersey and Nevada, and potentially harm the company’s bottom line.
The report, issued to the U.S. Securities and Exchange Commission, said that online gambling will “compete” with the company’s land-based business.
“Caesars will, and other online providers do, offer online gaming options that compete with our live poker offerings in Nevada and New Jersey,” Caesars said in the report. “Expansion of online gaming in Nevada, the commencement and expansion of online gaming in New Jersey and the introduction of online gaming in other jurisdictions may further compete with our operations. Online gaming may reduce customer visitation and spend in our traditional casinos in Nevada and New Jersey, which could have an adverse impact on our business and result of operations.”
The company notes that Harrah’s Resort Atlantic City, Caesars Atlantic City, Bally’s Atlantic City, and the Showboat Casino Hotel could be hit the hardest because New Jersey offers online casinos, while Nevada only allows online poker.
Caesars spokesman Gary Thompson told the Associated Press that this report was only filed for legal reasons. The report also listed various other potential risks to its business, including war or a terrorist attack.
“There are legal reasons for including cautionary language for potential issues that, while we consider them less, rather than more, likely, could impact our operations,” Thompson told the AP. “While it’s a legal requirement to include such language as this among potential risk factors, our experience has been that opening new channels to reach potential new customers and offer them the benefits, among others, of our Total Rewards program, has not caused visitation declines.”