Caesars Warns Investors Over Online Gambling
Earlier this week Caesars Entertainment issued a cautionary note to its investors warning that the introduction of online gambling in New Jersey may have a negative impact on profits at the state’s land casinos.The note said that, “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.”
It went on to say that profits may be hit at all its Atlantic City properties: the Showboat Casino Hotel, Caesars Atlantic City, Bally’s Atlantic City and Harrah’s Resort Atlantic City. A major concern is that all the games offered on the casino floor are also available online.
A spokesperson for the group tried to prevent panic pointing out that the law forces the group to notify its investors if there is a change in operation which may affect profits. The spokesperson said, “While it’s a legal requirement to include language such 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.”