A leading casino and sports betting company could have a catalyst coming with the launch of an app to wager on horse racing for its existing and future customers.
What Happened: Caesars Sportsbook, which is owned by Caesars Entertainment Inc (NASDAQ: CZR) announced Caesars Racebook in partnership with the New York Racing Association. The new app will debut in the spring and provide wagering on horse racing for more than 250 horse race tracks worldwide.
“Following our successful roll out of Caesars Sportsbook, we’re delighted to launch Caesars Racebook in partnership with NYRA Bets,” Caesars Digital Vice President Dan Shapiro said.
NYRA Bets, a unit of the New York Racing Association, is available in 30 states with further expansion planned.
Every bet placed on the Caesars Racebook will earn Caesars Rewards for customers.
Related Link: New York Breaks State Online Sports Betting Record In 3 Weeks: The Early Winners And What's Next
Why It’s Important: Caesars is the largest casino-entertainment company in the U.S. and has a large database of users it can market its new Racebook to.
The launch of this betting app comes as a leading horse racing wagering company has dropped out of the sports betting market.
Churchill Downs, Inc. (NASDAQ: CHDN) announced during its fourth-quarter earnings call it would end its TwinSpires sports betting app and online casino segment.
CEO Bill Carstanjen said the market is highly competitive and cited “limited regard for short-term or potentially even long-term profitability” as a reason for the move.
A report from PlayPennsylvania highlights the low market share TwinSpires commanded in markets it operated, including the state of Pennsylvania where it never got to a 1% market share or more.
Churchill Downs reported a record 2021 net revenue of $1.6 billion, up 52% year-over-year. The record results came from strong growth for its live racing and historical racing segment and the company’s gaming segment.
Caesars is launching its horse racing wagering platform at the perfect time. The company can also offer sports betting and an online casino to users through one business and it has a larger customer base than the faltering TwinSpires brand.
Caesars also owns the World Series of Poker brand, which could give it another opportunity to cross-promote and offer several different platforms in the betting and casino segment.
Customers earning Caesars Rewards from horse race wagering could be another benefit and push it ahead of the competition.
The Caesars Sportsbook was live in 22 states, including 16 with mobile wagering, as reported at the end of the fourth quarter. Caesars launched its Sportsbook recently in the state of Illinois and entered into a partnership with the Cleveland Cavaliers ahead of a potential Ohio launch.
Caesars has used an aggressive marketing strategy including numerous commercials, including one that aired during Super Bowl LVI. The company saw an early lead in the state of New York thanks to the marketing efforts.
The Kentucky Derby is set to run on May 7, 2022, at Churchill Downs. If the horse wagering app is live by the time of the race, expect Caesars to aggressively market its new product and gain significant market share in the sector.
CZR Price Action: Caesars shares are down 0.92% to $76.75 on Friday. Shares have traded between $67.22 and $119.81 over the last 52 weeks.
Photo by Jeff Griffith on Unsplash
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga