Caesars Sees Future in Online Gaming

Published February 21, 2012 by OCR Editor

Caesars Sees Future in Online Gaming

Las Vegas casino company stands to benefit from rise of social gaming, CEO says.

Caesar Entertainment Corp. will benefit from the rise of online social media gaming, the CEO of the Las Vegas casino giant said in a speech last week. He made the speech just a few days after its initial public offering revealed some interesting figures.

Remarkable Online Growth

Caesars Chief Executive Gary Loveman talked in his Boston speech Tuesday of what he called "the continued remarkable growth of online social games." He added that these games, which Caesars offers through its Playtika subsidiary, are great for business because they are legal for anyone to play anywhere in the world.

The company made clear its online gaming ambitions in its filing to the Securities and Exchange Commission, pointing out that online poker was worth around $1.5 billion in annual revenue before it was restricted in 2006. Caesars already controls the World Series of Poker franchise, and said in its filing that it is not aware of another US land-based casino company which owns an online gaming business.

Caesars Valued at $1.92 Billion

Caesars shares jumped 71 percent in its trading debut last week after it completed its initial public offering. The strock rose to $15.39 at the close of the first day, valuing the company at $1.92 billion. It raised $16.3 million on the first day by selling less than 2 percent of its shares at $9 each.

In November 2010 Caesars scrapped a $531 million IPO. So this new offering now allows for investors involved in the company's 2008 buyout, including Apollo Global Management and TPG Capital, to sell additional shares. According to estimates the owners might seek to sell stock valued at more than $500 million.

See also

Potential Online Partnerships of Ten Atlantic City Casinos

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