Caesars Hopes for Comeback in New Jersey
Caesars Atlantic City is one of four Atlantic City establishments controlled by the gaming, hotel, and resort company Caesars Entertainment. Over the course of the past 10 years, the boardwalk-based relic has been expanded and renovated several times. Yet despite the improvements, Caesars was hit harder by the economic downswing and the emergence of new gambling markets in Delaware and Pennsylvania than most other Atlantic City casinos.
Over the course of one month in 2013, Caesars revenues dropped a staggering 28.5% – a trend it hopes to reverse by carving out a niche in New Jersey’s online gambling market.
Caesars approach to online gambling
In August 2013, Caesars Entertainment announced its intent to partner with Gibraltar–based online gaming solutions provider 888 Holdings. As the driving force behind the increasingly popular 888poker, 888 Holdings has been pining to reestablish itself in the US market since being forced to withdraw in 2006. At the time, the US accounted for approximately 55% of 888 Holdings business.
According to New Jersey law, each Atlantic City casino will be permitted to launch up to five gambling sites. And although Caesars Entertainment has not revealed its entire Internet gaming plans, some aspects of how it will set up its army of gambling sites is beginning to come into focus.
For one, Caesars Entertainment has agreed to allow 888 to open its own-branded poker room and casino. Also known is that Canadian-based online gaming company Amaya Gaming will also be providing the software for at least one of Caesars Entertainment’s iGaming sites, under the moniker CaesarsCasino.com.
Because Harrah’s houses the largest live poker room of the four Caesars owned properties, and also plays host to the WSOP Circuit, it can be inferred that it will likely offer WSOP.com as its poker brand.
But what is not known is whether Caesars AC will be involved with either the 888 branded poker room and casino or CaesarsCasino.com.
Caesars has not yet been awarded a gaming permit from NJ’s Division of Gaming Enforcement.
Caesars live poker room
At 20 tables, Caesars live poker room tends towards the smaller side; at least as far as Atlantic City casinos go. Hyped as the “ultimate in luxury” on Caesars website, the poker room mostly spreads low to mid limit LHE and NLHE games. It occasionally runs higher limit games, based on demand.
Poker room highlights include:
- Daily tournaments ($100 entry fee, runs twice per day)
- Monthly Tournament of Champions freeroll
- Players are eligible for progressive Bad Beat Jackpot
Caesars poker room is fairly underwhelming compared to that of its sister casino Harrah’s, or even the Showboat’s, but what it lacks in size it makes up for in accommodations and accessibility.
Caesars role in the Atlantic City market
Although its profit margins are slipping faster than the average AC property, Caesars is still Caesars Entertainment’s second most profitable New Jersey casino. Because of this, Caesars will likely receive preferential treatment from its parent company. Perhaps not as much attention as Harrah’s, but likely more than either Bally’s or Showboat.
Caesar’s role in Atlantic City’s iGaming market is somewhat dependent on the online provider that houses its software. If it lands 888’s branded site, several cross-promotional opportunities could emerge, positioning Caesars in a more favorable light than if its software were crafted by an unknown quantity.
While Caesar’s is no longer one of Atlantic City’s most prominent casinos – that distinction belongs to the Borgata and Harrah’s – it remains roughly tied with the Taj Mahal as the most profitable casino on the boardwalk.
Truly dominating NJ’s iGaming market is probably out of the question, but Caesars could find itself winning the battle for either third or fourth place if it plays most of its cards right.
