Caesars say online gambling could hurt land based business
Caesars Entertainment have warned their investors that online gambling could impact on their land based casinos in New Jersey and Nevada.
The gambling giant that owns 4 of the 12 casinos in New Jersey said in a securities filing that their new entry into online gambling in both states could harm their bottom line, with the number of visits from gamblers decreasing.
“Caesars will, and other online providers do, offer online gaming options that compete with our live poker offerings in Nevada and New Jersey,” the company wrote to investors. “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 also said that their four New Jersey casinos — Harrah’s Resort Atlantic City, Caesars Atlantic City, Bally’s Atlantic City and the Showboat Casino Hotel — could be further affected because all the games they offer at their physical locations can now be played online.
Following the statement a Caesars company spokesperson went on to say the announcement was for legal reasons only and even Caesars themselves were unsure if there would be any impact from their online business to their bricks and mortar casinos. Caesars also added in their filing report that dangers also existed for the company in another economic downturn, war, or a terrorist attack.
