Caesars Sportsbook Sees Silver Lining After Rough September

The first month of the NFL did not yield favorable results for sportsbooks, but the news wasn’t all bad for Caesars Sportsbook.

The Las Vegas gambling giant saw its third-quarter EBITDA lowered by around $32 million this week. The drop illustrates the significant impact of the losses suffered by the NFL and the college football season. Bettors won at a high percentage across the industry, leading most operators to see big losses to start the Autumn season. 

While the lowered EBITDA isn’t ideal, Caesars' leadership pointed out some promising indicators from sports betting. They reported a jump in parlay mix and bet sizes, which is one of the largest revenue drivers in the industry. 

Caesars also confirmed that they did not see any direct impact from the spread of sports prediction markets. Many expected Kalshi’s new parlay and betting market options would win bettors over, but Caesars didn’t see that over the first month of the football season.

The sportsbook is expected to receive a boost in less than two months. Caesars is on track to launch in the new Missouri market on December 1. The state’s low tax rate, large population, and many pro and college sports teams have operators expecting big things from the Show-Me State. 

Caesars Stays Mum on Prediction Markets

Sports prediction markets have gained momentum over the past year, and several sportsbooks are looking to get in on the action. FanDuel was approved to begin offering its own prediction market platform, but has not yet started offering any for sports. Underdog has also entered the new industry thanks to a partnership with crypto.com. DraftKings and BetMGM have also expressed interest in sports prediction markets, putting pressure on other operators to follow.

Caesars is one of the few sportsbooks that has not shown interest in expanding to include prediction markets. That may soon pay off as several states have warned sportsbooks against entering the industry. They cautioned that operators offering sports prediction markets anywhere in the US will have their sports betting or DFS licenses reviewed and potentially revoked.

Now, sportsbooks will likely have to choose between the two industries, and it seems that some will opt for sports prediction markets. If their licenses are pulled, it could lead to an uptick in customers for Caesars.