Caesars Entertainment, Inc. CZR recently announced a collaboration with Michigan State University (“MSU”) Athletics, thereby naming Caesars Sportsbook as the latter’s official sports betting and iGaming partner.
Facilitated by MSU’s third-party multi-media rights holder, Playfly Sports, the partnership provides Caesars Sportsbook with access to MSU athletics’ broadcast and digital content as well as signage across basketball, football and hockey. Also, it emphasizes the expansion of responsible sports gaming and education for the MSU community.
The multi-year agreement includes the entitlement of a new premium seating area inside the Spartan Stadium and outdoor tailgating area (expected to debut during the 2022 football season) as well as access to alumni and fan engagement opportunities. Moreover, the association involves the integration of the company’s loyalty program, Caesars Rewards. This facilitates bettors with credits and a tier status that can be used to unlock unbeatable experiences within the Caesars portfolio of properties and partnerships.
With respect to the collaboration, Eric Hession, co-president of Caesars Digital, stated, “Michigan State has a proud tradition of excellence and partnering with an internationally recognized brand in college athletics is a great opportunity for us.”
Meanwhile, Caesars Entertainment continues to emphasize sports-betting expansion to drive growth. To this end, the company formed a new Caesars Digital segment comprising sports betting, iGaming and poker. As of Jan 14, 2022, the company operates sports betting in 21 jurisdictions, of which 15 are mobile. Going forward, the company anticipates rolling out iCasino offerings in New Jersey and West Virginia in the fourth quarter of 2021, subject to regulatory approvals. Further, it expects to complete the migration of its legacy up to Washington, D.C., Nevada, Pennsylvania and Illinois to the Liberty platform in 2022. The company stated that its expanded gaming portfolio will be supported by improvements in its in-app merging technologies.
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Shares of CZR have gained 6% in the past year compared with the industry’s 5.3% growth. The company is benefiting from the solid performance of the regional destination properties. This, along with its focus on partnerships and property development, bodes well. Also, the improvement in occupancy levels is encouraging. The company continues to focus on the prospects derived from the William Hill acquisition. However, pandemic-related woes persist. Meanwhile, earnings estimates for 2022 have declined in the past seven days, depicting analysts’ concern regarding the stock’s growth potential.
Zacks Rank & Key Picks
Caesars Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and RCI Hospitality Holdings, Inc. RICK.
Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of Hilton Grand Vacations have increased 60.9% in the past year.
The Zacks Consensus Estimate for HGV’s 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from the year-ago period’s levels.
Bluegreen Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of Bluegreen Vacations have surged 158.8% in the past year.
The Zacks Consensus Estimate for BVH’s 2022 sales and EPS indicates a rise of 7.6% and 0.4%, respectively, from the year-ago period’s levels.
RCI Hospitality sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 122.2% in the past year.
The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.
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