The Horseshoe online casino app went live Wednesday as the second Michigan standalone iGaming brand from Caesars.
The second license for the Horseshoe brand was a license owned by WynnBet, which Caesars bought earlier this year. Caesars and the Sault Ste. Marie Tribe of Chippewa Indians signed a long-term extension of the original deal with WynnBet.
The second branded app will help Caesars compete for more market share in the Michigan online casino market, where it currently ranks fifth for the year through August.
Caesars has not specifically broken out how much the license acquisition cost. The company noted $26 million in costs concerning “acquisition of gaming, rights and customer relationships” for the first half of 2024 in previous earnings reports.
Horseshoe brand for new customers?
Caesars’ first standalone iGaming app, Caesars Palace, takes its name from its flagship property in Las Vegas and its Caesars Atlantic City.
However, Caesars has 10 Horseshoe-branded casinos around the country that might offer more brand recognition for the bettors that frequent those locations.
While the the Caesars Palace app will remain the flagship online gaming brand, the Horseshoe brand should “resonate with a lot of customers,” Digital President Eric Hession said on Caesars’ second quarter call. The Horseshoe app will continue launching in available states and should finish its rollout when it launches in Ontario during the first quarter.
iGaming critical for Caesars
The standalone Caesars Palace launched in August 2023 and is already making a significant difference for the company.
Online casino handle hit $3.5 billion for Caesars in the second quarter, up 33.2% from the same quarter last year. For the first half, handle was more than $7 billion and up 38.8% from the first half.
While online gambling is still accessible through the Caesars sports betting app, it is the standalone app driving growth at a faster than 50% pace, Hession said on that same earnings call.
Michigan online casino market breakdown
Two Michigan online casinos account for more than half the revenue so far this year.
BetMGM is the top brand with $405.7 million in revenue through August, good for a 26% market share. FanDuel, which said it is now the top US online casino brand at its Investor Day last week, has a 25% share with $391.8 million in revenue this year.
DraftKings is in third with $293.3 million in revenue, good for 19% of the market. It is then a nearly $200 million gap to get to BetRivers in fourth ($99.4 million, 6.4% share) followed by Caesars fifth at $91 million, or a 5.9% share.