Caesars Entertainment announced it has agreed to buy Wynn Resorts’ online gaming rights in Michigan as the company plans a major online gaming expansion in the state.
Under the terms of the agreement, Caesars will partner with the Sault Ste. Marie Tribe of Chippewa Indians, which operates five tribal casinos in Michigan’s upper peninsula. The financial costs of the rights from Wynn were not disclosed. However, a Caesars release said both Las Vegas-based companies will receive “non-cash consideration” as part of the deal, which will require approval from the Michigan Gaming Control Board.
Caesars currently partners with the Grand Traverse Band of Ottawa and Chippewa Indians for online gaming and retail Michigan sports betting. While no details about that existing partnership were mentioned in the release late Tuesday, it appears Caesars will work with both tribes.
“As we continue to grow our iGaming franchise, the assumption of WynnBET’s iGaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play,” said Matt Sunderland, SVP & Chief iGaming Officer for Caesars Entertainment.
Michigan online casinos have been legal since 2019.
A New Brand Coming
The release indicates Caesars will transform WynnBET’s online casino operations in Michigan under “one of the flagship gaming brands” in its portfolio.
Caesars does not operate a land-based casino in the state. However, it does operate a casino just across the Canadian border from Detroit in Windsor, Ontario. The license for that property, which Caesars has held since it opened in the 1990s, is currently up for rebidding.
During the company’s quarterly earnings call, held 40 minutes after the WynnBET announcement, Caesars Executive Vice President and CFO Eric Hession told investment analysts that Caesars will have secured a second iGaming skin in every state where its online casino operates.
“Which allows our new brand to benefit fully from the scale,” he said.
Later on the call, Hession added that the new Caesars brand should be unveiled toward the end of the year. It will give Michigan iGaming players “an alternative” from the Caesars Michigan casino app that they can switch between or use exclusively.
