A casino company is bringing sports betting to the big screen with a deal recently announced with a regional movie theater company.
What Happened: Emagine announced a partnership with Caesars Entertainment CZR that will bring a dedicated sportsbook to the company’s movie theater in Royal Oak, Michigan.
Emagine Entertainment owns and operates theaters in Michigan, Illinois, Minnesota and Wisconsin with 244 screens and 23,141 seats. The theater has won numerous awards and has been at the forefront of innovation as the first theater chain in the world to convert 100% to digital projection and the first in Michigan to offer stadium seating.
“We are excited to announce our partnership with @caesarssports to create The Caesars Sportsbook Lounge powered by Emagine!,” Emagine said in a tweet.
The deal will see the Emagine Sports Lounge rebranded to the Caesars Sportsbook Lounge Powered by Emagine. The lounge will host odds for college and professional sports and be the first sports lounge created in this manner.
“It will be the first sports lounge of this style, with cinematic screens, sound systems, heated leather recliners, wifi and individual tables for customers to use when betting on Michigan sporting events,” according to igamingbusiness.
The lounge will be open during the movie theater’s normal operating hours and be free to anyone 21 years and older on a first-come, first-serve basis.
“We are excited about this partnership with Emagine Entertainment and applaud their ingenuity in creating a sports lounge in a movie theatre,” said Caesars Digital Co-President Eric Hession.
Additional Emagine sports lounges could come in the second half of 2022, according to another source.
Related Link: AMC Entertainment Q4 Earnings Highlights: Highest Quarterly Revenue In 2 Years, Strong Batman Bookings
Why It’s Important: Emagine announced the launch of a sports lounge back in December, as reported by WXYZ Detroit. The sports lounge includes a screen “two stories high and 40 feet wide” that can show multiple live sporting events at the same time.
The launch of a sports lounge partnered with a sports betting leader could be music to the ears of AMC Entertainment Holdings Inc AMC investors. AMC has been working on several growth initiatives to boost revenue outside of just offering movies on the big screen.
AMC is the largest movie theater operator in the U.S. and could offer huge revenue potential to a sports betting operator with a partnership to turn a theater into a dedicated sports lounge with live sports and betting.
AMC CEO Adam Aron said in September 2021 that the company had obtained the rights to NFL Sunday Ticket.
“Starting tomorrow at 40 theatres. On Sundays, watch pro football games at AMC,” Aron tweeted. AMC offered free admission to the theaters for its AMC Stubs members who purchased a $10 AMC food and beverage gift card.
Aron also shared in July that several AMC fans and shareholders have suggested showing professional sports on the big screen, but noted getting theatrical rights to sports is expensive.
Emagine and Caesars have laid out the runway for what could potentially be a future lucrative revenue driver for movie theaters and will be an item to continue to watch in the space.
Price Action: Shares of Caesars Entertainment were trading at $67.22 on Monday, versus a 52-week range of $62.28 to $119.81.
Caesars is set to report first-quarter financial results after market close Tuesday. Analysts expect the company to post revenue of $2.34 billion compared to $1.7 billion in last year’s first quarter, according to data from Benzinga Pro. Caesars has beat revenue estimates in each of the last three quarters.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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