LAS VEGAS (KLAS) — Coming off a year when Caesars Entertainment produced $9.6 billion in revenue, all eyes are on Caesars Sportsbook and other digital ventures.

Fourth-quarter revenues of $2.6 billion — including $1 billion from the Las Vegas market alone — gave the company fuel to burn as it spent heavily on the launch of its digital sports betting app and digital casino offerings. Overall, the company reported a fourth-quarter net loss of $434 million.

Coming into 2022, CEO Tom Reeg is satisfied that it was money well spent.

“We couldn’t be happier with where we are in digital,” Reeg said as the company’s quarterly and full year earnings were released on Tuesday.

Expect Caesars to sell one of its Las Vegas Strip properties in the coming months — analysts speculate it’s Planet Hollywood — and continue to pay down debt. The delay in the sale, which has been talked about since summer, has only put Caesars in a better place to ask a premium price. Reeg said the sale could recoup 15% of the price Eldorado Resorts paid for the entire Caesars portfolio, a $17 billion deal that closed in July 2020.

“This was our first full year owning Caesars and we’re excited to talk about what we accomplished,” Reeg told analysts.

“Our quarterly operating results reflect new fourth-quarter records” for Las Vegas and regional markets,” Reeg said. “Caesars Sportsbook continues to exceed our expectations for new customer registrations, deposits and market share, especially in recently launched jurisdictions.”

Caesars Entertainment continued to reinvest in properties, including work on the “welcome experience” as visitors arrive at Caesars Palace on the Las Vegas Strip. (Credit: Allard & Conversano Design)

Reeg said the company is ending its promotional drive that generated exposure “to the world” of the Caesars digital products. Now the company will narrow its efforts after capturing 21% of the market share, Reeg said.

Reeg said the demand for Caesars Sportsbook has been “absolutely staggering” in New York. He estimated that Caesars captured twice the market share they anticipated in the launch.

He proceeded to detail the company’s history of hitting its targets. He described it as a “100% track record.”

The storyline was meant to put credibility behind claims that online sports betting and digital casinos represent “the most attractive growth opportunity in three decades.”

Reeg admitted to analysts on the call that his argument “started to feel like a rant.”

He emphasized that Caesars would succeed by starting its most profitable customers — Caesars Reward members.

And the drive to digital continues with a background of a strengthening Las Vegas market. Caesars Entertainment President and COO Anthony Carano said hotel occupancy in the fourth quarter hit 86%, with 94% on weekends.

Reeg added that Super Bowl weekend and Presidents Day weekend in Las Vegas were “really, really good.”