Four and a half years after its stock was listed on the S&P 500, Caesars Entertainment is being removed from the benchmark index due to declining market capitalization, according to S&P Global and published reports. The move will take effect Sept. 22.
In March 2021, S&P was betting on Caesars and Penn National Gaming (now Penn Entertainment) amid rapidly expanding legalization of sports betting in the U.S. Caesars was in the process of taking over William Hill’s U.S. operations in hope of becoming a bigger rival to such sports betting behemoths as DraftKings and FanDuel. At the time, Caesars shares rose more than 550% in 12 months.
As of the close of the market Tuesday, Caesars’ market capitalization was $5.28 billion, below the required $22 billion. The stock closed at $25.39 on Tuesday, down $7.20 so far this year. It was trading just shy of $120 in September 2021.
The S&P is turning to Robinhood Markets, the financial-technology company that is partnering with Kalshi to offer sports betting prediction markets it says are beyond the reach of state regulators or tribal gaming authorities. Although sports prediction markets are being challenged in several court cases, Robinhood’s stock closed at $118.50 on Tuesday, with a market cap of $105.3 billion.
Caesars is now considered a distant fourth in the national sports betting market share behind FanDuel, DraftKings and BetMGM.
Caesars is being reassigned to the S&P MidCap 400. The removal and reclassification can impact trading activity in a company’s stock, with funds adjusting their holdings.
MGM Resorts International, Wynn Resorts, and Las Vegas Sands Corp. qualify to remain with the S&P 500. Penn Entertainment got booted in 2022.