More than four years after its stock was listed on the S&P 500, Caesars Entertainment is being removed due to declining market capitalization, according to S&P Global and published reports. It will take effect Sept. 22.
In March 2021, the S&P 500 was betting on Caesars and Penn National Gaming amid increasing legalization of sports betting in the U.S. Caesars was in the process of taking over William Hill to become a bigger rival to such sports betting companies 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 just shy of $120 in September 2021.
The S&P is turning to Robinhood Markets, the financial-technology company that is partnering with sports betting prediction market operator Kalshi. Its stock closed at $118.50 on Tuesday and had 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.