Caesars Entertainment (CZR) 29 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to Caesars Entertainment 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce Senior Vice President, Corporate Finance, Treasury and Investor Relations, Brian Agnew.

Well, thanks, Andrew, and good afternoon to everyone on the call. Welcome to our conference call to discuss our third quarter 2024 earnings. This afternoon, we issued a press release announcing our financial results for the period ending September 30, 2024. press our available website the Relations the of of section at copy release on is Investor A investor.caesars.com.

then of Additionally, one we the his Reeg sale. sale Series which LINQ hit detail during will for releases, late And Poker Tom the completion of remarks. release announced of the for two just just a press discuss Promenade, more press the World in

Tom Bret Reeg, and Joining our our Anthony Relations. me today on President, President Officer; the Carano, Online Charise Hession, Chief Eric are Operating and Gaming; Yunker, call CFO; our Sports Crumbley, CEO; Caesars and Investor

federal Investor visit I measure. I reconciliation you laws, may Anthony. G. statements releases financial to may discuss turn that located by over Anthony, SEC each financial between the may and may today's certain Reg measure not call the conference over or our remind the come today's company website now measures defined non-GAAP and harbor to we non-GAAP comparable call, the like our statements securities press Before during forward-looking as the differences Relations turn GAAP make call, these I Also, Please will for call during financial on true. certain would safe to of a under

afternoon Thank call. you, on everyone good Brian, and the to

EBITDA all-time year. In net occupancy million, of segment by tough results flat $X Consolidated and regional an quarter construction disruption strong and third EBITDA in Vegas $X competition, revenue delivered were our Results record billion. ADRs in driven $XXX were F&B segment, year-over-year margins last were of team EBITDA billion delivered performance of Vegas, XX.X%. revenue, in offset comparisons our by our EBITDA hotel Las digital quarter Our same-store Vegas non-gaming Las of the of another cash Las new adjusted by driven consolidated $X.X to and driven versus net record billion of and adjusted the XX% segment. X% and year. by down record prior for same-store performance in revenues quarterly

Our operating flat has to Vegas same-store recently deliver strong driven efficiencies. group of were a operating roughly and by driving the and Las convention segment expenses, segment lower our focus [ continues EBITDA XXXX XX.X% pacing year-over-year, to margins ] accelerated. results on testament

forward, we Looking into regarding and as was by XX% the next strong EBITDA quarter quarter the trends down remain occupancy adjusted year, driven optimistic trends. In ADR look we $XXX operating and regional million, fourth segment, for year-over-year. our to

to The peak Reno, comparisons prior certain the competitive in This we ceremony markets celebrated Orleans, New cutting in On New October in quarter tough met year especially XX, was ribbon pressures Caesars the and with construction renovated F&B and for disruption casino Orleans. $XXX celebrity for of and high-profile a our hotel, Bobby and million many completely project. several added rebranded Nobu. Flay XXX-room Emeril, floor remodeled new partners, chef including a capital Compton, property outlets Nina

as in we complete company we looking flagship to in to in will CapEx are facility investment now Virginia opening permanent the our turn and in of we Additionally, made Orleans for cycle elevated December. openings The the the forward destinations. Danville Danville, harvesting the these

will of strong team results. of some their to call in result work want over that, a now hard detail our guest Eric segment. and Our deliver continue the for third continued thank results to Digital to our dedication. experiences to for turn contributions members Caesars their the exceptional all I team on as With quarter our I members

this just have EBITDA XX year of million. up quarter net third performance, record delivered $XXX months ago. trailing a $X $XX now XX% of we drove Digital EBITDA year-over-year, revenues Caesars With Anthony. $XXX quarterly all-time which versus of an Thanks, million, adjusted million generated million

XX% planned in in volume EBITDA to above increase basis driven rate our segment, our XX% our year-over-year accelerated a range. In in increase hold. and Our net through XX XX% quarter revenue flow by the revenue quarter to iGaming a the growth net slightly point was in

Caesars quarter app parlay X.X% drive revenue structural accelerated of total launched Subsequent cash-out Pennsylvania growth net driven hold last mix, and X.X% end, in revenues. made the hold which casino app quarter. for versus during with year. also percentage our as casino primarily plans the by based and Michigan, year-over-year, Enhancements Horseshoe our the New of drove our stand-alone Betting to Ontario West in quarter to a grow eye higher to increased Palace Our by we've brand helped year-end. In we improvements continues Virginia Jersey segment, and the Sports XX% to

road structural hold Given now achieving next customers' achievable is to enhanced that the few our and we above receptivity years. believe our the options, map threshold over XX% Parlay

result result, both working increasing retention you and a should to see a are low hold baseline. In iCasino As structural of marketing we're segmented we our a relatively expect consistently off campaigns. starting to improved as as see sports,

in constructing and the some in XXXX. we sheet. jurisdictions, offer of campaigns North on this sports have now drive We optimistic in refinement started betting XX XX of pass the are wagering. I'll we call which recall, balance testing will area that to Brett improvements you mobile additional American over We If head the campaigns comments now for offer into this and further year. XX currently April active as

bond In at printed unsecured $X.X with billion issuance maturity. senior to October, a Eric. Thanks, XXXX [indiscernible] our proceeds we bond X% applied

of debt. to to and $XXX World proceeds fixed proceeds today million in the and upfront note. will yield sale floating savings debt reductions Our our of sale our brand of asset We cost Reducing of expense significant debt cash cash going forward. closed interest incremental of further balance million yielding rate X-year and repaid revolver $XXX intend Poker use alongside in Series reduce full bulk the

Danville Tom. Our [indiscernible] XXXX budgeted CapEx JV, is $XXX our approximately excluding cash million.

view a anticipating impact added relating segment that lobbying we onetime claims last housekeeping Thanks, the I Bret. to There's quarter. New their adverse care. Taking was as bulk would health Regional, each to efforts second last treasure start of what I in due significantly at and of [ quarter the relative property where a Orleans was for on Reno Boyd to this at what our were that impaired construction. we opened line year-over-year would that fortuitous to in primarily move was you land of our of continuation disruption base I was Missouri not because some Both $XX at a particularly one would chest with our was item I'll to didn't group Orleans expense in the million-ish in New general a friends basis the of but business significant corporate happening be at be what at came lack quarter floor under time. those in gaming impaired the where in the of quarter time have saw told ] true. year. back

Orleans, of there We're win Caesars week New optimistic because to I the that property Council in particulars be offset Chicago got through would that Orleans particularly difficult high the of what quarter. If New a impacted added, end for in and in the we've got with various opened positions impacted incremental set Orleans. the Illinois the at a with by when revenue tailwinds of speak portfolio beautifully. Also, competition. in properties we ] New will a position the highest openings, them. That things open the gaming [indiscernible]. we continue by got Nebraska. We've Orleans, last That's significant has the had flow-through our happens but within about of out changed we increase there's ] incremental very, properties reception Southland. Virginia been tax [ across repeatedly, not in early which has openings So is enterprise. the property Anthony had of [indiscernible] ] talked property been the [ before market, a we've year. is what Racino Indianapolis enterprise, with Bluffs very as got three We've structure New significant in the were We've [ ], look doing per the our have were opportunity in turned terms really regionals significant in to about up that went a [ We've Chicago we very way Tunica tremendous.

well. The So say those due I'd and Florida, during Coast very weather regional as is, excited there in that, you quarter that quarter, that the last thing that's the know, some in Gulf was about hit we're about properties along to nonrecurring. as storms and the hopeful have we the impact

'XX, toward sit November look we X. As almost here you

we see think to So about 'XX. start to

tailwinds offset start that Virginia in these New of We have will competitive Orleans some and impacts in regional. to

regional very feel the two about 'XX last So and the good looks we versus for us. quarters way

be to what Vegas, We in about is coming last ended $XX for to flat third up down you expect I quarter. the up EBITDA. told to we'd in quarter million Looking

If all you hold specifics related. look at table that's that, the of

So cash not last hold slot our hold, strong was was flat. was it within were ] that It laggard. our table was poor range as non-gaming was our and expectations, handle the not and year. revenue table [ records, flow It of just win as

got As you online was about look quite where there returns where Versailles good not last feel it to Vegas the online are Tower Early moving fourth strong. year. quarter forward, we've I

want look there's the union FX to fourth then on will I on been a lot market. chatter for and and not the I had recur know into the also quarter that you We the contract in catch-up in also quarter -- and touch accrual generally -- fourth of

same $XX looking recall last race EBITDA to were business. but couple versus the on I quarter, would flat a million, us, say, If particular, $XX down weekend year dependent million 'XX given the a for versus highly last hold, FX high-end lift dollars of same 'XX. that, in was the in that's I year, For in at about million

surveys to our worth market. Cash that So had fourth I that be chatter up on cash quarter. rate this with see that cash investment doing expect perspective, for the the revenue to year-over-year revenue are I'd except an room it's all year. that went last last slightly know really our muddied by it's room FX not you in the flow all quarter. mentioning, year what from for basis, versus you've

So to strength. other continued into read Vegas than really nothing

be. we wise, standard normally kind of As again, the ] hold quarter hold [ for would look where difficult of first side was you're into our terms us quarter a deviations in left 'XX, to

We was would in tremendously XX% you and we will aggregate, say peers and lost 'XX. And in in had rest the expect been Eric I talked growth in third brand. not the in customers, Virginia together. good to than to was have 'XX basis group coming year. look of that expect 'XX brand. This has without Horseshoe then still stronger the flat for ]. digital, grew a a we the feel brand. where to and further I'd migrated And [ over The over slightly we're Xx business growth we 'XX XX% is now and to up And where with that out block growing you're rollout rollout quarter. if iCasino recently a a into got the that extraordinary. we be Xx of how wine than in acquired Pennsylvania customers looking Horseshoe stronger recoup our first launched which month at the next actually quarter. pleased month-over-month. we year data of did some kind in in the closer about about segment, of that iGaming, be when that's into Michigan, got the So then convention in coming by that been versus through only very on line business month not way of our that friction the digital sequential growth We've outpacing the quarter, We've XX% after so go expect was quarter. West that is in the Michigan, we've top I'd it we as where building we the about full we or on

what's very, So feel very good there. about we happening

all sporting to that We'd know best quarter calendar we change you've quarter, continued days, our targets no the we to expect very of about the a notwithstanding has laid October next some a and strong really fourth expectations. claw heavy this the to that into the we the got talk lot have we've I time, fourth next strong I'd but outcomes, All start expect been there's and feel sports of out. back. But expect of that growth. a quarter of XX left where can then a good lot for not year,

continues increase hold business. structural our said, Eric As in to

and results business. future our the iGaming, digital bright our with see going very can think You in coupled I that what's on for in is

end to a is last been think for business than about that I their $XXX the three wringing lot up target the more hell that has million a of hands everybody generating years. going

very feel can the over today. portfolio of financial. retail to do sale The good come to the F&B Vegas Promenade we strategic So on of XXx in the kind and out. all that and is EBITDA multiple that. Stepping will We you that about trade That portfolio that so lease lease retail segment. was math, about announced

So that share a We year. quarter. out buyback executed comes third next million in -- we the announced $XXX

years. gross end where since $XXX expect below reduction year, reduced XX% in been priority, of of standpoint. this number continue programmatic you focus. remains CapEx the from far there by in virginia We're buyback. at amount -- $XXX million we've to should million be have gotten talked about be basis, comes our next reduction execute a $XXX we the capital transaction. Debt closed to point you -- have the possibilities cash use comes in we active cash this share quarter as we've authorized various last in you so to a absolute of going our to stock debt We've from numbers to expect did the share and we'll will another expect can But the couple eye down we got will see. one terms our back expect yield, should debt #X per that be going By running Caesars should paid asset spending in we can as should significantly but as our we've debt You x spending, not million, we year inflection on -- a be flow With free better capital the the It's authorization. remain free in buy if or looking mid-teens sales flow not of repurchase, us returns in. and flow cash reduction as to opening,

a expect of sale should piece repurchase. used Promenade the you during for So this does quarter get

World are activity, two was But In to that have an terms you the sales of were spearheaded around asset easy on, assets Promenade noncore execute that Series simplest ones but would ones tell easiest execute. although discussions ongoing, I we future one. the these Promenade and Promenade, Brian, that who us to dispute were might two for

as that should believe than that million from path, of tail we're Brett that were cash of the is basis points two we're the into talked the 'XX, you working has but that refinancing, rate working flow stuff XXX down So still look longer about executed. But every on $XX free probability and/or we reduction Fed for lower that incremental us. our

move just is $XX for XX unsecured a is year they're quarter note that first another points So million. basis Brett $XX offering -- in us. the million The executed

year mechanics down of just capital So step leases step-up this in million and you've you've significant much a you've of in. because the annual lease got lower a coming got $XX expenditures. got incremental the

free as cash flow increase we is forward. So to dramatically our move going

can back we responsibly, So think Andrew reduce we and continue we forward. And debt we can our with move that, turn to as buy questions. I'll plan stock it that's for to over and

our with And line question Santarelli the Bank. of Instructions] Carlo [Operator Deutsche from first comes

digital the through seem side, points guys [ basis start about promotional I like ] take your the that Q you out if if could you. looks of investment. in with XXX It Eric, reading to

-- that reduce? to near the reinvestment have bit should on little how to into a the a brand be about you'd able iCasino term? do bit Or know to reinvestment could of that but more And from we talk launch detail reinvestment the I side, sports promotional to little strategy in put much the it, iCasino don't continue strategy the go the here? you into second expect With on you versus

the a strategy different you glad I'm because two. point up there brought is between Yes. that last

even On generally our levels keep opportunity roughly we're the that, the our the reinvestment strategy of in constant. have that were appropriate may side, come end we're We you'll the to the on But about notice segmented reinvestment, what half that share market sports is. of an through the that's the on marketing average lower states and definitely down to report side, further. sports able feel

side, the On the of our line brand, of from share we database much we've we and bit we're market, have, strategy with as this year we business in been that there's that on the very grow that this that believe. quarter. significantly grow app side, the casino a that because a That's of a strategy, that different because we seen, believe because we because the the and of and doing think of opportunity opportunities real brick-and-mortar as to have you've

do hold so rate, line launch in are that's higher think down We're in kind a September of it right market of be And consistently to this the market. I that on that sporting at the investing with reinvestment should a with again, through in that the changing I range as in around kind our reported we we XX%. going quarter bit. the anticipate But drove the wouldn't of invest, product the higher broadly XX%, Horseshoe. well. with had that of outcomes good speaking,

take And looks fairly just feeling like. Vegas but follow-up then, guys this outlook a XXXX one, Tom, of or the about about and for Las whoever for talked to good you Anthony, wants what kind

metrics is side, city-wide underappreciated from terms are there And this that be you any might Just additionally, there of the anything perspective at somewhat a group of kind in visibility provide? on point? could

underappreciated. is from don't Carlo, I anything perspective citywide think a

at a job the and the expect would rest drive occupied total within group and forum the of space But we higher to convention nights 'XX. the super good high rate to room really filling do out the EBITDA segment level, enterprise. and in revenues group a and think I continues

another for new So it's segment. the to pacing set record

good thinking to about be now. a that's way it So

And Greff our of with next question comes line Joe from JPMorgan. the

noncore Tom, excess of in after The free cash to related a how I on priorities I was your flow, out. question that I you to you and pushed originally the mentioned kind closing Series question today of only that you've think of some about other Poker smaller scale deploying fair view sale. sales going in 'XX are have ] asset [ is to working that you it World you're you assume and size LINQ these announcing kind sales on? that then closed Promenade the other but noncore ask you asset that two have than on. sale the Is and announced and And

No. more much come say I'd complex and tail to just they're longer together.

we've of end probability ], thinking executed. being thinking about [ numbers. that XXX [ ones -- already a XXX Series, So we've are the But being to those terms in than between assets be XXX of are time different in that terms ] [ chunkiness, in about again, got XXX complexity, either Promenade, if ] I'd World you're line

you've the here you in But in sit iCasino, digital think iCasino mono on I a million Eric, what the or and been month. $XXX when the as less performance? And about in on do seeing been as for doing launch related as terms out you than seeing, then, of month how going at $XXX some EBITDA Caesars know in brand about of Tom, the early you've to again annual to and well point on Palace online existing multi-brand, OSB, go been talk you of break what you're iCasino? now to executing a the it's between you're future. you in you you Horseshoe. side. referenced million what what particularly launching sort the Can you

Yes.

your Joe, very So first to is it take early. question,

took and on are business avenues this And we did signing skin. playing Avenue right thing turned point. obviously they that win now. They're well, have maybe contributing up marketing over very since customers daily. well. We they half would we the majority at over The the converted one their I our We're convert of over the is say customers

start over active convert down got in and so But percentage will go that we by already having nice Michigan. customers jump time those over. them And a

what far and But we'll from think say you'll the staying particularly little actual draw so than app, on seeing the or it would of Caesars the the that now conclusions advertising to I positive, then get three but bit in So of is early any for customer average the next a that. growth see the be able month marketing, states we're more live, up the rate. app. have like the better we a to that slightly as we customers is everything feel is worth so they're app, on I higher ramp

a question per is points. iGaming in your of on needle XX-XX, betting. the few on expectation be ], the than [ our Joe, Obviously, iGaming, or XXX fairly dramatically a sports moves basis, would versus And well state more that give that means take sports

are state when if a So very game. real And betting we in states additional of. to and sports what [ ] iCasino William iGaming iGaming the to business developed those have prior, would move doing there mind, we're the in after speak keep new were Hill forward, than impactful didn't in more is also any Recall, for be as late we us.

them where for to our brand, peers multiple and build have had the market actually out roll the two brands a years. we been into operating So app, already

pretty we're So excited.

are look in standpoint as states, forward, and there our Eric marketing similarly casino said, operate iGaming a we If pretty from peers. you future to

rollout in new form our the in new state our curious see a future with we're brands. to So

next Brandt the Montour line with question our And comes from of Barclays.

how maybe if is the versus acting sport bated you on could hold, on And been you've mentioned the ] breath October, I [ here. if we've structural November? but you OSB. cushion last Tom, faring all is a that lift adverse as Eric, haven't that OSB those the compare versus outcomes? is know you books with even So and month, and watching closed October question contrast mentioned first

is no. answer Short

not shift seen cuts worst since against weeks outcomes but week two when last is outcomes in started were like it two business. our other normal. not we've parlays was that, last ago your parlay before we The combination ago, you of November. weeks two But was good, bad sporting the as So have October single the of much sports kind the betting as weekends to higher you than percentage was

was that's that And set every a of favorite, week, it, one tough but outcomes. what so when --

So Yes.

So October makes business not anybody for but to is this what I us space. look you're the going to to difference or in it expecting, great is this part were the they don't anybody for just of any think that relative in. structural story for else

And follow-up from year-over-year, hold if levels lift, or if there's a digital. here? curious you sort that think the how in structural on we that just these then things about something saw oscillate still it's going that of on iGaming will The around just just should

I'd mean, slots versus I tables. more big is piece a say it of

lower the So online, of sports the That's more coming you table of was app. idea through roll Palace volatile numbers predictability heavy the the a in slots, existing you remember launch and business through saw Caesars our really since was iGaming quarter. what Liberty business were the than hold our based that's

that should continue. So

question comes Wells Dan Our next of the from with Politzer Fargo. line

basis? think think something in Or next a gave continual there? cash think along or maybe lines, some quarter, maybe we And relates Pompano cash at we it that from parameters of to coming or addition for $XX should how context through should which earlier. distribution I was the cash you maybe the so. in taxes if additional as year the interest could inflow you flow some free light to shed that there expense about a on give on million Tom, items we Is in or should you look could about those

Yes.

question. to flip I'll So flow cash the on Brett

of are project the outright In turns entities as we're yes, heavy pieces. of sales to Pompano, it developing various the building the that land way Cordish. that terms It's out with on

future project we of are to second to there during quarters as pretty quarter cash distributions your expect So you should we as the underway. were that additional and and size of coming distribute started pieces where in close partnership number that some yes, is the get a

Dan, X%. at up bridge the on looking under cash for 'XX, just flow we're going rents free

million number. up of So you CapEx, pick flow it, if to about at cash then you will can talked on should to on EBITDA, roughly down interest expense rent on Danville to you but your free interest picking be the on the but million depending be the And right free cash $XXX expense. we're On $XXX Fed, XX% of depends flow, or $XXX looking get billion million cash pace cash your to $X.XX $XXX not. when we Cash number. you're around XX% taxes already million cash the

And then is just at Obviously, turning to Danville, right now. a level running high that property

win slots well, are per and [ think day. ] doing I XXX to tables too. XXX unit per

expand that And kind So guidance as you property? you about of think those directional property. temporary adding full of kind or expectation any on we a margins about property then strokes, relative as think kind of kind versus how of a broad gaming should positions, color is there to any

Yes.

of certainly, margin in that's be So that neighborhood dilutive, will [ out the of XX% the running ]. EBITDA margins tent in

like more regions other mid-XXs should of our better something going forward. or at looking You kind be

per in per You've I've looking position day. per told the The position per well, double day. our talked it's win position. as but win will about the the at you to actual be system, that dilutive almost largest you're it

think you going to to expense. you're generate have about more if it, but revenue, going you're So significantly more significantly

segment the EBITDA was our [ cuffing if X/X generated to but you about to EBITDA, being permanent lift temporary of just regional total get of it to ]. already XX% the view by the to say, total think it's would I property, So a meaningful

Stifel. line Steven with Wieczynski Our of next from question comes the

interest the ask in just So just one here, question. of time I'll

question sell take to much couple So how is, I for my a we're are doing you all due some obviously, to back not of rate step And interest it's about asset ever you're away, today, here want fast strong doing if back I'm and the forward Tom, of to come been. just chance that a there a better to trying strip assets? interest in there. you demand and level say was I to is the of potential of see years get anything, think obviously, guess ago, an your environment if out you're as the talked inbound not or about But as sitting that went along if we anything kind starting a and more to we terms environment. know to rate starting

Steve. Yes,

last just into of these the year speak. no amount XXX% be the do to incoming think casinos us the And I've XX between this of as have that about as But XX processes and days we actual got clear, know, So The conference is the you calling saying, you about ongoing economic do you What up we change to what we're asset? break if seen sale people I point, that you've from animals. calls. asset? think asset biggest in activity your days

So if inbound nothing ongoing, to sense more there that that's lot is it the move. activity but drive active again, a there's But way post whole the value best ultimately is first makes transact, we possibility. a Fed

question comes line the of from Jefferies. David next Our Katz with

about talk of the dislocation right and have more is on ramps? kind for more you two to make for just just to off with property new is, if which if permanent point, of it while In that a a the we highly sure quarter some couple double quarters. just the general is the new out be EBITDA Or we productive we're of right, transition, next terms, could wanted should back facility, or conversation? or cadence your a facility, margin maybe Danville I and starting pulling just temporary about three thinking really or

David. latter, the it's Yes,

that, now, right of open we the have until sits will the we the lot permanent. in that operate a That moment parking tent tent permanent. a So

pretty isn't down shut it's So -- and seamless, of through a there sort you thing. that it you testing, go

do is temporary still You that open. all while the

from year in -- get would So that's one the if -- just you dramatically the view few a direction, of next. And it temporary the I permanent. should say, That it you as operating probably and if good if either weeks the ships in couple be day just to terms of probably larger thing. the consider a as a model days of it, temporary this from but December would is became were the you I middle until how

our Anthony. day, someone excited come is whole segment David, may hotel, travel another going Eastern this of chefs. that beautiful new to a database because that great restaurants And some celebrity seaboard, really just not opens XXX-room a have for and we're the it We're on with up but

temporary whole it be well. new may today a facility coming clientele to So not attracts the as that

in Vegas promotional anything quickly kind should that aware environment And the Or is with the status and respect on competitive just to of or be marketplace any of? we going changes, quo? promotional

seeing. investment say that of would has not we're direction know market I are the things the wrong changing remarkably I stable. the there's on side in mania been been rapidly the

did non-gaming We little zero the grow. of And move has ground, are on Versailles you Group how last group a year last rates got business as year. business the this seeing evidence of you online in quarter, versus we've year. do that occupancy the for been your then matter and better high the helps in versus running good business it's a in the then XXs a us first business. That's setup to table

direction today. change sit this in see either don't here a we as big out So business we in

next with Securities. from comes Our Barry of the question Jonas Truist line

of functionalities update maybe gaps like on, For digital, to the can key with market the product shared you're you working on bridge any leaders? wallet give some help us an

that in to would We're biggest we're a than right jurisdictions. say We're wallet more X have one bit or it now you trying one rolling little we shared month. do currently out, that I a Yes. the the raised. is states

we're states TAM. currently, And then midpoint those your TAM, before of any over our But state year wallet if switched you're same to targeting of own will in that's completely the so X automatically the the and to it kind next have on shared. go of we're you another

just it's well. progressing of states not very and connected now, some to other right Nevada key So but the that's

and improve an results to quarter parlay it's our parlay In this a the percentage. you grew high. all-time year-over-year we've the hit grown And mix mix on our terms it's basis, of the had fastest then hold in see that that efforts the

progress to And we've see year that customers. that we're in A feel some the lot on what of can the the products last others overall, of offer. much close game There parlay still still the and product a and really we're you markets fact able gap. levels live, lacks of I So we're retain of are with like that. made that I non-main lower the pleased some same think lot and reinvest the at some the our still missing. But

of line Shaun question Our comes with of from Kelley America. next Bank the

and think obviously, a we there's to outlook of to regional for on being disciplined react want back comes just your I competitive still obviously, if about page, that's more the tailwinds formula, with popping you we And but think some some when puts the takes, lot in the turn of stuff Tom, a is I quite competition we're that go the how up. as second, familiar which market. this

we eye south we from like question headwinds still some regional feel a the and as seems some. up in we less, suburbs going to year? puts flat? that just mean, where lot incremental places So there through the I'm we an really like confident Do there's gaming on going we but put is, like the is in that, takes, particular, keeping headwind obviously, Chicago, be to still next are grows in be end see place I a

about So just if you us could level. that help high think

for tailwinds still more there's Yes, than us. headwinds

to down that's expectation I next year for flat, a my think looking slightly year. at is you're regional

Ports [ Creek that You've the product ] got opens.

November XX.

Yes.

weeks opportunity. of the market have we a do couple Chicago be So impactful the both in in will to [indiscernible]

the is the of properties don't you these from our trial in really as your philosophy way customers. get open, So

growth what you ability Iowa try Your 'XX Is in few into number looking in regional terms been battlegrounds Mississippi, we been of effectiveness a to the can of operating regardless or And that's new have not? Chicago, of Indiana, that a our markets of the back customers for in properties being does in do. year by really at, for factor a end going up these impacted and customers. those But in fight are swing competition. And to already now fight in those for in go you're those they've the product now. go quarters

than different lot anniversaried us into a So it picture those. There should of are some well we in it be 'XX but 'XX. that for haven't in was a much continue

a in that a to some question of have and relates or how sort wondering it And looking then been people expenses side And Obviously, I actually of possible talked related high of think how you Missouri, how as little relates expansion the that a at today iGaming? about for it think overall, are from the they cons? pros do bit broadly? here? your Have OSB expansion changed little bit of and betting. company, sports just some just about market. just picture level sort of digital of outlook versus of watching on you the you expenses Are to separate? the Or And the kind course a to legal you big new Caesars' as taking OSB a

of and can. We'd in done and people you've dollars on it makes we like to that jurisdiction a substantial like well-established licensing United state. in the in a invested amounts the of taxes, iGaming thousands every the path operators path. And think that of employed, see that that legalizing we and every of jurisdiction that it's we important to for that it's and through see paid in would iGaming sense manner operators hundreds and capital have it's the OSB got of continues possibly billions important States. But millions, of think for We OSB

the Our of Stephen from next Stanley. comes with Morgan Grambling question line

OSB As brick-and-mortar? change in types iGaming system and and/or customers new playing with entire seen think handle are engagement, about of you've overlap the as share the more we the customers to any in you either seeing improving across [indiscernible]

through is the stand-alone I the that lot you'd the are properties. there, marketing more the seen the on however, that the that that shift of we're we players introduction main a lot think brick-and-mortar do more the teams, over. seen really process becoming on go activities with as more on PD and integrated seeing a app, into expect. and through Caesars host, brick-and-mortar we've Palace we've through between there's the side, app I say at the move the slot more the And would Online opportunity iCasino more crossover

optimistic consolidated And that we're percentage their course, the brick-and-mortar much we play us us. that of us with play continue that a and also get to crossover the on to higher percentage grow. and know, we gets then So with will wallet customers of it of online,

see result, customers. value a a as so And those higher we from

had assets, an it, $X But may for follow-up, a billion path of I together. walked you Tom thinking And the past, a building to with earlier EBITDA opportunity would couple trends pull this now characterize you some to then $X call the and of puts a that the of in the dispositions, and walk How through as lot the think questions in takes all from on be billion blocks. digital? from new

Yes.

billion don't ], of a know number -- what of in this where is quarters -- in the neighborhood a Sean [ So $X we're of we're row EBITDA. I

date So quarters of and just call speak of a it, posted but a we inflecting terms a $X good contribution to in billion row. obviously enterprise in digital with very couple EBITDA, from as little

of map So years. beyond the of the still I The about that EBITDA and out think we've the brick-and-mortar talked us gets years. hundreds growth of three-plus continued that couple for is in same going Vegas if we millions over to investments returns from road looking regional see of side, XXX next in now kind you're Las incremental

that clear to right to to that side $X the range path we're still So in of billion very that gets you our headed down. a seems $X be minds, billion

this digital major side to the to business an we're move and the you're business free of we these integrate way toward as in Caesars complete the And back cash acquisition up flow going and each. forward. was to So and to through work roll EBITDA enormous stand project see spend, it a that can task

we So very here. think the is bright future

the next of line with And DeCree from CBRE. comes question John our

just discussions there's legalization you or an sports Tom, had about there. your online about wanted specifically questions. of thoughts Florida, ask on ago think you But spoke if question briefly if I you've two or inroad any betting Two to and iGaming. a

has tribe settled. recently the been against lawsuit a think I

so you be -- partnering it like tribe. might looks past guys the And for the with

discussion So a might you enter curious anytime on if be you've whether meaningful or soon. able that had of if, given size market, any Florida view to

any I don't or we that the I or optimistic near that saw other that remarks the would cracked in say, ] GXE same kind of the door, think heard Allen soon. you will seminal the not open from entities -- same but [ of term. non John, that Jim enter the at remarks happens Florida that, did I'm I

Tom, on housekeeping for maybe CapEx. one maybe And you Brett. or

So what routine CapEx CapEx kind you that should you're for give be if any of could CapEx curious state is of you obviously, year, maintenance? kind And an there's if guys on but steady us project update stepping next down about. thinking

does look we as CapEx Or kind expect look shrinking do off at after product you 'XX to we beyond the a of level of certain kind it 'XX? budget, So and at point? capital keep

CapEx forward. as $XXX [ million ] XXX going steady good of number is a growth to $XXX million ] area CapEx of state and maintenance [ other and a

next And comes from Macquarie. Chad our question of the Beynon line with

a on that result obviously, ahead in revenue your this quarter of XX% better growth, of the came EBITDA was flow-through ahead of the targeted business, Eric, and expectations. iGaming business, XX% as the

But So in trying next about can near still is some right it? over hold a this ramps have here. figure us Should of more things the just so way off to the roll-off maybe of Just rolling isn't this lot in to expenses? help sense, quarters maybe bigger normal? of how that 'XX, I maybe think flow you through the know absent X the if X you make term, XX% out to maybe

Yes.

pretty be in that should I we expectation through XX%, to think able provided time. broad-based at when that over it we was flow rough

to contribute going where certain a we to able In than quarter this achieve there strong XX% like better this, experiencing sports to are be that this are going there iCasino that year. we extremely aren't next are were the that factors some record we that and year there and year year target. next had then to growth So aren't growth,

on think, little expect the it last around I would to mentioned, bounce I bit. a I call, As

for as next but head for a And some is a Sometimes little lower and expectation of XX% it on little we we sometimes higher, a will off 'XX, of roll marketing. the get the flow-through into the revenue we year. certainly additional be incremental reasonable then still the think

that it So well. level at would expect continue as to I

in side, the And in the you're QX? in regional more see tier weather, et Did that if just separate the to then any split somehow business competition, the your segment of or on lowest cetera, regional deterioration from normal able you out business. part consumer unrated in

what pricing I Orleans. challenged markets Virginia, No, behind segment we're temporary see saw wouldn't started There lacked say impact the that we think us case. of base the by and that's seeing week New gone has lapped once of I is remains with I have business, and multiple been we most properties change in that tailwinds more that where the customer opened regional in substantial alarming of to don't opening a deterioration. competitive is in we've in recent the last the anything you're from history, -- talking and about

Citizens Bender line Our next Jordan question comes from the with of JMP.

that of you do help dry pure the year ARPU? And that's is, is iGaming of XX% your left strokes coming to part of think growth help from in can you that couple lot in grow that revenue segment. broad powder a how think the given 'XX? online we the much the revenue just info going as then about through next player in understand have maybe online -- growth you've that us You've But much talked omnichannel and quarters, good maybe on you you in last expanding versus second of how

Yes.

look have The daily business lines you separately, kind rapid two users the of pace. and the think at casino is I the growing casino at actives SportsBook. to very a and

then grow, our as volume our seeing we the hold in and up So a performance the things to grow. Tom referenced, we're ticks month-over-month bit. to measure to users continue And continues grow, continue actives

is business strong. very and very that So consistent

bit little On it's different. a side, the sports

that seeing flat very right lower As into not unprofitable due last are well, getting you've reductions we that now. marketing through we're the were profitability. didn't I end as some the somewhat then high-end seen, segmented That's wagers some in returning. about translate volumes to And year talked customers that

the are or many seeing more so, And the are than by though result, as we in percentage. what coming down, made being size expect. the so bet you'd improvement per bets as hold average but And they're a up user, is more flat volumes is the

the significantly improves. is the standpoint, customer So of they're as different and side volume the stays behaviors. same from The the going hold on very worth sports our the average up

it if next the Orleans expect at I is underperformance recoup that that then we follow-up. fair just on just of regional look the and New assume segment, you that revenue, is should some year? your hotel to to And In

Yes.

comes Capital line One Guglielmo our the with next Daniel of question from Securities.

Las all there New you Vegas that some with all You peers properties, well. that Are related Orleans projects projects renovation at tailwinds the the are any have success and mentioned had casino other renovation eyeing as and to portfolio? renovations the growth within

kind this we have Harvey's tower, the We ongoing million multiyear with up Tahoe. of the We're casino most opened that a street begun. the is [ The doing that's Wolf $XXX doing summer, redoing leaning Tahoe. substantial project we're That's entire we're floor. into ] a room one property suites there being restaurant Lisa the on across that Lake already Vanderpump Lake

on got where now. regulations there its we've and lake replicate can't the that You given what location are

return the Caesars, Gordon significant of that area table our Vanderpump's across area [ of ] the us another at was one. There's Ramsey couple completely before the substantial pinkies a and redesigned Within Strip. see will a the opened investment. on opens biggest open burger So Flamingo, that we'll weeks, limit always does in end high-limit for couple slot we've we of high the front as from a have that's got year. the in [ EBITDA That's weeks ] street Caesars that producer

in doing So since spend us, than for we're from closed. last standpoint less had a than always we've but they're needle dollar move projects we the the substantial far X that will what years

into about game there different And anything we -- softer. you talk than was mix of coming was then just just Can a kind the was expected, you drop saw but or Vegas Was stronger quick table players different quarter? this segment. just on it Las behavior? of the handle properties betting a Slot

showed that of beat at And move It different up a it last large them. and -- times trips handful versus last was year, this year. quarter up their we year, showed last players

call Thank you. over for to now Reed I'll any the Tom back remarks. closing hand CEO,

Andrew. everybody. Happy All Thanks, right, holidays.

We'll see call then. you next Our is February.

This Ladies disconnect. may you gentlemen, thank you program, and participating. now for and conclude does today's