CZR - Earnings call transcript Q3 2021 | Caesars Entertainment, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Caesars Entertainment, Inc. 2021 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. to Agnew, call Finance, Senior Investor like moderator to Treasury, now Relations. Brian today, Vice would turn over the your and I President of may you Sir, begin.

Brian Agnew

available call. good our period discuss quarter ended the for A website release XXXX on we XXXX. everyone Ren, announcing call afternoon, third afternoon copy This September press a investor.caesars.com. you, our conference at XX, section and on Thank release relations of the the of issued Welcome earnings. our to to results is to investor the press financial our

call As are Chief usual, joining Chief Financial me on Anthony our President Yunker, Reeg, the Officer, Chief and Carano, Officer. Bret our today Executive our and Officer, Operating Tom

would we that today's future one performance. guarantees them. like place to Before performance, make the may Such not undue therefore, reliance I about turn remind conference forward-looking during I call the call, of forward-looking and Anthony, over statements certain are Company's not statements you should on to

Forward-looking expressed. that those could statements results risks and from actual materially to uncertainties subject to differ are cause inherent the also

For over discussed additional measures after to in or the third statements, non-GAAP occur in any that the forward-looking will as Securities call with on our investor.caesars.com turn Entertainment now SEC reflect the defined as Regulation call. GAAP financial the XXXX factors the non-GAAP and revise selecting or information measure should actual certain Company's release statements Company website the G. the and you obligation found today's the call, circumstances at most measure in to between be cautionary reconciliation can update to filings The non-GAAP to undertakes differences financial of statements as by discuss and the refer the quarter forward-looking Company's results. factors Exchange Also the comparable press each Company's Anthony. Commission. our differ may no regarding Caesars financial events the financial during to each GAAP today's discussed measures from press could contained comparable directly results contained measure financial cause to concerning release, risk those well that I by financial

Anthony Carano

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

with of remained The for XX leading of third our quarter. adjusted Mortar excluding EBITDA billion all-time quarter and 'XX quarterly of a in was third delivered our record a Starting exceptionally Caesars a $X.X the Vegas, Brick demand segment. highest quarter record strong EBITDA our margin. through for the while We which trends the strong another QX adjusted million in record EBITDA, quarterly on Las represented set properties. the of for Vegas properties Digital, set XX quarter, XXX record EBITDA highest XX Las an quarter, to

versus improved XX% Excluding XX%. Rio to QX quarter third points at the mid-week basis margins occupancy of was XX% EBITDA Total for with rent weekend XXXX, XXXX XX%, XX%. and payments, occupancy and improved occupancy

beyond. XXXX encouraged remain ahead, Looking booking we into and by trends

Vegas Las normal, XXXX. While half to of the represented XX% see first quarter, segment group versus a we improvement nights, approximately higher of to room returned the in attrition began than dramatic remains third the conventions and occupied

next continue revenues on expect recovery to convention books the and a 'XX. encouraged to Demand revenues $XXX exceeding million in with nights original segment we 'XX of of into and events CAESARS Caesars. underwriting for million to over continue FORUM periods. over ahead currently, the see pace new is XX% of XXX to future business We are group nicely gradual leading and all as X.X representing this for booked is room the expectations year, for

generated Tahoe, improving sports by and Caesars season, Adjusted we EBITDA Turning net In handle regional over through markets a EBITDA a third XX%/XX%. especially of and and not With digital in we natural events. basis, during quarter Orleans, billion XXX adjusted segment aggressive our the segment, increased was the by and highest sales million. versus impacted laser-focused loss and revenue of an Digital We're bits million X Charles, On from EBITDA betting disaster split Company. sports EBITDA, our in of strong business our remained same-store of roughly margin Lake our the branded achieved XX states. first apps seasons customer in post-launch severe a in XX% Lake on volume, XX%. results scaling XX% acquisition mobile regional of betting to to our margins handle excluding XXX markets, iCasino. XXXX. the Sports X history of our operating fall iCasino New

While and revenues handle internal profit were than strategies, negatively by hold odds directed exceeded impacted and investment customer acquisition net promotional expectations, pricing lower in certain boost, our markets. and competitive in historical

in to has Liberty X increased operating included the has We not on stats. through these reported sports therefore are share handle September. XX% our states platform and that in pleased Arizona not betting

all through legalized at states, XX%. Our sits sports September, including betting market national share

betting Following on mobile. exciting in which offer in betting of the jurisdictions, XX launch we now sports are of Louisiana Sunday, XX retail sports

platform gains to Washington, iCasino Liberty out Importantly, to new excited to Pennsylvania, Nevada, XXXX. New Illinois of fourth expect of complete anticipated enhanced approvals the quarter, Michigan, also legacy in to the Jersey, and the D.C., we Virginia. our in migration in release related to We're following rolling regulatory and offerings West be our up

will portfolio our in-app significant game expanded to Our merging improvements accompanied by technologies. be

be fourth Lake we by finally, on are and 'XX. for land-based January underway Charles. for well and On food upgraded making capital our entries And In forward is significantly New Grand, business our property hotel we the at ready Las Indiana, setting in a on has look casino beverage, should quarter forward are remodeling In $XXX and which property time options. arrival facility million tower In Vegas, and actively QX some the moving completed our the improved of in remodeling entertainment Palace be expansion we Atlantic construction development progress, front, our This Orleans, 'XX. with the dramatically new great in progress great of to making and experience Caesars upgrades. new new with finished started work should of in the 'XX. room exciting is City, and towers plan of stage Indiana to

fears Las and we consumers our see As eventual we once further fully several and visitation our we destination optimistic property XXXX, returned to convention the We markets. gains in return to look remain about Vegas our business, confident COVID tailwinds in subsided. customer as remain have to the

exceptional of to using further XXXX, our on Caesars experience. the are portfolio brands extremely service With the additional flagship insights some their the Lastly, of execution for in over the I quarter. proud we even our a to excited Tom to from teams, third that, the during handful customer quarter. elevate properties will call am guest and now operating rebrand I turn

Tom Reeg

everybody. months Thanks, go Anthony. I be the brick-and-mortar going digital. pre little in Good of had operations, into lighter quarter, -- deeper and you for effectively, a -released our afternoon, so We on X comments bond so in deal brick-and-mortar earlier am on to

Tahoe. Not as but pretty works recovered as it pre was to that and both quickly we We Tahoe, didn't brick-and-mortar particularly the On either directions. Demand remains and to quarter. quite didn't in the back Orleans had New we fire EBITDA XXXX Tahoe of New caldor have extremely the robust. one Orleans a In hit in above has strong We strong in New build. leverage it Orleans, continuing have that regards billion significant to an And had side, had done operating recall quarter. levels. -fire, brick-and-mortar there

minimum state city You've tax and a got to payment guaranteed the in the Louisiana.

well. continuing Orleans trail to continues although So as recover it New EBITDA is 'XX, to

record were at Going had a New or building. $XX million, month second and Vegas $XX in quarter. doing of storm Orleans, we're the EBITDA we more quarter, beating million X record like the the into now a X in

So to adding $XXX $XXX EBITDA, ramp $XXX the back payment. went real of

occupancy could we of us in our that said, mid-week, that with housekeeping supply was services. so spite Anthony As margin XX% caps were imposing again, calibrate we

to country Vegas room hire no exception. guest We attendants, across are is struggling the

even caps, the set Caesars. strongest of month EBITDA with Vegas history had a In the we So quarterly October, the operating EBITDA record. in

up regionals strength 'XX. the the October We're well. still continued neighborhood over in XX% into of pacing So has as

'XX. the demand past over good So setup remains demand and the X pickup X numbers considerably as very feel into strong. in we're going Customer weeks weeks, rolls some Obviously, about through. subsided to the have virus seeing that

you to the digital, quarter should expect digital terms For I what of us. from spoke call in second in

at in anticipating XX,XXX our the terms ability investing billion that's set of Rewards dollars our most what into strong in losses EBITDA a million digital activate plus our We cash-on-cash generating and XX%. the And of and XX maturity are properties, was and what $XX cumulative north importantly, north of EBITDA us Caesars saw the a to segment, out of to returns we employees, opportunity do. database, we plus terms for

the and As this, that not go not we states through -- hold launch but how of was ahead as what the Liberty extremely because sporting about the of a and we're where talking excess that of the doing were show to we states the published that we're our versus events, would on the most in because will had our results so to talk of expect offer. -- during business you we going at Anthony think even effective look the I a us boost I markets. existing the in numbers, What results launched volatile, encouraged described to Arizona numbers we of that In to expectations. the equal very measuring these acquisition current I describes has long technology, handle we promotions offered numbers of strong that this is I'm though be straight game, results anticipated are earlier. expectations about database, it's internal footing, line. handle be quarter, numbers our I'm in and going early yet, customer in because terms And this starting in we environment, a percentage where we but total, at the that is be which not in that would Liberty T, where looking those it I'm just

talk when I talking share, share. about -- about I'm handle I'm So

to Xs XX% That's the almost That's So in share without share. since states, our launch. market Liberty Arizona. mobile about has handle in doubled

build XXX to basis launched did we share market late have continued points we're to the on were continuing on -- I Liberty, but since X our we we -- exceed game higher. our seeing and Nevada and state I'd to advantages average strongest States incumbent what have we and where As reflects expected. behind the exactly bring Iowa third Arizona it we said, market that expect depending where of in the second is order the that launched. but the

first in but you're expectation, Liberty our looking is be approved an markets and are platform we if at realize It two was that to we didn't Importantly, guiding looks in that of the which spend the biggest approved either not the we what will share wanted entire half out for the money not across market, time to competing, would U.S. customers that of XXXX market be Pennsylvania experience at analysis launched, to we not are them. in state. the When want offer there. being, Illinois

And of better sucks, those lack in so share you see for our markets term.

customers coming spending of to that spending and worth your lot customers promotion, If door. be our up we're going to lot not on from. at at get value. are going where of of you're are like look show a When and lots you're advertising lots them A you

If customers Caesars By customers our re-launch. at of handle, relaunched. X/X around our new look Rewards are Rewards handle count, are by you total our deposits about of customer half since Caesars we somewhere since

to fantasy betting we're everything. what we will that's well. numbers Caesars as decades a market there handle Maryland doing similar online encouraging These includes future. have system in horse where billion extremely just there, identified for customers well validating our out when which sports our come Liberty did that are Pennsylvania That's market that Arizona, mobile in states, The adding not was we you under we'd we launched the $X.X valuable we we give sorry, as encouraging tremendous not Illinois, -- is Arizona adding we're -- alone, business performance position are you not So perform a quarter to little a two Liberty And are a experience the launch will to for, of total in quarter, like doing did the When full states think states everyone expect so pure we look where and in Louisiana, built we're states we showing we're the We're look billion sports Sunday, soon share. in we that we little October also seeing that that we Nevada, if but future. the to is over state retail were you where in what I'm well. on XX% the think In but not -- handle. share, third show like in not and which the over about there, that's a also in as a near we're our in in for handle. the $X.X $X.X billion over quarter. racing searching

it a talked showed pace at share expect I we had return think get it continuing in model the to to obviously about on which expect the that there. So we're investment, get we momentum. we to market we where and And when generate

EBITDA that exceeded were people So you what it's expectations to its in share relatively telling of our line market can terms see ramp from loss in has with But in pace. our we expect.

we that expected the to are do market pace mean does know we down is number we've share bigger there's -- And but question that now, what given don't a that the candid is, the road? broader share a gaining we market investment right we is the know at stronger than made. a Now, answer

tracked you a to from plan, about want bit was if platform results in from where little non-competitive inherited have we sports. -- iCasino, standpoint. a somewhere below encouraging we you So iCasino a that think game-offering to In if want

we a broader again, our to are of that advertising we've And so there. and out until need iCasino not promoting spent that's approvals get business competitive money array our offer the peers games we with

the will We expect end year. place before take this of that

to talk what's we iCasino. then in more so happening can as with And relevance

New in We our launch continue in to perform beyond strongly not and pushed iCasino, but iCasino Jersey New we have today. Jersey

we're the in enterprise, just switch. physical for see something there, I think out the getting us. thing Caesars database, leaning of job digital the flip you brick-and-mortar, extremely And a into as message We we've we're the that And done this one going bulk employees just the Rewards, summary, a build good an job encouraged -- I and not about this to this say I'll where wrapping and getting continue quarters activating into leaned, done So should have momentum customers outstanding with launch business of is brand to there, This to our respond. out flip pile up. encouraged our that, to Bret. is

Bret Yunker

PSX.X We On Xth, third Capital quarter announced assets M&A an to to of markets Holdings non-U.S. Hill of agreement sell William and Tom. an September had active XXX we activity. for billion. Thanks, the

will receive Following approximately debt, we repayment net of billion. of proceeds $X.X

new savings coupon. XXth, a X%, billion of we we X% And during We Term notes expect and this On first annualized non-U.S. September sale XXXX, unsecured billion cash $X.X of yielding billion debt in year-to-date new Aggregate Loan savings. further a use CRC decrease hand XXX, close to will at William CRC in applied half market cash resulted open XXX will million interest were continued alongside of from bps. business quarter to excess of purchases at notes. transaction of approaching XXXX. Libor $X $XXX our flow. of Net permanently September used reduction enhance has proceeds is we existing priced cash the free debt on repay the interest through X% and which expense of of the debt of Proceeds $XXX first of expense million $X.X and $XX existing million repriced October, billion, of be on from notes a plus to hand In retire fully to B the $X.X approximately late a reduction Hill’s

Digital. Orleans Tom. million and Our year by back to COVID-related $XXX to Atlantic This from XXXX of for our hurricane approximately CapEx that, is spend, XXXX which impacted City, part a $XXX expansion to that planned driven CapEx XXXX, $XX I'll New calendar now supply shift excluding in includes simply is million turn With Caesars timing in shortages. the million,

Tom Reeg

Thanks, about obviously, with point the transaction, bit a where the 'XX, to a free Bret. to to an capital bridge we a cash flow needed closed highly we talk environment leveraged down we uncertain structure, debt. to and Caesars closed generating And little we'd be into of lot when that pay

a of beginnings going flow -- You 'XX the is talked in generation to Company. heard that cash about cash year and be Bret generation the deployment massive for 'XX.

Neo about William something right 'XX. William a in of flow non-U.S. brick-and-mortar be got Bret of coming Hill The to of games $X sale bulk in the generating now. asset in Hill of settling $X.X proceeds got the sale, we've billion the business As free neighborhood which business, the the billion said, deploy, we've a will We're between year cash

And so there. billion -- you're from if end till from over looking end well of third cash to 'XX, of of you're $X quarter now

We on opportune our sale. also an a strategy this to asset think is time execute strip of

you debt. So should to -- as expect to you well, that should early put expect of aggressive 'XX. of in our And and Bret part look be in on dramatically in you the which us at said, front lower XXXX all refinancing the motion it as should of cost if

so add of excess in should billion XXXX. those if And in $X you deploy to of up, of all cash well we have

the digital business. Some of that in will be spent

than will of is going But can drive to of go cash ROI in where down million transaction. the projects debt, Balance in million majority $XXX cash the less closed the was spent pushing off when the or end we position by of be pay it sheet we be a and to that interest debt conventional the to reducing our to Some capital that expense $XXX of our portfolio. half 'XX that on year be almost ultimately a vast

with in that So extraordinarily we're Operator, excited happy for reporting answer to the to we line open you questions that any and 'XX, happy come to results have. questions? we are you can very the for what's today,

Operator

question the Instructions] line DB. Santarelli Your comes from first [Operator of Carlo from

Your line is open.

Carlo Santarelli

I that Hey, expectations sports few given and time to been the guys, aside keeping the terms looking since believe months, we but that and are thank a in business second, the see so out long you positive as it the EBITDA you. for into your do to beyond XXXX start side, soon it contribution? you or as relative know on 'XX, ramp hasn't turn a you when started, side could and Is 'XX? iCasino Tom, of

Tom Reeg

I am expecting football season of 'XX.

Carlo Santarelli

Great. there Okay. you've then clearly the patience what And has and -- terms sale the about seen to comps. Vegas first comps early next aggressive little a paid transaction year bit have been next get off in you special Is talked with half Las will about your looking seemingly of make terms anything the you that happen? in of of that guys or year

Tom Reeg

as an generating not we've really some number wanted property, it's discussed, number trying EBITDA marketing we before. No, we're a to to from bridge done that that off matter of we to not the be

with robust Aria Now playing terms has we've and been generate, one ones got quite we some a -- what have property cleared the field the of to in track has record be the can Cosmo point to and the trades asset pretty trade deck may can -- that of time. we encounter should frankly, to robust demands the for last a that, a pretty for center we where strip should

Carlo Santarelli

are you or guys that's business you then on was if XQ, nicely, revenues check higher; -- sequentially. mid-week the and as Vegas more is is rate about going in from follow-up sustainable labor maintain specifically, volumes to something Las is Do or OpEx up. you business run to had XQ during current can could, know in OpEx Las to in think these that you it I also And forward? just up trends volumes Tom, pertains keeping Clearly, talked less. were Great. staffing think adjust environment OpEx you one to current a that XQ Vegas but the place levels, I where occupancy the

Tom Reeg

our, in to can I'd frankly, up the happen we I'd particularly, but come caps attendant we some midweek, point I on do, that expect at some OpEx 'XX. see fill and so guestroom positions like the that as unlock to

Carlo Santarelli

you. Thank Tom. it, Appreciate

Operator

the Your from next question from JPMorgan. Joe line comes of Greff

line open. Your is

Joe Greff

a into versus Good weather-impacted the morning, Was Vegas in the sustainability rate big Tom, maybe what exit Carlo in between on the Las about difference of dovetail of regional into was the the margin everybody. excluding can what we beginning talking say margins. areas? going XQ, there

Tom Reeg

what? you margin Can

Joe Greff

Margin rate. exit

Tom Reeg

No. stable were I and still pretty margins. XX% EBITDA in mean, into around consolidated throughout quarter, the Joe, October. we We're

Joe Greff

by the billion of about have about the would launched, which you the as cumulative end competitive incremental you digital, might Okay. that investment that this that games sequentially larger Great. then is from be? terms in think year, you of to a and end talked in of more you how in you of October Can think talk you've And quantum mentioned September the before. of you what iCasino the losses move investment year part incremental dollars of of and broadly what

Tom Reeg

-- That I framework for built entire the gave into build business. the I guidance was of the

the timing through built you the of states. participation was know, They're are bulk a of that from approvals getting just in As those, extent It's standpoint, third-party question of them in. -- games. so revenue they're various all the the a those to

Joe Greff

you. Thank Great.

Tom Reeg

Joe. Thanks,

Operator

Wieczynski Your of next from from Steve comes line Stifel. question the

open. is line Your

Steve Wieczynski

Hey, afternoon. guys. Good

Or with this you X So, eventually down Tom, pan that the all your far into to that's say, point, you on the is, I it's so years that with or see you've higher will sufficient? just say being called I in another doesn't is, investment or you much about. question guess progress, billion-dollar turn last, you've digital in think XX level spend share Could be. the are quarters, number seen could the quarters to investment where going you you still case? would that market that way and investment ask the out let's at let's market that that call on with I made out talked comfortable think billion road, a guess last share, $X if what what be don't I and X that your

Tom Reeg

the what I'd It's acquisition. spending opposite Steve. tied the of bulk is you -- of post now say it's described, to It's launch, customer No, our success-based.

we're be we So investment ultimate investment the share do the if If from expect be than will we perspective, expecting I'd will less. better the do we worse more, fall from return than both obviously, to directions. that in perspective, a a expect I'd ultimate share but, expected

Steve Wieczynski

think Okay. number Understood. you've Tom, a Vegas and question assumes question, then cash that And sale. of guess case second you, more I you is, in eventually called there is to there, asset about asset that this out do than billion I or a X $X the go X that point, of next year, XXXX potentially and could the X XXXX? or talked go is letting there is Vegas. the in from at Las more in than possibility still then kind it you And deploy

Tom Reeg

were [Indiscernible] Company, public a every asset is as the there is confusion. clubs. at VT two that the sale for There day, caveat the in every some with Well, agreements

We said billion, but Balance we sell are we and assess our expect we property have about Capital we'll afterward, the we of and nose. think deploying But market, limited going excess be prospects. this 'XX, well never future expect feel I to also like how in I expect will be to $X point. do at a nor talk it asset. be back not a And $X in just to about Sheet to to in done, to, looks one property, second to think our when where sell billion the on single what We'd it's go I

Steve Wieczynski

Tom. Thanks, it. Perfect. Appreciate Okay.

Operator

Morgan Allen comes Stanley. Thomas from line of question next Your the from

is open. line Your

Thomas Allen

Thanks.

color said a over you you've I of October, X betting market and which You of think -- third kind versus the kind how about handle correctly just Sportsbook trajectory of states XX% versus on I a give quarter, the in the billion then the in numbers then re-launched of rest get what that on your the view October. that in of had quarter? third in U.S. the quarter September parse implies Thank sports X sorry, bit? did August just you based newer Nevada so to the in business? share any Can third XX% Xnd, the handle closed over you. billion little And and at did business legacy a was my of heard you a

Tom Reeg

Yeah.

handle as was of September you doors built terms Because in than -- is the of would quarter bigger to expect, more the considerably September. July August than the October So and August. considerably calendar,

In share. Nevada but Liberty is have share in in large significant very either. flat any obviously market Keep time share have I've frame. Liberty went handle are the Xs states, in the over We terms terms mind, Nevada, measuring move total, of was states. XX, that in to from, share of, we We talked in didn't Nevada not in a the about we're about, XX%. as it state about yet

Thomas Allen

the talk little my going But, they you're gave bad, Tom. as Caesars think all you risk-free things, commercials, that? follow-up. then of are you How the the customers. about just bit talk some color about Rewards in do And Thanks. you Thanks, other well the $X,XXX cross-sell been just Can of with Perfect. some you -- a what's can doing?

Tom Reeg

to name that than a all books. list question higher started from whole It's business. it people -- commercial sports into the Xst. we they awareness, debts. today the that that's of don't well, a And -- people best expect as of parlay, Caesars The what's of is constantly basically, list would growing which hasn't and you of -- brand percentage should to August dramatically in we're percentage ask commercials, our was I Company We've standpoint, worked and been that what individual tweaking single-game on get really The you competitive offer sports amount promotions has action that out rolled those. that's continue. hard the measure But worked. parse high roof of know want unaided reasons NFL through substantially to, getting since a very a for see

see. So that's to good

Bret Yunker

seen just apps, a were I'm And XXX on sure we and we're XX Tom, improvement the trailing on mean, sports ranked so and in rank iOS. the significant category just between progress now roughly you were we -- the there. on great app, improvement iOS this, tremendous it's I making XX track a

Thomas Allen

All you Thank helpful much. very color.

Operator

line Barry comes Your question Truist. next from of from Jonas the

is line Your open.

Unidentified Analyst

Tom and [Indiscernible]. this is team,

Barry might -- think I

Operator

Jonas. Sir Barry

Unidentified Analyst

might think Barry having difficulty. I be technical

Barry Jonas

Hey. Hey, sorry.

Unidentified Analyst

Go ahead, Barry.

Barry Jonas

do tax Hey ROI think how markets New about higher like in digital you with York? guys, rates

Tom Reeg

Obviously, going reinvestment influence rate. to that's your

states for looking my population But velocity, Capital. participation. You're enlarge high on what's ultimately, high can you return your

make But as prefer money we at conceivably an states. obviously, You the can operator. volume lower tax higher in lower tax rates than jurisdictions

Barry Jonas

it. think point a promos any once you thoughts of on any And mature back I guess updated size about Got profitability and for that, share how reach market And goal? you loss? a the do you digital, business with compare when

Tom Reeg

out that? What a out the started that than don't not We've we target as make the we're start we there metrics piece to want we that was than share quicker share anticipated market today that, the other goal out. had other and with put in to when quarter, much much, mind the again we been of point gaining last

Brian Agnew

repeat -- first Barry,

Barry Jonas

about back when start can question promos, was, you The think you and you paring reach business stays how what what remains? a do point

Tom Reeg

customer. signing you're the app, our in vast a if you're not deposit Rewards in Caesars of up majority you As already cases, for

bringing we're the into So system. new customers

been the them. brand brings expectation the of has the benefits Our over what that to rewards they realize sticky becomes time is as our history program -- customer

of length the it the peers, think is But going average of we lifetime handle. of that site guys, from lose profile best We of to the the for to Caesars the customer, the to of are time from do a customer to that shopping lifetime both a stick with get at that dominate you're of is our some our with rewards whether the going app think thinking relationship program. So promo standpoint starting the we're with they value our compare favorably it's to know if value because tonight. reward site what's can customer I going we looking we're because And of of these

Barry Jonas

much. so Thanks Great.

Operator

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

open. Your line is

Shaun Kelley

the of ramp about -- just it let's call Tom, the everyone. afternoon, fight some good the in Hey, non-fair thinking states. up

So competitive that us need up of those for but to little the at to to what about how in expect little those where really a world? bit month? I And couple monitor Just how in you in to a talk higher Michigan’s be we looking markets? some see able success a bit what you ways, continue the about -- later. Can see us talk try in Pennsylvania’s, the you direction of were are you to level, expect could every some different Jersey you data give trends as coming KPR New ramp you show should the the existing those of states, to s, a

Tom Reeg

want, went time at if you Virginia went X X from looking went to from share X And X. almost to the from to We're handle Michigan X. being. for over Tennessee XX.

claw seeing over share to you're we're early expect where in we to we'd and in expect to states materially, share, So it time. continue gaining that the on jumped late, that --

say states since take about where is a I'd where to we and launch to the point we're we from can I we the of late, were. just that building in state no we more starting talked going we're really the time. were experience seen from base, claw the where It's there's case haven't low share So

Shaun Kelley

my obviously has very the with some a but you've bit. be the discussion buy, side, been ad has pullback there there TV little buys. a bit marketing cost little on would talked And see some And big follow-up about performance also national in visible been already, been you've your the

to you but just got some maybe there, own level of awareness -- that think talk right you're know you a thought on time? buckets those and So you really can start there, to plan about sure reaches out focus to through for about about a you your your how spend there or Is that effectiveness. mean, over -- switching know channels timeline out do evolving as you've I'm competitive do going you everybody's think have I that

Tom Reeg

this aggressive. be filmed We season, another through going just continue month. ads football expect what out X we're this round should rolling You we're of to that calling will start season to

is So was iCasino we want. place we over in until -- our powder going that all dry that we're you're get we be targeted that media. to the have going to standard up the toward Where terms media the -- kept advertise product the to of

Shaun Kelley

very you Thank much.

Operator

Your next Pulitzer from line Wells the Fargo. comes question from of Ben

is open. line Your

Ben Pulitzer

questions. I this more or bit new what properties for sign-ups Rewards. players your Members -channel and to thanks seen afternoon sign-up Hey, new new put of the the little you create you have some you an that mentioned benefit? Tom, taking of the Caesars flow -- these guys. quantify -- into my in Good and omni the numbers maybe there, a terms and have you -- seen from mean, extent can

Tom Reeg

said, the raw numbers, our depositors answer of But I've half. seeing handle, you're Those on for or you said, Rewards, is Caesars are and question prompted seeing I'm and quarter signing for sign high deposits. put for to broadly app the about an as Caesars uptake And extremely far as time first the going a sign a up no, cross as I to been of where up but Rewards, not we're figure as I terms first-time deposit, we're to people first Caesars visitation. up at. third As And to been in data we're those Rewards.

sports areas particularly system, as their to of the are we're seeing batters that take is our large to make new limit rooms -- our we're well. market, high way those the their active -- and of willing end where where large high high customers bats, we're the One our into

well. low encouraging as sign the down been an that way that's seen all the of the we've So levels and database to

Ben Pulitzer

any a for terms Since seen there? it. so full growing XX% sports lot I betting. then or I historically just changes certainly And Hill is my share it's market ownership, around think you William Got I for well. in in partners your follow-up, had know of have guys online Nevada, took you think for as

Tom Reeg

We're about half Nevada. of

Ben Pulitzer

so it. Got much. Thanks

Operator

of next Jefferies. Your Katz the question David from from comes line

line open. Your is

David Katz

just the Thanks standard up is. with question. not perspective, being the my the to really From was on primarily? commentary, issue offering or everyone. you technology back you're go iGaming indicated what to you over wanted it your for on engine evening, I going taking a early not offering of a little to working Hi, And a think I those still wanted. elements games game breadth content are that is on and what

Tom Reeg

both a OSB both feet. states U.K. And on and stopping this develop entirely platform fullest we're games managed Company, provide a iOS a iGaming. matter are that -- work William their it's iGaming virtually to of the of bureaucracy not waiting is resources approved life the terms extent. the on this We Hill, function never piece iGaming their former our content nuts on getting But the the in the at in bolts OSB in the its getting dragging just state, to domiciled and of business each and is behind apps. platform the to as and this And through U.S. point. didn't

so and up the And we're to with what doing let providing iGaming resources is catch OSB. ability

David Katz

LTVs of is than share as better with Understood. etc., of to conventional handle, iGaming, there numbers a and smaller OSB. from perhaps numbers can your And of with and even be is, see we those you? those believe, Is I fewer the customers, equivalent what some share handle total or the or to respect some those and that start wisdom that smaller states profitability get expectation

Tom Reeg

Yeah.

we are for same and to out, would a generator follow in Michigan, iGaming -- is path. We Jersey and West has that material New we us, Pennsylvania, expect profit roll been Virginia, as

David Katz

betting fully or enterprise? is iGaming, if maybe are betting which I sports certain a that appearance enterprise. driving correct participants integrated there in may, within Is there over one that last BXB you the One your control sports that and is have of aspects that

Tom Reeg

PAM a The ownership ' that only PAM works team only arrangement interest Caesars at on our NeoGames, piece that's NeoGames. that's in have by the NeoGames dedicated but provided unique is given the a where we

David Katz

Thanks a lot. Perfect.

Operator

[Operator Instructions].

question the Your from of Beynon Chad from Macquarie. comes next line

Your line is open.

Chad Beynon

and taking add my Hi. I'll for thanks Good onto digital question. the questions. afternoon,

just Can on marketing the how us I there market stateside? think seeing Thanks. up little will in will will around be your be customer rewards up the commentary program one that specifically shake seeing, any you Ontario, than of a a Canada, the bit given out we're there different Just we're membership U.S. versus sense know what give in the what different acquisition you

Tom Reeg

you as anticipate how go contract among long as through of the Ontario operators given be we they in We're roll are, better the will history with that will management positioned our out. mechanics We Windsor. watching it Caesars

of known amount a customers Ontario us have through Rewards. us we available to So and large to Caesars

Chad Beynon

you been or and visitation. that recovery you but versus seeing in this or markets, the per us back the to if you're I by gets you. if sure laggard. visitation regional spend mentioned recovery Visitation of driven prepared has not certainly on still I'm and as coming lot comfortable a visit Anthony Tom, has -- And your has has said XX remarks, your know the if Thanks. if been older that help Can plateaued think customer properties? about improve Thank Okay.

Tom Reeg

U.S. retreat savings on We per the expect casinos the continues expect and as to rate retail full that to expect long do as to willing the elevated. case do come story that be the historically. the it's that -- significant be of are side, same And portion that is has the portions will there say today. visit been a Xx if of remained COVID of get remain I'd spend the what I'd you then when significant coming we not population are to database, that the about

expect demand pent also that there this similar as of to expect we'd travel us. We business be a returns, behind got travel experience once business we've for up

Chad Beynon

appreciate Thanks Tom, I it.

Tom Reeg

Chad. Thanks,

Operator

Your of Goldman next question comes Grambling from Stephen the Sachs. line from

is open. line Your

Stephen Grambling

is, incremental how Hi. ensure you versus digital cannibalizing earlier. as Thanks. I how of thinking do guess, are profits that we iGaming, the you it's launched the revenues customer truly and questions These are and some follow-ups who base? about to

Tom Reeg

us a lot of there in relevant be to that's other states. experience got we've Jersey Actually, in to going New

out be rolling a think we about don't in you are to we and If Michigan. going have the states in property

property large be property Pennsylvania. expect We in material have don't single a in that to that's Virginia, a so don't those not in We West we days. us a factor for have

Stephen Grambling

can step-up that thinking about That's there as provide helpful. detail in of on-device device spending bets else there in-property. Is time how bit Maybe I been of frequency you know in in launching? and on that anything terms you've terms [Indiscernible] little follow-up. about gave greater or another Thanks. of then you a people of

Tom Reeg

I like That doesn't think, behavior, type would really value say of so apps the response early We're going that as seeing is been builds. Anybody in it our going you've But of This be brick-and-mortar neat things you It's and we've -- days peers, day happen customers to is said small awfully we're activate value kind better properties. is of every earlier, this just XX and and this, anything What momentum to of forward. that's considering this of for some invited that lot stuff that, flip be overwhelming. at been you switch. got and of we to now is get here. definitively digital I terms this being to stating of significant else, a drivers isn't in a doing right has alive Operator?

Operator

would conference I the now Mr. so Q&A this Reeg. sir, concludes the in back turn to queue, else to There's nobody our like session. Tom

Tom Reeg

We'll results. Thanks, our everybody. Enjoy quarter the be back season. with in fourth XXXX holiday

Operator

have wonderful and today's conference. for day. this concludes your Thank a and you Ladies gentlemen, participation,

disconnect. all may You

Caesars Entertainment (CZR) 3 Nov 212021 Q3 Earnings call transcript