Caesars' Digital Business Seeing Competitive Pressure From Penn's ESPNBet

As a result of the acquisition of the legacy Caesars business by Eldorado (closed July 2020) and its leading omnichannel presence, we estimate Caesars holds around a high-teens revenue share of the $66 billion domestic commercial casino gaming market. The acquisition roughly doubled the company’s US portfolio to about 50 properties while lifting its loyalty membership to over 60 million from 55 million. Caesars has realized over $1 billion in combined sales and cost synergies from its merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Before this recent combination, legacy Eldorado successfully integrated the Isle and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.