Caesars' Digital Business Performing Well Amid Economic Uncertainty

Although travel and gaming demand could be negatively impacted by tariff policy in the near term, we estimate Caesars holds a leading high-single-digit revenue share of the $72 billion domestic commercial casino gaming market. The Eldorado acquisition in 2020 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 July 2020 merger with Eldorado, representing around a 30% increase to pro forma 2019 EBITDAR. Legacy Eldorado successfully integrated the Isle of Capri and Tropicana acquisitions in 2017 and 2018, respectively, with both deals driving about a 30% return on investment, based on our calculation.