Caesars' Domestic Asset Portfolio Benefiting From an Improved Calendar

Despite higher gas prices due to the Iran war, Caesars' Vegas demand is benefiting from an improved convention calendar in 2026 and the start of multiyear artificial intelligence, onshoring, and infrastructure investment. We expect Caesars to hold a leading high-single-digit revenue share of the $79 billion domestic commercial casino gaming market for the foreseeable future, given its strong asset position in the region. 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 calculations.