Caesars Entertainment Stock

Caesars Entertainment, Inc. (Caesars) operates as a geographically diversified gaming and hospitality company.

The company’s primary source of revenue is generated by its casino properties’ gaming operations, such as the company’s retail and online sports betting and online gaming; and the company utilizes its hotels, restaurants, bars, entertainment, racing, retail shops and other services to attract customers to the company’s properties.

The company owns, leases or manages various domestic properties in 18 states. The company also operates and conducts sports wagering across 31 jurisdictions in North America, 25 of which offer online sports betting, and operates iGaming in five jurisdictions in North America. The company continues to expand into additional markets as jurisdictions legalize forms of retail and online gaming and sports betting. In addition, the company has other properties in North America that are authorized to use the brands and marks of Caesars Entertainment, Inc., as well as other non-gaming properties. The company leases certain real property assets from third parties, including GLP Capital, L.P., the operating partnership of Gaming and Leisure Properties, Inc. (‘GLPI’) and VICI Properties L.P., a Delaware limited partnership (‘VICI’).

Business Operations

The company’s consolidated business is composed of complementary businesses that reinforce, cross-promote, and build upon each other: casino, which includes the company’s retail and online sports betting and iGaming, food and beverage, hotel, casino management services, entertainment, retail and other business operations.

Casino Operations

The company’s casino operations generate revenues from slot machines, table games, including poker, sports betting from the company’s retail and online sportsbooks, iGaming and other games, such as keno, all of which comprised approximately 55% of the company’s total net revenues in 2023. Slot revenues generate the majority of the company’s casino revenues.

Retail and Online Sports Betting and iGaming

The company operates and conducts retail and online sports wagering across 31 jurisdictions in North America. In addition to the company’s online poker operations, the company operates iGaming in five jurisdictions in North America and continues to leverage the World Series of Poker (‘WSOP’) brand and licenses the WSOP trademarks for a variety of products and services. The company offers hundreds of online casino games, including slots, table games, live dealer and video poker; and the company expects to increase its product offerings as iGaming is legalized in additional states.

The company launched its Caesars Sportsbook app on the company’s owned and integrated technology platform the company has labeled Liberty (‘Liberty’) in 2021. The app offers extensive pre-match and live markets, extensive odds and flexible limits, player props, and same-game parlays. In addition to the Caesars Sportsbook app, the company and NYRABets LLC, the official online wagering platform of the New York Racing Association, Inc., launched the Caesars Racebook app in 2022. The Caesars Racebook app operates in 20 states and provides access for pari-mutuel wagering at over 300 racetracks around the world, as well as livestreaming of races. Additionally, the company launched its new Caesars Palace Online Casino application in states and territories where the company operates iGaming in 2023. Wagers placed can earn credits towards the Caesars Rewards loyalty program or points which can be redeemed for free wagering credits. No customers under 21 years old are allowed to wager on any of the company’s Caesars Sportsbook, Caesars Racebook and iGaming mobile apps. Growth in the Caesars Digital segment continues to be realized with the strategic expansion into new states as jurisdictions legalize retail and online sports betting and online horse race wagering.

Sports Brand Partnerships — Caesars Sportsbook has partnerships with the NFL, NBA, NHL, MLB, and several individual teams. The company has continued to create new partnerships among professional sports teams and, in 2021, entered into a 20-year exclusive naming-rights partnership branding the Caesars Superdome in New Orleans. The company’s strategy includes developing local and national partnerships that align its sportsbooks, casinos, resorts and brands with sports fans. The company has high-profile exclusive sports entertainment partnerships with the NFL, making Caesars the first-ever ‘Official Casino Sponsor’ in the history of the league. This historic partnership combines the NFL’s legendary events with the company’s properties to bring unique experiences to the company’s patrons. This includes exclusive rights to use NFL trademarks to promote the company’s properties and enabling Caesars to host exclusive special events and experiences. The company expects to continue to host brand activations at prominent, high-profile NFL events, including the NFL Draft, NFL playoffs, and the Super Bowl during this multi-year partnership.

Food and Beverage Operations

The company’s food and beverage operations generate revenues from its dining venues, bars, nightclubs, and lounges located throughout the company’s casinos and represented approximately 15% of the company’s total net revenues in 2023. Many of the company’s properties include several dining options, ranging from upscale dining experiences to moderately-priced restaurants, some of which offer pickup or in-room delivery options.

Hotel Operations

Hotel operations generate revenues from hotel stays at the company’s properties in its guest rooms and suites worldwide and represented approximately 18% of the company’s total net revenues in 2023. The company’s properties operate at various price and service points, allowing the company to host a variety of casino guests, who are visiting the company’s properties for gaming and other casino entertainment options, and non-casino guests who are visiting the company’s properties for other purposes, such as vacation travel or conventions.

Management and Branding Arrangements

The company earns revenue from fees paid for the management of other hotels and casinos in North America. Managed properties represent Caesars-branded properties where the company provides certain staffing and management services under management agreements. In addition, the company authorizes the use of certain brands and marks of Caesars Entertainment, Inc. from which the company earns revenue from fees received based on the arrangements.

Entertainment and Other Non-Gaming Operations

The company provides a variety of retail and entertainment offerings at its properties. The company operates various entertainment venues across the United States, including the Colosseum at Caesars Palace Las Vegas and Bakkt Theater at Planet Hollywood Resort & Casino. These entertainment venues host or have announced plans to host, prominent headliners, such as Garth Brooks, The Killers, Kelly Clarkson, Jerry Seinfeld, Shania Twain and Miranda Lambert.

The LINQ Promenade is an open-air dining, entertainment, and retail development located between The LINQ Hotel & Casino and Flamingo Las Vegas, which features The High Roller, a 550-foot observation wheel, and Fly LINQ, the first and only zipline on the Las Vegas Strip. The retail stores offer guests a wide range of options from high-end brands and accessories to souvenirs and decorative items.

CAESARS FORUM is a 550,000 square-foot state-of-the-art conference center located at the center of the Las Vegas Strip. CAESARS FORUM can accommodate more than 10,000 participants and features more than 300,000 square feet of flexible meeting space, the two largest pillarless ballrooms in the world, a LEED silver-rated FORUM Plaza, and the first 100,000 square-foot outdoor meeting and event space in Las Vegas.

Intellectual Property

The company owns or has the right to use proprietary rights to a number of trademarks that the company considers, along with the associated name recognition, to be valuable to the company’s business, including Eldorado, Silver Legacy, Isle, Lady Luck, Tropicana, Circus Circus, Caesars, Flamingo, Harrah’s, Horseshoe, Paris, Planet Hollywood, Caesars Rewards, Caesars Sportsbook, William Hill and WSOP.

As of December 31, 2023, the company’s Caesars Sportsbook app was powered by the company’s Liberty platform. The Liberty platform resulted in a significant upgrade to the company’s user interface and significant product upgrades, including numerous pre-match and live markets, extensive odds and flexible limits, player props, and same-game parlays. The company’s Liberty platform also integrates customers with the Caesars Rewards loyalty program. In addition, the company and NYRABets LLC, the official online wagering platform of the New York Racing Association, Inc., have launched the Caesars Racebook app in more than 20 jurisdictions. The Caesars Racebook app provides access for pari-mutuel wagering at over 300 racetracks around the world. Wagers placed can earn credits towards the Caesars Rewards loyalty program.

History

The company was founded in 1937. It was formerly known as Eldorado Resorts, Inc. and changed its name to Caesars Entertainment, Inc. in 2020.