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CFO Rob Coldrake confirmed the guidance does not assume the Illinois fee is taxable and that they are monitoring the situation. CEO Peter Jackson commented on California, emphasizing their respect for the tribes as the key stakeholder and that they are following DFS developments carefully.

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CEO Jay Snowden stated that ESPN's recent strategic moves will solidify its market leadership, creating a positive halo effect for the deeply integrated ESPN Bet. For the retail business, Snowden attributed strong performance in markets without new supply to robust employment and lower gas prices. EVP of Operations Todd George added that strength is also visible in non-gaming segments like food, beverage, and hotel, and that property capital investments are yielding returns.

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CEO Jay Snowden described the integration with ESPN's new DTC product as a 'first-in-market' feature that they are 'incredibly excited about' and expect will drive user growth and exposure. Regarding skill-based gaming, Snowden stated that PENN views these devices as slot machines that should be regulated and taxed accordingly, and he expressed cautious optimism about a favorable legislative outcome in Pennsylvania.

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CEO Jay Snowden confirmed they are evaluating other high-return projects, including Council Bluffs. Head of Operations Todd George explained the project ramps should be swift due to existing staff and databases. Regarding taxes, Snowden advocated for industry collaboration with states to find alternatives to tax hikes, such as legalizing new gaming verticals or combating illegal operators, noting the approach must be tailored to each state's market structure.

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CEO Jay Snowden explained that handle per user for ESPN BET is showing sequential weekly growth, driven by a casual mass-market base with a high propensity for parlays. For land-based gaming, Snowden noted stable core business trends and a Q4 uptick but highlighted new supply competition in Nebraska, Chicagoland, and Louisiana as a factor for 2025, which will be mitigated by Penn's own new projects opening in late 2025 and early 2026.

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President & CEO Matt Wilson and CFO Oliver Chow confirmed the new guidance of $1.43B to $1.47B includes a ~$65M contribution from the Grover acquisition. Wilson stated the base business still targets $1.4B, but the wider range accounts for potential second-half investments (e.g., Indiana expansion, studio scaling) that support the 2028 target of $2B in EBITDA. Chow added that while Q4 growth is expected to be sizable, the range provides transparency on potential variables.

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CEO Matt Wilson described the tariff situation as "dynamic" but currently "mitigatable," outlining a strategy of internal cost management, supplier burden-sharing, and potential price pass-throughs as a last resort. CFO Oliver Chow added that the company is leveraging its multi-year supply chain diversification efforts and is taking a balanced, not overreactive, approach to policy changes.

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Mark Locke (Co-Founder, CEO & Director) emphasized that Genius has a high bar for returns and that these deals are immediately accretive, pushing up both revenue and EBITDA. He explained that the company's long-term investment in technology allows it to secure rights on more favorable terms, proving their strategic model. He added that Genius has all the rights it currently needs and is not actively pursuing other major deals, noting the market has become more rational.

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CEO Carsten Koerl emphasized Sportradar's disciplined approach to rights acquisitions, citing the recent European leagues and Serie A deals as examples where the price did not meet their commercial return hurdles. On prediction markets, he stated the primary barrier is regulatory, specifically tax clarity. He also noted that while they welcome the business, traditional sports betting offers more flexibility and is the dominant market.

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President & COO John Payne stated that the deal pipeline remains busy across multiple sectors with no significant changes in recent months, noting that the credit book is used to build new relationships. Regarding iGaming, Payne confirmed VICI monitors it closely as it's important to tenant credit. CEO Edward Pitoniak added that the industry is in a 'lively experiment' phase, with regulators needing to balance economic benefits with job sustainment from brick-and-mortar assets.

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CEO Edward Pitoniak stated that tribal sale-leasebacks remain complex and VICI is still in a 'learning phase' due to the inability to operate the gaming asset in a default scenario. Regarding construction, management expressed high confidence in experienced partners like Kane and Red Rock to manage cost variability and tariffs, noting their resourcefulness and use of hedging strategies.

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President & COO John Payne stated that the Caesars Forum is a great facility that VICI is well aware of and will continue to study as the option date approaches. CEO Ed Pitoniak clarified that REIT rules would prohibit including a casino with hotel rooms in a TRS and that while never ruling anything out with 100% certainty, operating assets is not in the company's current plans.

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CEO Edward Pitoniak detailed VICI's cautious approach to on-reservation tribal gaming, highlighting the "idiosyncratic" risks of sandwich lease structures where the tribe is both operator and ground lessor. He stated VICI is still evaluating how to price this unique tail risk. Regarding the LINQ, Pitoniak clarified that VICI's ROFR did not apply to the Promenade asset but expressed optimism about the new owners and the potential for synergy with VICI's adjacent land holdings.

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CFO Jonathan Halkyard confirmed the $65 million impact estimate for the MGM Grand remodel, noting about $40 million was realized in the first half of the year. CEO & President William Hornbuckle added that while value-oriented properties feel economic pressure, the luxury segment remains strong with higher ADRs and increased play from premium customers.

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EVP & CFO Jonathan Halkyard stated that the impact of tariffs on the development pipeline and operations is expected to be minimal and manageable. CEO William Hornbuckle explained his recent UAE visit was to update leadership on the project, which is being built to accommodate gaming, with the decision resting with the rulers. He noted Barry Diller's involvement stems from IAC's active role as a major shareholder and board member.

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CEO William Hornbuckle confirmed the F1 headwind number holds, citing the difficulty in replicating last year's initial booking surge and a change in accounting for the Fountain Club from capitalized to expensed. Regarding international development, he noted Thailand's legislative process is advancing favorably, while in the UAE, construction on their Dubai project has begun for a late 2027 opening, with the company keenly monitoring the potential for gaming.

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CEO Tom Reeg stated that while Manhattan may be an underdog for a license, Caesars is confident it would be the winner if one is awarded there. Regarding a digital spin-off, Reeg said the company's first priority is hitting its financial targets. He indicated that Caesars will be in a position to evaluate a separation in 2026 and would 'absolutely pursue' it if it would drive significant shareholder value.

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CEO Tom Reeg stated that the primary focus is on delivering the financial results laid out for the Digital segment. He added that if the company achieves its goals but does not see the value reflected in its equity, management will explore all options to create shareholder value. Regarding prediction markets, Reeg said they have had zero impact on the business so far but affirmed that Caesars would explore any new, legally permissible opportunities to drive EBITDA.

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CEO Tom Reeg asserted that while a tax hike could shift timing slightly, the company is 'well on the path' to its $500 million EBITDA target. President and COO Anthony Carano reported that the Versailles Tower is performing well with cash ADR up 61%, and highlighted other successful projects like new F&B outlets and the upcoming Flamingo pool.

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Eric Hession, President of Caesars Sports and Online Gaming, reported that the shared wallet is now live in nine jurisdictions, with a target for a full rollout by mid-2025. He also noted that parlay mix hit an all-time high, driving hold percentage improvements. While acknowledging some product gaps remain, particularly in live same-game parlays for non-main markets, he feels they have made significant progress in closing the overall gap with competitors.

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Stephen Cootey, EVP, CFO & Treasurer, advised that Q3 EBITDA is historically down about 10% from Q2, also reminding analysts to account for project disruption. Frank Fertitta, Chairman & CEO, confirmed that a Durango expansion is a definite option and that a decision on the next major greenfield site would be shared on the year-end call.

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Executive Scott Kreeger stated they are not yet seeing major operational cost impacts from tariffs and would prioritize alternative sourcing over passing costs to customers. Regarding sports betting, Kreeger and Executive Lorenzo Fertitta explained the expansion increases market penetration and is a good fit with non-competing Strip properties, leveraging a core competency for the company.

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Executive Scott Kreeger stated that while the Reno land is a great, entitled location, developing their Las Vegas assets is a higher priority. Executive Stephen Cootey clarified the North Fork project went through secretarial procedures, which bypasses compact negotiations, ultimately leading to higher margins and allowing for 2,000 Class III games at opening.

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Executive Scott Kreeger described the Cactus site as a unique, large-scale hybrid location serving both the Strip and local markets. Regarding other deals, executives Stephen Cootey and Frank Fertitta emphasized their focus on the North Fork project. Executive Lorenzo Fertitta added that while Las Vegas is the core focus, they are actively seeking new tribal development opportunities that meet their criteria.

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EVP and CFO Josh Hirsberg noted that while leverage will fall below their previous 2.5x target, they will not rush to add leverage, instead remaining disciplined. CEO Keith Smith added that sub-2x leverage is a 'point in time' and the goal is to find higher-returning investments. Regarding promotions, Smith described the environment as stable and rational, stating Boyd is not participating in any 'room rate war' in Las Vegas.

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President and CEO Keith Smith confirmed the lower NFL hold had an impact but was offset by strong growth from market access agreements and their online gaming business. Regarding legislation, he noted it was too early in the session to predict outcomes but that the company is actively monitoring all developments.

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Executive Keith Smith stated that the company's view on Eastside Cannery is unchanged: the property remains closed because the market does not support additional capacity. He confirmed the I-15 construction continues to negatively impact business, particularly at the Orleans, by disrupting customer access. The company is hopeful the project will be substantially complete later in the year.

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CEO William Carstanjen explained that the Starting Gate Pavilion received 'rave reviews' in its inaugural year. He anticipates that positive word-of-mouth will drive increased demand and pricing power for that section, consistent with the company's experience when introducing new and improved areas of the facility.

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CEO William C. Carstanjen responded that there has been no material negative change in international visitation, suggesting it might even be slightly better. He reiterated that the Derby is a very strong event and this year's financial results will be comparable to last year's record performance. He noted that while upper-tier demand is strong, there has been slightly less demand for lower-tier premium tickets compared to historical trends, though overall demand remains robust.

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CEO William C. Carstanjen stated that a core principle is to execute major construction without disrupting the guest experience. He expressed high confidence in the projects, calling them the company's best investments that consistently meet financial hurdles and create long-term shareholder value, referencing their strong track record.

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CEO William C. Carstanjen stated that their M&A strategy, exemplified by the P2E and Exacta deals, focuses on acquiring businesses with a strong franchise where Churchill Downs can add value and drive organic growth, rather than pursuing simple synergy plays. He described the current M&A environment as favorable with a promising pipeline, but emphasized that the company remains patient and disciplined, only executing deals when they are confident they can improve the acquired assets.

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CEO Jason Robins stated that the company has analyzed its customer base extensively and has seen no signs of macroeconomic effects, with all cohorts performing as expected. On capital allocation, Robins confirmed the company repurchased $140 million in shares in Q1 and that the board-authorized $1 billion buyback plan remains in place.

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CEO Jason Robins stated that the company has mitigated some of the Illinois tax impact by reducing promotional intensity and marketing in the state, though it did not offset the entire hit. He declined to quantify the investment for a Missouri launch, explaining that the timing is still uncertain and the EBITDA impact will depend on the launch date.

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CEO Jason Robins identified Texas, Georgia, and Minnesota as key OSB targets, and New York, Illinois, Maryland, and North Carolina for iGaming. On Florida, he said he was 'very encouraged' by recent comments from the Seminoles but stressed that discussions are 'pretty early stage,' though it remains a very attractive potential market.

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Executive Brooks Pierce stated that tariffs are not a significant issue, as the primary impact would be on Illinois equipment sales, a small part of the business. Executive A. Weil added that a potential U.S.-U.K. trade deal would negate any tariff concerns and confirmed that the strategic business changes would guarantee EBITDA margins comfortably exceeding 40% upon completion.

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Executive Brooks Pierce stated they expect a 12-15% uplift from the William Hill Vantage conversion, similar to past projects. On bespoke content, Pierce explained the strategy is a blend: bespoke deals involve upfront development fees and recurring revenue for major partners like FanDuel, while standard products allow for faster deployment to a wider customer base. He noted that having a mix of both is the ideal approach.

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Charles Protell, President and CFO, noted a disconnect between buyers and sellers on run-rate EBITDA, making M&A less compelling currently. Blake Sartini, Founder, Chairman and CEO, added that the company is actively considering all strategic alternatives, including leveraging its real estate, to address its undervalued stock price. Regarding the election, Sartini confirmed a historical pattern of consumers pulling back on spending in the short term around major elections.

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CEO Blake Sartini noted the STRAT's booking window remains short, but April and May are pacing strong. He stated the OTA mix is around 65% and trending down towards the 50% target. President & CFO Charles Protell added that value dislocation and interest rate uncertainty have put a damper on M&A discussions, making share repurchases a more attractive use of capital.

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