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CEO Peter Jackson stated that Flutter considers Illinois an "outlier" and does not expect similar tax structures elsewhere, viewing the introduced fee as the fairest way to handle the situation. He declined to speculate on the specifics of assessing the prediction market opportunity.

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CEO Peter Jackson stated that Q2 CPAs have decreased slightly year-over-year despite a significant increase in customer acquisition, and the company remains focused on acquiring customers that meet its return criteria. CFO Rob Coldrake clarified that the increased operating expenditure is driven by costs associated with the Beyond Play acquisition, higher payment processing fees, and investments in Flutter Edge capabilities and regulatory compliance.

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CEO Peter Jackson noted that Q2 CPAs have decreased slightly year-over-year despite significant customer growth, emphasizing a consistent strategy to acquire customers as long as return criteria are met. CFO Rob Coldrake added that increased operating expenses are also driven by the Beyond Play acquisition, higher payment processing costs, and previously disclosed investments in the Flutter Edge and regulatory compliance.

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CEO Peter Jackson emphasized that iGaming growth is driven by acquiring customers as long as they meet return criteria, supported by a strong product, sophisticated generosity, and cross-sell from the sports business. CFO Paul Edgecliffe-Johnson confirmed the guidance is maintained due to the very successful North Carolina launch, strong overall market share, and a positive outlook for the rest of the year.

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CEO Peter Jackson emphasized that iGaming growth is driven by acquiring customers as long as they meet return criteria, supported by sophisticated generosity application, strong product, and cross-sell from sports. CFO Paul Edgecliffe-Johnson confirmed guidance was maintained due to the very successful North Carolina launch, strong overall U.S. market share, and positive momentum heading into Q2.

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CEO Jay Snowden explained that the Hollywood Casino brand is more effective for attracting retail slot players to iCasino than the ESPN Bet brand was, leading to high incrementality. EVP Todd George noted the Hollywood Greektown rebrand aided this effort. CTO Aaron LaBerge confirmed sportsbook cross-sell also remains healthy. Snowden stated the 2026 profitability target for the interactive segment already accounts for the expected launch in Alberta.

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CEO Jay Snowden and CTO Aaron LaBerge identified the upcoming ESPN DTC streaming launch and deep product integrations as key near-term catalysts. LaBerge emphasized that the integrated fantasy football experience will be a major differentiator. Regarding strategy, Snowden reiterated that the contract has a 2026 opt-out clause for both parties if certain thresholds aren't met. He stated the current focus is on execution, and the best path forward will become clearer over the next few quarters.

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CFO Felicia Kantor Hendrix explained the guidance range is sensitive to market share, with the low and high ends driven by a +/- 100 basis point variance for ESPN BET share and +/- 50 basis points for iCasino share. Head of Operations Todd George highlighted the Super Bowl as a successful event for sign-ups and cross-play. CEO Jay Snowden emphasized that the omnichannel strategy has successfully lowered the average age of their active database from 53 to 44.

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CEO Jay Snowden stated that while they haven't provided a detailed breakdown, the majority of new users since the launch have come from the ESPN ecosystem. He confirmed that retention is stronger for customers acquired through ESPN, and this is enhanced by features like account linking. The focus remains on reactivating dormant users and optimizing CPAs from other digital channels.

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Co-Founder & CEO Jason Robins explained that handle is not viewed in isolation, as lower handle can be a result of higher hold and more efficient promotions. He emphasized the strong growth in in-play betting, with handle up 16% YoY, and positioned it as the key growth driver for the industry, where DraftKings holds a leading position.

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Co-Founder & CEO Jason Robins explained that handle is not viewed in isolation and can be lighter in a quarter with strong hold and efficient promotion. He emphasized the strong growth in in-play betting, with handle up 16% year-over-year, and positioned it as the primary source of handle growth for the industry in the coming years. He highlighted DraftKings' leadership in this area with superior uptime and a wider offering.

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CEO Jason Robins reiterated that while DraftKings has long-term global ambitions, the immediate focus is on the high-growth U.S. market, setting a very high bar for any international M&A. He also clarified that the H2 guidance does not imply a slowdown, stating that the company expects to see continued structural hold increases in the back half of the year.

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CEO Jason Robins attributed the margin pressure primarily to higher-than-expected new user growth, which increases promotional spending. However, he pointed to the 300 basis point year-over-year improvement in Q3 gross margin as evidence that the metric is trending in the right direction as the business scales.

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CEO Neal Menashe suggested that with parlay products, sportsbook margins could approach 20%, balanced with single bets. Regarding cryptocurrency, he highlighted its potential to significantly reduce high payment processing costs, particularly in Africa, and attract a new customer demographic. He noted that improvements in processing efficiency would translate directly to bottom-line profit.

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Mark Locke (Co-Founder, CEO & Director) stated that the ESPN/NFL partnership is viewed as a positive development, expecting beneficial conversations around Genius's investments in BetVision, broadcast augmentation, and ad provisioning. Regarding Fanhub, he explained its revenue potential is tied to customer growth and advertising spend, projecting that the media business could, in the medium to long term, become larger than the betting business.

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CEO Mark Locke stated that the primary focus remains on tech investment and M&A, describing the share repurchase program as "good housekeeping" for opportunistic use in a volatile market. Regarding the NCAA, he framed the partnership as symbiotic, emphasizing that protecting game integrity and promoting responsible gambling is in the entire ecosystem's long-term interest and aligns with the goals of their sportsbook partners.

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CFO Nicholas Taylor stated that direct revenue from the BetVision rollout is included in the 2025 guide, but the larger strategic upside is a future opportunity. He confirmed that all known variables, including the Brazil launch, potential new U.S. states, and contractual cost increases like Football DataCo, are fully baked into the 2025 forecast.

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CEO Mark Locke explained that their growth model uses a consensus view for legalization and market growth. Regarding Brazil, he reiterated his excitement but also his skepticism on the timing, advising a conservative outlook. He stated that while he believes Brazil will happen in 2025, he would not 'be banking on too early in 2025' for it to contribute meaningfully to the bottom line.

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CEO Carsten Koerl clarified that new revenue streams refer to existing strategic initiatives like their iGaming platform and AI-driven content distribution to media partners, not entirely new verticals. CFO Craig Felenstein explained that quarterly free cash flow can fluctuate due to the timing of large sports rights payments, which caused the Q2 outperformance, but the full-year outlook for conversion growth remains consistent.

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CEO Carsten Koerl noted excitement for iGaming, using Brazil as a test market before scaling. CFO Craig Felenstein added that any M&A must be accretive to their high-growth model. Regarding margins, Felenstein cited continued strong revenue growth over a manageable and highly visible cost base as the key lever for future margin expansion.

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CFO Craig Felenstein stated definitively that the financial assumptions do not involve exiting any of the acquired rights contracts. He explained that the 2025 growth guidance of ~15% is lower than the Q4 rate because 2024's growth was significantly boosted by the initial step-up from the new NBA and ATP deals. The 2025 growth is based on outperforming the market by increasing wallet share and expanding into adjacent markets.

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CEO Carsten Koerl explained the XLMedia acquisition adds a valuable U.S. affiliate business to its 360-degree marketing proposition. CFO Craig Felenstein noted the 2024 financial impact will be minimal, with 2025 benefits dependent on integration. Felenstein also stated that reaching the higher end of the long-term margin target will be driven by the strength of revenue growth and continued effective management of the overall cost base.

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CFO Kyle Sauers explained that capital allocation prioritizes new market launches, especially for iCasino, over programmatic share buybacks, which remain opportunistic. CEO Richard Schwartz added that they are committed to returning capital but want to preserve dry powder for future iCasino opportunities. Regarding Colombia, Schwartz stated that since RSI is absorbing the tax, the player experience is unchanged, and they expect business as usual post-tax, but with higher ARTMAU from reduced bonusing.

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Executive Kyle Sauers explained that RSI is adjusting by trying to reduce deposit turnover and has slightly lowered marketing spend in Colombia, while monitoring competitors. CEO Richard Schwartz stated that the company's poker platform was built to be ready for multi-state liquidity. He emphasized that poker is treated as an amenity to cross-sell players to the higher-value casino and sportsbook verticals.

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Executive Kyle Sauers explained the lower flow-through is primarily because 2024 benefited from an absolute decrease in marketing dollars, whereas 2025 plans include an increase in marketing spend. CEO Richard Schwartz addressed market entry, stating that RSI is unlikely to enter OSB-only states unless the long-term strategic outlook, such as the potential for future iCasino legalization, changes, as the company has better opportunities to pursue elsewhere.

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Executive Kyle Sauers clarified that his projection for Delaware's potential was based on a mathematical comparison to other iCasino markets and was not a formal target, but it illustrates significant remaining opportunity. He stated there's no specific dynamic preventing growth, as the product is resonating well. Regarding the tailwind, Sauers estimated the incremental EBITDA impact was closer to $5-6 million, not $7-8 million, due to varying margins across markets.

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CEO Tom Reeg and President of Caesars Sports & Online Gaming Eric Hession both indicated that while they wouldn't rule out international opportunities, the domestic market presents a far greater and less risky opportunity. Hession noted their product roadmap is full of high-return domestic projects. Regarding New Orleans, Reeg confirmed there is still opportunity left under the tax agreement and that the property's growth is a key part of the regional segment's positive outlook.

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CEO Tom Reeg explained that the primary lever in a downturn is managing room occupancy by tapping their extensive database, supplemented by adjusting operating hours for non-gaming amenities. President of Caesars Sports Eric Hession addressed the hold target, stating it requires technology enhancements, such as enabling player prop cash outs. He estimated reaching the 10% hold target by the latter part of 2026, contingent on the tech roadmap and customer behavior.

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CEO Tom Reeg confirmed the levers are the same for both businesses, as reinvestment rates are adjusted based on the tax rate's impact on returns. President of Caesars Sports and Online Gaming Eric Hession clarified the customer mix change does not affect the flow-through assumption, as those adjustments occur above the net revenue line, from which the flow-through is calculated.

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Eric Hession, President of Caesars Sports and Online Gaming, explained that iCasino growth is driven by a rapid increase in users and volume, while sports betting growth comes from improved hold on relatively flat volume. CEO Tom Reeg confirmed that the underperformance in regional hotel revenue was indeed linked to the construction disruption at the New Orleans property, implying it should be recouped.

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Stephen Cootey, EVP, CFO & Treasurer, attributed the strong flow-through to record performance in the casino segment, which had a flow-through rate north of 70%, complemented by record hotel revenue and near-record food and beverage results. He noted that renovation disruption was minimal in Q2 but expects roughly $15 million in impact over the next two quarters, primarily at Green Valley Ranch.

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Executive Stephen Cootey clarified the VICI deal is a traditional loan, not a sale-leaseback, and praised VICI for providing best-in-class capital terms. Executive Scott Kreeger explained the utility cost reduction was market-driven and, while beneficial, is not predictable long-term. Cootey added the drop was mainly due to lower natural gas prices impacting electricity costs.

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Executive Stephen Cootey affirmed that the revenue backfill at Red Rock is on track with the historical 2-3 year timeline. He also quantified that hosting the Super Bowl last year had a roughly $1 million positive impact on the hotel business. Executive Lorenzo Fertitta added that this year's game outcome was better for the company than last year's.

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CEO Keith Smith acknowledged that Las Vegas room rates are lower than last year but stated Boyd will not chase rates down. EVP and CFO Josh Hirsberg explained the new $150 million repurchase target is a level they are comfortable setting as a market expectation, similar to the prior $100 million target, and it does not constrain other capital allocation decisions.

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President and CEO Keith Smith attributed Boyd's outperformance to refreshed products, effective marketing, and operational discipline, estimating underlying market growth in the low single-digits. He stated the Par-A-Dice project cost would likely be similar to Treasure Chest's, around $100 million, though it is still in the design phase.

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President and CEO Keith Smith stated he did not have enough visibility to provide a specific outlook on the 2025 group and convention business. EVP and CFO Josh Hirsberg provided the margin comparison, noting that the 49% margin in the current quarter compares to a 50% margin in the prior-year period for the same set of properties.

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Executive Keith Smith explained that the strong Q1 growth in Hawaiian visitation was due to a favorable comparison against Q1 of last year, when airfares were temporarily inflated by the Super Bowl. He did not have specific comparison data for 2019 or 2021. Executive Josh Hirsberg quantified the negative weather impact on the business at approximately $5 million for the quarter.

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CEO William Carstanjen responded that while he follows the topic closely, prediction markets are not a significant concern for horse racing. He explained that the pari-mutuel wagering structure is not an attractive target for such platforms and, crucially, the Interstate Horse Racing Act provides intellectual property protection, requiring racetrack approval for any wagering on their races.

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CEO William C. Carstanjen explained that the rollout of ETGs is primarily a regulatory and taxation challenge, not a technological one, and will be approached slowly and conservatively. He noted that tax rate discussions with legislators are a critical step. Regarding the Derby, he clarified that when he says 'comparable' to last year, he is primarily referring to adjusted EBITDA, though he expects performance to be similar across all key financial metrics.

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CEO William C. Carstanjen responded that the company does not view regional gaming monolithically but assesses each property and market individually. He stressed that the company's focus is on growth, and capital is directed toward opportunities with long-term growth potential. All properties are continuously evaluated on their ability to contribute to this goal.

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CEO William C. Carstanjen affirmed that as the company has grown, its capacity to execute larger projects has increased. He expressed confidence in funding the new Derby projects, noting that strong cash flow from recently completed investments will allow for rapid deleveraging. This, in turn, provides more 'firepower' for capital deployment on new, large-scale opportunities, always with a focus on total shareholder return.

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Executive A. Weil clarified that the deleveraging strategy was always implicit due to the growth of the capital-light digital business, but the new debt terms, which were negotiated with deleveraging in mind, provide a direct incentive. Executive Brooks Pierce added that while they have the top two customers in Brazil, they need to sign the other half of the market. He noted that localized content is performing well and they remain very bullish on Brazil's long-term potential.

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Executive Brooks Pierce stated that the impact from new stakes limits is factored into forecasts and is expected to be minimal, while the company hopes for a liberalization of B3 cabinet restrictions. CFO Eric Carrera and Brooks Pierce clarified that the Q1 cash balance will likely be lower than previously guided due to delays in collecting receivables and an acceleration of certain supplier payments.

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Executive Brooks Pierce explained that early data for Hybrid Dealer shows strong growth in active and repeat players, indicating high engagement. Key metrics tracked are GGR, active players, and repeat players. On the follow-up, Executive A. Weil stated definitively that the company would not incur incremental debt to buy back stock.

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CEO Adam Aron clarified that capital expenditures will remain constrained around $200 million annually until the company secures dedicated growth capital, assuring that any significant increase would be communicated in advance. Regarding streaming, Aron expressed optimism about partners like Apple and Amazon who are increasingly embracing theatrical releases. He views deals like the one for 'Narnia' as encouraging signs and believes a successful theatrical run enhances a film's value on streaming platforms, suggesting the two models can coexist and mutually benefit.

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President and CFO Charles Protell stated that The STRAT's occupancy gap compared to 2019 is primarily midweek, which will benefit from convention overflow as citywide business returns. He also noted that tavern operating expenses should improve as six recently acquired and revamped locations ramp up through 2025. For the broader company, CEO Blake Sartini added that cost control is a major initiative, while Protell noted that labor inflation is expected to moderate to mid-single digits.

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Blake Sartini, Founder, Chairman and CEO, expressed long-term bullishness on the adjacent Atomic Golf and mentioned active inquiries for the 5.5 acres of developable land across the street. Charles Protell, President and CFO, added they are also developing experiential attractions within the STRAT's mezzanine level. Regarding the dividend, Protell stated it's viewed as a constant piece of cash flow, and the company will re-evaluate it at its one-year anniversary with an eye toward potential increases based on cash flow projections and share buybacks.

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President & CFO Charles Protell responded that lower gas prices help discretionary spending but noted that Laughlin's traffic is more driven by its event calendar, where the company has focused on more profitable, smaller events. Regarding scale, Protell explained that while the platform is capable of adding assets, no current opportunities are attractive enough in value to divert focus from share repurchases and internal investment.

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