Digital EBITDAR Targets
Q: Are you on track for $500 million EBITDAR in digital?
A: Yes, we're on pace for $200 million this year, with 30% top-line growth and 50% flow-through. The roll-off of partnership contracts will contribute to reaching the $500 million target we've discussed for three years ,.

Las Vegas Margin Sustainability
Q: What drives strong Las Vegas margins; are they sustainable?
A: We have pricing power in Las Vegas, raising prices across rooms, restaurants, and amenities due to massive demand ,. Despite $76 million in headwinds since Q2 2022, our EBITDA is down only $30 million, showcasing operational efficiency. We expect margins to remain strong as our promotional approach hasn't changed.

Impact of Union Contract Costs
Q: Will union contract costs impact Q3 results?
A: The incremental costs from the culinary union contract are minimal in Q3. The next escalator is in October, so we don't expect a significant impact until then.

Regional Market Outlook
Q: Will regional performance decline similarly in Q3?
A: Yes, we anticipate similar headwinds in Q3 as in Q2, due to New Orleans disruption, competitive openings, and Reno group business impact. Growth should return in Q4 as projects open and disruptions ease.

M&A and Capital Allocation
Q: What's your M&A stance given stock price?
A: We're not issuing stock at current prices for M&A ; instead, we'll start buying back stock as free cash flow increases. We don't plan to sell operating casino assets but may monetize non-core, non-operating assets.

WSOP Financial Impact
Q: How did WSOP contribute financially?
A: This was our best WSOP ever financially, benefiting hotel, gaming, and F&B. WSOP generates $20–$25 million in annual EBITDA.

Hotel Pricing Power
Q: Is room rate growth sustainable?
A: Yes, we've continued to raise prices due to strong demand, with little price elasticity. This leads to higher EBITDA as both gaming and non-gaming revenues grow.

Digital Volume and Profitability
Q: Can digital growth continue without volume increase?
A: We've shifted to more profitable customers by reducing broad promotions. While volumes dropped, profitability increased. We expect revenue growth to accelerate as prior actions are lapped, with volume growth resuming.

Digital Customer Acquisition Costs
Q: Are CAC trends changing in digital?
A: Recently, sports betting CAC has dropped significantly. We expect spend to increase in Q3 and Q4 with football season, but don't see a material change in CAC trends.

Vegas EBITDA Growth Expectations
Q: Will Vegas EBITDA grow year-over-year?
A: We expect Vegas to grow in the second half, but full-year EBITDA growth requires a favorable swing in hold.

Unrated Play Decline
Q: Is the decline in unrated play widespread?
A: The decline is more pronounced in areas with new competition. In those properties, unrated play declines more due to competitive openings.

Potential VICI Transaction
Q: Will VICI exercise their option, and use of proceeds?
A: It's VICI's option to call the real estate under the Indianapolis assets; we won't exercise our put. If exercised, proceeds (~$2.2 billion) would mostly pay down debt, with some capital return.

Expenses and Margin Outlook
Q: Can expense efficiencies and margins be maintained?
A: Efficiencies result from numerous small initiatives. We expect margins to hold up, excluding seasonality, despite significant labor cost increases in Vegas.

Group Bookings Strength
Q: What's the outlook for group bookings in Vegas?
A: We're seeing mid-single-digit growth above this year, with mix moving to the mid-teens for the market. Future bookings have strengthened considerably in the last few months.

Vegas Property Performance
Q: Are non-luxury properties underperforming?
A: No, all properties are performing similarly. Caesars Palace has more volatility due to high-end gaming, but visitation and pricing power are consistent across the portfolio.

Impact of Mirage Closure
Q: Does Mirage closure help your properties?
A: It's a mixed bag. We may gain from reduced room supply but lose some benefits as Mirage served as a feeder to our nearby properties.

Illinois OSB Tax Increase
Q: How does Illinois OSB tax hike affect you?
A: Impact to us is under $5 million annually; we don't plan to change behavior. If competitors adjust due to greater impact, it could benefit us, but no significant changes are observed yet.

Horseshoe Casino Digital Launch
Q: Will launching Horseshoe Casino impact digital margins?
A: No, launch costs won't erode flow-through. We're launching state by state, starting with Michigan in September. While Horseshoe is a strong brand, Caesars Palace remains our flagship app.

Sports Sponsorship Obligations
Q: Can you reduce sports sponsorship expenses if needed?
A: Yes, many deals signed in 2021 are rolling off, with significant pieces maturing by early 2026. We expect substantial savings that will flow directly to the bottom line.

Expense Focus Across Segments
Q: What's behind recent expense efficiencies?
A: There isn't one big initiative; it's numerous small efforts across revenue and expense items. This reflects our ongoing focus on operational efficiency.

Promotional Strategy in Regionals
Q: Are you adjusting promotions in regional markets?
A: No, our promotional profile hasn't changed. We focus on EBITDA rather than gross gaming revenue, and see no need to respond to competitor promotions.