Specialist
Former VP at Caesars Entertainment Inc (Eldorado Resorts Inc)
Agenda
- Betting industry trends, highlighting platform investment dynamics and addressable market growth
- Caesars’ (NASDAQ: CZR) competitive positioning vs players such as DraftKings (NASDAQ: DKNG), Penn National Gaming (NASDAQ: PENN) and FanDuel (LON: FLTR)
- Online betting industry efforts, margin and CAC (customer acquisition cost) environment
Questions
1.
What’s your 12-18-month outlook on the North American gambling industry?
2.
Q: You mentioned North American gambling is a copycat industry and I assume that was in the context of marketing investments and customer acquisition spending. Do you think this has been a fault with Penn/Barstool failing to meet investor expectations? It seems to not copy the same level of investments that other players have.
3.
How do you think a player such as Caesars thinks of Penn/Barstool – as a credible threat to its online betting positioning?
4.
Could you estimate the online betting industry’s TAM now and at maturity – perhaps in five years – across OSB vs iGaming?
5.
Given the disparity in GGR-TAM forecasts, especially some of the loftier ones, some of those figures seem to assume lower promotions to the extrapolation of those GGR numbers. In reality, isn’t some of this revenue artificial given the level of promotion? What might a net revenue or an EBITDA-based TAM look like instead?
6.
What are your thoughts on Caesars’ biggest weak points vs competitors?
7.
Are there any reasons why you would be worried about Caesars’ position in New York potentially fading, especially considering some of the self-inflicted wounds you called out alongside the company’s promotional spending easing?
8.
Caesars’ launch in New York propelled it to number four and this is just looking at January 2022 data ahead of Rush Street. How sustainable do you think keeping four is, particularly given the company competes with smaller players for that position? Could Caesars’ even sneak higher, ahead of BetMGM, DraftKings or FanDuel? What would need to happen? Could the smaller players potentially overtake that spot as well?
9.
What are your thoughts on Caesars’ long-run margin profile for digital, including your assumptions on unit economics?
10.
Do you have any expectations for Caesars’ long-run market profile, not its actual market share?
11.
Could you comment on the benefit or potential uplift for Caesars’ Liberty platform where it already has presence? Is there a benefit to relaunching as it did in Illinois?
12.
What product-related investments do you think Caesars needs to make to keep or increase its momentum in the non-terrestrial gaming business?
13.
What are your thoughts on Caesars’ management team, specifically those directly involved with digital? What changes would you make or like to see?
