Specialist
Former Senior Executive at Caesars Entertainment Corp
Agenda
- Key trends and developments in the casino industry, with a focus on Las Vegas gaming operators
- Challenges faced by Las Vegas strip casino operators and entertainment venues on longer-than expected government-mandated shutdowns
- Potential ongoing M&A risks on the back of the coronavirus pandemic
- Medium- to long-term outlook
Questions
1.
What are your thoughts on the state of the gaming industry?
2.
You mentioned operators and local regulators are anxious. Las Vegas’s mayor has been an ardent opponent of the closures altogether. You mentioned closures seems more likely to continue into May. How would you rank the rate of recovery for casinos within the broader consumer sector? Some argue Las Vegas will be one of the last parts of the consumer industry to recover.
3.
What percentage of visits rely on air travel to Las Vegas?
4.
What are the characteristics of winners and losers in this sort of environment? How would you rank players from most to least favourably positioned?
5.
In an eventual recovery, at what capacity would you expect casino players to operate for the rest of 2020?
6.
What is the size of the growth opportunity within sports betting for an operator such as Caesars?
7.
What capacity do casinos need to operate to break even from an EBITDA and/or cash flow standpoint?
8.
What are your thoughts on the potential Caesars-Eldorado transaction? Is there reason to believe this transaction may not close?
9.
The press recently cited Eldorado’s interest in disposing an asset on the Las Vegas Strip. How might the coronavirus pandemic or a potential recession impact asset values and the propco or opco lease structures for Las Vegas Strip assets?
10.
Eldorado had cited about USD 500m in synergies within the first year post-close. How realistic is the synergy target given what we know about Caesars’ corporate and operational cost structure?
11.
How might Eldorado’s operational philosophy lead to enhanced operating efficiencies at the property level across Las Vegas and regional assets?
12.
How might Eldorado’s operational philosophy lead to enhanced operating efficiencies at the property level across Las Vegas and regional assets?
13.
What is the likelihood of Vici deferring rent for Caesars, and how might such arrangements be structured?
14.
How are tribal-owned casinos positioned?
15.
What is the potential cadence of CAPEX for operators such as Caesars? Which gaming product or services manufacturers might be most at risk from trends across the broader industry?
16.
How long after reopening might we expect product manufacturers to experience an operational rebound?
17.
Could you elaborate on the potential wave of consolidation within the casino operator sector? Which players might be obvious targets or buyers?
18.
Are there any specific properties that could potentially go bankrupt?
19.
Do you foresee capital increasingly investing in Vegas assets, such as private equity sponsors?
20.
Are there any specific Eldorado properties that might make sense to divest? Which might be most painful for the company to lose?
21.
Is there anything we may not have discussed that you think we should consider long term? What might be the same and what might be different in the future?
22.
What are your expectations for government relief for casino operators or how we should think about relief for consumers? Is stimulus part of the equation here?
23.
Some say a potential rebound might hinge on the types of loyalty programmes operators have in place. Caesars has been quoted as one of the best in the market. What are your thoughts on that and the potential marketing investment that may need to come into play on a ramp-up to reopening?
