The Las Vegas Advisor reported that the CEO of Caesars Entertainment, Tom Reeg, and senior vice president of corporate finance, Brian Agnew, had a meeting with Deutsche Bank analyst Carlo Santarelli. 

Caesars Anticipates $25M Increase in Cash Flow from Formula One Race

During the meeting, Santarelli praised Caesars’ “operational prudence” and online execution, along with its stable operations in Las Vegas. Caesars also revealed that it is anticipating a $25 million cash flow increase from the Formula One race, which the company expects to be more profitable than next year’s Super Bowl.

In terms of investment in Las Vegas, Reeg and Agnew do not expect much activity, but management believes that there are smaller projects across the portfolio, each of which can garner more than 20% returns on investment. 

During the conversation with Santarelli, Reeg and Agnew stated that Caesars, with its extensive portfolio of physical casinos, is not expected to engage in a potential Las Vegas Strip consolidation in 2023, either as a purchaser or vendor. Furthermore, the operator is unlikely to make significant investments in upgrading its properties located in that area.

Meanwhile, Caesars has ambitious goals for its online products, aiming for $500 million in annual cash flow and a doubling of its online casino market share. Caesars also plans to cut back on promotions and partnerships that are considered economically inefficient, in order to improve its cash-flow margins.

Success of Horseshoe in Lake Charles Could Prompt Caesars to Construct New Hotel Tower

Outside of Las Vegas, the process to license three new Las Vegas-style casinos in the New York City area is ongoing, with community-advisory boards having the power to scuttle proposals even before they get to the siting-board level. 

Caesars has a relatively thrifty Times Square pitch, but it raises concerns about congestion and zoning, which could put the proposal in jeopardy. Wynn Resorts’ proposal for Hudson Yards also faces opposition from residents and the need to build a platform of 10 acres. 

According to reports, Caesars has expressed satisfaction with the initial performance of its Horseshoe Lake Charles project, which is projected to generate $60 million in annual revenue. Nonetheless, Caesars management has expressed concern over the potential inadequacy of the 170 hotel rooms at the property. 

Looking ahead, the success of the recently renovated Horseshoe in Lake Charles, Louisiana, may lead Caesars to construct another hotel tower in the area, as the current room supply is limited in comparison to competing properties in the city.

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Developer and operator of casino resorts around the world, Las Vegas Sands (LVS), outlined what progress the business registered on its environmental, social and governance (ESG) objectives set out for the 2021-2025 period in its 2022 (ESG) report.

The 2022 ESG report tracks the progress on the ambitious goals LVS has set out for its performance by 2025, striving to reach certain targets based on three pillars – People, Communities and Planet.

“We set targets that push the company to achieve tangible results, and the work we have outlined toward these ambitions has put us on a solid track to reach our goals,” commented Katarina Tesarova, senior vice president and chief sustainability officer of LVS, pointing to a “full range of core priorities” under these three pillars “that have also produced significant impact” and are reflected in the report.

Workforce Development

Sands’ corporate responsibility program through 2025 seeks to invest $200 million in workforce development initiatives, and in 2022, the hospitality operator invested $56 million to reach a total of $113 million since the start of the program in 2021.

Money invested in People in 2022 supported core initiatives aimed at advancing team members and local talents such as the Sands Academy Team Member training and development program and the Sands China financial support, invitational matching, and training and development (F.I.T.) program for small and medium enterprises.

Volunteer Work for Communities

Under the Community pillar in 2022, Sands exceeded the target set out for 2025 by reaching 192,330 Team Member volunteer hours contribution to date. Contributions included extensive volunteer support for Macau initiatives related to the pandemic such as community testing and vaccinations.

The target set for the end of the five-year program is 150,000 volunteer hours in support of local communities and having reached it in 2022, the company plans to set a new 2025 target this year and will reveal the new target in its 2023 ESG report.

Greenhouse Gas Emissions, Energy Use Reduction

Using its 2018 greenhouse gas emissions reduction level of 17,5% as a baseline for its 2025 emissions reduction goal, Sands reported that its emissions remained significantly below the baseline in 2022, achieving a 50% reduction.

Sands implemented numerous emissions reduction projects while its property visitations were impacted by the pandemic to ensure the business remains on track to meet its 2025 target when visitations are expected to pick up and the business is expected to increase energy consumption.

In 2022, energy use was reduced via the installation of property controls across 3,300 hotel rooms which allowed the consumption to be reduced while guests are away, and the shift from hard-to-convert incandescent and fluorescent lighting to LED solutions.

In addition, the company purchased 151,000 megawatt hours of renewable energy certificates and generated an additional 235 megawatt hours from solar panels, while Sands properties began transitioning their fleets to electric vehicles.

Sands’ ESG achievements in 2022 were recognized on the Dow Jones Sustainability Index (DJSI) World for a third consecutive year and the DJSI North America for the seventh time, while Sands China appeared on the DJSI World for the first time and the DJSI Asia Pacific for the second.

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