Caesars Entertainment, Inc. (CZR): PESTLE Analysis [Nov-2025 Updated]

If you're assessing Caesars Entertainment, Inc. (CZR), you need to know that their entire 2025 outlook is a high-stakes bet on digital expansion against a volatile regulatory backdrop. The consensus revenue estimate for the 2025 fiscal year sits around $11.5 billion, a target that hinges almost entirely on how fast states legalize iGaming and how well the Caesars Sportsbook performs. We'll map the six critical macro-forces-Political, Economic, Sociological, Technological, Legal, and Environmental-to give you the precise, actionable insights you need to understand the true risk and opportunity behind that number.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Political factors

State-level sports betting and iGaming legalization pace

The pace of state-level legalization remains the single most important political driver for Caesars Digital's near-term growth. As of late 2024, 39 U.S. states have legalized sports betting in some form, but the critical metric for a national operator like Caesars Entertainment is online access. Caesars Digital currently operates and conducts sports wagering across 32 jurisdictions in North America, with 26 of those offering online sports betting.

The political battleground is shifting from if to how new states will regulate. States like Missouri, Georgia, and Minnesota are seeing repeated legislative pushes, but the process is often slowed by tribal compact negotiations or disagreements over tax rates. For Caesars, each new state represents a multi-million dollar opportunity to expand its digital revenues, which posted a strong Adjusted EBITDA of $80 million in the second quarter of 2025, double the $40 million from the comparable prior-year period.

Shifting tax rates on gross gaming revenue (GGR)

The most immediate political risk to digital profitability is the trend toward high, often punitive, Gross Gaming Revenue (GGR) tax rates. States are increasingly taxing GGR inclusive of promotional bets, which can push the effective tax rate well over the statutory rate, sometimes exceeding 60 percent for operators in the launch phase.

This creates a highly uneven playing field, forcing Caesars to be extremely selective about its promotional spending and market investment. The industry is actively lobbying in Washington to repeal the federal excise tax on sports betting and to increase the slot tax threshold, which would offer some relief to the land-based segment. Here is a quick comparison of the statutory online sports betting tax rates in key states:

Federal scrutiny on data privacy and consumer protection

Federal and state scrutiny on data privacy and consumer protection is intensifying, particularly around Anti-Money Laundering (AML) compliance and the handling of sensitive customer data. In November 2025, Caesars Entertainment agreed to pay a $7.8 million fine to the Nevada Gaming Commission to settle a complaint regarding AML failures related to illegal bookmaker Mathew Bowyer.

This fine, calculated as a tripling of the $2.6 million Caesars won from the individual, underscores a significant regulatory push. Nevada regulators have issued over $30 million in AML-related fines across major operators in 2025 alone. The digital segment faces additional compliance challenges as new comprehensive data privacy laws take effect in eight states in 2025, including New Jersey and Delaware, bringing the total number of states with such laws to 20 by early 2026.

• Strengthen AML compliance to avoid future fines like the $7.8 million penalty.
• Implement new data privacy protocols for states like New Jersey, which now require businesses to recognize consumer opt-out mechanisms.
• Allocate capital expenditures for Caesars Digital, estimated between $60 million and $80 million for 2025, to include enhanced security and compliance technology.

Geopolitical stability affecting high-roller international travel

The high-roller segment, particularly in the Las Vegas market, is highly dependent on stable international travel and the financial health of source countries, especially in Asia. Geopolitical stability has fractured globally in 2025, with conflicts in the Middle East and Eastern Europe, plus rising nativism and protectionism leading to tighter border controls and travel restrictions.

This turbulence directly impacts the willingness and ability of high-net-worth individuals to travel long distances for gaming. A drop in international high-roller volume can significantly affect the Las Vegas segment's table game revenue, which is a high-margin business. The International Monetary Fund (IMF) noted in its April 2025 Global Financial Stability Report that geopolitical risks are causing significant stock price declines and higher risk premiums in emerging markets, which are key sources for high-roller play. This is a defintely a headwind for the Las Vegas segment, which generates a large portion of the company's total revenue.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Economic factors

You're looking at Caesars Entertainment, Inc. (CZR) in late 2025, and the economic picture is a classic mixed bag: a resilient but slowing consumer base battling high interest rates. The core takeaway is that CZR's high debt load makes it acutely sensitive to the Federal Reserve's monetary policy, while its strategic shift to digital and regional markets is a necessary defense against softening trends in Las Vegas and intense regional competition. The company's financial discipline is defintely the critical factor right now.

US consumer discretionary spending resilience

The US consumer is still spending, but the rate of growth is slowing, which directly impacts a discretionary business like gaming and hospitality. Morgan Stanley Research forecasts that nominal US consumer spending growth will weaken to 3.7% in 2025, a notable deceleration from the 5.7% expansion seen in 2024. This cooling is more visible among lower- and middle-income consumers, which pressures the mass-market segment of CZR's properties.

To be fair, the affluent consumer remains strong, supporting high-end Las Vegas and premium digital offerings. Still, the overall softness is showing up in key operating metrics. For instance, the Las Vegas segment's same-store Adjusted EBITDA declined in Q3 2025 due to lower city-wide visitation, and the segment's occupancy rate was 97% in Q2 2025, down from 99% in the prior year period. Regional markets, however, showed resilience, with regional net revenues increasing 6.2% in Q3 2025, highlighting the importance of CZR's diversified footprint.

Interest rate environment impacting debt service and expansion capital

Caesars Entertainment operates with a significant debt burden, making the high interest rate environment a major headwind. The company's ability to service this debt and fund expansion capital is directly tied to the Federal Reserve's actions. As of September 30, 2025, CZR had $11.9 billion in aggregate principal amount of debt outstanding. This is a massive number.

Here's the quick math on the cost of that debt:

• Weighted Average Cost of Debt: Approximately 6.35%.
• Effective Interest Rate on Debt: 9.29% as of September 2025.
• Annualized Interest Expense: $2.324 billion for the quarter ending September 2025.

The good news is that management is actively addressing this. In July 2025, the company fully redeemed $546 million of its high-cost 8.125% senior unsecured notes due in 2027, which is expected to reduce run-rate annual interest expenses by $44 million. This strategic debt management is critical for improving credit metrics and freeing up cash flow. Analysts project CZR will generate $931 million in free cash flow for the full year 2025, which is essential for debt reduction and opportunistic share buybacks.

Inflationary pressure on labor, food, and energy costs

Inflation continues to pressure the operating margins of CZR's brick-and-mortar properties, especially in the non-gaming segments like Food & Beverage (F&B) and hospitality services. While the overall US annual inflation rate (CPI) was 2.9% in August 2025, the costs for key operational inputs are rising faster.

The cost of services, which includes labor and hospitality operations, remains sticky. Specifically, the annual increase for food away from home-a direct cost for CZR's restaurants-jumped 3.9% as of August 2025. Energy costs are volatile, with utility (piped) gas prices surging 13.8% over the year to August 2025, putting upward pressure on property utility expenses.

The impact is a 'modest expense creep' that requires constant vigilance on pricing and efficiency to keep margins flat in the regional portfolio. This rising cost base is a non-negotiable headwind that management must offset through revenue growth and operational discipline.

Direct competition from tribal casinos and emerging regional markets

The US gaming landscape is becoming increasingly saturated, mainly due to the expansion of tribal casinos (over 500 nationwide) and new commercial casino developments in regional markets (often called 'racinos' or smaller commercial casinos). This market saturation effect means new properties often cannibalize revenue from existing ones.

CZR is facing intensified competition in several key areas:

• Midwest Expansion: The opening of a new commercial casino in Omaha, Nebraska, directly intensifies competition for CZR's properties in nearby Council Bluffs, Iowa, and other western Iowa cities.
• Emerging Markets: New property openings in competitive markets like Chicago, Indiana, and Shreveport/Bossier City are capping growth for incumbent regional operators.
• Strategic Reinvestment: To combat this, CZR is relying on its own capital projects. The company expects to generate about $70 million in incremental EBITDAR from new or permanent facilities in New Orleans, Danville, Virginia, and Columbus, Nebraska, in 2025.

The competition is fierce, and CZR's regional segment, while growing its net revenues by 6.2% in Q3 2025, must continually reinvest to maintain market share against these new local threats.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Social factors

Increasing acceptance of online gambling (iGaming) as mainstream entertainment

The social normalization of online gambling (iGaming) and sports betting is a major tailwind for Caesars Entertainment, Inc. You see this shift reflected directly in their Digital segment's financial performance. The U.S. online gambling market is on a clear growth trajectory, projected to reach $26.8 billion in gross revenues by the end of 2025, a significant jump from $23.4 billion in 2024.

Caesars Digital is a key beneficiary, with its momentum building toward the company's long-term financial targets. In the first half of 2025, the Digital segment's net revenue was up 21.5% year-over-year. This growth is fueled by iGaming, which saw a 51% year-over-year increase in revenue in Q2 2025, driven by new product launches like their third online casino live dealer studio in Michigan. Honestly, the digital side is carrying a lot of weight right now.

Here's the quick math on the digital surge:

The company is well-positioned to hit its Adjusted EBITDA goal of $500 million by year-end 2025 or 2026, which shows how quickly social acceptance is translating into hard revenue.

Focus on responsible gaming initiatives and addiction prevention programs

As the market grows, the social pressure for responsible gaming (RG) measures increases. Caesars Entertainment has a long history here, having launched the industry's first RG initiative, Project 21, back in 1989. Their commitment is now codified in their Corporate Social Responsibility (CSR) framework, PEOPLE PLANET PLAY.

The company's social license to operate depends on their ability to manage the risks of problem gambling. They are addressing this with concrete, company-wide policies:

• Implemented a Universal Exclusion policy in 2023, applying across all platforms: Caesars Sportsbook, iGaming, and brick-and-mortar properties.
• Trained over 1,900 Responsible Gaming Ambassadors (RGAs) across the company to have direct, empathetic conversations with guests of concern.
• Mandatory annual refresher RG training for all customer-facing, Digital, and Corporate Team Members.

This focus is a necessary social investment. For context, their total community investment in 2024 was $72 million, including the monetary value of 93,000 HERO volunteer hours and over $3.4 million donated by the Caesars Foundation. This level of community engagement is defintely a factor in maintaining positive public and regulatory relations.

Evolving labor relations and union negotiations in key markets like Las Vegas

Labor stability is a critical social factor, especially in a union-heavy market like Las Vegas, which generates a significant portion of the company's revenue. Caesars Entertainment proactively managed this risk by reaching a five-year labor agreement with the Culinary Workers Union Local 226 in late 2023, covering approximately 10,000 employees across nine Las Vegas properties.

The new contract secured major social and economic wins for the unionized workforce, which represents more than one half of the company's hourly U.S. Team Members. This deal averted a major strike and provides a period of labor peace through 2028, a huge operational advantage.

• Wage Increases: The contract includes the largest wage increases in the union's history, totaling a 32% pay increase over five years, with a 10% bump in the first year.
• Job Security: It includes expanded technology contract language, providing advance warning and negotiation rights against automation, and reinstates daily hotel room cleaning.

The positive resolution with the union, which was ratified by 99% of the voting members, signals a stable social environment for the company's flagship properties. This stability helps keep the Las Vegas segment profitable, which generated over $1 billion in net revenue in Q2 2025.

Brand perception tied to celebrity partnerships and large-scale entertainment

Caesars Entertainment's brand perception is tightly woven into the entertainment and pop culture fabric of the U.S. They are not just a casino; they are a major entertainment destination. Their strategy for 2025 involves a clear push on large-scale events and celebrity collaborations to amplify their appeal, especially to younger, diverse audiences.

This social strategy is visible in several high-profile initiatives:

• Major Event Hosting: Hosting NBCUniversal's BravoCon at Caesars Forum in November 2025, which attracts over 150 reality TV personalities (Bravolebrities) and tens of thousands of fans, providing massive, targeted social media exposure.
• Entertainment Offerings: Launching new, non-gaming attractions like Wheel of Fortune LIVE! for an extended run in Las Vegas starting in July 2025, diversifying the social appeal beyond gambling.
• Sports Integration: Leveraging the naming rights of the Caesars Superdome in New Orleans to debut its largest-ever prop betting menu for Super Bowl LIX, integrating the brand into a massive national social event.

This focus on celebrity-driven, large-scale entertainment helps maintain a premium, aspirational brand image, which is crucial for attracting high-value customers and cross-selling the Caesars Rewards loyalty program.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Technological factors

The technological landscape for Caesars Entertainment, Inc. in 2025 is defined by a deep, strategic shift from brick-and-mortar operations toward a unified digital ecosystem. You can see this clearly in the projected $600 million in capital expenditures for fiscal year 2025, a significant portion of which is earmarked for technology infrastructure and digital expansion.

This isn't just about having an app; it's about using technology to drive profitability, especially in the digital segment, and to create a seamless, personalized experience that keeps customers in the Caesars Rewards orbit, whether they are on the Las Vegas Strip or at home on their phone. The company is defintely focused on harvesting the investment made in prior years, with 2025 being a 'first pure harvesting year' for free cash flow.

Expansion and optimization of the Caesars Sportsbook and iGaming platform

The digital segment, Caesars Digital, is the primary technological growth engine for the company. The goal for the 2025 fiscal year is ambitious: reaching $500 million in Adjusted EBITDA by year-end. This target shows how critical the online platforms are to the overall financial health of Caesars Entertainment.

The momentum is undeniable. In the second quarter of 2025 alone, Caesars Digital reported a record Adjusted EBITDA of $80 million, doubling the $40 million reported in Q2 2024. This growth is heavily driven by iGaming (online casino), which saw its revenue surge by 53% year-over-year in the first quarter of 2025.

The core of the expansion strategy involves a multi-brand approach and continuous product enhancement:

• Multi-Brand Strategy: Operating Caesars Palace Online Casino (launched Q3 2023) and Horseshoe Online Casino (launched Q4 2024) to capture different market segments.
• Product Depth: The July 2024 acquisition of trading technology company ZeroFlucs was a key move, allowing the company to fully in-source its trading capabilities, including correlation pricing for complex bets like same-game parlays.
• Revenue Performance: The digital segment generated $343 million in revenue in Q2 2025, up from $276 million in the comparable 2024 period.

Use of Artificial Intelligence (AI) for dynamic pricing and personalized offers

Caesars Entertainment is leveraging data-driven insights and AI to optimize pricing and personalize the customer journey. This moves beyond simple email marketing to real-time, context-aware offers that maximize revenue per user. The May 2025 acquisition of TakeOut7 is a concrete example, as it expanded the company's technology offerings to include AI-powered digital marketing services for its restaurant network.

The application of AI and machine learning (ML) is focused on two main areas:

• Personalized Engagement: Using data-driven models to deliver targeted messaging, which in a previous period drove email open rates up to 30%, compared to a historical average of 19%. This level of precision is critical for high-value customer retention.
• Dynamic Odds and Trading: The technology acquired with ZeroFlucs, which handles same-game parlay correlation pricing, is a sophisticated application of ML to manage risk and offer competitive, real-time odds on the Sportsbook platform.

Investment in cashless wagering systems across casino floors

The shift to cashless technology is a major driver of operational efficiency and customer convenience, bridging the gap between the physical and digital segments. The most significant 2025 initiative is the launch of the universal digital wallet on the Caesars Sportsbook app in Nevada in July 2025.

This universal wallet streamlines the wagering experience by allowing users to manage funds and Caesars Rewards credits in one place, with seamless access across the 19 jurisdictions where Caesars Sportsbook offers mobile wagering. While this is primarily a mobile innovation, its integration with the Caesars Rewards loyalty program and the ability to validate funds at in-person Sportsbook locations (Las Vegas, Reno, Lake Tahoe) makes it the de facto cashless system for a large portion of the gaming ecosystem. This is a critical step toward a fully integrated, on-property cashless experience.

Cybersecurity defense for vast customer data and financial transactions

The expansion of digital platforms and the integration of the Caesars Rewards database-which contains vast amounts of personal and financial data-elevates cybersecurity from an IT issue to an existential business risk. The company's projected $600 million FY25 CAPEX includes significant investment in 'enhancing cybersecurity measures' and upgrading network infrastructure.

This focus is a direct response to the high-stakes environment, particularly following a major social-engineering attack in 2023 that resulted in the theft of its rewards database and subsequent litigation. The defense strategy is multifaceted, blending technology, policy, and training:

• Mandatory Training: The company requires annual privacy and cybersecurity training for all Team Members with network access.
• Risk Assessment: A formal Privacy Impact Assessment (PIA) review process is maintained to proactively identify and manage privacy risks associated with high-risk data processing activities.
• Incident Response: An established Incident Response Plan is in place to quickly investigate and remediate any privacy and security events, which is non-negotiable when handling a customer base of this size.

Here's the quick math on the digital segment's trajectory in 2025, which underscores the importance of this technological push:

What this estimate hides is the inherent volatility of sports betting, but the strong iGaming growth provides a more stable, high-margin technological foundation.

Next step: Operations should review the Q3 2025 results (due October 28, 2025) to confirm the trajectory toward the $500 million digital EBITDA target and assess the initial customer adoption rate of the universal digital wallet.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Legal factors

Complex, state-by-state licensing and compliance requirements

The core of Caesars Entertainment, Inc.'s legal risk is the sheer complexity of operating in a highly regulated, multi-jurisdictional environment. Unlike most industries, we're not dealing with one federal regulator; it's a patchwork of state-level gaming commissions and control boards, each with its own rules for licensing, operations, and compliance.

This fragmentation means a single misstep in one state can trigger a domino effect, or at least a massive fine. For example, in November 2025, the Nevada Gaming Commission approved a settlement where Caesars Entertainment agreed to pay a $7.8 million fine to the Nevada Gaming Control Board (NGCB). This was for failing to maintain adequate anti-money laundering (AML) controls, allowing an illegal bookmaker to gamble millions of dollars at Caesars Palace and other properties over a seven-year period. Honestly, compliance is not just a cost center; it's a critical operational firewall.

The regulatory burden is clearly visible in the company's internal spending. The CEO publicly stated that Caesars is now spending twice as much on its anti-money laundering unit as it did seven years ago, which shows the material cost of managing this risk.

Ongoing litigation risk related to mergers, acquisitions, and intellectual property

For a company built through decades of mergers and acquisitions, litigation risk is a constant, low-grade fever that can spike without warning. While the massive, multi-year legal battles stemming from the original $30 billion leveraged buyout and the subsequent bankruptcy of Caesars Entertainment Operating Company, Inc. (CEOC) are largely in the past, the costs of ongoing legal defense and reserves remain a material factor in the financials.

Here's the quick math: Caesars' Second Quarter 2025 results, reported in July 2025, noted that 'Transaction costs and other, net' included 'certain non-recurring litigation reserves.' This confirms that even in a relatively quiet period, the company must set aside capital for potential legal losses. You should always factor in these reserves when assessing free cash flow.

Regulatory oversight of marketing practices, especially for online betting

The rapid expansion of the Caesars Sportsbook platform across the US has put a huge spotlight on marketing and responsible gaming (RG) practices. Regulators are hyper-focused on ensuring that the industry's aggressive sign-up offers and advertising don't lead to problem gambling.

When Caesars launched its mobile app in Missouri in November 2025, ahead of the December 1 official launch, it had to explicitly highlight its Responsible Gaming tools. This is the new cost of market entry.

• Deposit Limits: Mandatory tools to control spending.
• Spending Limits: Caps on total wagers over a period.
• Daily Time Limits: Restrictions on continuous play.
• Cool Off Time Limits: Required breaks for players.

The company has been proactive here, which is smart. Caesars Sportsbook was awarded the RG Check accreditation from the Responsible Gambling Council in March 2024, which helps mitigate the risk of marketing-related regulatory action, but the industry is defintely under constant scrutiny.

Zoning and land-use regulations for new resort development projects

Building a new integrated resort is a massive capital undertaking, and the legal hurdles related to land use and zoning can cause significant delays and cost overruns. It's not just about getting a gaming license; it's about convincing a local government to let you build a skyscraper, a casino, and a hotel complex where one didn't exist before.

A concrete example of this friction is the development of the Caesars Virginia project in Danville. The city had to create an entirely new 'casino entertainment district' zoning category to accommodate the proposed scale and features of the resort. This process involved multiple public hearings and votes to amend existing land-use rules, which otherwise would have limited building heights and signage. The initial project, a $400 million investment, was subject to this local regulatory negotiation, proving that local zoning boards hold immense power over large-scale capital deployment.

Finance: Monitor the quarterly filings for any increase in 'litigation reserves' and track the actual cost of the $7.8 million fine against the Q4 2025 cash flow statement.

Caesars Entertainment, Inc. (CZR) - PESTLE Analysis: Environmental factors

You're operating a massive portfolio of resorts, so environmental factors aren't just a corporate social responsibility (CSR) footnote; they are a hard-dollar risk and opportunity. The sheer scale of Caesars Entertainment, Inc.'s operations, especially in energy and water-stressed regions like the American Southwest, means that regulatory shifts and climate change effects directly impact your capital expenditure and operating expenses. Honestly, managing water use in Las Vegas is as critical as managing the table games.

Here's the quick math: Caesars' ability to drive down customer acquisition costs (CAC) for the Sportsbook, while maintaining strong visitation to their physical properties, will dictate if they hit that $11.5$ billion target. What this estimate hides is the high volatility of the iGaming market and any unexpected regulatory changes.

Next Step: Strategy team: Model a 10% variance in state-level iGaming tax rates by Friday to assess the impact on the 2025 net income forecast.

Corporate commitment to carbon neutrality and renewable energy sourcing

Caesars Entertainment, Inc. has set aggressive, science-based targets for decarbonization. The long-term goal is to achieve carbon neutrality for Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions by 2050. This is a crucial commitment that aligns with the scientific consensus to limit global warming to 1.5 degrees Celsius.

The company is making measurable near-term progress. Against a 2019 baseline, Caesars Entertainment, Inc. reported a reduction of 20 percent in Scope 1 and 2 emissions in the 2024 fiscal year. To hit the interim goal of a 46.2% reduction by 2030, the company is leaning heavily on renewable energy integration.

A significant move in 2025 is the finalization of a purchase power agreement (PPA) for an off-site solar development project. This project is expected to become operational in mid-2025 and will supply more than 65,000 MWh of clean energy per year. Plus, construction is slated to start late in 2025 on a rooftop solar project at the LEED Gold-Certified Forum Convention Center in Las Vegas, further diversifying the clean energy portfolio.

Water conservation mandates in drought-prone regions like Nevada

Water scarcity, particularly in the Colorado River Basin which supplies much of Nevada, is a material risk. Caesars Entertainment, Inc. has a long-standing goal to reduce water consumption per square foot by 25% by the end of 2025, using a 2008 baseline.

In 2024, the company reported a 5 percent reduction in water consumption per square foot compared to the 2019 baseline, showing continued progress. This isn't just about fixing leaky faucets; it involves major capital investment in water-efficient technologies and operational changes. For example, in 2024, Caesars Entertainment, Inc. collaborated with the Southern Nevada Water Authority (SNWA) to install specialized meters to monitor and optimize the efficiency of large evaporative cooling towers.

The exposure is real: 26 of the company's facilities withdraw water from river basins classified as having a medium-high water stress level (20-40%). This makes compliance with local mandates, like those from the SNWA, a defintely high-priority operational and financial concern.

Waste management and sustainable sourcing for large-scale resort operations

Running large-scale resorts generates a massive amount of waste, so waste diversion from landfills is a key metric. Caesars Entertainment, Inc.'s near-term goal is to achieve a 60% waste diversion rate by 2025.

As of 2024, the company diverted 41 percent of its waste from landfills. This gap means significant operational improvements are needed to meet the 2025 target. The strategy involves a mix of recycling, organics programs, and waste prevention. For instance, in 2024, the composting of horse manure at five racing destinations diverted over 16,000 tons of material from the landfill.

Sustainable sourcing is the other side of the equation, falling under the Scope 3 emissions reduction goal of 37.5% by 2035. This means pushing suppliers to adopt sustainable practices and prioritizing local procurement to minimize logistics-related environmental impacts.

• Diverted 41% of total waste from landfill in 2024.
• Goal to reach 60% waste diversion by 2025.
• Converted 85% of in-shower amenities from single-use to bulk dispensers in 2024.
• Reduced over 15 million single-use plastic containers in 2024.

Climate change impact on travel patterns and insurance costs

Climate change poses two distinct financial risks: direct property damage/insurance costs and indirect shifts in customer behavior. The company is already spending an estimated $30 million annually on insurance premiums to protect against flood-related losses. This figure is a baseline, and you should expect it to climb as extreme weather events become more frequent.

The potential capital expenditure for mitigation is staggering. Caesars Entertainment, Inc. has identified 19 facilities at risk of climate-related impacts, with an estimated re-site cost of $50 million per facility, translating to a potential total impact of $950 million. To date, the company has spent $190 million to mitigate risks at two of those facilities.

Also, climate regulation could limit customer travel. New regulations on greenhouse gas (GHG) emissions might increase fuel costs, which could reduce the ability or willingness of customers to travel to resort properties. This is a long-term revenue risk that needs to be modeled into your forward-looking visitation forecasts.