The company faces risks from economic downturns impacting discretionary spending, competition from new casino resorts, construction disruptions, and weather events. Impairment charges are possible due to decreased projected cash flows at some properties. Significant debt obligations and lease payments, including variable rate components, pose liquidity risks. Litigation and insurance claims, as well as regulatory scrutiny, are also potential risks. The company's reliance on third parties for strategic relationships and essential services is a further risk.
Financial Upside
The company's Caesars Digital segment shows potential growth from increased iGaming handle and sports betting hold. New property openings, including temporary facilities, and successful debt refinancing and asset sales (WSOP) offer potential revenue streams. The company's investments in new markets and technology, along with ongoing property renovations, could generate future revenue and profitability. The company's joint ventures, like Caesars Virginia, could yield significant returns.
