Caesars Entertainment (CZR) risk factors, FY2024 10-K

Risks Relating to Operating Our Business

1. 01We face substantial competition and expect that such competition will continue
2. 02Our business is sensitive to reductions in discretionary consumer spending as a result of downturns in the economy and other factors outside our control
3. 03instabilities, can adversely affect our casino operations because most of our patrons travel to our properties by car or on airlines that may pass on increases in fuel costs to passengers in the form of higher ticket prices
4. 04We rely on third parties to provide services that are essential to the operation of our online betting and gaming business, including, player account management, geolocation and identity verification, payment processing and sports data
5. 05The growth of our digital business will depend, in part, on the success of our strategic relationships with third parties
6. 06The growth of our digital business will require investments in our online offerings, technology and strategic marketing initiatives, which could be costly and negatively impact the economics of our online business
7. 07We face the risk of fraud, theft, and cheating
8. 08We extend credit to a portion of our customers, and we may not be able to collect gaming receivables from our credit customers
9. 09The outbreak of pandemics and other public health matters and related impacts have had, and may once again have, a significant impact on our operations and results of operations
10. 10Acts of terrorism, war, natural disasters, severe weather, and political, economic and military conditions may impede our ability to operate or may negatively impact our financial results
11. 11assurance that insurance will be available or adequate to cover all loss and damage to which our business or our assets might be subjected and the timing and receipt of insurance proceeds, if any, may be out of our control
12. 12Climate change regulations and greenhouse gas effects may adversely impact our operations
13. 13Our business may be subject to fluctuations due to seasonality and other factors that could result in volatility and have an adverse effect on our operating results
14. 14Our business is particularly sensitive to energy or water prices and a rise in these prices could harm our operating results
15. 15Any deterioration in our reputation or the reputation of our brands could adversely impact our business, financial condition, or results of operations

Risks Relating to Information Systems and Technology

1. 16Compromises of our information systems or unauthorized access to confidential information or our customers’ personal information could materially harm our reputation and business
2. 17Our operations, and particularly our digital betting and gaming operations, are reliant on information technology and other systems and services, and any failures, errors, defects or disruptions in our systems or services could adversely affect our operations
3. 18Our online business is dependent on the Internet and we rely on Amazon Web Services and other third-party technology, platforms and services to deliver our offerings to users

Risks Related to Human Capital

1. 19We rely on our key personnel and we may face difficulties in attracting and retaining qualified employees for our casinos and racetracks
2. 20Work stoppages and other labor problems could negatively impact our future profits
3. 21We cannot assure you that we will be able to retain our performers and other entertainment offerings on acceptable terms or at all

Risks Relating to Our Capital Structure

1. 22Despite our current indebtedness levels, we and our subsidiaries may still incur significant additional indebtedness. Incurring more indebtedness could increase the risks associated with our substantial indebtedness
2. 23Our variable rate indebtedness exposes us to interest rate volatility, which could cause our debt service obligations to increase significantly
3. 24A significant portion of our casinos are located on leased property. If we default on one or more leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected casino

Legal and Regulatory Risks

1. 25We are subject to extensive governmental regulation, taxation policies and licensing, and gaming authorities have significant control over our operations, which could have an adverse effect on our business
2. 26We are required to report certain customer’s gambling winnings via Form W-2G to comply with current Internal Revenue Service regulations. Should these regulations change, we would expect to incur additional costs to comply with the revised reporting requirements
3. 27The growth of our online betting and gaming business will depend on expansion of online betting and gaming into new jurisdictions and our ability to obtain required licenses
4. 28We may not be able to protect the intellectual property rights we own or may be prevented from using intellectual property necessary for our business
5. 29We rely on licenses to use the intellectual property rights of third parties which are incorporated into our products and services. Failure to renew or expand existing licenses may require us to modify, limit or discontinue certain offerings
6. 30We are or may become involved in legal proceedings that, if adversely adjudicated or settled, could impact our business and financial condition