Yeah, there's a lot to read through here. Here's the rest, from Caesars standpoint...
https://www.zonebourse.com/amp/cours...Call-42481379/
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Tom Reeg is the CEO of Caesars Entertainment, and we appreciate him taking the time to be here today to speak with you. Thank you.
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Thomas Reeg
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Thanks, Brett. As Brett said, I'm Tom Reeg, I'm the CEO of Caesars Entertainment. For those of you who are not familiar with us, I want to give you a little bit background on Caesars. We are the largest domestic gaming company. We have 51 properties in 16 states and Canada, over $10 billion of revenue. Our market cap is over $10 billion, and our enterprise value is over $30 billion. We've got a proven track record of development, and development in urban areas. As an example, right now, we're in the middle of a $400 million plus expansion of our project in -- our property in New Orleans that is adjacent to the French quarter.
So we have experience in operating and developing in urban environments, which is going to be important here. We also have the largest database program in the casino business. Caesars started what was then total rewards 2 decades ago, developed it as a hub-and-spoke system, similar to your airline frequent flyer programs, unique in the casino business. And because of the scale of Caesars, that database has grown to over 60 million people. So if you think about the way that operates, we have properties across the country where customers go on a frequent basis, multiple times a month, they generate points in the program and they use those points primarily for destination trips.
And in our current network, that's Las Vegas, Lake Tahoe, New Orleans, Atlantic City, Caesars Palace Times Square will certainly be a crown jewel in our network. We're also already an existing player in New York, known to the state, licensed in the state, a top 3 player in digital sports betting today. Those of you in New York now that you saw thousands, tens of thousands of Caesars sports advertisements last year with [ JB Smoove ]. So we're very well known in the state. We have existing partnerships with MSG, with the Mix, with the Rangers and with the Bills. And if you -- in terms of where we were coming from here, we were kind of a free agent did not have partnership, didn't really know where are we going to pursue a New York license.
There's a lot involved in pursuing a project of this size and scale in New York and we wanted it to be the perfect opportunity for us. So we talk to a number of potential partners, some of which now have others, some of which have had buildings that they wanted to show us. There was nothing close to what SL Green has at 1515 Broadway.
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As someone who worked early in my career in Manhattan office buildings when I was going out to see the building, I was expecting the columns everywhere, very difficult to imagine it turning into a casino. And I can tell you that the space is here are really what got us super excited about the projects. You can really see what we can do here, as Brett said, this is going to be entertainment facing on the ground floor, the casino will be second floor and up.
But we can create experiences and you saw in the picture, the renderings that Brett showed we -- as an example, we can create a separate entrance for our highest volume players, our most valuable players, send them up to a private gaming salon and then out to a tariff that overlooks the [ boti ] overlooks the ball drop on New Year's Eve. These are the types of experiences that we want to create for our customers. The latest we've done is we've got Adele in Las Vegas, who started a couple of weeks ago, that's the type of experience that you can only get with Caesars and Caesars Palace Times Square fits right into that.
And then I'll finish with this is clearly a competitive process. So what's going to be important to the state in our opinion, we've worked through a lot of these horse races in the past, what's important to the state. How quickly can you get open? Brett talked about the zoning that we've got here. This is already in entertainment district. You're not looking for a zoning change, you've got an existing building that we're converting. This is not a greenfield brand-new construction from the ground up those allow us to get open quicker than a lot of our competition. Why is that important to the state, they start turning their tax revenues quicker as well. The connection to the city is important. Obviously, you have SL Green. All of you know their commitment and activity in New York. We've added Rock Nation with JayZ and [ Dev ] that is New York through and through. We're an existing partner in the city also important. So we set up well from that standpoint.
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New York is going to as it should, we'll have social responsibility, the social aspects of a casino front of mind. Caesars 3 decades ago, started the first responsible gaming program in the industry as the largest and most developed. We've got a litany of corporate social awards, and we have a well-developed CSR program. We just published our latest CSR report. There is no one in this industry that has a better our story to tell as well. So [indiscernible] and then it's can we get it done. We have $3 billion of current liquidity, as I said, we're over $30 billion enterprise value. You know SL Green's resources, now we bring in Rock Nation. There's no question that we are well positioned to be the right choice here. And as Caesars, we are super, super excited to get go. And with that, I'll turn it back to Brett.
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More from Holiday
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Anthony Paolone (Analysts)
Tony Paolone and JPMorgan. How much does the pursuit of the gaming license cost and what's the order of magnitude of investment to get what you showed on the renderings?
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Marc Holliday (Executives)
Pursuit cost is don't quite know yet. It depends how long this goes and how much we have to put in it. But between us and our partners, we'll be sharing those costs. And we've allotted in our budget for a certain amount of pursuit cost that I think are a fraction of what others are spending that I mean a fraction based on what we hear about the expenditures of other. I put it in the 3-ish million total category before splitting amongst partners. So I would almost call it nonmaterial to us because, again, the building exists.
The team has made. We know the plan, and we are already developing images.
So and the infrastructure exists as well. Yes. new location, transportation, mass trends and all the things that would have to go into literally building a new city.
So I don't want to minimize those costs. It's maybe $3 million, $3.5 million, $4 million in that range, I think others may spend $10 million, $20 million, $30 million, pursuing if that's not our style. And it's not necessary, I think, because we have the best location, the best plan, the best partners and so our view is let that speak for itself.
And so hopefully, we can keep it contained within that model. Second question, what is the cost to it's a little early, Tony. I mean if we get this award, it would be sometime around midyear next year or longer, we have budgets, we're not prepared to go along yet on what our view is of total cost for the project because the total cost includes not only the cost of what you see up on the screen, but it also includes what will be a bid license fee that's going to be one of the material financial economic items in the RFP, you're bidding upfront license fee, you're bidding tax rate.
So more to come on that. But suffice it to say that our cost to convert 1550 for change of use is once again a fraction of what it will cost others to create resort-style casinos not on a 75,000 square foot footprint, but on a 10-, 20-, 30-acre footprint which is what some of these are going to be more like a resort sprawl, if you will, as opposed to what we're all about, which is vertical, dense, efficient carbon-friendly casino in a compact but completely sufficient amount of space that's serviced by more mass transit than probably all the other sites combined.
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Conor Mitchell, Piper. So I have 2 separate questions. First, regarding the Times Square redevelopment, the casino license. If you guys don't happen to win the license, then would you still go through with an entertainment redevelopment.
Marc Holliday (Executives)
Okay. First question. We're in this to win it. So your question of what do we do if we lose we don't talk about that much. But I would say that a lot of what we're developing as part of this bid, most of it contingent on the casino because the casino is the funding source, the private -- public -- the private funding source to work with that public-private partnership to make a lot of this happen.
And it's also the economic generation in that halo effect of bringing something seismic into Times Square that can help lift up all stakeholder businesses. So without that, more challenging, but that's not to say that the work we're doing on traffic mitigation and safety in particular, in sanitation we couldn't work with the alliance and the alliance is already on this, but work with the alliance with some of these new concepts and ideas or concepts they previously considered, but now maybe we'll have more support to try and enact it with some private funding that would come from other than the casino.
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Last edited by NYguy; Dec 6, 2022 at 2:43 AM.
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