<\/p>\n
Management is transitioning the Interactive segment from a high-spend market share pursuit to a disciplined, regionally focused strategy prioritizing iCasino jurisdictions and cross-sell opportunities.<\/p>\n<\/li>\n
The U.S. online sportsbook rebrand to ‘theScore Bet’ is designed to leverage existing brand equity and ecosystem engagement while intentionally shedding low-value, unprofitable customer cohorts.<\/p>\n<\/li>\n
Retail performance is being driven by theoretical revenue growth across all rated demographics, particularly older and VIP segments, despite headwinds from new market supply in Louisiana and Iowa.<\/p>\n<\/li>\n
A new leaner organizational structure and corporate restructuring are expected to generate over $10 million in annualized run-rate savings by streamlining decision-making and increasing productivity.<\/p>\n<\/li>\n
Strategic investments in ‘water-to-land’ casino conversions and hotel expansions are yielding high returns by capturing previously unmet demand and improving operational margins.<\/p>\n<\/li>\n
Management has rightsized maintenance capital expenditures by $20 million annually, citing a six-year cycle of property upgrades that has reduced the need for near-term recurring spend.<\/p>\n<\/li>\n<\/ul>\n
The company expects to achieve breakeven Interactive adjusted EBITDA for the full year 2026, representing a $268 million year-over-year improvement driven by rationalized marketing spend.<\/p>\n<\/li>\n
Management forecasts 2026 free cash flow of more than $3 per share, which will be prioritized for deleveraging and opportunistic capital returns to shareholders.<\/p>\n<\/li>\n
Retail guidance for 2026 assumes a flat same-store performance, with total segment growth driven by the opening and ramp-up of four major development projects.<\/p>\n<\/li>\n
Interactive revenue is projected to grow 20% year-over-year (excluding tax gross-ups), assuming stable hold rates of 9% for sports betting and 3.7% for iCasino.<\/p>\n<\/li>\n
The 2026 roadmap includes the anticipated launch of the Alberta market, which management expects to mirror the successful high-market-share trajectory seen in Ontario.<\/p>\n<\/li>\n<\/ul>\n
Severe winter weather in early 2026 has already impacted retail adjusted EBITDA by approximately $5 million to $10 million, following a $7 million impact in Q4 2025.<\/p>\n<\/li>\n
The opening of the new Hollywood Casino Aurora in Q2 2026 will require approximately two weeks of property downtime, creating a temporary revenue headwind reflected in guidance.<\/p>\n<\/li>\n
Management expressed significant concern regarding the ‘legal gray area’ of prediction markets, characterizing them as unregulated gambling that creates an unlevel playing field for licensed operators.<\/p>\n<\/li>\n
New supply shocks in Bossier City and Council Bluffs are expected to persist as headwinds through mid-Q2 2026 before the company anniversaries the competitive entries.<\/p>\n<\/li>\n<\/ul><\/div>\n