Tom Reeg
Chief Executive Officer at Caesars Entertainment
Thanks, Bret. Thanks, everybody for joining today. To go a little deeper into the numbers, Vegas, was very near a quarterly -- all-time quarterly record, it was a Q1 EBITDA and margin record and it was a record for mix in the group business 21%. Recall that Caesars' pre-merger was running at about 14%. And so what we're seeing -- what you're seeing through Vegas is not only just extraordinary demand that continues as you look through each month. You're seeing the average customer in our property continuing to be -- continuing to raise. We're getting group business that is higher dollar comes with banquet business attached and replaces our least profitable players. So it's a virtuous cycle in Vegas, as we sit here today. Obviously, second quarter generally is our most difficult comp of the year since that was our all-time record.
Second quarter last year, we did almost. $1.50 billion of brick-and-mortar EBITDA, but we feel very good about business in April and through the rest of this quarter in Vegas. And as you look forward with the Group business that's on the books going forward, we did announced $100 million project to change the Bally's Jubilee Tower to the Versailles Tower in Paris. It will be connected by a physical bridge into the property. Paris has really exploded as we've improved the casino floor and added a number of high-end food and beverage options, including Nobu, Bedford and Vanderpump. And room rates at -- both room rate and spend -- non-gaming spend per room at Paris are significantly ahead of where they are at Horseshoe. So we think this will be a high ROI and more importantly, high-conviction in that ROI project that is in design stages now and should begin shortly.
Regional, if I touch on regional for a moment. The Tahoe area, Northern Nevada about 720 inches of snow, so 60 feed of snow in the quarter. Unfortunately for us, a lot of those storms hit Thursday, Friday, Saturday. So even with that amount of snow, you can get lucky as to when it hits. We did not. So weather in Northern Nevada cost about $20 million of EBITDA in the quarter. So if you normalize for weather in the quarter, regional EBITDA and margin both would have been up slightly. We've got a number of exciting projects there that I'll touch on as they get a little deeper. I'll circle back to that.
In Digital, we were about a $3.5 million loss that was with the launches of Massachusetts and Ohio. And the Super Bowl that didn't hold very well for us, frankly, given the amount of scoring that happened in it. Really if any of those three legs were not a part of the quarter, we were positive. As we sit here today, we are positive on a year-to-date basis. In Digital, I told you last quarter we anticipate that we will generate positive EBITDA for the year 2023. I can tell you today, we're already there on a year-to-day basis and the amount of EBITDA that I was expecting, when we announced that we'd be positive for the year about 90 days ago versus where we are today, we think we'll do considerably better than where we thought we were even 90 days ago. And something that comes up in Digital and conversations with investors is I suppose from our peers, the GE. It's just Nevada. I want to be clear that non-Nevada as a piece of Digital and I'm not going to get super specific. But more than 80% of our Digital business is non-Nevada. And we will be EBITDA-positive this year, we remain on track to generate the 50% return on the $1.1 billion of cumulative losses that we generated, as we launched the business. I still expect that to be a 2025 event, with the hope that we're run rating that level by the fouth quarter of '24.
So I want to get out of -- I know these calls tend to focus on right now next 90 days. I want to -- I want you guys to know how do I think of the business from a longer-term perspective and I want to couch this with this as not guidance, as most of you know, I'm pretty transparent. So this is what I see today. When we took over Caesars, the assets that we own today the brick-and-mortar assets, we're doing $2.9 billion of trailing EBITDA. As we look post first quarter, the Vegas business LTM EBITDA Vegas alone is a little over $2.1 billion. Regional is a little less than $2 billion. When you run through managed and corporate, we're right at about $4 billion of EBITDA from the same assets that we're doing $2.9 billion prior to the merger.
We've got about $2.4 billion of Operating cost, cash outflows between rent, cash interest expense, maintenance capex. So about $250 million shares outstanding that's about $7.50 of free cash flow per share as we sit here today. The Digital business for now seven months is about breakeven. So obviously inflecting to positive. We've told you what we expect that to do through '25. In that same timeframe, I think we've got a similar amount of incremental EBITDA that will come through the brick-and-mortar business. So, piece of that is -- piece of that are the projects that Anthony touched upon, you've got the Lake Charles expansion that opened in December.
So we're still in the first half of the first year post that reopening. We've got the Pompano project where the racetrack came out of the business. We expanded the Casino. We will start to see the JV development begin in earnest, it's already in earnest around the property, but you'll start to see pieces come online.
We've got the Atlantic City spend, which is largely in the rearview mirror. This summer is the first prime period where we will not be significantly disrupted on our floors from those projects. So we're optimistic there. We've got the Hoosier Park expansion in Indianapolis, which is again a high probability, high ROI project mirrors what we did, of course, Indianapolis where we have seen returns in excess of 30% on that capital would expect a similar outcome in that Hoosier Park.
And then you've got New Orleans, which is over $400 million. That will come online before the Super Bowl of '25. So towards the end of '24. That's going to transform that property into a Caesars, a number of high-end restaurants. You've got a Caesars Tower that will be dropped right in the middle of the Casino. You've got a number of high-end food and beverage offerings. You've got third-party development across the street of Four Seasons Hotel open across the street within the last 12 months.
So we're excited about what's possible there. So I think what we're looking at if you look out to '25, in my view, is a company that could be pushing toward $5 billion of EBITDA. As Bret said, we paid down $400 million mortgage note on the Forum Convention Center yesterday. That puts us on-track to pay-down over $1 billion of debt for the third consecutive year. I would expect '24 and '25 to look the same. So again, as we sit here today, you're at $22 billion-ish of lease-adjusted debt. That $4 billion of EBITDA with Digital flat. So you got about 5.5x leverage. Just from what we do organically in the business, as I described that debt balance should get down to $18 billion and $19 billion against the $5 billion.
So you're looking at -- in that scenario, you're paying down effectively 7% debt, $1 billion a year for three years. You're going to have some increase in the lease payment stream, but you're talking about $150 million less in cash outflows, $1 billion more in cash inflows. So you're looking more like $12.50 or more a share in cash flow. None of those assumptions in my mind seem particularly aggressive. I think we can generate an incremental $0.5 billion out of the brick-and-mortar given the momentum that we have in the business and I think we're going to do better than that in Digital. And if you think of where that comes in Digital, I think you've got three legs of the stool and a third of it and they'll roughly be a third, a third, a third.
You've got the existing sports-betting business continues to get more profitable, volumes continue to increase and you should expect that continues to drive positive EBITDA. That's the bulk of what's happening as you see us inflect the positive. Eric talked about the iGaming app that we will launch early in the third quarter. We're particularly excited about that, that's going to improve in particular our slot business in iGaming because our existing portal is through a sports-betting app, our existing iCasino business leans toward tables more than our peers. And iGaming forward app is going to change that for us.
If we get our iGaming share to equal our sports-betting share that's going to be that third of the boost in EBITDA. And then as we've talked about numerous times, we've got partnership and talent agreements that come up in the next, let's call it, 12 to 24 months that we expect will be the third leg of that stool that gets us to $500 million plus. Every time I speak to you, I'm more confident in those numbers. And every time I speak to you we've outperformed where I thought we would have been 90 days ago.
So that's obvious, thanks for indulging me to think longer-term, because I know we're going to get right back into what's the consumer doing right now and two weeks from now. And what I'll tell you is we continue to see significant strength across all of our assets with extraordinary strength in Las Vegas. So, we are exceedingly optimistic about the road ahead. We're particularly proud of the quarter that we just posted, so the idea that -- if you add back the 20 in Northern Nevada that we were nearly $1 billion in EBITDA in the first quarter, which is not typically a seasonal strong point. I'm really pleased and proud of what our team and our employees have delivered and look forward to the rest of the year.
And with that, we'll open it up for questions.
