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Full House Resorts (FLL)

Participants
Lewis Fanger CFO
Daniel Lee President & CEO
Jordan Bender Macquarie Research
Gary Ribe Accretive Wealth Partners
Brian Gustavson 1060 Capital
Call transcript
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Operator

Good day and welcome to the Full House Resorts Third Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Lewis Fanger, Chief Financial Officer of Full House Resorts.

You may begin.

Lewis Fanger

Thank you. everyone. afternoon, good And third call. our quarter to earnings Welcome

security As that today's statements conference we you begin, that of that to actual also you that we remind federal provision call harbor could making the the always, I remind under would results. like from anticipated before results for see we're we under release, press safe 'forward-looking laws. results reference may differ the measures in company's statements' Please contain forward-looking to our materially such EBITDA. the discussion a may may make risks as of today's Also, these forward-looking affect caption non-GAAP statements. adjusted

those various For of measures, a the see well press our reconciliation we website that as as releases please issue.

at earnings as find Slides. labeled you section call And that XQXX fullhouseresorts.com, some where release presentation Call well filings SEC lastly, posted today's we're well our as we that's Earnings as slides can this the as broadcasting in conference

go, So with all that to said, Dan? ready

Daniel Lee

I'm Yes, ready.

Difficulty]. [Technical me Let

thing was by this. The wagering wagering extent, pass year on casinos states ago, in Nevada. I in we Delaware have the lucky to were two And So of happen legislation, And approved a far, To states got Indiana over Court, we sports two those in most about little before. we who the signed. ago, agreements a have think other now Supreme enabling the it And to year than some sports the was quarter a opted and places. Colorado. important

Mississippi. and mortar. ties the in than places brick sports company, mobile betting but levered, we're different to small legislation a So It's both

something or we there Slipper or they the can about from year. and William a year home betting been we they on your there; from partnership probably approved like Mississippi, do from phone sports In in it open fact make In and we'll permitted in and $XXX,XXX that's $XXX,XXX, actually share you of Colorado, it. do Hill your $XXX,XXX, with have our the sports office. at one this Silver books, Indiana that And

a have don't to be in You casino.

new gaming the where And whole casino have shows on a might impact be If the it slight it this so any anything, it positive. it's And so opening itself. data doesn't at has far, a industry. happened, least

have there sports Now bookies for really, been largely the betting by it's I been -- think centuries people and but on the U.S. and underworld. controlled in

And And but big very so industry. new billions it a that. guessing of It's is, everyone dollars. this how kind it's kind of industry big into cuts in is of

this our done We have own. on not

We operate casino their sports Some own books. companies don't.

For one, it's have kind expertise of small company and don't diversity. to second, do And pretty a we a unique it. we're the

matter once the how somewhat was books make much And then the you're start bad Bowl, Orleans fortunately, different places, you in didn't all year, hedged. line. Mississippi. bet last was in that might to because get it And our into Bowl going the Saints Super I and Saints the customers sports having a call like fretting but were Super of the we on they there move kind So New didn't ref

specialized if up small relatively bets being we'd not team, the so both the And on company then Indianapolis do the expertise having and others. with chosen for But a somewhat they people against kind where it, not well, end Las bets hedged. to we're probably locations sides book of make having have large it Vegas place, the in partnerships we in diversity or over a of sports all have

terms the three allowed the you're operator, casino. Caesars in in has and skins. to the they we is three with smallest happen one Well, revenues industry XXx We in for of do. half in it skins. does example, company-wide revenues. Indiana, They've in Harrah got about turns T Indiana. We've have state have for probably the And casinos got term the deal brick-and-mortar which have three website, for skins, out each casino to Chicago a

this company-wide and so Eldorado And is a deal.

U.S. So the when good quite and you the start we pretty Indiana sorting to to the no companies, licenses the and both we and some in deals. a Colorado place, market sitting were and into agreements get with looking European, there it, through into were were market. of few And able three so like negotiate there competition,

So different with and agreements Indiana three companies then three different three in Colorado agreements companies. we in three have with

It approval. three have agreements mobile is And related lump of again which Colorado. no ends a the we next what fees, say, different it material, but raises it voter different anybody. Now we've Colorado you market I six -- the to each if why have passing. There's provides to being sports -- for needs agreements; licenses. but are well, week these And It of of million three up three. mortar. access tied thing it, access it's brick all And sum in three. can Well, ballot it, and in not? the I website Colorado talk of so of I first to licenses, on now -- we pieces market kind to the passes, each betting to has of there's think revenues be license. it is it. similar, is has probably clause it for a which had in the deals very real and for The every the without confidentiality so we to for agreements opposition permitted. received fee, related we it Colorado, And hurting passes, careful Billy's, Indiana, are us sum. shows three we've about $X six in very happen tax And there And -- it be probably were X Bronco on signed contingent polling and different get

at cash. to million Colorado, cash of $X moment. million assuming million, million in that's Colorado, $X voters $X we're we'll another that's and our if And the added at when it think I to $XX approve receive so And

that the up it's and of a somebody at WiFi in so operator's we make they of so percentage gives a done in a in contract. Indianapolis than sign different and nice, and percentages just we that's start home higher us up contract we're bets the our ways. bets if to And property, if happens signed revenues different different Then to that's Like revenues, but -- was do making get through signing percentage contracts would and each slightly in Indianapolis. they

if the that does. but than say a independent, revenue guaranteed minimum also ends minimums $X is or up a then in sum expected, the and And agreement the percentage year. get if anyone million let's so -- anyone the is, each they're each what of so guaranteed will $X has it, of more being million, than better we more than does minimum But

a because So these $X of you the on figure on business. are likelihood is operators this this more make out other looking that million year than we will side the at

good revenues They have market and what the operations idea very in based elsewhere, many in their can do a they've years. on they Europe operating of for been

so they got better the willing the give do us us looking believe expect to And at than and to to minimum. minimum. I've they're it

is then million. is $X minimum the -- and $X.X didn't million, minimum so but And if the Colorado legalize,

our no paying into Bronco casino both Billy's very the very are And and so related putting the to that, books installation really We the have sports that, few even Rising Colorado. in partners physical of we few. and costs. Sun We're have for expenses race

you And have door. it's we bar bar or slot that Indiana right front have slot watch in can that and in also machine it of underutilized, bet. Now game kiosk do inside to a chosen machines traditional play use the it the and a to so make a was in kind a will

let's that not are little is much. likely the a basis The As table, And XX-month related you can expense at million. put it perspective: see be this in the mobile $XX.X to property. so our side, we to EBDIT big though, but of -- on had And not on latest one on a bit numbers, but

$X stuff, the And is by in then X, XXXX. their Indiana it of the It a in our lowest add reduction; a rate reduces there effective XX% you in a EBDIT. the the tax governor. tier, If which and minimum legislature last is it's July was like increase sports tax the another scheme million, changed approved

it So that that X.X the $X.X but means it for and a will tier years lowest to that it's in us, close out, law about -- year is the on comes drop. still property. results is And million we're which doubling

bigger Now but actually it's it's that. than impact -- a

flow table; EBITDA Maintenance $XX of million million. expense next year. the CapEx free million to our mean I go our discretionary is million. roughly $X.X about is a interest cash you $X perhaps less is $XX If

million $XX of at have We point tax carryforwards. this loss over

taxes. probably will at taxes at moment at future pay the although currently, not don't we're sports we the date, with we wagering paying but least some So

our $XX million. of free in to the $X and flow goes cash discretionary So is ballpark it million,

to it's chapter profitable would our a these against produced know of which So very now," way "Oh, long-winded you all tax -- but a think because and going for against auditors excited financial we taxes taken triple of have negative And our someday. allowance have finance say, it's really sports I fact statements, people And income someday may would take provision the profitable the that our cash pretax which I income. always in is valuation will valuation rather a think don't be CPAs but the really by agreements get we we so be for long they're very reverse free pretax flow, care, the saying a to allowance all we material. our credit negative be

finance in terms Now pretty it put let me simply.

with Churchill billion are. should in entities contracts is traditional Downs, mention three entities, business. the have active sports the company I $X We very who and One

to but Europe, Smarkets of software top betting, are winning interest developed And some the the billions experience lot they're with private sports traditional cooperation do own area. mobile has They offices XX% backed also A an of X% then a be Wynn-branded person betting volume. and in person where bets in certainly they they and but decided, and encouragement. sports Europe, that another you BetBull. of Smarkets. bookmaker Monica. be Wynn bets. in our is is largest betting on capital against firms And a dollars third one in they -- a to so offering And Wynn. at a out stay exchange peer-to-peer more company will and betting -- And be bet, Second -- Colorado even the they're of the in that, exchanges Santa it's or Rising -- have fee Full very the to Resorts concentrated. one in venture need on by Hilton the our is you Indiana Star. going to idea have hotel. owns And they've riding out got they rolling like I land mean they take with They in of House Hilton is sense, a of of and none is you landlord who the underneath branded of the this this kind We're it. the of underneath on recognize licenses. the hotel, no have of be London

Just are the a minimum of we you XX-year us. but this year it's in probably a if you if -- important these it's million are that's -- assume $X case, $X quite they million -- for are Well, and that year more, what agreements. but assume it's agreements

a the can our it's that. but shelter XX-year -- virtually shelter we if $XX minimum and likely of each assume We it's for have million all the year, right We of they a the will, beyond most -- a quite partners profit. and to agreement don't, can -- million. that's it extend that then $X Now

going it produced to next is we're to is least to I Our X, at but going start or probably having tax XX carryforward loss ballpark tax pay carryforwards. for of years, have taxes, or coming some And over debt it's a still at -- point, loss in associated the anything. then after next in some And at then taxes, $XX $XX year-end, with tax year think, be million. loss the we'll our the million no and

far that's divide $X share. jumped now. just company The from trading our this $X it by you shares share and $X just of value a at a our stock that outstanding, not If share. is was And a

prospects our And all doing, a our share. stuff being as $X everything came of life, valued worth and and and to net this working so we're our people at casinos, debt before

In it at trading fact, share. ago, a year a was $X

is frankly, really kind because that, mega it's hate of contracts these all nobody I just small signed to I we now is so elaborating think value And the paying important. And this we're so stock the of it our hasn't keep really on because double attention, surprised and reacted, [indiscernible] stock. I'm but

book. So anyway, sports the that's

that, it Creek issue sheet in by agreements debt of pick up you it with if cash allows XX% have undervalued refinance point million the interest for us; company It's worth. of do to alternatively, other prices. can Phase free from it X we without way having our at $X backed the another balance think significantly Or substantial an dramatically we'd rate increase is in financing when because flow finance the companies, or this this want equity. we we Because flow. construction cash probably don't big at so these $X the Cripple what we probably improves us to issue and to does The certainly we're thing equity contractual our at million And paying. ability, our below

worried it. to do that sports finance We the be overhang may now may an on Creek, little has answer. finance the are the the think about to two. in been an People to and these how to a a bit hotel of interest Cripple debt I so we We hotel and markets We and of on agreements. can you go our rates stock. going able backs reduce the And have able wagering combination be the finance

of And makes get sheet multiplier it a share stronger ago. the of and I capital, kind $X than minute even an a more balance to that ability there's a to worth so said having cheaper which effect

the in the the by that's far thing which is important quarter. So most betting, sports

into Silver digits two getting stronger, double the first were look Slipper and and quarters. if this you They at in first -- It's go fine. operations. year silver The The back were profit. did second up quarters the

kind it just was any that weekend quarter do third but damage important. a drowned a of that kind the And big property at which of The of was flat. was didn't Barry, part Hurricane

as would So of Slipper still and Silver not Barry, quite without the the the half probably strong we the up quarter but X% or year as And been year have something in first the is fine. new, only since Katrina. of to all had from best perhaps it's opening the well And on having was year. casinos not its it opening had but track in reopened not year, its

So of like and that best kind its will in this looks than be is opening year the distorted, it other that. history

an between that increase match to a continues the Louisville; Louisville, be operating us pretty at then gaming Other show with is with payroll which you a still was give And It's The kind expect, big last dealing market -- you'd issue. a And particularly had careful a which mass marketing to bit payroll have a is we expenses ago. and to reintroduce that expenses Star it. as we up. up operating us were of the on to little quarter also did ferry and of in of as exist September, less but impact been year in trying on to a this didn't We're just Rising some with in big you a the property and have were not of We've our The try to the because we year down. lot year. broaden we Downs, the revenues did down, casino an impact we had marketing it. Belterra, expenses Churchill impact. in little taxes

a the and system. market in completed should It's in to information are with a week, literally which be process Konami of able us a within We be to more putting way in rifle of gives instead shotgun. the with XX%

more it been close in with operates can can you very swing, of they've where you we EBDIT. to have a when historically, sort those think that have marketing percentage-wise because the you we line so see, breakeven, in but a big costs get And swing

in going long right, the what's to look that's the costs. the So a pay property had it decline at really you costs those far for trying better you that really see this hopefully, off just stem was really revenues marketing when has We're on marketing And forward. but it, time.

there's of restaurant to the The here, a that it has called picture redo up. restaurant restaurant. for of did and the have Bistro, buffet was it buffet the We property a three part a It And Ben's million run XX week, buffet that a a operated year. reason a into deli fixed that to fact profitable, days meals and day. it's waiter-served X couple the volumes for doesn't make a years, necessary dollars a in loses

restaurant whole is have money, the the to it's now towards and but and a has attractive out. And to we've spend we'll the have a of menu, didn't look we place started reduce -- so to replacement eat, people of quite a buffet. nice so built intent and new and lot so operating we this hours a And already

it only use the on runs at time, rest peak the we'll Bistro. customers that's use it volumes so periods eat the And when And our to efficient Ben's can of the buffet.

the Our cheaper all to at At eggs buffet, It's serve us Bistro for better. your hamburgers periods stuff also them made to drying. your bistro It's is in drying, are slow is Ben's anyway. buffet. to whole are And the it the sitting than order. are operate at whereas the comped, there, customers

Lewis, but in through The is the order, slide I that wagering -- it have we wrong a update. think the goes here, sports

much pretty addressed all of I've think I… I it.

Lewis Fanger

should again, -- it Dan... big We We about enough. should talk

Daniel Lee

from what's as gaming that on come mobile book Yes. mention Well, slide and will starts. revenue I the mention failed as these to I the should starts the on is sports the

Lewis Fanger

Yes.

Daniel Lee

couple Rising book sports the pictures and there's about of is ready start. to it, Sun, a in And

have We The place. kiosk see I we has can't to there commission best and the it's out kiosks and for that ready at into Downs Churchill -- do can the the machines which moment. imminently. we think until approval, You kiosks gaming go expect slot

everybody them it but I book, -- sports go on they every have that think very a they I through places at buy kiosk working time the popular, quite I've yes. Churchill -- from they BetAmerica day. the somebody, good is lines Downs gone have them, don't And every they're but you that see casinos other have.

So go. be have sports to approves on are we And I And regulatory Rising Star, partnering and a they're real as really has we're this ready get at We're gaming who Churchill go ready the weeks. kiosks soon to to with to at us. book we'll approval point, them. a as think couple commission It's site, their within think, close. happy Downs

Bronco a there. marketing And Billy's. made quite changes We've few

new a fine have new We the seem and He's new ideas a and to seasonally lot important. GM. which the was too. also GM was they And be working. It old summer is of the guy retired, has

Casino And the helps. period, was peak that Christmas the and so in added capacity,

forward. And some that like during lackluster feel quarters, is had maybe I several happy there this single every to quarter good and we're volatility, not right during this Konami system a portends going Not quarter of and in property do going the have trend in so continued trends And because do we property so things and the upward you are get -- we're -- had but the it fourth also going hopeful the quarter will And way. November. the strengthened here. see quarter,

knowing tell in customers Star And very hurts how. much It systems, do, can what us so and how which and where marketing. Billy's hurts betting they who's and slot it us have and Rising the can hurts in us both, we in and outdated Bronco also

information And us have effectively. more better market allow far so to we will that'll

since it's million We of $X test It's the system years a version it. and to inception. Silver at at spent newest for We the have upgrading actually Slipper. beta system. that site Konami great were X.X ago, had it the We

it well. it know we know is, installing important we're and We so the so other in And how it now properties.

the get that. maybe And has hard we'll for sometimes and Nevada. in Aristocrat parts to Northern it to up someday, do Nevada Northern system, get it's ironically

go out Billy's Bronco of up the So Northern to Aristocrat to the stuff taken of is being going which all Nevada. had

So our good in shape systems. we'll with be slot

start there of them where we'll parking all out -- lines, X, go which some on that the there casino that's using first new that's Well, essentially be it. a they'll them and and have restaurant The done. garage power and and underway to X casino towards work the to fair and sewers is And put customers At and That's million that's down the coming underway. balance is, has what Phase half and today. run casino. though, that next chart of building structure new hotel the are blue of that trench. the comes be parking of be in And And Bronco has of well, very is amount alley is Phase connector building. Billy's, dig of here an and is done, is ground that sheet, lines -- sewer is on should then that all and we connector And part will building our alley the replaced the then That's new $XX way because -- The with right down our out a the the a And that a but storm Middle garage we're shows moved relocated. utilities And roughly thing that and are gets the shortly year surface sorts that the X. garage. of we've Phase hoping important the moved that's temporarily, that have the now. the all stuff, then to the buried. trench for. will we've have -- be

hotel. create a customers so parking had to our to park we continue a and have build garage we So place while go to the

be parking to had underway. garage, thing and the it's first the So

And $XXX-and-something a into subject which opportunity. now financing, do X. now capita can there and picture we why of casinos with is as California, X. much great per reason we city Phase the know area I And any of by arranging is on California. we inherent the Springs this California us would in as And as gambling the residents Phase about can it's Colorado $XXX. believe only believe terms, Nevada. of don't gamble then of a Gaming In and And X/X to roll continue we attractive tribal Colorado to residents

to capita the to you've L.A. or think there's mountains a the Francisco, in fine, to in has ways think got up the those The if And get when little so have bit And a now change do get that the particularly have drive to big makes a difference. the a into bet is of San two and not been not $XXX, are XX-fold of a the days casino. You higher population they don't drive Creek, the opportunity. but because rooms. live We product. luxurious. bet big casinos Cripple hangover maximum long are hotel to but to cities was half the Cripple we California, $X. maximum They're Creek of you nearest from gaming per It's

Fallon. did consistent a pretty it the was it quarter the the Grand Nevada. been the been renovated, was the XXXXs, Tahoe and and property it's just in Fallon. steakhouse We it had It up. first week at Lodge And opened we has think, hadn't since in beat well done Hyatt Northern We renovate between the then So built. open, when but in

agricultural little are fine wanted so who a and Gun naval sexy. we pilots wallpaper, could up, three any because we're sexy line are woman conservative artwork. navy Western now renamed hundred it given the We acquired the new statues And And we I not ceiling, the Steakhouse, live you with these too but but found air in be so statues, the that time, tend new tall And couple And in they're three a And at Three And think a it about that kind find had sisters. steakhouse. we mounted something county we was implying have near which the of that also carpet, that show somewhat-sexy Sisters to statues that new new to feet X kind we are each. then XX,XXX Top community, of is. have station people school bit to three where statues.

money. So it of lot wasn't a

new I in tool Nevada of it'll our well, so a are and it's be we're think really that And pretty us pleased it Northern a going forward. At $XXX,XXX, both this was in market. great about there. good properties amenity in good point, shape, for

when and our we for places look through math if can a other legalize, say, the you to to just is know it. and career, can we well, continue place make They're money. to this money. permit I run get raise opportunities. give should see make my a hands We out in We going

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targeting roller. Chinese they the were Now high

don't So kind behind beautiful, off-the-chart people secret it's and little they a Most even are really MGM. know of there. it's

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hotel revenue So the area. region all would and really roller that these, in be with and butler targeting service bringing high that's the the in and this a finest beyond immediate

and would the open income possible for casino more help help financing And to revenues for to quickly as the produce temporary a as us with also but permit. jobs that's tax also create city we going the quickly

a to state. application the one by the X, passed long X to And last then endorsed on X state to so And And now for at submitted be to out. state proposals we three actually it's city. it. And were the week, there of on to criteria, the Monday. the process presented the And look city backed was the City Council. that Waukegan of the

and for revenue outside did in and best additional bringing was to the Now the state to revenue and that city, I creative the our report Waukegan. think, consultant terms of did jobs most and proposal so the

born, I the a He Casino major XX Chicago but political since Now miles and Chicago. the part is writing he so was owned have checks been they before be the the would in by Neil has casino who's political Rivers Bluhm, in favorite, developer road. down

that for because will Rivers probably about Casino. So they're do be actually less Waukegan business their highly stealing going profitable from to concerned

aldermen state or down And flank out to a just favorite. a were the local of representing at casino. so He operation last Bond he they pubs so And start came stepped to all slot for associated do Michael political other try from pack will the XX% senator protects of November, running reelection the route from the and slots that him their so to in kind on. newspaper. was something that the senate Waukegan, like a made was and contributions with

political proposal. part a was that best is because out the And he commission, the little what voted, we I think last got understand, sketchy. so has don't So been in of made have gaming will And is think be Illinois of quite intent we connections. governor prison. just the we those the clean We simply of this process, history a kind

we we up. shot proposals. reasonable think previously And so a next clean are X but used we We this own only for a name designed have out recognize three which and we this that And American I the what Indianapolis. in proposed of We then pictures the great of name. at name the over couple process, had take is if Place, casino And a we it's used is which a year. place will a

there proposals have they ago was the scratching different to for we state. to are there different new best do. is were consultant license that Mexico like a last process. the the New year racing and then racing to ruled the what every in allowed But the racetrack, trying has there, case. the finally, the a whole governor. every and a There new And got measure. the first in And virtually you we in if She completely; X were went looked figure and a very received I racetrack were casino. replaced of through board board at out heads, members the they XX measures, think a get -- similar you're outside And Their process

us days very the kind they're love so we'd and governor's If just the to do Waukegan to Mexico to proposal we'd other two message tell focus Fe our that can going other some not, pass of Santa to in investing If so go was clarity. I of ago And the the have they're on like any staff to we're Xx in proposals of and New we love in interested things. and to was them would magnitude ahead, this.

on months pause And but can't And been said forever. X to on so kind tomorrow, like pushed the it's commission stand tell you the don't since -- recognize not -- have the sidelines of racing and us we process. we

So stands where it that's on New Mexico.

did Lewis, I miss And anything?

Lewis Fanger

lend guarantees of of covered sports I have started to And only to really with I'll company. effectively of lender all. end a And -- them this million, do we it betting, issued like the I $X postscript leverage if I highlight assuming anywhere million we Xx million but you we or transformational for No, from million with Xx so view. it's can think annual I you some thing is Dan. $XX would a notes, $XX as think from that sports equity well. as point that betting that lender, about $X want was to

so to the about in I'll my us, sports you that, I the beginning. to that that transformation slides want missed but again, point all betting case all don't back did And for the said, point underscore you

the go Investors section. you fullhouseresorts.com presentation If are. and to these on find slides the click where website, That's

for that, Q&A. up With all let's open

Operator

our Chad first of [Operator Instructions] take will question now We from Macquarie. Beynon

Jordan Bender

It's today. Chad on for Jordan Bender

You've year few you ramping maybe whether and now, Mexico again, parking give capital and from begins line. opens possibly up start the the plans guess, the of looking us New second projects highest-priority once projects it's Billy free on now, or can year cash last update mentioned garage you in an up out until guys? your Waukegan flow for to allocation over phase the down Bronco I a a or the

Daniel Lee

$X.X CapEx the it like is that million Things restaurant. the that's sitting a is the right is two we about deal two and And Konami of that's $XX is million from to to -- in parking have the even. X. with The the used $X we're did The a like system operations, million that buy of of next to years million we up on garage big Well, $XX in you've are all $XX Phase we is steakhouse for got maintenance while, million, then $XXX,XXX, like $XX was leasing which About in XX them in year. capital that years... cash. Once spruce a over months. at end maybe million the

Lewis Fanger

Dan. X.X,

Daniel Lee

in our X.X like a of terms we it. we finance value marketing And basically Konami have if $X it that present customers. good but it's think we our that, what pretty things. And for and does you of effectiveness years. the get return million, on little There's

to You slot participate machines. having can sit and machine special tournament group in a go of slot a a to at without

you that you play change The you today, in and we play machines, machine, you Then of it we've the there. case. line, systems if sent can also -- Whatever can part can machine slot to machines change have load the it. you You it free got come you. goes to play download play, all want with free on a if that's you not

a just that's of There's things lot examples. different it does. couple So simple a of

for public -- put get proposal of stuff, we it. mean regards the -- out in with Waukegan. proposals. -- responded a we and had process, a a Terre Waukegan request out Now go lot the or once I and to quite New Mexico Haute. like had -- Indianapolis a to We We

a the end sees And picked we're think thinks all and of You Chicago best has the gets publicity he proposal, and of today, sudden a Tribune. best of Bluhm course, shot; that the even and online, And I'm proposal. have up recognize everybody of it's up then Neil I but three. long Waukegan, in it getting we one that sure

of they and so a in it. Mexico be step out I in find the We once to best right? deemed whole up And got hit you stack to and New project, mean on were five. then if you -- to can were -- pause So the we and one and while bat -- do

domes how you it I Tokyo I time. went chosen, a remember a said, but career, And didn't me my out, wasting In your we're reasonable be them flat if off characterize the actually Wynn it, me, tell to to I at got finance would nutcase." buy early. is I we then out price. guy tell Steve so "You I "You're as to no. might And to The thinking able told go figure

were later, your And to Tokyo. because had Island. no, I you we bought it it We idea months going And was we the project said, eventually I but for If said, go." won't time." me going we and wasting had I'm at were well, he domes. no to a Treasure finishing pay Bellagio, out. we good figured tell we time. stretched how the were And And And "You're

been Of a course, it's home run.

we proposed casinos St. Louis we When got where We proposed didn't it, it. and I elsewhere right. in get was Pinnacle, at casinos

out find opportunity. lot we right, we So if math usually, like And really doesn't it build "That don't acquisition. New ends look something, acquisitions. the about lower it And trying talk you Bronco also work." at when we one of -- Mexico, Billy's a And we're Indianapolis, an just times, it ultimately say, a if run multiple. in A every we you opportunities. was do ends of up to recognize Waukegan, chase it's good there and lot

its economic at beginning life multiple at getting getting of than it You're new. the something you're because a lower it's brand

inheriting because depreciated so not on. You're already depreciation base you're getting and charge somebody else's a bigger, accelerated

something a buy sharp what town do where you to to owned you three the better probably and you quietly it's earning. off, always, us the different make hotel But this entity, in return new proven of it: carved but was blocks acquire it a of of I think all tell with year out pieces in little Creek, often kind so right? you where you into right, -- part really not X existing, we from put -- has today, that's pencil first could day everything was when And we Phase So of If of works. construction If own higher blocks a a sometimes Colorado flow land, so we land you historical we the -- it, that I you cash pieces. will get it's know buy a around land, first, the no, it little to And we the well, in -- city buying At work. Cripple started up spent kind that.

finally, lawsuit some it council. it, then was it. could these only quietly if running is Well, they we a a would options enough And We assembled was was when do land great through do the designing leases did alleys to right not. in And And we it. all, really do we so to And of or started had purchases kind and either then prevailed city or we streets do We streets try to we of we city had it, agree We're this. escalators do do day to really we through it whether all way an And there figure the they sorts in made have it have it, that going that epiphany won do out close going to there work everything. to lawsuit. and and one that. hard or how street. the could and the now it second whether principally was when to debate

We have to go. it now ready everything designed is and

get the project done. a was contracts We would to that it, is at knew knew when along, we have months, that parking our get this we few and finance we have coming we last to just the those better garage point. betting frankly, finance way to it ability that's sports done. the how So our purview And out in to have completely and figure

and been So done. I we we've next step next think Colorado week, it the is for to on six is about hope approve will of contracts which economics half guess which focused happen. getting the that,

that's step -- opportunity like would And little XX% we've get characterize you'll And often or in completely where transform -- at do, where but in of sort build up I We've to enough, we something as that company. our characterize Cripple spent New would bat Phase put deal Waukegan opportunity getting and that something you to we get that just Mexico bigger effort. to of and if Louisiana, money Creek Lake bit is I the XX% We a those And go have control. went were that stuff one... any you there, as helped Charles, got could of X a trying when of Pinnacle. and in but that likelihood so some

Lewis Fanger

Yes.

of you the were right. to through -- projects thing as When Bellagio. in as blueprints whether expansion. look for it's stack Bronco that's other frankly, project a Dan Jordan, about It's feel profitabilities is done to but them better Waukegan all you and designed, the Billy's, it it's that on that project -- we of careers think our and we've there. worked I drawing simple we And ready And this [indiscernible] that else, Go not everything at any on have are Mexico, paper. remember the of know quite a table go. than New list, that or lot is these on those on. Those have our I

So and is Bronco's there certainly is a priority.

Daniel Lee

thinking a like the to casino of casino casino original outside something not they tent I roll drew no. in in because, of and temporary since, were with demographics, job. a casinos. market Another did. thing. will that looks right? good nice And I a them strong they they timing-wise, up pretty the into think, market. in the thought, do operators casino who Companies, a like then a in Indiana, works mention, can And the I do and And that we were could that walking did Shelbyville I Cordish I ever do right temporary on and helped that works, all if one. I right you I spot, used really the it Waukegan, should remember permanent The temporary And

a money right. but was much too the temporary they went it to and the upfront get they can spent job, eventually did good bankrupt, and they casino Now be license done

around so the agreed interest up, structure the gets the Colorado tax a in in casino, Waukegan, do before done casino a temporary -- be with permanent people Waukegan. can number we city's you Phase temporary would strong shovel X a with living we quickly, couple getting probably a one will very up there and And easily. be for open put that in the and is a in to but ground years jobs of in revenues And the permanent the casino

Lewis Fanger

yet. thinking don't projects, tuned. you, applaud those them We Stay have have we I though. Jordan, for

Operator

[Operator Wealth. of Accretive Gary Instructions] We will now take our Ribe next question from

Gary Ribe

everything. Dan, job on Lewis, great

Lewis Fanger

Gary, thank you.

Gary Ribe

if recall, the across Is I I second have And question. this right Bronco a right? Colorado, from bought Yes, guys casino street in Billy. -- that a you

Daniel Lee

land the really so of that that a also Not we sits Bronco of of a Billy's to to piece piece Bronco where there of that the everything, with a -- There's where and right uphill the of it. we Bronco him most struck the of owner corner deal needed behind was completely. with the buy us wanted take And at parking block, leased we land corner had block the had Billy's. for Billy's he of the building from kind And we -- a acquired garage. lot

why a now. it. then thought, so And try as before. to had don't are we And that And we leasing that long it reopen we're as this, is we failed leasing building casino well,

Now an it building important at of garage. for was which our us the you to corner to need also because get turn kind to that's right parking

says it it it I off not block a the of than enough And important what to the large a made the And don't And so here very Christmas right doing. with money parking a kind building operating Casino. we're was of its it the called bigger think in we're controlling turn whole year-to-date, and cover go we a allows us lease, better grand probably to a theme reopen did Christmas it. it but way scheme have to of operating for to It's it's actually have and sense. sign garage. that not And

we'd of were going to -- the chunk We money. strategy. was it And in And operating slot in make half leased weren't a casino some out we And additional building that largely in first it's overall important of quarter think, for the make that half. so thought we we first the capacity did but machines. kind I year but probably why it. reason of third leased off the this a not did And in a good with we, of knowing the lot money of

Gary Ribe

Got it.

don't So you Colorado have license gaming second a guys in then.

Daniel Lee

have tax graduated a three. rate. actually highly We it's In Colorado,

-- for I was And it million it, think was ratchets smallish running is the a becomes then Bronco initially, only X.XX%, The casino first better he be one And his of point, complicated. "If at correctly. came a And job buy at and $X neighbors was looking I XX%, $XX in jump And who did to a up higher it that was, combine we'll revenues it than it Murphy, the one tier," and it, tax our made his middle sale. neighbors. the I so revenue Billy's if at at block. when and of issue in up Marc remember taxed it, million of

they're buy we with wall keep talked said, in you hole said, can and door, can licenses?" the they the the you used customers to the two can, our the tickets so from walk so cage as separate in confusing the as customers, customers but be "Yes, the as TITO casino one And it. it commission a the to for And long one." other, one pretty from knock we operate in little customers other, And each gaming accepted so is a "If a are next regular can't which they

point, at thing same side. then so another did the other the And Marc on

license of now within have we reduced So licenses. lines down reopened kind were And then there's and Bronco Christmas to two X three Casino, the licenses. Billy's, took the Casino, some of When those different we so there Bronco the within Christmas Casino. Christmas we Billy's

have three sports three skins. licenses, get of terms betting, we we in So

not entry three casinos. Indiana has limited casinos to the licenses. casinos barriers in better towns, casino but got Colorado, In because on XX three to permitted Each a there's Now of limit only little are there's Indiana. number

Hawk could to with somebody affiliated little somewhere tiny in the open would or casino be that license Creek order So in Black theoretically, it. a sports book get Cripple

Gary Ribe

Okay, sort that in I being of guess gaming helpful. going your industry. you do the to debt, of come? on refinancing see, I very understand that's sort lenders this of And question, understand. The I the are

Daniel Lee

go a X. to refinance yes. we -- lower Well, then cost would The come trying our refinancing Phase to at get the out interest we're to and sure enough debt itself strategy rates low refinance a and of could would can Phase probably that sum couple rates, into be back months. for figure And roll things. whether interest X. be larger of it lower right the we're or and pretty There's a significantly should We're in interest we pay rates do few

that important. referendum We financing towards that. to earnest evaluate part -- And next of all trying look obviously, in year. we is passed in the And pretty doing the next we'll week. then the getting so first And see we're Colorado in can

Lewis Fanger

literally sooner coming than Indiana think. you the mobile Gary, on it's verge. probably is gaming The in

So knock on wood.

least running. X you of I on at go next of operating as think sometime mobile current I quarter all hope wood, and think the -- quarter. their and before year, partners Indiana partners this the have first that And we'll three up our end into knock I with we'll have of think our of then

and rules then going all a the set bit take soon -- So that little and to approved it that Colorado going they see longer the you're everything. pretty for to hit get those because is Indiana. EBITDA darn revenues to up -- have

a talk but -- companies credit sports for the more go year, we no of it the is when the nice get and lets to betting with about likely So that having us while markets. have that debt next or gaming is done out Colorado middle the guarantees thing for

Daniel Lee

hope up when operating be in when issued their indicated deal a press release, that press national league signed and with they the Smarkets you okay? before they much And fair think a to the to take how release that opened Bowl, to of playoffs, us. the these time Super guess on the football they about bets companies betting get Bowl. on I in are it'd be Super think trying happens And all

Lewis Fanger

Yes.

Gary Ribe

you March or guess... something, Madness And think right? or -- would least at I

Daniel Lee

operating And [indiscernible] flip It's else, eBay yes. they commission the for casino. they gaming have already almost so it's and do, and then have them; digital software You they're and the like a somewhere not switch building fairly to approval thing. they're the easy they model a operating. And up get easy

Gary Ribe

makes sense. that Yes,

magnitude... the savings. Okay. you remarks Is of Or I X%, is I prepared sense listening -- was that do what And a of guys there's of maybe prepared have I said they're but it to in better? listened to have interest X%? you sense significant the you this. do extent -- missed a terms Or and --

Daniel Lee

you where low be to you as down, like us some at if use the I below are have we that could -- and look other to substantially of mean, as just pay confidential So probably you the swept term not be but build to X%. cash we companies sheets XX% X are. if Phase committed

could reduce you the in X. So you build then interest rate half, but couldn't Phase

So day, we're what's trying to best way the what's our shareholders. go. mean, this to about for balance figure end best it's the the at out I to all of

So with we're playing all permutations. those

Gary Ribe

Well, trust it. I shareholder got things. right it, you'll the Got do and the

Daniel Lee

Yes.

Operator

from Capital. XXXX We take question will Gustavson Brian next of now our

Brian Gustavson

with Waukegan, on one you about kind the other of talk of why make odds better you of kind Just two can or parties partner the just would guys? wouldn't to for you

Daniel Lee

obviously get easier and -- it's whole actually the Well, a forbidden if be thought partner. to finance would that, I think but I to we us we the it process has project talk had it million, bidders, if come this we're a in to lot other the but $XXX to

some successful a that ended a kind City. authority. decided being And Boyd. was Expressway we and Boyd Mirage Vegas done partner So money ultimately thought and People effort, and the very Atlantic built during who Resorts. joint the quite complicated have but a process, getting Bay a bit lot Monte partner we is venture to Borgata was between in City, tunnel have in as with what for both of from companies. it. a to we Atlantic but time And venture and It I've Atlantic talking with actually up group actually Mirage We don't money, both. of don't Gaming very that history, the City a Mandalay necessarily a joint mean, invested in of I to had to Carlo bidding not Resorts Las Borgata in and have the then might successful be realize good we're other became given partner. I bidders between tunnel prohibited negotiated for this.

they're expertise sense, very law passed and if different in bring but the The very a And few makes so quickly. months expedited moving to sometimes partners that was the especially just Illinois. a ago table, this process was

lot and to didn't end so Once And be have the were to free then doing at if well, We're we if time apply. lot of Bluhm on bidders our doing consider because There -- upfront. people, or own chosen, prohibited look of We plus we in. to we that at up don't to best just -- I we'd makes go probably a actually a bidding but process. look in the partner, having ourselves, know getting which advance anybody talk license, from it partner find in partner he'd would appropriate else. applied we'll other a we'll be it people is we partners. who And talk though. and might we're sense talking to a

Brian Gustavson

Got you. Can you at not involved all? take a partner who's now

Daniel Lee

was economics this. even getting if mean we we you strong the that norm -- of I of is $XXX,XXX swallowed do it. XX% think only angst that in have or Illinois are we than will with nonrefundable posted because and processes probability it, that much up the a the us. I some we XX% hard on like we that, so which did deposit tell project should larger we And it license required, put Well, deposit is because did the I still

not would to -- to license. we're not the could be added other It's somebody. they And we talk process so gaming partners, to license but complicated a

-- only few there address they're You be easier. markets And will -- that those one to is but because They'll proposal. they're of we a first address where there those. going think were

and Waukegan, X, and it's to get time the we think months to have so before X possibilities. looking some about so probably X, they at And around

So...

Brian Gustavson

plate. Looks like your you've got a lot on

Daniel Lee

to I a Charles as a Nugget. We and our tell Creative two together, Well, us we in in when all the a And Golden that. today and were we build had Lewis everything. designed then the as you, Casinos, property that investor offered actually we is the in MGM entitlements had license had bricks And getting to Lake ready I partner Louisiana. put the significant can last really and company, in MGM was and nice partner. that. own had profit Ameristar were we little about And sold we brought it. I

So license brought we appropriate. financing partners we for assistance itself. And in bring it's completely I how in and their had to to MGM it. both their when know expertise in that

we sell I offered So I will would be sell, on way I to it get done. and made Louisiana. and be promise they it I all And the was to we choose it would into the if that be it had thing or the promises own time but they only Waukegan the would could one Louisiana, of what step Ameristar have is, built including was When schedule Illinois gaming we all it it's everything And the another. and our approved sell it with and did. we to the and a what us those way way thing partner, we or it will same stepped promises, and would State built would us be it the commission, -- went with us, into they else. met might told the provided were might in to And CEO only out, Ameristar's buy get us done

sell we're So, try I not get to -- it. Waukegan and that to going

to and it to this better intent that do leverage? and we have you some Churchill stiff Neil is having it, with And $XXX and Our million at like a Do point, lever develop is is leverage, it partner Downs. or want Bluhm so say are but project. look sit, to partnered through have we not a off

a the them. So sheet strong between that makes of very two balance

something out possible it's so figure well. we'd like as that And

Operator

for today's concludes or at closing conference I to additional time, you the any Lee, Mr. will That turn back this question-and-answer session. remarks.

Daniel Lee

and sign will that Well, agreements and running we're hopefully, sports reflect we But agreements best we'll I opportunities. in of find price quarter, can, wish but company X overtime. looking as keep the fourth our could out I the to keep new sports stock

So, thank you.

Operator

this concludes gentlemen, you and call. Ladies your for today's participation. Thank

disconnect. may now You