Daniel Zeff's questions to BUTLER NATIONAL (BUKS) leadership • Q1 2023
Question
Daniel Zeff inquired about the economic details of the new sportsbook operations in Kansas, including profit sharing and its potential impact on the bottom line. He also asked about the company's strategy for both organic and inorganic growth, specifically regarding M&A opportunities in the casino and aviation segments.
Answer
Executives Clark D. Stewart and Craig D. Stewart explained that after the state's 10% take from sportsbook profits, Butler National shares a confidential amount with its partners, ultimately retaining an estimated 5-6% of the total amount bet. They noted it's too early for precise forecasts but expect both direct financial benefits and indirect gains from increased casino traffic. Regarding growth, Craig D. Stewart confirmed they are actively pursuing both organic and inorganic opportunities across their casino and aviation segments, emphasizing a strategic and accretive approach to M&A. Clark D. Stewart reiterated their active search for acquisitions.