David Brian Katz

David Brian Katz inquired about Red Rock Resorts' updated perspective on managing two major development projects simultaneously. He also asked about the company's fully loaded leverage of 3.89 times and whether it is expected to remain stable or increase in the next 12 months, and if the company anticipates being a cash taxpayer in the near term.

Answer

Scott Kreeger (President, Red Rock Resorts Inc) and Stephen Cootey (EVP, CFO, and Treasurer, Red Rock Resorts Inc) clarified that while minor overlap of two major projects is possible, the company is currently managing extensive remodels at Green Valley Ranch and Sunset Station alongside the Durango expansion. Stephen Cootey expressed comfort with the current leverage, noting six consecutive quarters of deleveraging, and expects to fund projects from free cash flow, with any leverage spike being temporary. He confirmed no anticipated cash tax payments in the near term due to accelerated depreciation benefits from the One Big Beautiful Bill Act.

David Brian Katz inquired about the potential opportunity and prospective lift from Electronic Table Games (ETGs), particularly in Kentucky, and whether the company has modeled this based on experiences in other markets.

Answer

CEO Bill Carstanjen explained that ETGs represent an important frontier for HRMs, involving both technology and regulatory journeys. He noted it's a material focus to level up offerings but could not provide specific predictions on impact or regulatory framework at this time.