Joe Stauff

Joe Stauff asked Grant Chum to elaborate on his comments regarding reaching a level of stability in Macau's investment and promotional mix, inquiring if this is due to inflecting KPIs or a lack of competitive response.

Answer

Grant Chum, CEO and President of Sands China, explained that observations from recent months, particularly Q4, show stabilization in promotional incentives. He noted that the company has caught up with the market since May, leading to higher market share and patronage, especially in premium and rolling segments, though competitive dynamics remain fluid.

Joe Stauff asked about legislators' awareness of prediction markets and the implications for the competitive landscape as new legislative sessions approach in early 2026.

Answer

Jason Robins, Co-founder and CEO of DraftKings, confirmed that legislators are aware of prediction markets. He believes their growth will increase pressure on policymakers to legalize sports betting and reconsider tax increases, as operators might pivot if taxes become too high. He views this as a positive lever for DraftKings, offering both a new competitive opportunity and influence on policy.

Joe Stauff inquired about the awareness of prediction markets among state legislators, particularly as new legislative sessions approach in early 2026, and the potential implications for the competitive landscape and policymaker decisions.

Answer

Jason Robins, Co-founder and CEO of DraftKings, confirmed that legislators are "absolutely aware" of prediction markets. He believes the continued growth of prediction markets will increase pressure on policymakers to consider legalizing sports betting and will make them think twice about tax increases, as operators might pivot if taxes become too high. Mr. Robins views this as a significant positive for DraftKings, providing both a competitive opportunity and a powerful lever in policy discussions.

Joe Stauff asked for an update on the process of shutting down illegal gaming machines in Virginia, whether it's still a 'whack-a-mole' situation, and if it's negatively affecting Churchill Downs' assets or providing a tailwind.

Answer

CEO Bill Carstanjen confirmed it remains a 'whack-a-mole' process due to manufacturers' attempts to introduce variations, but noted significant progress and strong enforcement. He stated that while vigilance is constant, illegal machines are not a material concern or a big driver for the company's current growth.

Asked about Powerball's pricing plans, the expected growth drivers for the U.S. and Canada lottery business excluding multistate games, and for an update on the timing of the gaming business sale.

Answer

Executives confirmed that Powerball has not announced a price change. Growth in the core U.S. and Canada lottery business is expected to come from continued portfolio management, new game launches, and expanding retail distribution and automation. The timeline for the gaming sale closing remains unchanged, targeted for the end of Q3 2025.

Asked for more specific timing on the Italian Lotto renewal and for an overview of the lottery business's competitive landscape and IGT's advantages.

Answer

The Italian Lotto tender is expected by year-end or early 2025, with a final outcome likely in Q2 2025. Competitively, IGT sees itself as unparalleled due to its global scale, B2B expertise, full product suite, and diversification, which should be recognized by investors once it's a pure-play company.