Leverage Reduction Strategies
Q: Other avenues to reduce leverage beyond free cash flow?
A: Management plans to monetize non-core assets, including non-operating casinos that produce little or no cash flow, to reduce leverage without altering their business model. They anticipate some of these actions may occur in 2024.

Share Buybacks
Q: What do you consider growth opportunities these days?
A: The most attractive opportunity for free cash flow, according to management, is buying back their own stock in the current environment.

Digital EBITDA Growth
Q: Can you clarify the digital business EBITDA projections?
A: The roll-off of significant partnerships will materially boost digital EBITDA. Management expects to reach $500 million in digital EBITDA by 2025 or early 2026, with continued growth beyond that point.

Cost Control Measures
Q: What KPIs are you watching to assess cost control needs?
A: Management is always focused on controlling costs and is targeting over nine figures in efficiencies by year-end, recognizing that brick-and-mortar growth may be harder to achieve.

Las Vegas Volume Trends
Q: Do you see any volume challenges in Las Vegas?
A: Management does not believe there's a consumer volume challenge in Las Vegas. January was soft year-over-year, but February and March were strong, resulting in volumes comparable to their biggest first quarter ever.

Asset Sales for Deleveraging
Q: Any details on potential asset sales to reduce leverage?
A: While not providing specifics, management noted they have valuable assets not reflected in valuations that could be monetized. Centaur is not among the assets considered for sale.

Revenue Growth for Margins
Q: Is 5% revenue growth still needed to maintain margins?
A: Management affirmed that while slightly lower growth might suffice, they use 5% as a target to maintain margins.

Digital Expansion Plans
Q: How will launching your casino brand affect cannibalization?
A: They have enough skins to launch a second brand in each iCasino jurisdiction. A recent transaction with Wynn in Michigan allows them to add another skin in that state, enabling expansion without significant cannibalization.

Consumer Trends in Regionals
Q: What are you seeing with the consumer in Regionals and Vegas?
A: All volume indicators were healthy. Excluding January, regional properties would have shown year-over-year growth, indicating robust consumer spending.

Las Vegas Non-Gaming Revenue
Q: Is non-gaming revenue in Las Vegas lagging the market?
A: Management reported that food and beverage revenue was up about 14% (excluding Rio), and hotel revenues are up, suggesting they are not lagging the market.

Margin Performance in Regionals
Q: How did you keep OpEx flat despite opening two properties?
A: There were no one-time savings; management continually seeks efficiencies to improve margins, even amid inflation and increased costs, showcasing their longstanding focus on operational efficiency.

Digital Betting Hold Rates
Q: What's the theoretical hold with the new Parlay mix?
A: While current structural hold wasn't disclosed, they have set a target of 8.5% and are progressing well, with customers making more Parlays with additional legs, enhancing profitability.

Future Development Projects
Q: Any similar projects like Pompano in the pipeline?
A: The only similar undeveloped property is at Scioto Downs in Columbus, which could be a longer-term opportunity. The Pompano development took 5 years and is now boosting revenue and EBITDA.

Las Vegas Group Bookings Outlook
Q: How is the outlook for group bookings in Las Vegas?
A: Group and convention bookings are expected to be up in 2024 versus 2023, with the segment setting records in 2022 and 2023. First-quarter group occupancy was at 19% versus 21% last year due to ConAg.

Domestic M&A Opportunities
Q: Are there domestic M&A opportunities for EBITDA growth?
A: While opportunities exist, significant transactions would require issuing equity, which management is unwilling to do at current share prices.

Expense Outlook
Q: Any surprises on the expense side into 2025?
A: No major surprises are expected; management is focusing on small actions that cumulatively have a significant impact on both revenues and expenses.

Clarification on Digital Numbers
Q: Can you help reconcile digital sports betting numbers?
A: Retail sports experienced a significant hold decrease due to events like the Super Bowl and March Madness, impacting revenue despite strong online sports betting growth.

Las Vegas Table and Slot Declines
Q: What's driving declines in table drop and slot handle?
A: Excluding Rio, slot handle was down 2%, table drop down 7%, and net revenue down 4.5%. Declines were mainly due to table hold, and last year's first quarter was exceptionally strong.

Consumer Health Indicators
Q: Are visitation and spend trends healthy?
A: Volume indicators remain healthy with strong hotel occupancy, revenue, and food and beverage figures, reflecting robust consumer spending.

Cost Efficiencies Despite Inflation
Q: How are you managing costs with inflation and new openings?
A: Management continuously seeks efficiencies to improve margins and increase operational efficiency, despite inflation and higher costs from new property openings and union exposures.