Q2 2021 Bally's Corp Earnings Call
Well that's on hold for me I appreciate your patience and ask that you. Please continue to standby.
[music].
Good morning, and welcome to Bally's second quarter 2021 earnings conference call. All participant lines have been placed on a listen only mode to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session I'll now turn the call over to Bob.
Vice President our senior Vice President Finance and Investor Relations. Please go ahead.
Good morning, everyone and thank you for joining us on today's call by now you should have received a copy of our Q2 earnings release, which we issued early this morning, you haven't the earnings release and presentation net accompanying this call are available in the Investor Relations section of our website at Www Dot Bally's Dot com.
With me on today's call are George <unk>, our President and Chief Executive Officer, Steve Capp, Our Chief Financial Officer, Craig Eaton, Our General Counsel <unk>, our senior Vice President of strategy and interactive.
Before we begin we'd like to remind everyone that comments made by management today will contain forward looking statements. These forward looking statements include plans expectations estimates and projections and involve significant risks and uncertainties.
These risks are discussed in the company's earnings release and SEC filings.
Actual results may differ materially from the results discussed in these forward looking statements.
In addition, during today's call management will for certain non-GAAP financial measures reconciliations to most comparable GAAP financial measures are included in the schedules contained in our earnings release, we do not provide a reconciliation of forward looking non-GAAP financial measures due to our.
Our inability to project special charges within certain expenses.
Today's call is also being broadcast live on our investors and.
And will be available for replay shortly after the completion of this call.
Turning it over to George Please note in our quarterly filing materials, we revised our reporting segments to better align with our strategic growth initiatives, primarily our focus on the high value high growth North American interactive business and the pending acquisition gangster.
As of June 32020, the company now operates under 3 segments.
Each segment is comprised of deposits in brick and mortar locations.
Twin River Casino hotel.
Casino Hotel Dover Downs.
Atlantic City, and Tropicana Evansville.
Our West segment includes hard rock Biloxi Casino Vicksburg, Kansas City Bally's Blackhawk.
Eldorado resort Casino Shreveport.
He's like Tahoe Casino resort in Juniors Casino hotel the.
The other businesses consist primarily of our interactive businesses, including support color Monkey Nice site.
Works a.
And our mobile and online sports betting operations as well as myeloma.
I'll now turn the call over to George.
Thanks, Bobby Good morning, everyone and thank you for joining us.
During the quarter improved consumer confidence minimal capacity restrictions.
And our disciplined operating strategy all contributed to extremely strong numbers across the board.
This quarter, we have safely welcome back many of our loyal patrons across our brick and mortar locations.
And our confidence that we will continue to benefit from rebounding demand as we approach and exceed historical operating levels across our land based portfolio.
Total consolidated revenue for the second quarter was approximately $267.7 million.
We also achieved record adjusted EBITDA for the second consecutive quarter of approximately $83.8 million similar to the first quarter incremental revenues from recent acquisitions contributed to positive results.
Our destination properties have outperformed and are above historical levels, including Biloxi, Shreveport and montblanc.
<unk> focus and.
An expansion of table games to accelerating our long term plans at Kansas City and.
Our Lincoln property delivered more than $25 million of quarterly EBITDA, despite prolonged COVID-19 limitations.
This is in line with our expectations for performance post oncor impacts.
<unk> continues to grow in line with our expectations for.
Other properties outperformed other than Atlantic City, which turned the corner in July.
And should continue to perform better as the property continues its planned capital investments into the property.
I'm also happy to say that trends have continued in July and early days in August.
Or each segment reported revenue of approximately $132.4 million and adjusted EBITDA of $41.6 million. These increases were driven primarily by strong results at our Rhode Island properties, which combined contributed approximately $33 million and adjusted EBITDA for the SEC.
<unk> quarter.
Our Dover Downs property also had strong results and adjusted EBITDA of approximately $10 million for the second quarter.
Even with rent starting in June.
Our West segment recorded revenue of approximately $127.9 million and adjusted EBITDA of $52.1 million. These increases were driven primarily by the Shreveport.
Kansas City acquisitions in the second half of 2020 and contributed a combined approximately $25 million and adjusted EBITDA for the second quarter, coupled with strong results at our hard rock Biloxi property, which contributed approximately $19 million and adjusted EBITDA for the second quarter.
Now I'd like to provide a quick update on the brick and mortar acquisitions, we completed this quarter.
On April 7 we acquired Bally's Lake Tahoe Casino resort for them.
Known as Mop, Louisiana resort Casino and Spa from Caesars for approximately $14 million. We believe this property represents a premier assets that expands our geographic reach while providing an attractive west coast destination.
<unk> will utilize to drive cross marketing visitation to Lake Tahoe.
On June 3rd we acquired Tropicana Evansville from Caesars for $140 million.
Fortunately through this transaction, we acquired unencumbered rights to Indiana sports betting and gaming skins, which will provide us with greater access to this growing gaming market. Additionally, given the structure of the transaction no cash outlay was required at the closing.
On June 14th we acquired Juniors Casino and hotel from Delaware North for $120 million.
The transaction will also allow bally's to capitalize on lucrative sports betting opportunities by further expanding our geographic footprint into the rapidly growing Illinois gaming market.
In addition, we have pending land based acquisitions.
Can a las Vegas casino, which we agreed to acquire from <unk> in April of this year.
Fortunately the acquisition requires no cash outlay from valleys at closing and is expected to be accretive to bally's shareholders long term as we expect EBITDAR on the property to be in the mid twenties. After short term targeted capex and then growth from there.
We're excited about the longer term potential.
And across market opportunities, we have and will provide incremental information once we acquire the property. We continue to expect the acquisition to close in early 2022.
Turning now to capital expenditures, we continue to make progress on our $40 million redevelopment initiatives.
Bally's, Kansas City Casino, which includes a physical expansion of the property that will feature National restaurant brands. In addition to new amenities and retail offerings located in the expansion facility.
We also recently kicked off the properties formal rebranding by changing its name from Ken Casino Casey to Bally's, Kansas City casino, replacing its exterior signage and implementing our new Valley rewards players club program.
Lake City, we continue to execute on our $100 million redevelopment projects, which will occur over the next 5 years from <unk>.
<unk> to reopening the permanent sandals sports book location within the property. We have also incorporated and planned vibrant new restaurant concepts, which we expect will contribute to the overall guest experience and drive increased visitation.
As for Rhode Island.
On June 11th the Governor signed into law legislation that aims to preserve and enhance Rhode Islands gaming revenue legislation allows for the formation of a 20 year joint venture between Bally's and IGT that will create a license VLT provider to supply all gaming machines, the Rhode Island Division of lottery.
For Bally's Twin River Casino Hotel and Tiverton Casino Hotel.
As a license VLT provider bally's now loans and leases, 23% of the gaming square machines to the Rhode Island Division of lotteries in exchange for 7% from net terminal income bigger.
Beginning January 1.2023, bally's will own and lease 40% for the gaming for machines subject to further increases based on machine efficiency and exchange for 7% of net terminal income, we expect to spend up to $15 million. This year on purchasing Vlt's from Rhode Island, which is Camille.
Lately accretive and provides us more control of our slot floors.
Lastly, we kicked off this summer with the rebranding initiatives and investments in order to create a single national customer database over the next 12 months all of our casinos other than hard rock Biloxi will be rebranded bally's increasingly awareness for our brand and providing the company opportunities to send local customers towards <unk>.
Estimation casinos as well as a national player database and incentive program.
With that I'll now turn it over to Andy to provide an update on our interactive business added.
Yeah.
Thanks, George and good morning, everyone. Since our last call. We are significantly developed and diversified our interactive business and are very pleased with our progress to date, leveraging <unk> proprietary technology stack, we've launched life beta versions of our valued that mobile sports book in 2 states beginning with Colorado on May 24th and then Iowa.
In June 2009.
Its beta stage the valuable platform offers sports betting fan not just access to betting options for all major sports, including a variety of unique and innovative features exclusive in app parlay gains and integrated social offerings.
Given its beta launch we are not supporting the launch with an advertising push at this time.
We are part of our tech teams efforts to launch markets. So quickly post our June closing off that that works.
That being said with the near term closing of the game for this acquisition, we're concentrating resources from Rolling out version, 1 Dino developing our 2 that over again, which combines value that OSB with the gains as <unk> suite of products.
To see that product rolled out in early 2022, including our I gaming product in New Jersey.
With respect to our strategic maybe a partnership with Sinclair broadcast group, we continued to see strong feedback on the performance of the batteries for tariffs and as long as the recently launched value sports App, which represents the first phase of a major investment, we're making across the digital ecosystem to drive increased engagement with fans.
We were also able to further diversify our operations through the acquisition of Association a volleyball professionals on July 12.
<unk> is the Premier professional beach volleyball organization and host of the longest running domestic beach volleyball tour in the U S. The.
The transaction provides us with significant opportunity to gamify and incorporate interactive content to beach volleyball, which in turn will drive traffic to valley start forms and promote customer acquisition.
I'll now turn it over to Steve Steve.
Thank you.
For the second quarter, we reported an adjusted EBITDA margin of 31, 3%, excluding Atlantic City from the results adjusted EBITDA margin would have been 37, 6%.
This compares to 33, 1% in the second quarter of 2019, and 35, 4% in the first quarter of 2021 again, excluding Atlantic City.
Thanks for it continues to move in the right direction and we do not expect it to be a significant negative drag on margin going forward, although that market is highly seasonal.
For the closing of <unk> in late May our North American interactive business delivered approximately $6 million of net revenues in the quarter for slightly negative EBITDA, we expect revenue to grow significantly quarter over quarter going forward. While at the same time, we expect interactive EBITDA to be somewhat more negative as we invest in that business such.
Investments will not be anywhere closer to the levels of our peers given <unk> prior comments and we are seeing an uptick in the valleys brand awareness from the recent launch of Bally's sports.
On the Capex front, we expect requirements to moderately increase as a result of the properties acquired in the last 18 months as George mentioned, we have a $40 million redevelopment project underway in Kansas City, and we plan to invest $100 million or so into our Atlantic City property over the next 5 years. In addition, we.
The total cost of our casino development project in Pennsylvania, including construction licensing and sports betting I gaming operations to total approximately $120 million.
We are enthusiastic about soon commencing our expansion and capital improvement plan at twin River for Lincoln related to our joint venture with IGT and agreement with the state of Rhode Island, We expect to use cash on hand, and cash generated from operations to fund this capex.
For the first half of this year.
Capital expenditures expenditures were $36 million.
We expect capex to ramp into the second half of this year with a plan to invest $90 million to $100 million in the second half, including $15 million to $20 million or perhaps more if possible at each of Bally's Atlantic City, and twin River Lincoln pursuant to our commitments in each of these states.
Moving forward, our approach to maintenance and growth capital investments, we will continue to be focused and disciplined.
Now I'd like to provide an update on our financing plans for the <unk> acquisition on April 20th we completed a public equity offering of $12.65 million share of common stock at a price of $55 per share.
Total shares issued included 165 million shares in the full exercise of the green shoe by our underwriters.
The proceeds from this offering net of the underwriting discount for $671 million, which we intend to use to fund the games this transaction.
In addition to that equity raise we also announced the sale of a warrant to Sinclair broadcast group to purchased 909000 common shares for an accurate aggregate purchase price of $50 million, which will also be applied toward our combination with Kansas.
We also recently disclosed entry into a purchase agreement for the private placement of $1.5 billion in aggregate principal amount of senior notes in 2 separate 8 and 10 year series $750 million in aggregate principal amount of senior notes due 2029 and $750 million.
Full amount of senior notes due 2031.
Offering is expected to close mid August subject to customary closing conditions.
All or substantially all of the net proceeds from the notes offering will be placed into an escrow account with 1 of the banks that have committed to finance the combination.
The closing of the combination we will assume the role of issuer under the notes and certain of our subsidiaries will guarantee the notes.
We also entered into agreements for approximately 1.9 for a $5 billion of a term loan b as well as as well as a $620 million revolver.
The maturity of term loan b of 7 years and the maturity of the revolver is 5 years.
The proceeds of the terminal will be together with the notes mentioned earlier will be used to fund the games acquisition and refinance our own that.
We look forward to providing further updates on the financing of this transaction on our next call as we move closer to the anticipated closing date of Gangstas.
We believe the games this transaction will accelerate our growth strategy to be a premier global Omni channel gaming company and look forward to working with game seasoned management team to take our operations for the next level. We continue to expect from transaction to close in the fourth quarter of this year and look forward to sharing additional information on our progress.
And with that I'll turn it back over to George.
Thank you so to sum it up we are pleased to have achieved strong quarterly results, while expanding and diversifying our collection of land based and digital gaming assets.
We've continued to evolve as a company and position ourselves to capitalize on favorable industry trends we're confident.
That the momentum we have demonstrated in the first 2 quarters of 2021 will carry through to the end of the year.
That concludes our prepared remarks for this morning, I'll now ask the operator to open the line for questions.
At this time, if you would like to ask a question. Please press star 1 on your telephone keypad.
Wish to remove yourself from the queue you may do so by question the pound key.
Remind you to please on mute your line when introduced and if possible pick up your headset for optimal sound quality.
Well take our first question from Jeff steep books, Jeff sample with Stifel. Your line is now open.
Hi, good morning, everyone. Thanks for taking our questions.
I wanted to start on Atlantic City, you talked about it clearly has taken a bit longer than expected to begin to drive growth at that property I was hoping you'd be able to provide a bit more color here just issues with COVID-19 is more of a regional destination market for are there more underlying issues that they asked for a market youre working through and Steve you touched on this a bit in the prepared remarks, but any.
Expected timeline, we should be thinking about to revert back to EBIT positive and then the $20 million long term target you've previously disclosed would be would be helpful.
Hey, Jeff This is Steve listen as George commented.
At that property did turn the corner in July and strong trends are continuing into August.
So.
There has been dramatic improvement there as our ownership is taking hold but let me kick in for George for any any further insight.
Sure Thanks, Steve and good morning, Jeff.
Listen Thanks for your question, while the property was neglected by the previous owner, but certainly is a major focus of ours. As we said earlier, we're going to spend $100 million in capital improvements over the next several years. So we're focused on incremental improvements to our performance, which is mainly supported by what I'll call incremental.
<unk> for the physical property.
And the rebuilding of our higher end database at Caesars effectively pulled up pulled out over the last few years prior to the sale.
He said, we will see profit this third quarter.
But will become much more aggressive in promoting bally's AC probably.
During the first quarter of 2022, and really that is so that we can align all of this aggressive marketing average with the physical state of the property so by.
Summer of next year, we'll have our rooms back online after the renovation of that as well as all our restaurant products. So now we're looking forward to Oh, 2 really getting to to where we can really start promoting property what more aggressive.
Okay.
Yeah.
Okay, Great very helpful. And then switching gears here to for the online business here in the U S. If you think about some of the marketing and the development costs, that's going to take to be competitive you know how should we think about the timeline to inflect to EBIT positive for the U S and how deep of losses are you open to as you look to begin building out.
More and more robust user base on the online front you touched on this a bit in the prepared remarks, but just any further color here would be great.
Okay.
Yes sure Jeff This is Steve again.
Hmm.
Been a lot of there's a lot of focus on this side of the business of course.
Some of our peers have said that they will invest maybe $1 billion over the next few years.
But bear in mind, we already have some of the assets that others will be investing in right. We already have the backend and front end tech stacks with vet works and games. This we already have the land based database.
And the awareness and impressions from Sinclair and our land based casinos.
Now that all said, we will still need to invest we have a we have a new CEO coming in into the business in the coming months and I don't want to speak for him.
But right now it's kind of.
To your question, we expect to burn approximately $10 million into the back half of this year.
And that may well increase up to <unk>.
Circa 10% of pre tax cash flow into 2022.
Look it's early it's early days for US Jeff right on this front so as Lee Fenton comes in there'll be able to we will put more meat on this bone for you.
But that does for your expectations currently.
Perfect Thats all from me I appreciate you.
Putting some parameters around it ahead of <unk> coming in at a very helpful. Thanks for all the color guys.
Thank you Jeff I appreciate it.
And we will take our next question from Barry Jonas with true Securities.
Great. Thanks, and good morning, guys.
Maybe George here.
We'd love to start on the land base trends and get your thoughts on whether the.
The topline and margin trends, we're seeing now feels sustainable.
For Barry Good morning.
Listen from a revenue perspective.
My feelings improvements over 2019 is sustainable through year end, we may see some.
Retrenching during the winter months, but certainly we'll be ahead of 2019, and and we will establish a new base from that point of business and before.
And then that's when we'll start to see what I'll call kind of a more of a inflationary for historical inflationary growth pattern from a margin perspective listen as a result of Covid.
And the force closing and restart of our operations, we had benefit of building our business model and we're looking we're looking at improved margins for certain we think a lot of these improvements will be sustainable and will stick.
And.
And it's really just.
From a from a certainly from a staffing perspective, we're going to see that.
It will operate much more efficiently.
And then we have historically, there's been some offset of that as a result of rate growth wage growth.
But we're certainly seeing an overriding benefit of staffing reductions second to that would be promotions and marketing.
We think as long as the.
Competition is rational been a lot of that margin will stick certainly we've redeveloped.
Kind of what we do from a pure business perspective, a good example of that would be buffets, you're seeing a lot of a.
A lot of companies, starting just to cut that out which was historical loss leader we're.
We're doing that as well and we also have had opportunity from renegotiating long term contracts.
As well as procurement arrangements that we think will have a long tail to that so yeah, certainly theres going to be a good portion of this margin improvement that we're experiencing now that's gonna be sustained.
Perfect and just a general question on your M&A pipeline.
No.
Love to sort of your I guess, Hello, Richard is but but more so how you are balancing sort of deals like the like the association of volleyball professionals with land based expansion opportunities.
Barry Steve here. Good morning, Thanks for thanks for joining us today listen we have.
We have established a.
What we think is a disciplined and focused M&A strategy from day, 1 as a public company actually from day, 1 as a private company back in 2014.
With our original acquisition of hard rock Biloxi, but we'll continue that going forward look it's always a balancing act right.
For capital allocation between deleveraging the business to the to the place where we would like this business to be longer term blue, which by the way is approximately 4.5 times.
With with with M&A and Capex, So the Pennsylvania investment as part of that balance right AVP from a from a content standpoint part of that balance.
I will tell you in 2021.
This won't be any news to you, but just any of the line.
The land based M&A opportunities have been a little quieter than they were and are doing a very tumultuous if opportunistic.
Year for us in 2020, so we haven't had to forego much there yet because there hasn't been much.
As interested us, but look it'll it'll be balanced going forward and I will tell you with the combination with games. Just later this year.
Free cash flow profile of each of these companies if you look historically at the.
At the numbers.
Free cash flow conversion has been plus -90% on consolidated EBITDA for each of the businesses. So there's a lot of capital to work with on a go forward basis, but we will maintain a balanced approach to it.
Great. Thanks, so much guys.
Thanks Barry.
Yes, we will take our next question from David Katz with Jefferies.
Hi, good morning.
I wanted to just follow up on the interactive business.
A couple of points.
We obviously are starting to take a little closer attendance.
Around.
For the customer bases are coming from.
Could you share any learnings that you may have acquired so far on.
What do you consider to be your constituency and how separate it as this.
Market becomes a bit more competitive we'd love to hear any initial learnings from Colorado, Indiana.
With that in particular, but.
Just getting a sense that you've carved out a niche for yourselves.
Well, David Hi, Steve GAAP.
Thanks for joining us this morning listen I will tell you from an interactive perspective, it's early days right, we have launched in Colorado and Iowa.
On a beta test basis without advertising support as already mentioned, so im not going to tell you we have a ton of data.
He also mentioned, we're getting very positive feedback on the.
Valley Sports awareness through the rebranding of the RF the Sinclair RSA ends.
So very early days for us but.
Let me kick it to Audi for any or George for any other.
Other observations at this point.
Thanks, David Day, Patty and good morning, I agree we don't have a lot of data as Steve alluded to as it relates to what we're seeing in Colorado and Iowa.
We've noticed in terms of databases for pulling from in Colorado, We have a physical casino database, we were able to cross sell to that we also had a monkey 95 database that we were able to cross sell to and in Iowa, We tested the broadcast TV reach that Sinclair has and it's early days, but we're seeing good numbers in terms of impressions.
That are generated and we will track conversion coming out of the TV impressions that are being created in Iowa.
Got it and apologies I said, Indiana I meant Iowa.
It's been 1 of those mornings my second question.
With respect to the land based business and I've asked this before around.
Whether there isn't a notional change toward capital spending on some of the properties on let's say like a Colorado.
Set of assets just given that the land based world has really shifted a bit coming out of Covid and what you might underwrite today would be different from the last time I asked the question probably 18 months ago.
David This is David I'll ask maybe George can can follow up but.
We've not we've not.
Fundamentally changed our view, we have a different operating models and then some of our peers.
George talk George talked about.
The kind of the way, we inherited the Atlantic City property.
It's been a little Underinvested you might say.
We don't focus on.
We focus on increasing our EBITDA and margins by.
With a focus on customer amenities and the customer experience property by property, where we're and invest store in those amenities and that customer experience and so that's you know that's that's an integral part of our strategy as the land based.
<unk> experience and that Sandoz databases for me.
A foundational.
Piece of our omni channel strategy so.
We're continuing to invest.
To say the least Georgia.
How would you follow up to that.
I'll add to that is and so we're going to continue to look for houses that we feel have upside.
What I mean by upside as you've touched on it we've done a good job of acquiring <unk>.
Assets for sub 7 times pro forma obviously, the last year it was even less than that.
So we're certainly going to look at properties that we feel we can improve but also we're going to continue to look at properties to provide access to sports betting is gaming markets as well.
And so so that's the first approach to touch on what you said about Colorado using that as an example.
We bought that asset there was an opportunity for improvement of that asset we could develop on top of a parking structure. Theres also adjacent land that we can develop 1 now it's really early days of monarch reopening, but we've always had a wait and see to see if they can really grow the market, obviously, primarily from Denver as a result of their.
And based on that you know there may be opportunity there for us from a development perspective.
Understood Thanks very much.
Thanks, David I appreciate it.
And we will take our next question from John decree with the C. P. R. E. Your line is now open.
Good morning, everyone.
Wanted to continue the conversation on the interactive business, a little bit and realize.
There is a moving target but.
<unk> launched into say stays of sports betting in beta I was wondering if you could give us a little bit of an update on your expectations for the rest of the year and into 2022 as it relates to getting live in additional states and.
In addition to that when might you consider ramping up the marketing spend and really starting to push the app in Colorado, and Iowa and then subsequent states.
Hey, John Steve here, Thanks for joining us nice nice new banner you're flying.
For a company colors there congratulations.
Hey, listen I didn't I already touched on this and I'll kick it to him in just a moment, but look we are really enthusiastic for the combination with games for us in the fourth quarter of this year you know their technology is leading edge that's going to.
Lead to a 2.0.
Version of.
Of the valley bed, App, and that's going to be we think a transformational.
That will.
That will layer into the rollout strategy into additional states.
And more investment in the business, even from a marketing standpoint, as I had mentioned earlier on so it is very formative who went for it very formative stages very important transactional stages as this all comes together.
But I would.
Comment would you have.
Good morning, John I agree Steve a lot of what we're focused on right now is developing the 2 dot O version, which would involve the technology stacks of both game says and that works. So we've shifted our engineering resources away from launching additional states with our 1 dot over again to focus on that.
<unk> Oh version. In addition to this I would like to know what that game is already has and I gaming product. That's live in New Jersey, and what we're looking to do is.
Develop our own version of the <unk> gaming App and launch. It later this year early next year.
And 1 point to note on game systems performance in New Jersey, with a <unk> product as you may have seen in some of the numbers that come out for the industry. They have anywhere between 6% to 8% market share that they've had consistently so you can imagine once we turn it into a BDC product and launch it it would be very easy for us to ramp up and focus on.
Developing that business for them.
Yeah.
That's a great point.
Maybe the follow up question perhaps.
Perhaps for Steve Finch.
Financing in place after last week now for gain says I think shareholder votes are done obviously theres a little bit of a regulatory process ahead, you guys have talked about.
Fourth quarter, hopefully closing on game says I Wonder if you could give us a high level update on what the milestones are from here you know investors kind of asked us what what they should be paying attention to between now and closing to kind of track that progress.
Well I'll tell you John Great question and progress has been has been significant as you mentioned right up to last week with.
The raising of all of that kind of global kind of global debt. If you will.
By us in both the senior unsecured and our senior secured credit markets.
All of the capital is in place now right Yeah. The equity 1 went very well.
Net went very.
Very well.
We will globally refi all of the data game since all the debt at Bally's and funded the acquisition with all of these various proceeds so.
We're really good progress there we've been spending a lot of time as a management team and a board with with Lee Fenton and his management team at games. This end.
Early days, it's been it's going very well.
Yeah Yeah.
For the remaining AR.
The remaining issues to close are simply.
Regulatory in nature, and customary I would I would say we.
We have a per where we were.
We're running the the last of the traps in the United States regulatory markets and as well in the UK.
But there's very good progress there it's going well.
As it usually does these things as you know it always takes a while 6 to 9 months, we kind of flash that early on and that is continuing to pay our expectations. So.
Each regulatory milestone is very important and we focus on all of them.
But I would tell you that it's going well and we think that timing of implied timing right. Now as you know October November timeframe. It looks it looks like our best guesstimate at this point.
Great. Thanks, Steve Thanks, everyone. Thank you John I appreciate it.
And we have no further questions on the line at this time.
This does conclude today's bally's second quarter 2021 earnings Conference call. You may disconnect at any time did have a 1.
Wonderful day.
Hum.
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Okay.
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