Q2 2024 Bally's Corp Earnings Call

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Please stand by. We're about to begin.

Operator: Standby, we're about to begin. Good day, everyone, and welcome to the Bally's Corporation second quarter 2020 earnings conference call. At this time, all participants are in the United States and Canada. After the speaker's presentation, there will be a question and answer session. In order to ask a question during that session, please press star 1 on your telephone keypad.

Speaker Change: Good day, everyone, and welcome to the Bally's Corporation second quarter 2020 for earnings conference call.

Speaker Change: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. In order to ask a question during that session, please press star 1 on your telephone keypad.

Charlie Diao: Please be advised that today's conference is, and if you require any further assistance, zero. I'd now like to turn the call over to Mr. Charlie Diao, Senior Vice President and Treasurer for Bally's. Good afternoon, and thank you for joining us on today's call. The earnings release and presentation that accompanied this call are available in the Investors Relations section of our website at www.ballys.com. With me today are our Chief Executive Officer, Robeson Reeves, our President, George Papanier, and our Chief Financial Officer, Marcus Glover.

Speaker Change: Please be advised that today's conference is being recorded, and if you require any further assistance, please press star zero. I'd now like to turn the call over to Mr. Charlie Diao, Senior Vice President and Treasurer for Bally's. Please go ahead, sir.

Charlie Diao: Good afternoon, and thank you for joining us on today's call.

Speaker Change: The earnings release and presentation that accompanied this call are available in the Investors Relations section of our website at www.ballys.com.

Speaker Change: With me today are our Chief Executive Officer, Robeson Reeves, our President, George Papanier, and our Chief Financial Officer, Marcus Glover.

Charlie Diao: Before we begin, we would 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 that involve significant risks and uncertainties. These risks are discussed in the company's earnings release and SEC filing. The actual results may differ materially from the results discussed in these forward-looking statements.

Speaker Change: Before we begin, we would like to remind everyone that comments made by management today will contain forward-looking statements.

Speaker Change: These forward-looking statements include plans, expectations, estimates, and projections that involve significant risks and uncertainties.

Speaker Change: These risks are discussed in the company's earnings release and SEC filings.

Speaker Change: The natural results may differ materially from the results discussed in these forward-looking statements.

Charlie Diao: In addition, during our today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP financial measures are included in the schedules contained in our earlier, We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project non-recurring expenses and one-time costs. Finally, I also want to note that we will not be answering questions regarding the press release issued on July 25th, 2024, which describes the merger agreement between Bally's and Casino Cree and the Affiliate The Combined Company will remain a publicly traded company under the Securities Act.

Speaker Change: in addition during our today's call

Speaker Change: Management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP financial measures are included in the schedules contained in our early release.

Speaker Change: We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project non-recurring expenses and one-time costs.

Speaker Change: Finally, I also want to note that we will not be answering questions

Speaker Change: regarding the press release issued on July 25th, 2024, which describes the merger agreement between Bally's and Casino Cream, an affiliate of Standard General, as well as the special committee's unanimous recommendation.

Speaker Change: of the merger.

Speaker Change: with cash consideration of $18.25 per share.

Operator: The combined company will remain a publicly traded registrant under the Securities Act.

Speaker Change: and the opportunity for rollover election by shareholders.

Speaker Change: The combined company will remain a publicly traded registrar under the Securities Act.

Charlie Diao: We plan to provide an investor presentation on our website at a later date and note that a proxy statement will be filed with the SEC within 45 days of last week's announcement. This call is also being broadcast live on our investor's website and will be available for replay shortly after the completion of this call.

Charlie Diao: We plan to provide an investor presentation on our website at a later date. And note that a proxy statement will be filed with the SEC within 45 days of last week's announcement. This call is also being broadcast live on our investors website and will be available for replay shortly after the completion of this call. With that, I will turn the call to Robeson Reeves.

Speaker Change: We plan to provide an investor presentation on our website at a later date, and note that a proxy statement will be filed with the SEC within 45 days of last week's announcement.

Speaker Change: This call is also being broadcast live on our investors website and will be available for replay shortly after the completion of this call.

Robeson Reeves: With that, I will turn the call to Robeson Reeves, or CEO.

Speaker Change: With that, I will turn the call to Robeson Reeves, our CEO .

Robeson Reeves: Thank you, Charlie. We're pleased to have you join us today to discuss Bally's 24-second quarter results and provide updates on the long-term growth prospects for our three business segments. Second quarter revenues increase 3% year-over-year, reaching 622 million, reflecting growth in two of our three segments. At Casino and Resort segments saw a 3% increase in revenue, while revenue from North America Interactive segment grew a substantial 95%. In the UK, our business continues to perform very strongly, generating a 9% revenue growth increase, while our international interactive segment saw an overall 7% revenue decline due to our non-U.K.

Robeson Mandela Reeves: Thank you, Charlie. We're pleased to have you join us today to discuss Bally's 24 second quarter results and provide updates on the long-term growth prospects for our three business sectors. The second quarter revenues increased 3% year over year, reaching 622 million, reflecting growth in two of our three segments. The casino and resort segment saw a 3% increase in revenue, while revenue from North America Interactive grew a substantial 95%. In the UK, our business continues to perform very strongly, generating a 9% revenue growth increase, while our international interactive segment saw an overall 7% revenue decline due to our non-UK operation. Despite the full segment revenue decline, adjusted EBITDA margins improved approximately 130 basis points year over year.

Robeson Mandela Reeves: Thank you, Charlie. We're pleased to have you join us today to discuss Bally's 24 second quarter results and provide updates on the long-term growth prospects for our three business segments.

Robeson Mandela Reeves: Second quarter revenues increased 3% year over year, reaching 622 million, reflecting growth in two of our three segments.

Robeson Mandela Reeves: A casino and resort segment saw a 3% increase in revenue, while revenue from North America Interactive segment grew a substantial 95%.

Robeson Mandela Reeves: In the UK, our business continues to perform very strongly, generating a 9% revenue growth increase, while our international interactive segment saw an overall 7% revenue decline due to our non-UK operations.

Robeson Reeves: operations. Despite the full segment revenue decline, adjusted EBIT dam margins improved approximately 130 basis points year-over-year. We continue to benefit from the measures we're rolled out ahead of the UK White Paper implementation and looking forward to the benefits from online sports betting following the soft launch during the quarter.

Robeson Mandela Reeves: Despite the full segment revenue decline, adjusted EBITDA margins improved approximately 130 basis points year over year.

Robeson Mandela Reeves: We continue to benefit from the measures we rolled out ahead of the UK White Paper implementation and are looking forward to the benefits of online sports betting following the soft launch during the quarter. I'll begin today's call with a discussion of Bally's recent announcements before touching on our development pipeline and our interactive business. I'll then hand the call over to George, who will discuss our C&R business, and to Marcus, who will provide a more detailed analysis of our quarterly financial performance.

Robeson Mandela Reeves: We continue to benefit from the measures we rolled out ahead of the UK white paper implementation and looking forward to the benefits from online sports betting following the soft launch during the quarter.

Robeson Reeves: I'll begin today's call with a discussion of Bally's recent announcements before touching on our development pipeline and our interactive businesses.

Speaker Change: I'll begin today's call with a discussion of Bally's recent announcements before touching on our development pipeline and our interactive businesses.

Robeson Reeves: I'll then hand the call over to George, who will discuss our CNR business, and to Marcus, who will provide a more detailed analysis about quarterly financial performance. As everyone is aware, subsequent to the end of the quarter, we enter into a binding term sheet, the 940 million strategic construction and financing arrangement with Gaming and Leisure Properties, which includes funding to complete the construction of our flagship home and casino in Chicago. With GLPI, we also enter the cell leaseback transaction for Bally's Kansas City and Treeport for 395 million and modified our cell leaseback agreement of our Lincoln property, bringing the total transaction to over 2 billion.

Speaker Change: I'll then hand the call over to George who will discuss our CNR business and to Marcus who will provide a more detailed analysis of our quarterly financial performance.

Robeson Mandela Reeves: As everyone is aware, subsequent to the end of the quarter, we entered into a binding term sheet for the $940 million strategic construction and financing arrangement with gaming and leisure properties, which includes funding to complete the construction of our flagship permanent casino in Chicago. With GLPI, we also entered into a sale-leaseback transaction.

Speaker Change: As everyone is aware, subsequent to the end of the quarter, we entered into a binding term sheet the $940 million strategic construction and financing arrangement with gaming and leisure properties, which includes funding to complete the construction of our flagship permanent casino in Chicago.

Speaker Change: With GLPI, we also enter the sale-leaseback transaction.

Robeson Mandela Reeves: Kansas City, and Shreveport for $395 million and modified our sell-leaseback agreement of our Lincoln property, bringing the total transaction to over $2 billion. This is a key milestone for our Chicago development. George will go into this in more detail, but suffice to say, we are now fully ready to plant our flag in the heart of the city.

Speaker Change: Kansas City, and Shreveport for $395 million and modified our sell-lease-back agreement of our Lincoln property, bringing the total transaction to over $2 billion.

Robeson Reeves: This is a key milestone for our Chicago development. George will go into this in more detail, but it's as pice to say, we're now fully ready to plant our flag in the heart of the city with our Bally's Casino Chicago permanent resort. This permanent resort will benefit from the ongoing ramp about temporary facility as we're building and evolving customer relationships and establishing our presence with the city's various stakeholders or gaining additional valuable insights into the market.

Speaker Change: This is a key milestone for our Chicago development.

Speaker Change: George will go into this in more detail but suffice to say we are now fully ready to plant our flag in the heart of the city with our Bally's Casino Chicago Permanent Resort.

Robeson Mandela Reeves: Casino, Chicago Permanent Resort. This permanent resort will benefit from the ongoing ramp-up of our temporary facility as we are building and evolving customer relationships and establishing our presence with the city's various stakeholders while gaining additional valuable insights into the market. Though we won't be taking questions regarding this on today's call, I want to address last week's announcement that the company has entered into a definitive merger agreement with Queen Casino & Entertainment, a regional casino operator with four casinos in three states.

George T. Papanier: This permanent resort will benefit from the ongoing ramp of our temporary facility as we are building and evolving customer relationships and establishing our presence with the city's various stakeholders while gaining additional valuable insights into the market.

Robeson Reeves: So we won't be taking questions regarding this on today's call. I want to address last week's announcement that the company has entered into a definitive merger agreement with the Queen Casino and Entertainment Inc., a regional casino operator with four casinos in three states. This merger will expand our platform and databases or further diversifying the markets in which we operate. Moreover, combining the Queen Casino and Entertainment Development Pipeline with our own current growth initiatives provides a clear path to increased revenue, cash flow, and value accretion for the company. Turning to Las Vegas, we're moving forward with the demolition of the Trappocana and expect the planned implosion of the hotel tower to occur in October.

Speaker Change: Though we won't be taking questions regarding this on today's call, I want to address last week's announcement that the company has entered into a definitive merger agreement with the Queen Casino and Entertainment Inc, a regional casino operator with four casinos in three states.

Robeson Mandela Reeves: This merger will expand our platform and databases while further diversifying the markets in which we operate. Moreover, combining the Queen Casino and entertainment development pipeline with our own current growth initiatives provides a clear path to increased revenue, cash flow, and value accretion for the company. Turning to Las Vegas, we're moving forward with the demolition of the Tropicana and expect the planned implosion of the hotel tower to occur in October. We remain on track to hand over the 9-acre portion of the site to MLB's Athletics, who plan to begin construction of their new stadium in 2025.

Speaker Change: This merger will expand our platform and databases while further diversifying the markets in which we operate.

Speaker Change: Moreover, combining the Queen Casino and entertainment development pipeline with our own current growth initiatives provides a clear path to increased revenue, cash flow, and value accretion for the company.

Speaker Change: Turning to Las Vegas, we're moving forward with the demolition of the Tropicana and expect the planned implosion of the hotel tower to occur in October .

Robeson Reeves: We remain on track to hand over the nine-acre portion of the site to MLB's Athletics, who plan to begin construction of their new stadium in 25. Importantly, we continue to assess our options for the highly valuable lands next to the stadium. In New York, it appears the licensing submission process will occur in June of 25, with the winner to be announced in early 26.

Speaker Change: We remain on track to hand over the nine-acre portion of the site to MLB's Athletics, who plan to begin construction of their new stadium in 2025.

Robeson Mandela Reeves: Importantly, we continue to assess our options for the highly valuable lands next to the stadium. In New York, it appears the licensing submission process will occur in June of 2025, with the winner to be announced in early 2021.

Speaker Change: Importantly, we continue to assess our options for the highly valuable land next to the stadium.

Speaker Change: In New York, it appears the licensing submission process will occur in June of 25, with the winner to be announced in early 26.

Robeson Reeves: We remain extremely excited by the opportunity to develop a world-class integrated resort adjacent to Bali's links at Fairy Point in the Bronx, which will add yet another must-see destination in the Big Apple.

Robeson Mandela Reeves: We remain extremely excited by the opportunity to develop a world-class integrated resort adjacent to Bally's Links at Ferry Point in the Bronx, which will add yet another must-see destination in the Big Apple. With all that said, I'll now turn my attention to our International Interactive and North America Interactive segments. Within International Interactive, we continue to generate strong results from the UK business, where we're taking share and benefiting from strategies to acquire customers in a cost-effective manner. The soft launch of online sports betting in the market will prove to be an additional channel for customer acquisition and growth.

Speaker Change: We remain extremely excited by the opportunity to develop a world-class integrated resort adjacent to Bally's Links at Ferry Point in the Bronx, which will add yet another must-see destination in the Big Apple.

Robeson Reeves: With all that said, I'm now to my attention to our international interactive and North America interactive segments. Within international interactive, we continue to generate strong results from the UK business where we're taking share and benefiting from strategies to acquire customers in a cost-effective manner. The soft launch of online sports betting in the market will prove to be an additional channel for customer acquisition and growth, and we're looking forward to the full scale benefits of this product as the year progresses. Outside of the UK, we're working with an abstractity of maximizing profit yield and reducing an economic marketing.

Speaker Change: With all that said, I'll now turn my attention to our International Interactive and North America Interactive segments.

Speaker Change: Within International Interactive, we continue to generate strong results from the UK business where we're taking share and benefiting from strategies to acquire customers in a cost effective manner.

Speaker Change: The soft launch of online sports betting in the market will prove to be an additional channel for customer acquisition and growth, and we are looking forward to the full scale benefits of this product as the year progresses.

Robeson Mandela Reeves: And we're looking forward to the full scale benefits of this product as the year progresses. Outside of the UK, we're working within our strategy of maximizing profit yield and reducing the economic market. In Asia, we continue to manage through some issues that are impacting business volume. While we had seen signs that the region was beginning to stabilize, it now appears likely that challenges will remain for the foreseeable future. It is our view that, over time, Asia will stabilize and return to growth.

Speaker Change: Outside of the UK, we're working within our strategy of maximizing profit yield and reducing uneconomic marketing.

Robeson Reeves: In Asia, we continue to manage through some issues which are impacting business volumes. While we had seen science that the region was beginning to stabilize, it now appears likely that challenges will remain for the foreseeable future. It is our view that over time, Asia will stabilize and return to growth. Across Europe, we've seen some grand traction for our offerings, including improvement in Spain following the lifting of advertising restrictions. Our North America interactive segment again delivered a very strong quarter as we benefited from a full quarter of eye gaming in Rhode Island, which launched in March and continued success with our operations in both New Jersey and Pennsylvania.

Speaker Change: In Asia, we continue to manage through some issues which are impacting business volumes.

Speaker Change: While we had seen signs that the region was beginning to stabilize, it now appears likely that challenges will remain for the foreseeable future.

Speaker Change: It is our view that over time Asia will stabilize and return to growth.

Robeson Mandela Reeves: Across Europe, we've seen some growing traction for our offerings, including improvement in Spain following the lifting of advertising restrictions. Our North America Interactive segment again delivered a very strong quarter as we benefited from a full quarter of iGaming in Rhode Island, which launched in March, and continued success with our operations in both New Jersey and Pennsylvania. In the quarter, we generated approximately $6.7 million in net gaming revenue in Rhode Island. This market is still very much in the early innings of its growth trajectory, as it only launched in March.

Speaker Change: Across Europe , we've seen some growing traction for our offerings, including improvement in Spain following the lifting of advertising restrictions.

Speaker Change: Our North America Interactive segment again delivered a very strong quarter as we benefited from a full quarter of iGaming in Rhode Island, which launched in March, and continued success with our operations in both New Jersey and Pennsylvania.

Robeson Reeves: In the quarter, we generated approximately 6.7 million in net gaming revenue in Rhode Island, and this market is still very much in the early innings of its growth trajectory, as it only launched in March.

Speaker Change: In the quarter, we generated approximately $6.7 million in net gaming revenue in Rhode Island and this market is still very much in the early innings of its growth trajectory as it only launched in March.

Robeson Reeves: Bush. Furthermore, with the ongoing successful rollout of BallyBet across our markets, we're generating improved volumes and profitability, particularly as the transition onto Cambie and White Hat platforms has gone a good customer feedback and helped us differentiate our offering. We expect to launch sports in additional four states in the second half of the year and continue to plant the seeds for our expanded eye gaming across our geographies. Please remember as you model out North America interactive results over the balance of the year, we continue to expect to incur an adjusted EBITDA loss of better than 30 million in 24, with losses decreasing in a nonlinear fashion.

Robeson Mandela Reeves: Furthermore, with the ongoing successful rollout of Ballybet across our markets, we're generating improved volumes and profitability, particularly as the transition onto Canby and white hat platforms has gone well with customer feedback and helped us differentiate our offering. We expect to launch sports in an additional four states in the second half of the year and continue to plant the seeds for expanded iGaming across our geography. Please remember, as you model out North America interactive results over the balance of the year, we continue to expect to incur an adjusted EBITDA loss of better than $30 million in 24, with losses decreasing in a non-linear fashion. With that, I have a few closing comments before turning it over to George for further details on our operational performance over the last quarter. We have delivered the funding for our Chicago Permanent Casino Resort.

Speaker Change: Furthermore, with the ongoing successful rollout of BallyBet across our markets, we're generating improved volumes and profitability, particularly as the transition onto Canby and WhiteHat platforms has garnered good customer feedback and helped us differentiate our offering.

Speaker Change: We expect to launch sports in an additional four states in the second half of the year and continue to plant the seeds for expanded iGaming across our geographies.

Speaker Change: Please remember, as you model out North America Interactive results over the balance of the year, we continue to expect to incur an adjusted EBITDA loss of better than $30 million in 2024, with losses decreasing in a non-linear fashion.

Robeson Reeves: With that, I have a few closing comments before turning it over to George for further details on our operational performance over the last quarter. We have delivered the funding for our Chicago permanent casino resort. We will continue to diligently deliver our development pipeline, including our route profitability in North America interactive, and we will maintain our focus on core profitability and growth from CNR and internationally interactive segments. We look forward to sharing additional milestones with you all again soon.

Speaker Change: With that, I have a few closing comments before turning it over to George for further details on our operational performance over the last quarter.

Speaker Change: We have delivered the funding for a Chicago Permanent Casino Resort.

Robeson Mandela Reeves: We will continue to diligently deliver a development pipeline, including our Roots profitability in North America Interactive. And we'll maintain our focus on core profitability and growth from CNR and our international interactive segment. We look forward to sharing additional milestones with you all again soon. Thanks, everyone.

Speaker Change: We will continue to diligently deliver our development pipeline, including our Roots profitability in North America Interactive, and we'll maintain our focus on core profitability and growth from C&R and our internationally interactive segments.

George T. Papanier: We look forward to sharing additional milestones with you all again soon.

George Papanier: George, thanks, Rosen. I'll begin my remarks on CNR with a look at our headline results in some comments on several of our markets before diving in the Chicago and the meaningful progress we're making there. The casino resort segment delivered revenue growth of 3% in quarter, driven by the continued ramp in Chicago and general stability across our portfolio, with some exceptions. Visitation to our Rhode Island properties, particularly Lincoln, was again impacted by the Providence Bridge disruption on Interstate 195, the critical connection between Rhode Island and Massachusetts. This has led the lane closures that disrupt traffic during peak periods, a situation which will continue for the foreseeable future.

George T. Papanier: I'll begin my remarks on CNR with a look at our headline results and some comments on several of our markets before diving into Chicago and the meaningful progress we're making there. The Casino Resort segment delivered revenue growth of 3% in the quarter. Despite the continued ramp in Chicago and general stability across our portfolio with some exceptions, visitation to our Rhode Island properties, particularly Lincoln, was again impacted by the Providence Bridge disruption on Interstate 195. Critical connection between Rhode Island and Massachusetts.

Speaker Change: George. Thanks, Robeson.

Speaker Change: I'll begin my remarks on CNR with a look at our headline results and some comments on several of our markets before diving into Chicago and the meaningful progress we're making there.

Speaker Change: The Casino Resort segment delivered revenue growth of 3% in the quarter, driven by the continued ramp in Chicago and general stability across our portfolio, with some exceptions.

Speaker Change: Visitation to our Rhode Island properties, particularly Lincoln, was again impacted by the Providence Bridge disruption on Interstate 195, a critical connection between Rhode Island and Massachusetts.

George T. Papanier: This has led to lane closures that disrupt traffic during peak periods, a situation that will continue for the foreseeable future. During the quarter, we also saw some elevated promotional activity from Massachusetts operators that we believe had an incremental impact on our business. Despite this, we're confident that volumes will return once construction is completed given our recently refreshed amenities and overall superior product and player loyalty. Atlantic City had a somewhat difficult quarter as we were impacted by turnover in our relationship marketing team.

Speaker Change: This has led to lane closures that disrupt traffic during peak periods, a situation which will continue for the foreseeable future. During the quarter, we also saw some elevated promotional activity from Massachusetts operators that we believe had an incremental impact on our business.

George Papanier: During the quarter, we also saw some elevated promotional activity from Massachusetts operators that we believe had an incremental impact on our business. Despite this, we're confident that volumes will return once construction is completed, given our recently refreshed amenities and overall superior product and player loyalty. Atlantic City had somewhat difficult quarter as we were impacted by turnover in our relationship marketing team. We were working aggressively to reestablish ourselves with those players and have introduced a new relationship team to drive incremental and new customer visitation. Unfortunately, the timing of this was particularly impactful as it came heading into Atlantic City's peak season.

Speaker Change: Despite this, we're confident that volumes will return once construction is completed given our recently refreshed amenities and overall superior product and player loyalty.

Speaker Change: Atlantic City had a somewhat difficult quarter as we were impacted by turnover in our relationship marketing team.

George T. Papanier: We are working aggressively to reestablish ourselves with those players and have introduced a new relationship team to drive incremental and new customer visitations. Unfortunately, the timing of this was particularly impactful as it came heading into Atlantic City's peak season. Aside from these challenges, our property portfolio continues to perform well relative to expectations and is benefiting from what remains a relatively healthy consumer, particularly in the mid and upper end segments of our database. As you've surely seen and heard from our gaming peers and from other consumer discretionary businesses. We are watching the lower end closely as we are seeing some signs of spending fatigue.

Speaker Change: We are working aggressively to reestablish ourselves with those players and have introduced a new relationship team to drive incremental and new customer visitation. Unfortunately, the timing of this was particularly impactful as it came heading into Atlantic City's peak season.

George Papanier: Aside from these challenges, our property portfolio continues to perform well relative to expectations and is benefiting from what remains a relatively healthy consumer, particularly in the mid and upper end segments over database. Though, as you've surely seen and heard from our gaming peers and from other consumer discretionary businesses, we are watching the lower end closely, as we are seeing some signs of spending to peak. That said, we are in the process of taking several actions to offset some of the top line challenges I mentioned and hold the line on profitability. Moving on to Chicago, we are progressing on two fronts following the recent $904 million funding commitment we received from Gaming and Leisure Properties.

Speaker Change: Aside from these challenges, our property portfolio continues to perform well relative to expectations and is benefiting from what remains a relatively healthy consumer, particularly in the mid and upper end segments of our database.

Speaker Change: So as you've surely seen and heard from our gaming peers and from other consumer discretionary businesses, we are watching the lower end closely as we are seeing some signs of spending fatigue.

George T. Papanier: That said, we are in the process of taking several actions to offset some of the top line challenges I mentioned and hold the line on profitability. Moving on to Chicago, we are progressing on two fronts following the recent $940 million funding commitment we received from Gaming and Leisure Properties. Thanks to our alliance with GLPI, there is now no doubt that Bally's Chicago Casino and Hotel is coming to the banks of the Chicago River.

Speaker Change: That said, we are in the process of taking several actions to offset some of the top line challenges I mentioned and hold the line on profitability.

Speaker Change: Moving on to Chicago. We are progressing on two fronts following the recent 940 million dollar funding commitment we received from Gaming and Leisure Properties. Thanks to our alliance with GLPI, there is now no doubt that Bally's

George Papanier: Thanks to our alliance with GLPI, there is now no doubt that Bally's Chicago Casino and Hotel is coming to the banks of the Chicago River. We were committed to bringing the project to life as part of a single-phase development plan that features a reimagined and elevated design that ties nicely to the Chicago skyline. We remain on schedule to deliver a casino with roughly 3,300 slots, 170 plus table games, a 500 room hotel tower, 3,000 feet theater, six restaurants, cafes, approval, and a two acre of public park by the second half of 2026. Our team is working closely with city officials to secure the approval of the new site plan and architectural drawings.

Speaker Change: Chicago Casino and Hotel is coming to the banks of the Chicago River. We are committed to bringing the project to life as part of a single-phase development plan that features a reimagined and elevated design that ties nicely to the Chicago skyline.

George T. Papanier: We are committed to bringing the project to life as part of a single-phase development plan that features a reimagined and elevated design that ties nicely to the Chicago skyline. We remain on schedule to deliver a casino with roughly 3,300 slots, 170-plus table games, a 500-room hotel tower, 3,000-seat theater, six restaurants, cafes, a food hall, and a two-acre public park by the second Our team is working closely with city officials to secure their approval of the new site plan and architectural drawing. At the same time, demolition is underway as we begin to clear the Tribune Company's existing footprint from the site.

Speaker Change: We remain on schedule to deliver a casino with roughly 3,300 slots.

Speaker Change: 170 plus table games.

Speaker Change: a 500-room hotel tower, 3,000-seat theater,

Speaker Change: 6 restaurants, cafes, a food hall, and a 2-acre public park by the second half of 2026.

Speaker Change: Our team is working closely with city officials to secure their approval of the new site plan and architectural drawings.

George Papanier: At the same time, demolition is underway as we begin to clear the tribute company's existing footprint from the site. With the updated site plan and shift to a single phase of construction, the budget for hard construction costs is now roughly $1.3 billion. With the majority of these costs expected to be incurred over 2025 and 2026. This is a very exciting time for our company. We are delighted to be working hand in hand with our development partner, GLPI, to bring our vision to life. While development of the permanent facility ramps up, we continue to ramp up operations at our temporary facility while expanding our customer database and developing key relationships with players and other Chicago stakeholders.

Speaker Change: At the same time, demolition is underway as we begin to clear the Tribune Company's existing footprint from the site.

George T. Papanier: With the updated site plan and shift to a single phase of construction, the budget for hard construction costs is now roughly $1.3 billion, with the majority of these costs expected to be incurred over 2025 and 2026. This is a very exciting time for our company, and we are delighted to be working hand-in-hand with our development partner, GLPI, to bring our vision to life. While development of the permanent facility ramps up, we continue to ramp up operations at our temporary facility while expanding our customer database and developing key relationships with players and other Chicago stakeholders. Admissions reached nearly 120,000 visitors in June, and we have now surpassed 1 million total visitors to date.

Speaker Change: With the updated site plan and shift to a single phase of construction, the budget for hard construction costs is now roughly $1.3 billion, with the majority of these costs expected to be incurred over 2025 and 2026.

Speaker Change: This is a very exciting time for our company, and we are delighted to be working hand-in-hand with our development partner, GLPI, to bring our vision to life.

Speaker Change: While development of the permanent facility ramps up, we continue to ramp up operations at our temporary facility while expanding our customer database and developing key relationships with players and other Chicago stakeholders.

George Papanier: Admissions reach nearly 120,000 visitors in June, and we have now surpassed 1 million total visitors to date. Our database has grown to exceed 100,000 players. As I said on our last call, each day our team is gaining a deeper understanding of our customers and putting this knowledge to work at the temporary facility while we develop our plans for the permanent facility once it opens. Valley service began in late second quarter to healthy customer feedback, and we have successfully expanded our bus routes to the property from various areas of the city, with ridership up 15% for the last quarter.

Speaker Change: Admissions reached nearly 120,000 visitors in June , and we have now surpassed 1 million total visitors to date.

George T. Papanier: The database has grown to include more than 100,000 players. As I said on our last call, each day, our team is gaining a deeper understanding of our customers and putting this knowledge to work at the temporary facility while we develop our plans for the permanent facility once it opens. Service began in late second quarter with healthy customer feedback, and we've successfully expanded our bus routes to the property from various areas of the city, with ridership up 15% over the last quarter. In addition, our VIP lounge opens this week, which we believe will lead to stronger play with the key customer demographics. Attorneys in Las Vegas.

Speaker Change: The database has grown to exceed 100,000 players.

Speaker Change: As I said on our last call, each day our team is gaining a deeper understanding of our customers and putting this knowledge to work at the temporary facility while we develop our plans for the permanent facility once it opens.

Speaker Change: Bally's service began in late second quarter to healthy customer feedback, and we've successfully expanded our bus routes to the property from various areas of the city, with ridership up 15% over the last quarter.

George Papanier: In addition, our VIP lounge opens this week, which we believe will lead to stronger play with the key customer demographics.

Speaker Change: In addition, our VIP lounge opens this week, which we believe will lead to stronger play with the key customer demographics.

George Papanier: Turning to Las Vegas. The demolition of the Tropical is underway and we are planning to bring the hotel tower down in October. This work is on track to allow the ease to begin their stadium development next year ahead of their relocation to Las Vegas for the 2020 Major League Baseball season. At the same time, we continue to evaluate development options for the remainder of the 36 acres and remain optimistic about the possibilities for this site.

George T. Papanier: Demolition of the Tropicana is underway, and we are planning to bring the hotel tower down in October. This work is on track to allow the A's to begin their stadium development next year ahead of their relocation to Las Vegas for the 2028 Major League Baseball season. At the same time, we continue to evaluate development options for the remainder of the 36 acres and remain optimistic about the possibilities for this site. Finally, a note on New York. The process for awarding the downstate license remains fluid, though we are now assuming the license will be awarded in the first quarter of 2026.

Speaker Change: Attorneys in Las Vegas.

Speaker Change: Demolition of the Tropicana is underway and we are planning to bring the hotel tower down in October .

Speaker Change: This work is on track to allow the A's to begin their stadium development next year ahead of their relocation to Las Vegas for the 2028 Major League Baseball season.

Speaker Change: At the same time, we continue to evaluate development options for the remainder of the 36 acres and remain optimistic about the possibilities for this site.

George Papanier: Finally, a note on New York. Work. The process for awarding the downstate license remains fluid, though we are now assuming the license will be awarded in the first quarter of 2026. We believe our site at Bally's Gulf Lake at very point is superior to the site's offered by our competitors as we think the economic benefit to that area of New York will more positively impact the lives of many people, service our facility with that. Now let me turn it over to Marcus.

Speaker Change: Finally, a note on New York.

Speaker Change: The process for awarding the downstate license remains fluid, though we are now assuming the license will be awarded in the first quarter of 2026.

George T. Papanier: We believe our site at Bally's Gulf Lakes at Ferry Point is superior to the sites offered by our competitors, as we think the economic benefit to that area of New York will positively impact the lives of many local residents through direct jobs and our proposed resort, and through the Redgers that will service our facility. Now, let me turn it over to Marcus. Thanks, George. As Robeson and George highlighted, we had a good 2024 second quarter across the board despite several market-specific headwinds. Second quarter revenues on a consolidated basis increased by 3% year-on-year to $622 million, with gains in two of our three operating segments.

Speaker Change: We believe our site at Bally's Gulf Lakes at Ferry Point is superior to the sites offered by our competitors, as we think the economic benefit to that area of New York will more positively impact the lives of many local residents through direct jobs and our proposed resort.

Speaker Change: and through the Redgers that will service our facility. With that, now let me turn it over to Marcus.

Marcus Glover: Thanks, George. As Roe said in George highlighted, we had a good 2024 second quarter across the board despite several market-specific end wins. Second quarter revenues on a consolidated basis increased by 3% year-on-year to 622 million, with gains in two of our three operating segments. Revenue for our Casino and Resort segment rose to 343.1 million of 3% as strength in many of our markets was impacted by the one offhand wins in Rhode Island and Atlantic City. Adjusted EBITDA for this segment was approximately 100 million, a 10% decrease from the previous year due to largely to the aforementioned market-specific issues.

Marcus Glover: Revenue for our casino and resort segment rose to $343.1 million, up 3%, as strength in many of our markets was impacted by the one-off headwinds in Rhode Island and Atlantic City. Adjusted EBITDA for this segment was approximately $100 million. 10% decrease from the previous year due largely to the aforementioned market-specific issues. Segment margins of 29% were closer to 36% when excluding our Atlantic City and Chicago operations, along with the ongoing wind down of the tropics.

Marcus Glover: Thanks, George.

Marcus Glover: As Robeson and George highlighted, we had a good 2024 second quarter across the board despite several market-specific headwinds.

Marcus Glover: The second quarter revenues on a consolidated basis increased by 3% year-on-year to $622 million, with gains in two of our three operating segments.

Speaker Change: Revenue for our casino and resort segment rose to $343.1 million, up 3% as strength in many of our markets was impacted by the one-off headwinds in Rhode Island and Atlantic City.

Speaker Change: Adjusted EBITDA for this segment was approximately $100 million.

Speaker Change: A 10% decrease from the previous year due largely to the aforementioned market-specific issues.

Marcus Glover: Segment margins of 29% were closer to 36% when excluding our Atlantic City and Chicago operations, along with the ongoing wind down of the Trop. As George mentioned, we are actively taking steps across our CNR portfolio to expand margins and enhance profitability, all while continuing to grow the business. Within international interactive, the UK remains the crowned jewel, with revenues increasing 9% year-over-year in US dollars and by 8% on a constant currency basis. With a segment overall, revenues declined 7% year-over-year to 229 million, primarily due to some softness in our non-UK operations. Despite this, segment adjusted EBITDA margins expanded 130 basis points to 35%, leading to segment adjusted EBITDA of 81 million, a decline of 4% year-over-year on the back of strong UK profitability.

Speaker Change: Segment margins of 29% were closer to 36% when excluding our Atlantic City and Chicago operations along with the ongoing wind down of the TROP.

Marcus Glover: As George mentioned, we are actively taking steps across our CNR portfolio to expand margins and enhance profitability, all while continuing to grow the business. On an international interactive basis, the UK remains the crown jewel with revenues increasing 9% year-over-year in U.S. dollars and by 8% on a constant currency basis. However, for the segment overall, revenues declined 7% year-over-year to $229 million, primarily due to some softness in our non

Speaker Change: As George mentioned, we are actively taking steps across our CNR portfolio to expand margins and enhance profitability, all while continuing to grow the business.

George T. Papanier: With an international interactive, the U.K. remains the crown jewel with revenues increasing 9% year-over-year in U.S. dollars and by 8% on a constant currency basis.

Speaker Change: For the segment overall, revenues declined 7% year-over-year to $229 million, primarily due to some softness in our non-UK operations.

Marcus Glover: Despite this, segment-adjusted EBITDA margins expanded 130 basis points to 35%, leading to segment-adjusted EBITDA of 81 million, a decline of 4% year-over-year on the back of strong UK property. North America Interactive generated revenue of $49.2 million, a 95% year-over-year improvement; the segment generated an adjusted EBITDA loss of approximately $7 million as we benefited from We continue to expand losses to narrow as the year progresses, driven by our strong iGaming position in New Jersey, Pennsylvania, and now Rhode Island and the continued improvement in our Bally Bet operation.

George T. Papanier: Despite this, segment-adjusted EBITDA margins expanded 130 basis points to 35%.

George T. Papanier: leading to segment-adjusted EBITDA of 81 million, a decline of 4% year-over-year on the back of strong UK profitability.

Marcus Glover: North America Interactive generated revenue of 49.2 million, a 95% year-over-year improvement. The segment generated an adjusted EBITDA loss of approximately 7 million, as we benefited from a strong start to eye-gaming in Rhode Island and solid online sports betting results. We continue to expand losses to narrow as the year progresses, driven by our strong eye-gaming position in New Jersey, Pennsylvania, and now Rhode Island, and the continued improvement in our valley bed operations. Turning to our capital structure, at the end of the quarter, shares outstanding were approximately 40 million, with incremental warrants, options, and other dilution representing approximately 13 million shares.

George T. Papanier: North America Interactive generated revenue of $49.2 million, a 95% year-over-year improvement.

George T. Papanier: The segment generated an adjusted EBITDA loss of approximately $7 million as we benefited from a strong start to iGaming in Rhode Island.

George T. Papanier: and a solid online sports betting results.

Speaker Change: We continue to expand losses to narrow as the year progresses.

Speaker Change: driven by our strong iGaming position in New Jersey, Pennsylvania, and now Rhode Island and the continued improvement in our valley bed operations.

Marcus Glover: Turning to our capital structure, at the end of the quarter, shares outstanding were approximately 40 million, with incremental warrants, options, and other dilution representing approximately 13 million shares. We ended the quarter with $155 million of cash on our balance sheet and $3.58 billion of net debt.

Speaker Change: Turning to our capital structure, at the end of the quarter, shares outstanding were approximately 40 million, with incremental warrants, options, and other dilution representing approximately 13 million shares.

Marcus Glover: We ended the quarter with 155 million of cash on our balance sheet, 3.58 billion of net debt. Shifting to our outlook for the remainder of the year, recall we got it 2024 revenues to a range of 2.5 billion to 2.7 billion, and adjusted EBITDA to a range of 655 million to 695.

Speaker Change: We ended the quarter with $155 million of cash on our balance sheet and $3.58 billion of net debt.

Marcus Glover: Shifting to our outlook for the remainder of the year, recall we guided 2024 revenues to a range of 2.5 billion to 2.7 billion and adjusted EBITDAR to a range of 655 million to 695 million. Given the performance in the first half of the year in our casino and resort segment and headwinds in certain international interactive markets excluding the UK, we believe achieving the lower end of this range is most likely. This outlook incorporates similar trends in casino and resorts, the U.K. remaining strong, and North America Interactive continuing its path of operational improvement. Additionally, we are reducing our CAPEX spend to approximately $115 million for the year, down from our initial estimate of approximately $165 million. This excludes spending in Chicago and Tropicana.

Speaker Change: Shifting to our outlook for the remainder of the year, recall we guided 2024 revenues to a range of $2.5 billion to $2.7 billion and adjusted EBITDAR to a range of $655 million to $695 million.

Marcus Glover: William. Given the performance in the first half of the year in our casino and resource segment and headwinds in certain international interactive markets, excluding the UK, we believe achieving the lower end of this range is most likely. This outlook incorporates similar trends in casino and resource, the UK remaining strong and North America interactive, continuing this path of operational improvements. Additionally, we are reducing our cap expand to approximately $115 million for the year, down from our initial estimate of approximately $165 million. This excludes spending in Chicago and Tropicana. In closing, we are excited by the number of growth opportunities in front of Bally's and optimistic that we are putting into place the right operating processes to further improve our existing businesses.

Speaker Change: Given the performance in the first half of the year in our casino and resort segment and headwinds in certain international interactive markets excluding the UK, we believe achieving the lower end of this range is most likely.

Speaker Change: This outlook incorporates similar trends in casino and resorts, the U.K. remaining strong, and North America Interactive continuing its path of operational improvements.

Speaker Change: Additionally, we are reducing our CAPEX span to approximately $115 million for the year, down from our initial estimate of approximately $165 million.

Speaker Change: This excludes spending in Chicago and Tropicana.

Operator: In closing, we are excited by the number of growth opportunities in front of Bally's and optimistic that we are putting in place the right operating processes to further improve our existing business. Furthermore, we are delighted to strengthen our alliance with our partners at GOPI to bring our new permanent Chicago casino to life. At this time, we will now open the call for questions and answers. Thank you, Mr. Glover. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two.

Speaker Change: In closing, we are excited by the number of growth opportunities in front of Bally's and optimistic that we are putting into place the right operating processes to further improve our existing businesses.

Marcus Glover: Furthermore, we are delighted to strengthen our alliance with our partners at GOPI to bring our new permanent Chicago casino to life.

Speaker Change: Furthermore, we are delighted to strengthen our alliance with our partners at GOPI to bring our new permanent Chicago casino to life.

Operator: At this time, we will now open the call for questions and answers.

Operator: Operator. Thank you, Mr. Glover. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, star one to ask a question.

Speaker Change: At this time, we will now open the call for questions and answers. Operator.

Operator: Once again, pick one to ask a question. We'll go first this afternoon to Barry Jonas of Truist. Hey guys, this is Rameen Sabani. I'm on Kibera.

Speaker Change: Thank you, Mr. Glover. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, star one to ask a question. We'll go first this afternoon to Barry Jonas of Truist.

Barry Jonas: We will first a afternoon to Barry Jonas of Truist. Hi, guys. This is for me and Sabani. I'm on a cabaret. Thanks for taking our question. Just got a quick two-parter. There's a new post-deal structure change. Anything operationally or strategically lead for you guys, first, and so there are any synergies that we should be thinking about between assets. Another kind of asset that you would deem non-core to the strategy at the stage. You repeat the second part of that. The second question, I'm sorry. I just want to make sure we share. Yeah, just asking other assets that you guys have right now that you deem kind of non-core to your existing strategy.

Rameen Sabani: Thanks for taking our questions. For we just got a quick two parter. Does a new kind of post-deal structure change anything operationally or strategically for you guys, for instance, are there any synergies that we should be thinking about to clean up the mess? I know there are any kind of assets that you would deem non-core to the strategy at this. You repeat the second part of that, the second question. I'm sorry, just want to make sure we have it. Yeah, just asking, are there any assets you have right now that you deem kind of non-core to your existing strategy? Oh, I don't think there's anything that's non-core.

Speaker Change: Hey guys, this is Rameen Sabani. I'm on Kibera. Thanks for taking our question.

Barry Jonathan Jonas: For, just got a quick two-parter, does a new kind of post-deal structure change anything operationally or strategically for you guys, for instance, are there any...

Speaker Change: Synergies that we should be thinking about to clean assets. And are there any kind of assets that you would deem non-core to the strategy at this stage?

Speaker Change: Can you repeat the second part of that, the second question, I'm sorry, I just want to make sure we have it.

Speaker Change: Yeah, just asking, are there any assets that you guys have right now that you deem kind of non-core to your existing strategy?

Robeson Reeves: There you guys are. I don't think there's anything that's non-core within our strategy. In terms of the merger agreement, I think it's a little bit early to speak on synergies. As we mentioned, starting off the call, we're not going to spin on. Anytime really addressing that merger deal, there's obviously a diligence phase that needs to be conducted, and obviously we want to pay proper respect to the regulatory process and get through the proxy for commenting further on that. Got it. Makes sense.

Speaker Change: Thank you guys.

Speaker Change: What?

Speaker Change: Oh, I don't think there's anything that's non-core.

Robeson Mandela Reeves: Within Our Surroundings. In terms of the merger agreement, I think it's a little bit early to speak about Synergy. As we mentioned at the start of the call, we're not going to spin off. At any time, really addressing that merger deal, there's obviously a diligence phase that needs to be conducted. And obviously, we want to pay proper respect to the regulatory process and get through the proxy before commenting further on that

Speaker Change: within our strategy.

Speaker Change: In terms of the merger agreement, I think it's a little bit early to speak on Synergy. As we mentioned starting off the call, we're not going to spin off.

Speaker Change: Any time really addressing that merger deal, there's obviously a diligence phase that needs to be conducted and obviously we want to pay proper respect to the regulatory process and get through the proxy before commenting further on that.

Rameen Sabani: Makes sense. If I can sneak in a quick follow-up, the Pennsylvania Supreme Court upheld your casino license for the Nittany Mall.

Robeson Reeves: If I can speak in a quick follow-up. Pennsylvania Supreme Court upheld your casino license for the Nittany Mall. I just wanted to see how you're thinking about developing that property following your decision. I know on the stretch. Yeah, obviously the lawsuits are behind us. We're now focused on going through the process and obtaining the appropriate approvals with the PGP. We're focused on that, and timing of construction probably won't be until the first half of 2025 at this point. As part of the transaction, obviously there's a stage relative to arranging the financing for that. Now that the court has rolled, we are now going through the whole developmental underwriting process.

Speaker Change: Got it. Makes sense. If I can sneak in a quick follow-up. Pennsylvania Supreme Court upheld your casino license for the Nittany Mall. Just wanted to see how you're thinking about developing that property following your decision.

George T. Papanier: Just wanted to see how you're thinking about developing that property following the decision. Ida and George, yeah, obviously, the lawsuits are behind us. We're now focused on going through the process and obtaining the appropriate approvals with the PGP. So we're focused on that, and the timing of construction probably won't be until the first half of 2025. And as part of that transaction, obviously, there's a stage relative to arranging the financing for that. So now that the court has ruled, we are now going through the whole developmental underwriting process. Howie Flannery

Speaker Change: How are you doing? This is George.

Speaker Change: Yeah, obviously the lawsuits are behind us, we're now focused on going through the process and obtaining the appropriate approvals with the PGP.

Speaker Change: So, we're focused on that and, you know, timing of, you know, construction probably won't be until the first half of 2025 at this point.

Speaker Change: As part of that transaction, obviously there's a stage relative to arranging the financing for that, so now that the court has ruled, we are now going through the whole developmental underwriting process.

Joseph: Joseph, and how we plan for that. Got it. Thanks so much for taking our questions. Thank you.

Speaker Change: and how we plan for that.

Speaker Change: Got it. Thanks so much for taking our questions.

George T. Papanier: Got it. Thanks. Thanks so much. Thank you. We'll go next to Jeff Stantial now.

Jeffrey Stantial: We'll go next now to Jeff Stantial at Stevele. Great. Thanks.

Speaker Change: Thank you.

Speaker Change: Thank you. We'll go next now to Jeff Stantial at Stiefel.

Jeffrey Austin Stantial: Great, thanks. Good afternoon, everyone. Thanks for taking our questions. Maybe starting off here on casinos and resorts, a lot of the process here, you know, with some of the various headwinds that you cited in the press release and in the prepared remarks, I was wondering if you could just quantify the total sum of the impact that you saw across Rhode Island, Massachusetts, and Atlantic City. And really, what I'm driving at here is I'm just curious what you think segment adjusted EBIT would have grown at, you know, absent these more one-time headwinds and maybe on a same store basis for Chicago and Tropicana as well. A bit of a tricky exercise recognizing that, just any color you can provide there would help.

Jeffrey Stantial: Good afternoon, everyone. Thanks for taking our questions. Maybe starting off here on casinos and resorts. A lot of the process here, you know, with some of the various headwinds that you cited in the press release and in the prepared remarks. I was wondering if you could just quantify the total sum of impact that you saw across Rhode Island, Massachusetts, and Atlantic City, or, you know, and really what I'm driving ahead here is I'm just curious what what you think segment adjusted EBITAR would have grown at, you know, absentees more one-time headwinds and maybe on the same store basis for Chicago and drop a can as well.

Jeffrey Austin Stantial: Great, thanks. Good afternoon, everyone. Thanks for taking our questions. Maybe starting off here on casinos and resorts, a lot of the process here...

Jeffrey Austin Stantial: with some of the various headwinds that you cited in the press release and in the prepared remarks. I was wondering if you could just quantify...

Speaker Change: The the total sum of impact that you saw across Rhode Island, Massachusetts

Speaker Change: An Atlantic City, and really what I'm driving at here is I'm just curious what you think segment adjusted even are.

Speaker Change: would have grown at, you know, absent these more one-time headwinds and maybe on a same-store basis for Chicago and Tropicana as well. A bit of a tricky exercise recognizing that. Just any color you can provide there would help. Thanks.

Marcus Glover: A bit of a tricky exercise, recognizing that just any color you could probably there would help. Thanks. Jeff, I probably break those up a lot of that question. You spoke to three. I think I heard three different markets.

Marcus Glover: Thanks. Jeff, I'll probably break those up. In that question, you spoke to three, I think I heard, three different markets. And so it probably makes sense to address Rhode Island independent and then AC a little bit separately, because all of the headwinds that we acknowledged were a little bit different. I'll start in Rhode Island, and then George can jump in and add some color commentary. In terms of quantification of the traffic, I should say traffic impact more than the bridge because there's still traffic flowing through; it's just constrained a bit and creates some inconvenience.

Speaker Change: Jeff, I'll probably break those up.

Speaker Change: A lot in that question, you spoke to three, I think I heard, three different markets. And so probably ought to make sense to, it probably makes sense to address Rhode Island independent and then AC a little bit separately because all of the headwinds that we acknowledged were a little bit different. I'll start in Rhode Island and then George can jump in and add some color commentary.

Marcus Glover: And so probably ought to make sense to probably make sense to address Rhode Island independent in AC. A little bit separately because all of the headwinds that we acknowledge were a little bit different. I'll start in Rhode Island, and George can jump in and add some color commentary. In terms of quantification of the traffic, I should say traffic impact more than the bridge, because there's still traffic flowing through us, just constrained a bit and create some inconvenience. I'm probably looking at somewhere in the, I'd say, 12 to 15 percent, maybe slightly above that impact. There's some other regional nuance, if you will, on what I would consider to be a rational kind of competitor behavior.

George T. Papanier: In terms of quantification of the traffic, I should say traffic impact more than the bridge because there's still traffic flowing through. It's just constrained a bit and creates some inconvenience.

Marcus Glover: I'm probably looking at somewhere in the, I'd say, 12 to 15 percent, maybe slightly above that impact. There's some other regional nuance, if you will, on what I would consider to be an irrational kind of competitor behavior, and so we're seeing some heightened reinvestment. So that's Rhode Island.

Speaker Change: You're probably looking at somewhere in the, I'd say, 12 to 15 percent, maybe slightly above that impact.

George T. Papanier: There's some other regional nuance, if you will, on what I would consider to be irrational kind of competitor behavior, and so we're seeing some heightened reinvestment. So that's Rhode Island. Atlantic City, George can touch on a little bit more, but we...

Marcus Glover: And so we're seeing some heightened reinvestment.

George Papanier: So that's Rhode Island, Atlantic City. George can touch on a little bit more, but we are going through a little bit of property reinvention in terms of redefining our VIP relationships with the whole staff. We lost some key folks on that team and repositioning the property a little bit and revitalizing those relationships. I'll let George touch on those two, and then he can finish up with Chicago if he has some different thoughts. Yeah, I think the one thing we missed is the impact of traffic, with that. I think year over year, I think it was about full million dollars worth of, is that even our impact?

Marcus Glover: Atlantic City, George can touch on a little bit more, but we're going through a little bit of property reinvention in terms of redefining our VIP relationships with the host staff. We lost some key folks on that team to reposition the property a little bit. Revitalizing those relationships. I'll let George touch on those two, and then he can finish up with Chicago if he has some different thoughts. I think the one thing we missed was the impact of Tropicana on that. I think, year over year, I think it was about $4 million worth. Is that Ibidor?

George T. Papanier: Going through a little bit of property reinvention in terms of redefining our VIP relationships with the host staff. We lost some key folks on that team in repositioning the property a little bit.

George T. Papanier: revitalizing those relationships. I'll let George touch on those two and then he can finish up with Chicago if he has some different thoughts.

George T. Papanier: Yeah, I think the one thing we missed is the impact of Tropicana with that.

George T. Papanier: I think year-over-year, I think it was about $4 million worth of...

Marcus Glover: Ibidor impact? [inaudible] So from a same store perspective, that obviously had a little bit of an impact. Yeah, I think Marcus is right. I mean, we're clearly seeing impact from the road closure. It's not really, has not really been in our rated play.

George Papanier: So from the same store perspective, that obviously had a little bit of an impact on us. Yeah, I think Marcus is right. I mean, we're clearly seeing an impact from the road closure. It's not really; has not really been in our rated play. Our rated play was continued to sustain, you know, the ability to continue to motivate the customer. But we are seeing the decline in non-rated, non-rated play. I think it's about probably within the reins that Marcus described. We've still tried to look for solutions that relate to that, providing different options from a customer perspective.

Ibadar: Is that Ibadar? Ibadar Impact?

George T. Papanier: So from a same store perspective that you know obviously had a little bit of an impact on us.

George T. Papanier: Yeah, I think Marcus is right, I mean, we're clearly seeing an impact from the road closure. It's not really been in our rated play. Our rated play, we're continuing to sustain.

George T. Papanier: Our rated play would continue to sustain, you know, the ability to continue to motivate the customer, but we are seeing a decline in non-rated, non-rated play. I think it's about, probably within the range that Marcus described.

Speaker Change: You know, the ability to continue to motivate the customer, but we are seeing a decline in non-rated play.

George T. Papanier: So we're still trying to look for solutions as it relates to that, providing different options from a customer perspective. So unfortunately, with that, we're going to continue to deal with that most likely into 2020, 2027 now is kind of what we're hearing. So we'll be attempting to mitigate that in other ways. What was the other one?

Speaker Change: I think it's about, probably within the range that Marcus described, so.

Speaker Change: We're still trying to look for solutions as it relates to that, providing different options from a customer perspective. So unfortunately with that, we're going to continue to deal with that, most likely into 2020, 2027 now, is kind of what we're hearing.

George Papanier: So, unfortunately, with that, we're going to continue to deal with that most likely into 2020-2027 now. That's kind of what we're hearing. So we'll be attempting to mitigate that in other ways.

Speaker Change: So we'll be attempting to mitigate that in other ways. What was the other one?

George Papanier: Chicago, Yeah. Yeah, Chicago, listen, we're still ramping that property where a focus really is on continuing to motivate database growth. If you just look at how we perform in Q2 versus Q4, we've grown GDR 40% in Q2 versus Q4, so we continue to fill momentum there. It's just taken a little bit longer to ramp that property where we're 100,000 people in the database. That's actually 100% growth since Q4. So again, our focus and our priorities continue to grow that database as we continue to work away towards the opening of our front-of-facility. And just to finish that off, Jeff, as you can see from our commentary, you know, Chicago continues to progress, as George stated.

George T. Papanier: Chicago, yeah. Yeah, Chicago. And that's still, we're still ramping, we're still ramping that property where our focus really is on continuing to motivate database growth. If you just look at how we performed in Q2 versus Q4, we grew GDR by 40% in Q2 versus Q4, so we continue to build momentum there, it's just taking a little bit longer to ramp that property. We've got over 100,000 people in the database, that's actually 100% growth since Q4, so again, our focus and our priorities continue to grow that database as we continue to work our way towards the opening of our permanent facilities.

Speaker Change: Chicago. Yeah.

Speaker Change: Yeah, Chicago.

Speaker Change: Listen, that's still, we're still ramping, we're still ramping that property where our focus really is on continuing to motivate database growth.

Speaker Change: If you just look at how we performed in Q2 versus Q4.

Speaker Change: We've grown GDR 40% in Q2 versus Q4, so we continue to build momentum there. It's just taking a little bit longer to ramp that property over 100,000.

Speaker Change: People in the Database, that's actually a hundred percent growth since Q4, so again, you know, our focus and our priorities continue to grow that database as we continue to work our way towards the opening of our permanent facilities.

George T. Papanier: And just to finish that off, Jeff, as you can see from our commentary, Chicago continues to progress. As George stated, we're being intentional with nurturing the existing customer base as well as continuing to try to fill the funnel with new introductions and relationships with consumers in that market. Margin will come as we continue to mature as a property, but right now, the idea is we are laying the foundation for our permanent casino that will come, you know, Q3 of 26, and so the idea is we're going to continue to build that business and make sure that we drive top line, knowing we'll eventually get to a better place on the margin. Great, that's really helpful. Thank you for all that color.

Speaker Change: Yeah, that's just a...

Speaker Change: Let's finish that off, Jeff, as you can see from our commentary.

Marcus Glover: We're being intentional with nurturing the existing customer base as well as continuing to try to fill the funnel with new introductions and relationships with consumers in that market. Margin will come as we continue to mature as a property, but right now, the idea is we are laying the foundation for our permanent casino that will come, you know, Q3 of '26. And so, the idea is we're going to continue to build that business and make sure that we drive top line. No, I will eventually get to a better place on the margin. Great, that's really helpful.

Jeffrey Austin Stantial: You know Chicago continues to progress as George stated. We're being intentional with nurturing the existing customer base as well as continuing to try to fill the funnel with new introductions and relationships with consumers in that market.

Speaker Change: Margin will come as we continue to mature as a property, but right now the idea is we are laying the foundation for

Speaker Change: Our permanent casino that will come, you know, Q3 of 26. And so the idea is we're going to continue to build that business and make sure that we drive top line, knowing we'll eventually get to a better place on the margin.

Jeffrey Austin Stantial: And then maybe for my follow-up question, turning over to the International Interactive Visitors, Robeson, can you just add a bit more color to what you're seeing currently in Japan, that I believe you referenced in the prepared remarks? Is this mostly a function of the government cracking down on your payments and kind of other providers? Or is there something else structural that's driving it?

Marcus Glover: Thank you. Thank you very much for all that color.

Jeffrey Stantial: And then maybe for my follow-up question, turning over to the international interactive business, Robison, can you just add a bit more color to what you're seeing currently in Japan? I believe you referenced in the prepared march as this? Mostly a function of the government cracking down on your payments and kind of other providers. Is there something else structural that's driving negative constant currency revenue growth? And then how much has the devaluation in the yen played a role here? Just any additional color you can provide there will be great. Thanks. Thank you, Jeff. We're good to acknowledge the devaluation in the yen.

Robeson Mandela Reeves: Great. That's really helpful. Thank you for all that color. And then maybe for my follow-up question, turning over to the International Interactive Business, Robeson, can you just add a bit more color to what you're seeing currently in Japan that I believe you referenced in the prepared remarks?

Robeson Mandela Reeves: Mostly a function of the government cracking down on your payments and kind of other providers. Is there something else structural that's driving?

Robeson Mandela Reeves: Negative constant currency revenue growth, and then how much has the devaluation in the yen played a role here? Just any additional color you could provide there would be great. Thanks. Thank you, Jeff. Well, it's good to acknowledge the devaluation and the yen. Some of the government's impacts are largely driven by sentiment, so it's more of a demand. So the audiences, capturing new audiences has been more challenging. That's actually been the real issue. That has definitely stifled any sort of willingness to play.

Robeson Mandela Reeves: negative constant currency revenue growth and then how much has the devaluation in the yen played a role here? Just any additional color you can provide there would be great. Thanks.

Speaker Change: Thank you very much. Bye-bye.

Speaker Change: Thank you, Jeff. Well, it's good to acknowledge the devaluation in the yen. Some of the government's...

Robeson Reeves: Some of the government impacts its largely driven sentiment, so it's more of a demand. So, the audiences capturing new audience has been more challenging. That's actually been the real issue that has definitely started all the sort of willingness to play. Every time historically we've seen this, we've seen demand to come back and it edds and floats. But yeah, only really a demand basis. The model still works. It still converts what we've shown that even with revenue decline there, we're still able to convert fairly efficiently down to an EBITDA level. So we've got the levers to pull.

Speaker Change: Impacts is largely driven sentiment, so it's more of a demand. So the audiences, capturing new audiences has been more challenging. That's actually been the real issue. That has definitely stifled a sort of willingness to play.

Robeson Mandela Reeves: Every time we've seen this, we've seen demand come back, and it ebbs and flows. But yeah, on a demand basis, the model still works, it still converts. We've shown that even with... We're still able to convert fairly efficiently down to an EBITDA level, so we've got the levers to pull. I would say that the reason why some margins aren't as high, particularly as you'd expect given how much we're converting revenue to EBITDA in Japan is that we're actually investing in growth.

Speaker Change: Every time historically we've seen this, we've seen demand to come back and it ebbs and flows.

Speaker Change: But yeah, only really a demand basis. The model still works. It still converts. What we've shown that even with

Speaker Change: Revenue decline there. We're still able to convert fairly efficiently.

Robeson Reeves: I would say the reason why some margins aren't as high, particularly as you'd expect, given how much we're converting revenue to EBITDA in Japan, we're actually investing in growth. So we're actually spending a bit more on brand in other markets such as the UK because we're seeing opportunities there, and we think we can grow. Barry consistently in that market.

Speaker Change: down to an EBITDA level, so we've got the levers to pull.

Speaker Change: I would say that the reason why some margins aren't as high particularly as you'd expect given how much we're converting revenue to EBITDA in Japan, we're actually investing in growth.

Robeson Mandela Reeves: So we're actually spending a bit more on brand in other markets, such as the UK, because we're seeing opportunities there and we think we can grow very consistently in that market. I can give you more color about the UK if you fancy it.

Speaker Change: So we're actually spending a bit more on brand in other markets such as the UK because we're seeing opportunities there and we think we can grow.

Speaker Change: very consistently in that market.

Robeson Reeves: I can give you more color about the UK if you fancy it. Yeah, sure.

Jeffrey Austin Stantial: Ah, yeah, sure. And then, before we turn to the UK, I just want to be crystal clear on one thing about Japan. When you talk about more of a sentiment impact and player demand, you know, I guess, are you referring to players, you know, becoming fearful of, I guess, you know, the kind of pseudo gray and potential legal action? Are you more referring to, you know, the wealth effect with anything priced in non-yen being more expensive for them currently? Or I guess both?

Speaker Change: I can give you more color about the UK if you fancy it.

Robeson Reeves: And then, actually, before we turn to the UK, I just want to be crystal clear on one thing with Japan. When you talk about more of a sentiment impact and player demand, you know, I guess you're referring to players, you know, becoming fearful of, I guess, you know, the kind of pseudo-gray and potential legal action. Are you more referring to, you know, wealth effect with anything. Being priced in 9 yen, you know, being more expensive for them. Apparently, I guess both. It's so, yes, things are more expensive for these people because of the weakening in the end.

Speaker Change: Yes, sure, and then actually before we turn to the UK, I just want to be crystal clear on one thing with Japan. When you talk about more of a sentiment impact and player demand, I guess are you referring to players...

Speaker Change: You know, becoming fearful of, I guess, you know, the kind of pseudo gray and potential legal action, or are you more referring to, you know, wealth effect with anything priced in non-yen, you know, being more expensive for them currently, or I guess both?

Robeson Mandela Reeves: It's so, yes, things are more expensive for these people because of the weakening in the yen. There is not as large an audience searching for the product as we have seen before. So when you actually look at search volumes, there's less engagement there. Again, that can either be driven by sentiment in the market, but it also can be driven by, Essentially, the cost of entertainment becoming higher because of the weakening at the end, so you'll spend much more in your local currency.

Speaker Change: It's so...

Speaker Change: Yes, things are more expensive for these people because of the weakening in the yen.

Robeson Reeves: It's not as large an audience searching for the product as previously seen. So when you actually look at certain volumes, there's less engagement there. Again, that can either be driven by sentiment in the market, but it also can be driven by, essentially, the cost of entertainment becoming higher because the weakening at the end, so you'll spend much more on your local currency. Okay, that's green.

Speaker Change: It's not as large an audience searching for the product as previously seen. So when you actually look at search volumes, there's less engagement there. Again, that can either be driven by sentiment in the market, but it also can be driven by the audience. Thank you.

Speaker Change: Essentially, the cost of entertainment becoming higher because the weakening at the end, so you'll spend much more in your local currency.

Robeson Mandela Reeves: Okay, that's great. And then, you know, not to get greedy here, but I think you did mention potentially some color on the UK as well. So, you know, that offers to hold to the left here as well. We've been spending more money on brand advertising. So, really trying to get the brand out there. Typically, that's less effective from a performance marketing point of view, but we really want to invest in making sure that some of our brands, such as Virgin and Bally's, grow in the market. Bally's is doing pretty well.

Robeson Reeves: And then I think you did, you know, not to get greedy here, but I think you did mention potentially some color on UK as well. So, yeah, that offers to a lot of people. Yeah, sure. So we've been spending more money on brand advertising, so really trying to get the brand out there. Typically, that's less effective from a performance marketing point of view, but we really want to invest in making sure that some of our brands, such as Virgin and Bally's, grow in the market. Bally's doing pretty well. I think it's record months and revenues.

Speaker Change: Okay, that's great. And then I think he did, you know, not to get greedy here, but I think he did mention potentially some color on on UK as well. So, you know, that offers to hold to the left.

Speaker Change: So we've been spending more money on brand advertising, so really trying to get the brand out there. Typically that's less effective from a performance marketing point of view, but we really want to invest in making sure that some of our brands, such as Virgin and Bally's,

Robeson Mandela Reeves: I think it's a record month, and revenues have been growing consistently now. That's all about having highly accurate marketing. We've definitely improved the code base of our native applications in that market, which has made it easier to drive a better customer experience. And we've massively advanced our real-time monitoring and player management, which both help us with communicating to our players in a near real-time fashion, and I mean sort of split seconds.

Speaker Change: grow in the market. Bally's is doing pretty well.

Robeson Reeves: It's been growing consistently now. That's all about having highly accurate marketing. We've definitely improved that code base at that native applications in that market, which has made it easier to drive a better customer experience. And we've massively advanced that real-time monitoring and player management. That both helps us from communicating to our players. I mean, near real-time fashion, and I mean sort of split seconds. That also helps from a regulatory perspective. And actually, that's been great because we're working very closely with the UK Gambling Commission. That relationship is constructed. The reason why I say the business is sustainable, and I'm very confident that the future is the systems we're putting in place means that we have good play.

Speaker Change: I think it's record month and revenues, it's been growing consistently now.

Speaker Change: That's all about having highly accurate marketing. We've definitely improved that code base of our native applications in that market, which has made it easier to drive a better customer experience.

Speaker Change: We've massively advanced our real-time monitoring and player management, so that both helps us from communicating to our players.

Speaker Change: In a near real-time fashion, and I mean sort of split seconds,

Robeson Mandela Reeves: That also helps from a regulatory perspective. And actually, that's been great because we're working very closely with the UK Gambling Commission. That relationship is constructed. The reason why I say the business is sustainable, and I'm very confident of the future, is that the systems we're putting in place mean that we have good play, it's safe play, and that means that players are staying with us for longer, engaging with us, which is great given our revenue growth. Great. Thanks, Robeson. I appreciate the additional color there.

Speaker Change: That also helps from a regulatory perspective and actually, that's been great because we're working very closely with the UK Gambling Commission. That relationship is...

Speaker Change: constructed.

Speaker Change: The reason why I say the business is sustainable and I'm very confident of the future is the systems we're putting in place means that we have good play.

Jeffrey Stantial: It's safe play, and that means that players are staying with us for longer, engaging with us, which is great, given our revenue growth. Great. Thanks, Rose. I'd appreciate the additional color that I'll pass it on. Thank you, Jeff. Thank you.

Speaker Change: It's safe play and that means that players are staying with us for longer, engaging with us, which is great given our revenue growth.

Speaker Change: Great. Thanks, Robeson. Appreciate the additional color there. I'll pass it on.

Jeffrey Austin Stantial: I'll pass it on. Thank you, Jeff. Thank you. We go next to Chad Beynon.

Chad Beynon: We'll go next now to Chad Bannon of McQuerry. Afternoon. Thanks for taking my question. Robison, on the North American interactive business, I think you mentioned that we should still expect a 30 million loss for the year. And that's not going to be linear in the back half, obviously. There's some seasonality in a number of different factors. So maybe a two-parter on that, I guess. Firstly, on the cost side, I believe even though you're transitioning to Cambian White Hat, there were some extra costs just in terms of two different stacks that you were running on. So I guess first question, can you give us an update in terms of where the cost structure is?

Jeffrey Austin Stantial: Thank you, Jeff.

Speaker Change: Thank you. We go next now to Chad Beynon of McQuarrie.

Chad C. Beynon: Afternoon. Thanks for taking my question. Robeson, on the North American interactive business, I think you mentioned that, you know, we should still expect a $30 million loss for the year. And that's not going to be linear in the back half, obviously, there's some seasonality and a number of different factors.

Chad C. Beynon: Afternoon, thanks for taking my question. Robeson, on the North American interactive business, I think you mentioned that, you know, we should still expect a 30 million loss for the year. And that's not going to be linear in the back half, obviously, there's some seasonality and a number of different factors. So maybe a two-parter on that, I guess, firstly, on the cost side, I believe, you know, even though you're transitioning to Canby and White Hat, there were some extra costs just in terms of, you know, two different stacks that you were running on. So I guess first question, can you kind of give us an update in terms of where the cost structure is? And then secondly, more

Robeson Mandela Reeves: So maybe a two parter on that, I guess, firstly, on the cost side, I believe, you know, even though you're transitioning to Canby and White Hat, there were some extra costs just in terms of, you know, two different stacks that you were running on. So, I guess, first question, can you kind of give us an update in terms of where the cost structure is? And then, more importantly, can you give us some additional commentary in terms of timing of different states, kind of how you're thinking about customer acquisition or cross-sell, maybe just some milestones as we get deeper into 2024. Thanks. I'll call out the easier, well, the simpler ones, which are pure OSB, which are Illinois and Tennessee.

Robeson Reeves: And then secondly, more importantly, can you give us some additional commentary in terms of timing of different states, kind of how you're thinking about customer acquisition, or cross-sell, maybe just some milestones as we get deeper into 2024. Thank you, Chad. We just recently launched in Maryland with OSB. We've got a few other sports launches coming through the course of the year. I'll call out the easier, well, the simpler ones, which are pure OSB: which are Illinois and Tennessee. The chain from our technology stack is incomplete, so we're currently still running both the White Hat PAM and the proprietary Bally's PAM in North America.

Chad C. Beynon: Importantly, can you give us, you know, some additional commentary in terms of timing of different states, kind of how you're thinking about customer acquisition or cross sell, maybe just some milestones as we get deeper into 2024. Thanks.

Speaker Change: Sure.

Speaker Change: Thank you, Chad. We just recently launched in Maryland with OSB. We've got a few other sports launches coming through the course of the year. I'll call out the easier, well, the simpler ones, which are pure OSB, which are Illinois and Tennessee.

Robeson Mandela Reeves: [inaudible] The change from our technology stacks is incomplete, so we're currently still running both the White Hat PAM and the proprietary Bally's PAM in North America. During Q4, that will be replaced across Ontario, Pennsylvania, and New Jersey. In both Ontario and New Jersey, we'll introduce OSB, which will help us with an acquisition. Yeah, it will save on some marketing costs. But more importantly, it simplifies how operational teams can work as there's one back-office tool; there will be one set of tools. So these people actually have a far better life.

Speaker Change: The change from our technology stacks is incomplete so we're currently still running both the white hat ham and the

Robeson Reeves: During Q4, that will be replaced across Ontario, Pennsylvania, and New Jersey. In both Ontario and New Jersey, we will introduce OSB, which will help us from an acquisition perspective to help gain extra revenue and also, yeah, it will save on some marketing costs, but it more importantly, it simplifies how our operational teams can work as there's one back office tool, there'll be one set of tooling, so these people actually have a far better life and we have a simpler solution to keep on scaling in a more cost effective way. I'm happy with our progress. I guess the standard is probably Pennsylvania, where we continue to gain share.

Speaker Change: and the proprietary, Valise Pam.

Speaker Change: in North America.

Speaker Change: During Q4, that will be replaced across Ontario, Pennsylvania, and New Jersey.

Speaker Change: In both Ontario and New Jersey, we will introduce OSB, which will help us from an acquisition perspective to help gain extra revenue, and also...

Speaker Change: Yeah, it will save on some marketing costs, but more importantly, it simplifies how operational teams can work. As there's one back office tool, there'll be one set of tooling, so these people actually have a far better life, and we have a simpler solution to keep on scaling in a more cost-effective way.

Robeson Mandela Reeves: And we have a simpler solution to keep on scaling in a more cost-effective way. I'm happy with our progress; I guess the standout is probably Pennsylvania, where we continue to gain share. We'll do much more to make sure we're optimizing our product mix between slots and table games at the varying tax rates, making a big difference to your EBITDA conversion of revenue. That's great. Thank you very much. And then separately on the CapEx reduction, can you just provide some color in terms of whether this was more maintenance CapEx, the reduction, you know, smaller projects, and why you're bringing that down at this point? It was a combination of the two.

Speaker Change: I'm happy with our progress, I guess the standout is probably Pennsylvania, where we continue to gain share. We'll do much more to make sure we're optimizing our product mix between slots and table games as the varying tax rates.

Marcus Glover: We'll do much more to make sure we're optimizing our product mix between slots and table games as the varying tax rates make a big difference to your EBITDAQ conversion of revenue. That's great. Thank you very much.

Speaker Change: Make a big difference to your EBITDA conversion of revenue

Marcus Glover: And then separately on the CAPEX reduction, can you just provide some color in terms of was this more maintenance CAPEX, the reduction, smaller projects and why you're bringing that down at this point? It was a combination of the two. Most of it was some small expansion projects and different properties that we reevaluated and want to make sure that we put a little bit more thought process to each of those projects before bringing those online. Looking at where we are, spending a little more time with the operational team and fully rounding out our thought process around that allowed us to spend a little more time evaluating.

Speaker Change: That's great. Thank you very much.

Speaker Change: And then separately on the CapEx reduction, can you just provide some color in terms of was this more maintenance CapEx, the reduction, you know, smaller projects, and why you're bringing that down at this point?

Marcus Glover: Most of it was some small expansion projects at different properties that we re-evaluated and wanted to make sure that we put a little bit more thought process into each of those projects before bringing those online. And so looking at where we are, spending a little more time with the operational team and fully, fully rounding out our thought process around that allowed us to, spend a little more time evaluating. Perfect. Thanks, Marcus. And ladies and gentlemen, just a reminder, star number one, please, for questions this afternoon. Now to Jonathan Navarrete.

Speaker Change: It was a combination of the two. Most of it was some small expansion projects at different properties that we reevaluated.

Speaker Change: I want to make sure that we put a little bit more thought process to each of those projects before bringing those online. And so looking at where we are, spending a little more time with the operational team and fully...

Speaker Change: You know, fully rounding out our thought process around that allowed us to spend a little more time evaluating.

Marcus Glover: Perfect. Thanks, Marcus. Appreciate it.

Speaker Change: Perfect. Thanks, Marcus. Appreciate it.

Operator: And ladies and gentlemen, just a reminder: Star One, please, for questions this afternoon.

Jonathan Navarrete: Good next now to Jonathan Navarrette at TD Cowan. Thank you. And we got through everyone.

Speaker Change: And ladies and gentlemen, just a reminder, star one please for questions this afternoon. Go next now to Jonathan Navarrete at TD Cowen.

Jonnathan A. Navarrete: Thank you. And good afternoon, everyone. Just, George, I think you mentioned that the database in Chicago has doubled since December, right? That's right. We're at 100,000. Right, that's good. And could you just let me know what the revenue, even the run rates at the Chicago profit facility right now? Yeah, so the revenue run rates that we, I think I have to get accuracy on that, but I think we are from a GDR perspective.

George Papanier: George, I think you mentioned that the database in Chicago doubled since December, right? That's right. We're in $100,000 now. Right. That's good.

Jonnathan A. Navarrete: Thank you. And good afternoon, everyone. George, I think you mentioned that the database in Chicago has doubled since December , right?

George Papanier: And could you just let me know what aren't the revenue even with our run rates at this cattle and property facility right now? Yeah, so the revenue run rates that we, I think I have to get accuracy on that. But I think we're from a GGR perspective, we're at around 13 million when GGR tables and slots. Thomas, and we have peak performance in NAID, typically from a seasonal perspective. Is Pete June was a little flash, but that's more calendar, and then we continue to do that. Yeah, so I think when you look at us compared to the market, we're continuing to grow. I think we're continuing maybe a number four now in slots, I believe, so we're just continuing the growth.

George T. Papanier: That's right, we're at 100,000 now.

Jonnathan A. Navarrete: Right, that's good. And could you just let me know, what are the revenue, even the run rates at the Chicago profit facility right now?

George T. Papanier: Yeah, so, the revenue run rates that we, we,

Jonnathan A. Navarrete: We're at around 13 million on GDR tables and slots. And, you know, the repeat. We had our peak performance in May, but typically, from a seasonal perspective, peak June was a little flash, but that's more calendar. And then we continue. Yeah, I'm talking to you, G.R.

Speaker Change: I think I have to get accuracy on that, but I think we're from a GGR perspective, we're at around 13 million on GGR tables and slots.

Speaker Change: And, you know, we had our peak performance in May, typically from a seasonal perspective is peak. June was a little flash, but that's more calendar. And then we continued through July .

George T. Papanier: Yeah, so I think when you look at us compared to the market, you know, we're continuing to make, we're continuing to grow. I think we're number two in table games, and we're continuing to maybe a number three in Fox, I believe. So, you know, we're just, we're just continuing to grow. But again, you know, I mentioned earlier that our focus really is on growing the database. We just want to just open up the funnel at the top and get as many people in that database, which gives us the ability to market to, obviously, once the... [inaudible] Got it. And I may have missed it, but anything on Ibiza's run rate?

Speaker Change: One Missed Cell.

Speaker Change: Yeah, I'm talking to you, George. Yes, yeah.

Speaker Change: Yeah, so I think when you look at us compared to the market, you know, we're continuing to grow. I think we're number two in table games, and we're continuing maybe with a number of

George T. Papanier: who are now

Speaker Change: in spots, I believe, so we're just continuing to grow.

George Papanier: But again, I mentioned earlier that our focus really is on growing database. We just want to just open up the funnel at the top and get as many people in that database, which gives us the ability to market to. Obviously, we want to be the permanent opens.

Speaker Change: but again I mentioned earlier that our focus really is on growing database we just want to we just want to just open up the funnel at the top and get as many people in that database which gives us the ability to market to obviously once the

George Papanier: Got it, and I may have missed it, but is there anything on Ivatar run rate? We're not really here at this point.

Speaker Change: The Prominent Opens.

Speaker Change: Got it. And I may have missed it, but anything on Ividar run rate?

George T. Papanier: And lastly, for me, the question is... How much, in terms of EBITDA, did the variety and bridge closure cost the company? Quarter, and can we expect somewhat of a similar impact for the remaining two quarters should the bridge remain closed, or rather congested, for the remaining two quarters? We calculate about $2 million on a quarterly basis right now, so a little over half a million dollars from the David Dahl perspective.

Speaker Change: We're not really here that, you know, this point in time.

George Papanier: And nothing for me is how much in terms of the Ivatar, the variety of bridge closure costs the company this quarter, and can we expect somewhat of a similar impact for their main to quarter should the bridge remain close or rather congested for the remainder of the year. Yeah, we calculate about $2 million on a quarterly basis right now. So a little over half a million dollars in one, from an even dollar perspective. Right, thank you.

Speaker Change: Thank you. Bye. Bye.

Speaker Change: And lastly, for me, it's...

Speaker Change: How much, in terms of EBITDA, did the Rhode Island bridge closure cost the company this quarter? And can we expect somewhat of a similar impact for the remaining two quarters, should the bridge remain closed or rather congested for the remainder of the year?

Speaker Change #105: We calculate about $2 million on a quarterly basis right now, so a little over half a million dollars a month.

Speaker Change: from an Evador perspective.

Colin Mansfield: We'll go next now to Colin Mansfield at CDRE Institutional Research. Hi, everybody. Thanks for taking my question, and congratulations on securing the financing for the Chicago project. Maybe a couple from our side, just on Chicago. I guess the approval process you mentioned that you're going through with the city right now on the new design. What are your expectations for how long that's going to take? Is there anything potentially that could take a while that this could potentially slow down how you're thinking about the cadence of construction? Or is there any risk that the target date of September 2026 for the opening?

Speaker Change: Thank you.

George T. Papanier: All right, thank you. We're going to go next to Colin Mansfield at CBRE. Hi, everybody. Thanks for taking my question and congratulations on securing the financing for the Chicago project. Maybe a couple from our side, just on Chicago.

Speaker Change: We'll go next now to Colin Mansfield at CDRE Institutional Research.

Colin Alexander Mansfield: Hi, everybody. Thanks for taking my question and congratulations on securing the financing for the Chicago project. Maybe a couple...

Colin Alexander Mansfield: You know, I guess the approval process you mentioned that you're going through with the city right now on the new design. What are your expectations for how long that's going to take? You know, is there anything potentially that could take a while that could potentially slow down how you're thinking about the cadence of construction or, you know, is there any risk that the target date of September 2026 for the opening, you know, is there anything with this process that could potentially put that in jeopardy?

Speaker Change: From our side, just on Chicago, you know, I guess the approval process you mentioned that you're going through with the city right now on the new design, what are your expectations for how long that's going to take, you know, is there anything potentially that

Speaker Change #106: It could take a while that this could potentially slow down how you're thinking about the cadence of construction, or is there any risk that the target date of September 2026 for the opening, is there anything with this process that could potentially put that in jeopardy?

Colin Mansfield: Is there anything with this process that could potentially put that in jeopardy?

George Papanier: And let me take a shot at it. Look, obviously the totally new design in the set of circumstances we have to get the specifications and engineering, all the documentation that the Department of Buildings will be able to approve. It has been the new designed additional towers that resonate with the city. I mean, you look at the press; I think there's a consistent degree of support for that. But practically, there are certain things that we can't do until we actually had that approved. But there are with our partners, you know, there's things like certain supplies that have either lonely times or to get going like buying concrete, buying materials, steel, to the degree that you don't have to buy 100%.

Colin Alexander Mansfield: Let me take a shot at it. Look, obviously, it's a totally new design. And under the circumstances, we have to get the specifications and engineering, all the documentation that the Department of Buildings will be able to approve.

Speaker Change: And let me take a shot at it. Look, obviously, it's a totally new design. And in the set of circumstances, we have to get the specifications and engineering, all the documentation that the department of.

George T. Papanier: It has been a new design, additional towers, that has resonated with Citi. Press, I think there's. and we are trying to do everything we can to make sure that we are able to do things in parallel while we're waiting for the, and so the near-term spending may move a little bit to the right. But relative to us, you know, we will open by September 2020. Okay, great. Thanks for the color there.

Speaker Change #100: Buildings will be able to.

Speaker Change: It has been a new design, additional towers, that has resonated with Citi, I mean, if you look at the press, I think there's...

Speaker Change: consistent degree of support for that.

Speaker Change: But practically there are certain things that we can't do until we actually have that approved.

Speaker Change: So, but there are, with our partners, ULPI, you know, there's things like certain supplies that have either long lead times or to get going, like buying concrete, buying materials, steel, to the degree that you don't have to buy 100% first. You can...

George Papanier: First you can say, you know, you can... Do that over time, and we are trying to do every week we can to make sure that we are able to do things in parallel while we're waiting for those approvals. And so the near term spending may move a little bit to the right, but relative to we will open by September 2026.

Speaker Change: You know, you can.

Speaker Change: Do that over time, and we are trying to do everything we can to make sure that we are able to do things in parallel while we're waiting for those approvals.

Speaker Change: and the so the near-term spending may move a little bit to the right but relative to we you know we will open by September 2026

Marcus Glover: Okay, great, thanks for the color there. And then just maybe one modeling question from us of the about 170 million overrestricted cash that you guys disclosed. Can you just remind us how much of that is actually down at the Chicago subsidiary? There was 58 billion in that that got released on five days later because 50 million for the final payment to the Tribune, and then 8 million was accumulated cash coup or interest. Banks actually pay interest these days. And those were released with that. So the 171 would be 58 million dollars less, you know, six days later.

Colin Alexander Mansfield: And then maybe one modeling question from us. Of the about $170 million of restricted cash that you guys disclosed, can you just remind us how much of that is actually down at the Chicago subsidiary? There was $58 million in that that got released five days later because $50 million was the final payment to the Tribune, and then $8 million was accumulated cash coupe or interest banks actually paying, and those were released with that. So the $171 million would be $58 million less, you know, six days later.

Speaker Change #102: Okay, great. Thanks for the color there. And then just maybe one modeling question from us. Of the about $170 million of restricted cash that you guys disclosed, can you just remind us how much of that is actually down at the Chicago subsidiary?

Speaker Change #101: There was $58 billion in that that got released five days later, because $50 million for the final payment to the Tribune, and then $8 million was accumulated.

Colin Mansfield: Okay, great, thanks everybody.

Marcus Glover: Okay, great. Thanks, everybody. Gentlemen, it appears we have no further questions this afternoon.

Speaker Change: You know, six days later.

Speaker Change #104: Okay, great. Thanks, everybody.

Operator: And gentlemen, it appears we have no further questions this afternoon.

Robeson Reeves: I'd like to turn the conference back to you, members of management, for any closing comments. Yeah, so everyone, thank you for joining us again.

Robeson Mandela Reeves: So, everyone, thank you for joining us again. I just want to give a few extra comments. Just as a reminder, we have delivered on the funding that we promised for our Chicago Permanent Casino Resort. We'll continue to diligently deliver our development pipeline, and that includes delivering Roots profitability for North America Interactive, and we'll continue to achieve our core profitability across our CNR and international interactive segment.

Robeson Reeves: I want to give a few extra comments just as a reminder: we have delivered on the funding that we promised for our Chicago permanent casino resort. We'll continue to diligently deliver our development pipeline, and that includes delivering a root profitability from North American interactive. And we'll continue to nail our core profitability across that CNR and international interactive segments. So, great to hear from you all. You'll hear it from us again soon. See you. Bye-bye.

Speaker Change #103: Yeah. So everyone, thank you for joining us again. I just want to give a few extra comments. Just as a reminder, we have delivered on the funding that we promised for our Chicago Permanent Casino Resort.

Speaker Change: We'll continue to diligently deliver our development pipeline, and that includes delivering a route to profitability for North America Interactive.

Robeson Mandela Reeves: So, great to hear from you all. You'll hear from us again soon, and see you. Bye-bye. Thank you, Mr. Reeves. Ladies and gentlemen, that will conclude today's Bally's Corporation second quarter earnings conference call. Again, thanks so much for joining us, everyone.

Operator: Thank you, Mr. Reeves. Ladies and gentlemen, that will conclude today's Valley's Corporation second quarter earnings conference call. Again, thanks so much for joining us, everyone.

Speaker Change #107: Thank you, Mr. Reeves. Ladies and gentlemen, that will conclude today's Bally's Corporation second quarter earnings conference call. Again, thanks so much for joining us, everyone, and we wish you all a great day.

Operator: And we wish you all a great day.