Q3 2024 Rush Street Interactive Inc Earnings Call

Good afternoon. Thank you for attending today's restory interactive third quarter, 2024, Arnie's call. My name is Jay Lan. I'll be a moderator for today. All lives will be muted during the presentation. Push-up the call. What's our opportunity for questions and answers at the end? All now I'd like to turn the conference over to our hosting team.

Thank you, operator and good afternoon. By now everyone should have access to our third quarter, 2024 earnings release. It can be found under the heading financials quarterly results in the investigation of the RSI website at restreepingeractive.com.

Some of our comments before we're looking statements within the meeting of the federal security as well.

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We assume no responsibility for updating any forward-looking statements. Therefore, you should exercise caution, interpreting, and relying on them.

We refer you to our SEC filings for more detailed discussion on the risk of good impact in our future operating results and financial commission.

During the call, we will discuss our nine-gap measures, which we believe can be useful in evaluating the company's operating performance.

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In particular, we would be discussing Adjusted E-Bidder, which we define as net income or loss before interest in contact with depreciation and amortization, share-based compensation, adjustments for certain one-time renown occurring items and other adjustments that are either non-cash or not related to our underlying business performance.

and Reconciliation of these now and get measures so the most directly comparable cat measure is available in our third quarter, 2024 range release and our unbuster deck which is available in the unbuster section of the RSI RedSight at mostreateneractive.com.

For purposes of today's call and thus noted otherwise when discussing profitability, even if, or other income statement measures other than revenue, we're referring to those items on a non-gap adjusted EBITDA basis.

Speaker Change: with the On the College today, we have Richard Schwartz, Chief Executive Officer. We will first provide the opening remarks and then open the call to questions. And with that, I'll turn the call over to Richard.

Richard: Thanks Kyle, good afternoon and welcome to our third quarter 2020 Florida earnings call.

Richard Schwartz: I am pleased to report that we would shape another record breaking quarter, in both revenue and adjusted EBITDA.

For the third quarter we reported revenue of $232 million, up to 37% compared to last year. Had up sequentially for the 15th time during our 16 quarters of being a public company.

are just an e-book I've reached 23 million, which is a seventh consecutive quarter of improving profitability.

in terms of the scale, this represents an increase of over five times from the same period last year.

Consistent with recent trends, we continue to attract new quality players out of the impressive rate, doing so efficiently and maintaining high-player values.

This success is a testament to our unique products and engaging user experience, which sponsors loyal customers and drives growth and profitability.

Additionally, our efficient marketing spend has contributed to this again lead to our bottom line.

In light of these results, we are raising our 2024 revenue guidance for 3% and eBodetic guidance for 24% at the midpoint.

It's worth noting at the midpoint of our EBITDA guidance now 110% higher than what was originally put forward at the beginning of the year. Kyle offers more details in his remarks.

These impressive results underscore our commitment to our long-term strategic objectives, which include being a leader in online gaming across the Americas.

By continuously innovating and enhancing our product offerings, combined with expanding our market presence, we are laying a solid foundation for long-term performance in continued improvements in profitability.

Richard Schwartz: Our focus on technology and product innovation is strategic partnerships and a customer experience. Physicians as well to continue to capitalize on growing opportunities in the online casino and sports spending industry.

We remain dedicated to delivering value to our shareholders while providing a superior gaming experience to our users.

To that end, we also announce today a buyback, about $15 million of our common shares.

The remain highly confident in the opportunity ahead of us for continued top line growth and improved profitability. And we believe this is the right use of our consistently increasing cash generation and existing cash balance.

Looking closer at the results of the quarter, it again paints. He takes your a broad-based growth and success.

in North America, both I, Casino and Schwartz Revenue's grew by over 30%. We continue to see incredible success for our launch in Delaware. Our last in American business, again, produced in press of results.

and we experience better than expected sports holedester in the quarter.

Underpinning all of these results, arc fantastic trends in player counts and player values.

For the quarter North American mouths reached 168,000 up 28% year over year, marking another consecutive quarter of accelerating growth.

Art now in North America increased by 4% to $388. A new record for us, who's going public almost four years ago.

This growth is a testament to our underlying strategic focus on user engagement and retention.

and Ability to improve art now while quickly growing player counts. In Latin America, we continue to experience remarkable growth with our miles increasing year over year by 120 percent.

Richard Schwartz: to 329,000.

Richard Schwartz: This increased high-light detectiveness of our localized strategies and teams and our ability to attract and retain users. Our art model in the region was $39 higher on its sequential basis.

and lower by 9% versus last year.

These trends were directly influenced by the increased new player volumes from the Copa, America and June and July, which drove momentum in active user accounts.

Richard Schwartz: Without overview, let's talk about a team particular markets at context on our results.

R-reven use are continuing to diversify.

in Lafada America and in the U.S. and Canadian markets lost in 2021. Revenue is up a 3% year over year in a third quarter.

The geographic diversification of our business is continuing to progress.

Richard Schwartz: The percentage of revenue generated from markets outside Illinois and Pennsylvania, is now 62% up from 52% during the year of oh quarter. Easily the highest spin is going public.

are expanding margins and increased profitability as a result of this trend.

where we are seeing a higher growth and a more profitable market.

For the second quarter in our row, we've taught nine different markets for the year over year growth of over 50%.

One of those continued rice spots was a state of Delaware.

Performance has been exceptionally strong with our GGR now running an annual rate in the area of $100 million.

This run rate is the result of an increase in almost five times the predecessor operators run rate in I. Casino and it's all successful for having an online sports.

The robust performance in Delaware is a real-time example of the impact of our product and operations teams delivering high-quality gaming experiences.

and our ability to drive substantial revenue growth in established markets.

Delaware continues to be an opportunity to remain very excited about.

Richard Schwartz: yeah

Richard Schwartz: The momentum would be experiencing in Latin American operations continues and even accelerated into the third quarter.

are left in America revenue almost doubled year over year. Coming in just a high one, number cent growth.

Richard Schwartz: Our partnership with multi-medials in Mexico has been instrumental in this success, providing us with valuable local insights, relationships, and an anti-armarket penetration.

Last in America now counts for 16% of our total revenue. Demonstrating its continued importance to our long-term strategic objectives and our commitment to delivering tailored experiences by resonating with local players.

Richard Schwartz: Our marketing efforts continue to yield positive results, during a strong foundation made in previous quarters.

Richard Schwartz: The great results I shared earlier around now, in art and arts, are being driven by our targeted and data driven marketing efforts.

Our campaign is that he effectively leveraged a mix of traditional and digital channels, allowing us to reach a broad audience and attract new users at a very solid base.

Richard Schwartz: In fact, in North America, we once again reduce our cost to choir players. Down by about a third compared to the year ago quarter.

Building on our commitment to product and tech innovation, there are a couple of reasons announcements we've made that I wanted to call out.

During the quarter, we were excited to announce the launch of our enhanced iRustry Wars loyalty program.

The new program was created based on customer feedback, aiming to deliver a more valuable and rewarding experience for our users.

We extended the time for players to retain their loyalty tier and associated benefits.

Gave players increased access to more free promotional events such as Bingo and Flautcher and it's complementary cruise education, exclusive promotions and gifts, access to light, concerts and performing events and more.

We also substantially improved the user interface and importantly the communication of the user interface.

Richard Schwartz: All of the change the line with our player first philosophy, and should continue to draw an industry leading retention and player values.

We also continue to drive innovation on the plaring engagement front.

Labraging a real time for Moshe Engine to provide extra value to our customers. By putting twists on proven, beloved games.

Richard Schwartz: Building and extending on the success of our proprietary games, this is Bingo, Trivia and football squares, we just launched Prop Act. A game changing bonus promotion that combines excitement of collecting sports cards with a thrill of prop dance.

Richard Schwartz: Offering users a unique and engaging way to enhance his force that he experienced with that river.

Richard Schwartz: We are excited because ProPACs, not only adds an extra layer of excitement to watching MBA games, but also offers our user's value in the form of additional opportunity to win and no extra cost to them.

Providing them with a clear incentive to place their single game partly bets with that rivers.

Our strong results will mention continues to be driven by our strategic initiatives and commitment to operational excellence.

Richard Schwartz: are building to track to retain high value players coupled with our innovative product offerings and effective marketing strategies has resulted in robust growth in both revenues and profitability.

Richard Schwartz: We are particularly proud of the progress we've made in diverse finer web news dreams and expanding our market presence both in North America and Latin America.

These accomplishments underscore our dedication to delivering exceptional value to our customers and shareholders.

with that I'll turn the call into the Kyle.

Thanks Richard for the third quarter, revenue was 232.1 million. Marking a 37% increase compared to the same period last year.

Kyle: As you experience during the first half of the year, the growth is balanced across geographies, products, and market managers.

Richard took quickly on the solid sportshold in the third quarter, we had an estimated revenue tailwind of $10 million due to higher than expected hold in sports. Our just even after the third quarter was 23.4 million reflecting a significant increase of over five times from the fire year.

We're contingent of benefit from increasing scale in the business as demonstrated in the strong flow through the earnings and cash flow. Highlighting what we see is a very high quality of earnings.

mentioned, a revenue was again driven by strong growth and our player of his combined with industry-leading player values.

North American miles, we're up 28% and in Latin America, miles we're up 120% and I'm just growth rate in over 3 years and often the significantly stronger base.

We grew first-time depositors in North America and impressively during the cold. And in Latin America set another record for that metric.

This was a conference while also significant we were reducing our cost to acquire the players, as we continue to get more efficient with marketing and as our brand builds.

Maybe most impressive, at the same time we were growing our consistent player base at these higher rates.

We also improved our average player value year over year in North America and sequentially in Latin America.

Something not easy to achieve. All of this builds well for our continued growth in the future in both top line revenue and profitability.

Richard Schwartz: In the third quarter, gross profit margin increased to 34.9%. An improvement of approximately 310 basis points versus the prior year.

Revenue for Market's other than Pennsylvania in Illinois accounted for 62% of revenue during the quarter. Continuing the improvement in our revenue diversity and driving higher revenue growth in our more profitable markets.

Our gross margins should continue to improve over time as this revenue mix continues to improve and we execute on improvements throughout our costs of revenue.

We'll also continue to be very pleased with our approach to marketing. Marketing spend during the quarter was 38.6 million, up 13% compared to the prior year quarter, with cost to acquire players a third lower in North America.

and the great success of Copa in Latin America, a new player acquisition growth, far-off suited our percentage increase in market each month.

As a percentage of revenue marketing the 17% during the quarter, down from 20% in the year ago quarter.

We expect marketing spend to increase the quantity of the poor quarter, as you can continue capitalizing on our ability to acquire players at attractive CPS.

and his always will stay flexible and dynamic with our marketing fund.

Q&A for the third quarter was 19 million up 2% sequentially.

Richard Schwartz: We'll continue to invest in our product development and corporate infrastructure as we scale the business, although we expect to continue to get leverage over this line item as we grow the business.

Richard Schwartz: Turning to the balance sheet, we ended the quarter with 216 million in unrestricted cash and no debt.

and generated the approximate 48 million increase in our cash balance year to date.

Turning to our guidance, with one quarter remaining, we're raising both our full-year revenue and even a guidance for the full year of 2024. We now expect full-year revenue to be between 900 million and 920 million, which increases the mid-point to 910 million, up 30 million from our prior guidance.

I'm now expecting for your EBITDA to be between 82,886 million, which increases the midpoint to 84 million, up to 60 million and 24% from our prior days.

and as a reminder our guidance includes one of those markets that are live as it did.

Richard Schwartz: So with that operator we can open the line for questions.

We'll now begin our question and answer session. If there's time to feel like ask a question, please first start from about one on your telephone keypad.

If you're in a review, you will like to remove that question. Please press star follow by too. Again, to ask a question, it is star one. As our reminder, if you're using a speak of phone, please remove to pick up your handset. Before asking a question.

and I'm a member of the company.

Richard Schwartz: [inaudible]

Hey, it's Greg, guys. That makes you think me.

Richard Schwartz: and question and um...

Solid Quarter, just going just on the US Canada.

Solid User Growth. Can you sort of talk about the LTV to CAC?

You're seeing, you know, it's called the first two months in the football, the promotional environment. Any color you can add there, and then see that you're implementing a buyback.

Can you talk about the reasons or further expand on that, implementing a buyback versus potentially maybe doing a dividend given the liquidity of your shares? Thank you.

Yeah, thanks, Jeff. It's all on your first question.

I'm not going to get into you know.

Two deep on the specifics on each code or each month, but what I can tell you more generally is that First off, we continue to attract new players that really...

Attractive prices, you know that trend started.

Richard Schwartz: going back into last year and it's only gotten better.

Richard Schwartz: This is the year it's gone on and that continued in Q3.

Richard Schwartz: and we're still seeing very good.

Projected LTVs on players, something that's...

Richard Schwartz: That's all good for sure.

Speaker Change: on the Buyback.

The fact is we felt like this was the right time to implement initial buyback program. Obviously, the board, the management team, are always evaluating all the different alternatives for capital. But we felt like a buyback program was the right thing to do. And we really haven't had...

Speaker Change: A point in our history, we've had better visibility into the cash flow prospects and obviously as you've heard today, we're very bullish on the position we're in, I think it just gives us flexibility, return capital to shareholders.

Speaker Change: and this way with also leaving plenty of flexibility for us to execute on new market launches and even new market launches that where there could be multiple at a time and then also consider M&A opportunities or tuck in M&A opportunities.

Speaker Change: Thank you.

Next question comes from Ryan Stiddoll with a company Craig Hollam. Ryan, your mind is not open.

Speaker Change: and I also want to say, yeah, nice execution and press and acceleration of the business here.

Speaker Change: I want to see on cap education in the business is accelerating.

you have your focus areas that are all performing extremely well. You guys, given the cash and increasing cash and balance you business.

Change your thought on potential expansion as he Brazil listed.

on slide seven, but any change in heart there or other markets can as you think involved in Christian competency having the core business today.

Thanks for your comments. Yeah, our...

We're going to direct capital to the highest returns and we're constantly comparing all opportunities. There's certainly exciting ones in Latin America that we've been continuing to evaluate.

you know expect that over time we will be expanding into additional markets in that region as long as well as other.

Speaker Change: Markets in North America that makes sense. We've talked already about a bird I come in online, hopefully in later next year and I was you want to make sure that I think that was pops that we have the ability to act with speed and deliberation to enter those additional markets.

Speaker Change: Thanks, Richard.

New Prop-AX for MBA, another kind of unique customer, loyalty generosity to the guys having your toolbox. But I know it's really, really early there, but any feedback you've received from players and then any metrics you can share maybe on subsequent Paralyne next in place. If it's driving for the player.

Yeah, I think it's a really, really show of insurance and metrics, but what I will share with you is an Ottoman doozy as and we've seen it from the players.

Speaker Change: really enjoying the experience, something completely novel and innovative and something really engaging.

Speaker Change: We have lots of opportunities to really engage with players when they're in the process of having a gold card of a player that's...

at the score of 50 points in a game.

You know they're going to win $10,000 in that Christmas, and for us even other marketing teams are going to be able to promote those experiences in real time. So the feedback from our customer service team has been extremely high, players are responding to it. It's a really elegant solution and it's really a lot of kudos to our team for executing on a very complex project like this that really hasn't combined.

and the player cards with propats in a way that does. And it's a really engaging tool that we think is going to have a long legs ahead of us for the rest of the NBA season.

A next question comes from David Kats with a company Jeffries David, your line is not open.

Thank you very much, hi everyone. Well done.

Speaker Change: um

I just wanted to maybe talk through in a qualitative way, on specific way, you know, next year, right? Because the business does look like it's accelerating, but if I were to just use consensus numbers as a marker.

Speaker Change: Revenue would only grow 8% and EBITDA like 26 but you're kind of putting up more than that. So the question is really, are there any headwinds or any puts in takes or pivot points we should be considering as we think about 20-25?

Speaker Change: Yeah, David, I'll take that one. I appreciate you making it qualitative since you, you know, that we haven't given 25 guidance yet, but I think we can give you some things to think about, you know, if.

If you start with the top of the income statement, this is a growth business.

Every market that we're in is still growing nicely.

We plan to get our fair share of that growth.

I think we've made it clear that we expect gross margins to continue to improve in to next year for the two reasons really being structural cost improvements that we continue to make across the whole business and also favorable revenue mix trends towards.

and more profitable markets are higher growth and more profitable markets.

Speaker Change: and then...

We also intend to get leverage over our marketing and DNA costs, so expecting the revenue to grow faster than the increase in those line items.

So obviously it means improvement, revenue, improvement and profitability that translates into improvement and cash flow next year.

I think the only thing maybe to think about from a top line headwind, if you will, would just be that we'll be lapping Delaware, which launched.

Wright at the end of 2023. Obviously we're still very excited about Delaware. We see great opportunities grow that market ahead, but we will laugh the launch of that.

and I just stood and the follow-up then really needs to be about Delaware. And I suppose we should keep this in a qualitative context too, but despite the fact that it's grown a lot.

But it is a relatively short amount of time. You know what would be the puts and takes for it to grow more.

Wright, despite the fact that it's been a pretty solid start so far or less for that matter.

I'll start in the middle of Kyle's dad on it. As you know we've...

I believe in proud of what we've been able to achieve in Delaware and ultimately that becomes down to its identifying with high quality customers.

and delivering the world-class customer service and a unique experience that really drives those players to want to stay with us. What you've seen is the art mouth and creaf.

Speaker Change: in North America despite.

I'm also increasing our player volumes, which is hard to do both at the same time, like we've been doing in the last several quarters.

and also make a doubt if you retain those customers that are valuable, which we tend to do. You can keep those players that keep adding and coming on new players as we can, that can reach more of them. So we think there's a lot of room ahead for us in Delaware, or the Kyle perhaps you want to share them with detail.

Yeah, I think we talked about it in the prepared remarks but we're close to $100 million annual run rate at this point. So that's obviously very, very solid results.

I think if you looked at other Icasino markets and then you adjust for population and income levels, that would point you to a Delaware market that could be over 200 million in GGR between Icasino and Swartz.

Speaker Change: you know when you look down the road.

That's helpful. Thank you very much

Thanks, everyone.

and next question comes from Chad Binnen with a company McCquarie, Chad, your mind is not open.

afternoon. Thanks for taking my question and nice results as well. I wanted to start with Latin America, so you know exceptional growth in Q3. I know in Q2. You guys talked about really strong first-time depositors.

from the copos in the euros, but I just wanted to ask from a retention standpoint what you've seen given that a lot of those depositors were depositing for a certain event.

Any major differences in terms of how your customers down there are being retained versus the success that you've had up here. Thanks.

Yeah, so I'll start on that one. I think the answer is, part of a continuation of what we talked about in the last call, you know, so our certainly our user count, our monthly average user count in June and July during COPA, we're much higher than that impact it.

Speaker Change: Q2 and Q3 monthly active user figures that we've given. Obviously the goal then is to retain those players, or as many as possible. I think it's pretty amazing that we grew.

at that rate of players.

and kept our art mouth.

Speaker Change: Almost flat.

Speaker Change: I think that part is really impressive.

Speaker Change: I think the other thing that's that's...

Great, without getting too deep into the retention.

you know our October trends.

in terms of your year user growth are just as good as what we saw in August and September. So we haven't seen that dissipate. So that's a really good sign for us and a good sign that we've got a lot of opportunities to continue to grow there.

Thank you, appreciate it. And then for Q4 just asking because you gave guidance, it's been...

Well reported that the hold rates in North America from a sports standpoint have been pretty low below average.

A, can you, you know, comment on that, obviously you're giving guidance today, so we kind of know what happened in October and then be, are there opportunities to?

To post the whole rate, maybe with growth year over year, just given what you've done from a mixed-amp point and driving whole higher for the overall portfolio. Thank you.

Yeah, so, not sure exactly the answer to the back after your question. Let me answer and see if it...

Films what you're looking for here. So I think you're correct that we're giving guidance today and that reflects what we know about what's happened already in October So still still very

Speaker Change: Solid Revenue Growth in Q4 year or year. Maybe just thinking about some of the sequential...

Trends or a year over a year. We do at least for currency sets today. We've got some headwinds on sequential and year over a year basis.

in our nine US markets so that impacts revenue somewhat. Nothing you don't already know, but there's one less NFL week in Q4 this year. And then...

Looking back at Q3, as we mentioned for Paragorex, we had stronger sportshold in the third quarter. And then really specific to your question about Q4 or October, football results have been.

Very, very player friendly. That includes football with the use of soccer down in Colombia. It's actually had similar trends. So I think it's great that we've been able to put forward really strong growth guidance considering that.

Perfect, thanks for that hit on everything. Thanks Kyle.

Thank you.

Speaker Change: and the next question comes from Jordan Bender with the company Citizens, J.N.P. Jordan, your mind is that open?

Jordan Bender: and afternoon everyone. Following up on the Delaware discussion, Kyle, you essentially said that Delaware could double from here, just based off of the GGR metrics. Is there anything to say that there's something you know, market dynamics related or just a single operator model that won't let you or will allow you to kind of get to that doubling of the Delaware market?

Speaker Change: Yeah, so first I'll say you're right what I gave you was really just some mathematical look at comparing other I casino markets, income levels and populations, right? So I think

Speaker Change: The primary thing is...

We've got a great product, it's resonating really, really well.

and there's an opportunity to grow significantly from where we are today.

I don't want to put a timeframe on that number and not necessarily putting that out as a target for us, but I do think it shows that there's a lot of opportunity left for us in the Delaware market.

and then just on the fall of $10 million tailwind in the third quarter, the fair to assume that that's about a $70 million impact to EBITDA on the positive side.

That's probably a little heavy. It obviously depends on...

Speaker Change: where we saw those benefits, because different markets have different levels of margin profitability, but it's probably closer to five or six million in incremental than the seven or eight I think that you mentioned.

Okay, thank you, thanks, quarter.

Speaker Change: Thanks, Jordan.

Next question comes from Bernie McCurton and was a company, Needleman Company. Bernie, your line is that open?

Speaker Change: Dave is a Stefano's Chris following in for Bernie. Thanks for taking our questions.

Speaker Change: I'm sort of asking Illinois, given the recent tax increase, and now there were two months in the NFL season. There's anything you're seeing from operators, anything different there. Thanks.

I think you've seen a little bit of awareness of the higher tax rate. You do that, you see less investment, but we haven't seen anything that quantifies it at this point. I think some platforms are a hard time adjusting.

They are holds in different states, so we haven't seen some of our adjustments that you may see in the future. But I'll take the market continues to be good once we're at this, and I think we're going to see some adjustments over the longer term based on the tax rate adjustments.

and then just wanted to ask on Brazil any updates before the launch in January.

Yeah, well, Brazil is a really long-term and fighting market, and while we appreciate the long-term opportunity that it presents for us.

We continue to take a caution of waiting to your approach as we want to really evaluate the opportunity, relative to all the other opportunities we're all focusing considering.

So I think for this point we're just going to keep monitoring, tracking it and we'll get back when it's something new to share.

Speaker Change: Alright, thanks guys.

Speaker Change: Thanks.

Speaker Change: I'm next question, cause from Dan Brilitzer with the company Wells Fargo. Dan, your line is out open.

Hi, yeah, Jack Sauerberg calling you for getting a new thanks for taking my questions.

Jack Sauerberg: As a result of your promo, the 115 millioners show that you've spent your day of how is best to think about the split between the US and Latin America.

Along those lines, how should we think about that spend in 2025, you know, relative to revenues and maybe a split between you as the Latin America?

As a percentage of revenue, we do spend a high-remout in Latin America, which probably makes sense and probably is obvious given the success we're having with adding players there in the growth profile of those markets.

Jack Sauerberg: in terms of 2025.

and it loaned the lines of what I mentioned earlier.

We expect to get leverage over the marketing line item yet. Hurry.

Get leverage over the marking light on him in 2025.

but we haven't given out a specific amount area. I think the...

Jack Sauerberg: probably something that...

Speaker Change: will impact whether we grow more in.

Latin America or the US.

In 25, or North American 25, is Peru that launched recently as you know and starting to put some money to work there so that'll be an incremental investment.

and Latin America. I'm actually starting here in Q4, but also into 2025. And then it fell bird a launch is later in the year next year that could be an investment for us in North America. So just some things to think about.

Speaker Change: I appreciate the color and just they follow up on the the Illinois question.

How do you think of regular story risks for any other states in 2025 and beyond for the potential risk of higher taxes? And if there are any states you'd like to call out potentially the legalization side for high gaming that you've seen some momentum.

Speaker Change: Yeah, you know, in terms of the tax increases, I don't we don't expect to see and hope it won't spread for the reason obviously is that the impact of tax taxes

Speaker Change: and the increase of the taxes. It really has to be carefully considered because there are going to be some unattended consequences that could impact the industry and employees, our customers.

you know if we're attacking consumers you know as a goal.

The government raising taxes on regulated operators like us really just simply drives more volumes than on regulated sites like the Seeds Pickers, the Seenows, where no one benefits.

Speaker Change: The Rundity particular states that we're going to go on the lemon says, look if I'm gaming legalization, you do see more and more efforts be made in this area, is that G2E, the Trench, and Las Vegas a few weeks ago, and I had more conversations about I'm gaming legalization than I've ever had over 10 years of being here.

We started the company, so I think it was a lot of momentum and desire, but we haven't seen that translate yet to results in the near term, but some of these states could pop and we're just not going to get into business in particular, which ones is, to be honest, you don't have a great track record or what to do in that.

Thanks for watching it.

Speaker Change: Thanks, sir.

Speaker Change: and Q. Again, if you like to ask a question, please press stop follow by one.

Speaker Change: At the time there are no more questions, registered in Q and select the past the conference, back over to our hosting team for closing remarks.

Thank you again for joining us today with a forward update in our progress and we share a fourth quarter and year and results in the new year.

Don't look on the clip today's conference call. Thank you for your participation and enjoy the rest of your day.

Speaker Change: [inaudible]

Speaker Change: [inaudible]