Q3 2025 Boyd Gaming Corp Earnings Call

Speaker #3: Good afternoon and welcome to the Boyd Gaming third quarter , 2020 Earnings Conference . Call . My name is David Stroud , vice president of corporate communications for Boyd Gaming .

David Strow: Good afternoon and welcome to the Boyd Gaming Third Quarter 2025 earnings conference call. My name is David Strow, Vice President of Corporate Communications for Boyd Gaming. I will be the moderator for today's call, which we are hosting on Thursday, October 23, 2025. At this time, all lines are in listen-only mode. Following our remarks, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star, then zero for the operator. Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirsberg, Chief Financial Officer. Our comments today will include statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All forward-looking statements in our comments are as of today's date, and we undertake no obligation to update or revise the forward-looking statements.

Speaker #3: I will be the moderator for today's call , which we are hosting on Thursday , October 23rd , 2025 . At this time , all lines are in .

Speaker #3: Listen only mode . Following our remarks , we will conduct a question and answer session if at any time during this call you require immediate assistance , please press star .

Speaker #3: Then zero for the operator. Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirsberg, Chief Financial Officer.

Speaker #3: Our comments today will include statements that are forward looking statements within the meaning of the private securities Litigation Reform Act , all forward looking statements in our comments are , as of today's date , and we undertake no obligation to update or revise the forward looking statements .

Speaker #3: Actual results may differ materially from those projected in any forward looking statement . There are certain risks and uncertainties , including those disclosed in our filings with the SEC , that may impact our results during our call today , we will make reference to non-GAAP financial measures for a complete reconciliation of historical non-GAAP to GAAP financial measures .

David Strow: Actual results may differ materially from those projected in any forward-looking statement. There are certain risks and uncertainties, including those disclosed in our filings with the SEC, that may impact our results. During our call today, we will make reference to non-GAAP financial measures. For a complete reconciliation of historical non-GAAP to GAAP financial measures, please refer to our earnings press release and our Form 8-K furnished to the SEC today, both of which are available at investors.boydgaming.com. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges and certain expenses. Today's call is being webcast live at boydgaming.com and will be available for replay in the investor relations section of our website shortly after the completion of this call. With that, I would now like to turn the call over to Keith Smith. Keith?

Speaker #3: Please refer to our earnings press release and our Form 8-K furnished to the SEC today, both of which are available at Investors Boyd Gaming.

Speaker #3: We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges and certain expenses. Today's call is being webcast live at Boyd Gaming.

Speaker #3: Com and will be available for replay in the Investor Relations section of our website shortly after the completion of this call . With that , I would now like to turn the call over to Keith .

Speaker #3: Keith .

Speaker #4: Thanks , David , and good afternoon , everyone . The third quarter was another quarter of growth for our company with revenues once again exceeding $1 billion , while EBITDA was $322 million for the quarter .

Keith Smith: Thanks, David, and good afternoon, everyone. The third quarter was another quarter of growth for our company, with revenues once again exceeding $1 billion, while EBITDA was $322 million for the quarter. After adjusting for our recent FanDuel transaction, we continued to deliver revenue and EBITDA growth on a company-wide basis, while margins were consistent with the prior year at 37% as we successfully maintained efficiencies throughout our operations. During the third quarter, play from our core customers continued its long-term growth trend, and we saw further improvements in play from our retail customers. This strength in play drove healthy gaming revenue growth across all three of our property operating segments and more than offset the weakness in the destination business.

Speaker #4: After adjusting for a recent FanDuel transaction , we continued to deliver revenue and EBITDA growth on a company wide basis . While margins were consistent with the prior year at 37% as we .

Speaker #4: Successfully maintained efficiencies throughout our operations during the third quarter play from our core customers continued its long term growth trend , and we saw further improvements in play from our retail customers .

Speaker #4: This strength play drove healthy gaming revenue growth across all three of our property operating segments and more than offset the weakness in destination business across the portfolio.

Keith Smith: Across the portfolio, our results reflect continued broad-based improvements in customer demand, sustained operating and marketing efficiencies, and the success of our capital investments focused on enhancing our property offerings. Now, turning to segment results, our Las Vegas Locals segment posted revenues of $211 million and EBITDA of $92 million for the quarter. Gaming revenues continued to grow during the quarter, driven by strong demand from our Locals customers. We continue to benefit from ongoing growth in play from our core customers, as well as improving trends in play from our retail customers. This growth in gaming revenue was offset by declines in our destination business, primarily at the Orleans.

Speaker #4: Our results reflect continued broad-based improvements in customer demand, sustained operating and marketing efficiencies, and the success of our capital investments focused on enhancing our property offerings.

Speaker #4: Now, turning to segment results. The Las Vegas local segment posted revenues of $211 million and EBITDA of $92 million for the quarter.

Speaker #4: Gaming revenues continued to grow during the quarter , driven by strong demand from our local customers . We continue to benefit from ongoing growth in play from our core customers , as well as improving trends in play from our retail customers .

Speaker #4: This growth in gaming revenue was offset by declines in our destination business , primarily at the Orleans , excluding the Orleans , our local segment delivered year over year growth of 2% in both revenues and EBITDA , with gaming revenue growth in line with the broader local market for the quarter , while margins for the third quarter were consistent with the prior year at 47% , supported by disciplined marketing and operating efficiencies for the broader Las Vegas locals market .

Keith Smith: Excluding the Orleans, our Locals segment delivered year-over-year growth of 2% in both revenues and EBITDA, with gaming revenue growth in line with the broader Locals market for the quarter, while margins for the third quarter were consistent with the prior year at 47%, supported by disciplined marketing and operating efficiencies. For the broader Las Vegas Locals market as a whole, gaming revenue growth was up more than 3% over the last 12 months, reflecting the resilience of the Locals market. The health of the Locals market is supported by solid wage growth throughout the Southern Nevada economy. Through August, average weekly wages were up more than 6% over the trailing 12 months, outpacing the national average.

Speaker #4: As a whole , gaming revenue growth was up more than 3% over the last 12 months , reflecting the resilience of the local market , the health of the local market is supported by solid wage growth throughout southern .

Speaker #4: Throughout the southern Nevada economy through August , average weekly wages were up more than 6% over the trailing 12 months , outpacing the national average over the last ten years .

Keith Smith: Over the last 10 years, the local population has grown at twice the national rate, reaching 2.4 million last year, and during the same timeframe, per capita income in the Las Vegas Valley has grown by more than 5% on an annual basis, while total personal income in Southern Nevada has nearly doubled. An important driver of this growth has been the increasing diversification of the local economy. While hospitality has continued to grow over the past decade and currently represents approximately 25% of the local job market, job gains have been more substantial in other sectors. These include education, health services, transportation, warehousing, and professional and business services sectors. Construction jobs have also remained a steady performer, growing more than 5% since 2019. With more than $10 billion in projects currently underway across the Las Vegas Valley, construction employment should remain healthy well into the future.

Speaker #4: The local population has grown at twice the national rate , reaching 2.4 million last year . And during the same time frame , per capita income in the Las Vegas Valley has grown by more than 5% on an annual basis , while total personal income in Southern Nevada has nearly doubled .

Speaker #4: An important driver of this growth has been the increasing diversification of the local economy . While hospitality has continued to grow over the past decade and currently represents approximately 25% of the local job market , job gains have been more substantial in other sectors .

Speaker #4: These include education , health services , transportation , warehousing , and professional and business services sectors . Construction jobs have also remained a steady performer , growing more than 5% in since 2019 , with more than $10 billion in projects currently underway across the Las Vegas Valley .

Speaker #4: Construction , employment should remain healthy well into the future . And as we head into next year's tax season , we believe that our customers around the country will benefit from the tax bill passed by Congress this summer , including new deductions for tips and overtime and an additional deduction for seniors , as well as a larger standard deduction for all taxpayers .

Keith Smith: As we head into next year's tax season, we believe that our customers around the country will benefit from the tax bill passed by Congress this summer, including new deductions for tips and overtime and an additional deduction for seniors, as well as a larger standard deduction for all taxpayers. In all, the Southern Nevada economy remains resilient and is more diversified than ever, positioning our Las Vegas Locals business for continued success. Next, in our Downtown Las Vegas segment, revenues and EBITDA were in line with the prior year, supported by continued strength in play from our Hawaiian customers. Much like our local segment, growth in gaming revenues was offset by softness in the destination business, including lower hotel revenues and reduced pedestrian traffic along the Fremont Street Experience. Next, our Midwest and South segment achieved its strongest third-quarter revenue and EBITDA performance in three years.

Speaker #4: In all, the Southern Nevada economy remains resilient and is more diversified than ever, positioning our Las Vegas locals business for continued success.

Speaker #4: Next , in our downtown Las Vegas segment , revenues and EBITDA were in line with the prior year , supported by continued strength in play from our Hawaiian customers .

Speaker #4: Much like our local segment, growth in gaming revenues was offset by softness in destination business, including lower hotel revenues and reduced pedestrian traffic along the Fremont Street Experience.

Speaker #4: Next , our Midwest and South segment achieved a strongest third quarter revenue and EBITDA performance in three years . For the quarter , revenues rose 3% to $539 million , while EBITDA grew to $202 million , more than 2% over the prior year .

Keith Smith: For the quarter, revenues rose 3% to $539 million, while EBITDA grew to $202 million, more than 2% over the prior year. Operating margins once again exceeded 37% as we remained disciplined in our cost structure and marketing spend. Growth in the segment was broad-based, including continued gains at Treasure Chest, more than a year after the opening of our new land-based facility there. Similar to our Nevada segments, gaming revenues increased year over year in the Midwest and South, driven by continued growth in play from our core customers and further improvements in play from our retail customers. Next, results in our online segment reflected growth from Boyd Interactive, as well as changes related to our recent FanDuel transaction. Given current trends, we are increasing our guidance for this segment to $60 million in EBITDA for this year.

Speaker #4: Operating margins once again exceeded 37% . As we remain disciplined in our cost structure and marketing spend growth in the segment was broad based , including continued gains of treasure chest more than a year after the opening of our new land based facility , there , similar to our Nevada segments , gaming revenues increased year over year in the Midwest and South , driven by continued growth in play from our core customers and further improvements in play from our retail customers .

Speaker #4: Next results in our online segment reflected growth from Boyd Interactive , as well as changes related to our recent FanDuel transaction . Given current trends , we are increasing our guidance for this segment to $60 million in EBITDA for this year .

Speaker #4: For 2026 , we expect approximately $30 million in EBITDA from this segment . Finally , our managed business had another strong performance with continued growth in management fees from Sky River casino .

Keith Smith: For 2026, we expect approximately $30 million in EBITDA from this segment. Finally, our managed business had another strong performance with continued growth in management fees from Sky River Casino. Demand has remained strong over the three years since Sky River opened, giving us and the Wilton Rancheria great confidence in the growth potential of the property's ongoing expansion. The first phase of this expansion will add 400 slot machines and a 1,600-space parking garage upon completion in the first quarter of next year. Once this first phase is complete, we will begin a second phase that will further enhance Sky River's appeal by adding a 300-room hotel, three new food and beverage outlets, a full-service resort spa, and an entertainment and event center. Upon its completion in mid-2027, we are confident this expansion will further strengthen Sky River's position as one of Northern California's leading gaming and entertainment destinations.

Speaker #4: Demand has remained strong over the three years since Sky River opened , giving us and the Wilton Rancheria tribe Great confidence in the growth potential of the property's ongoing expansion .

Speaker #4: The first phase of this expansion will add 400 slot machines and a 1600 space parking garage . Upon completion . In the first quarter of next year .

Speaker #4: Once this first phase is complete , we will begin a second phase that will further enhance Skyriver appeal by adding 300 room hotel , three new food and beverage outlets , a full service resort , spa and an entertainment and event center .

Speaker #4: On its completion in mid 2027 . We are confident this expansion will further strengthen Skye River's position as one of Northern California's leading gaming and entertainment destinations .

Speaker #4: So, all in all, the third quarter was another quarter of growth for our company across the country. We continue to see strengthening play from our core customers and improvements in play from our retail customers.

Keith Smith: In all, the third quarter was another quarter of growth for our company. Across the country, we continue to see strengthening play from our core customers and improvements in play from our retail customers against the backdrop of consistent and efficient property operations. While the fourth quarter has just started, it is worth noting that the customer trends we saw in the third quarter have continued into October, including improving play from both core and retail customers. Our strong operating performance is supported by the investments we are making throughout our portfolio as we enhance our casino floors, food and beverage outlets, and hotel rooms. Hotel room renovations will be completed early next year at the IP Hotel, and work is set to begin next month on a room renovation project at the Orleans Hotel.

Speaker #4: Against the backdrop of consistent and efficient property operations, and while the fourth quarter has just started, it is worth noting that the customer trends we saw in the third quarter have continued into October, including improving play from both core and retail customers.

Speaker #4: Our strong operating performance is supported by the investments we are making throughout our portfolio . As we enhance our casino floors , food and beverage outlets and hotel rooms , hotel room renovations will be completed early next year at the IP , and work is set to begin next month on a room renovation project at the Orleans .

Speaker #4: We are also continuing our modernization project at Suncoast with the complete transformation of our casino floor , as well as enhanced meeting and public spaces .

Keith Smith: We are also continuing our modernization project at Suncoast Casino, with a complete transformation of our casino floor as well as enhanced meeting and public spaces. While we are dealing with ongoing construction, we are encouraged that Suncoast Casino's performance is in line with the prior year, further increasing our confidence in the long-term growth potential of this investment. Following completion of our Suncoast Casino renovations around the middle of next year, we plan to begin a similar project at the Orleans Hotel as we look to further enhance our offerings at this important property. In addition to these property enhancements, we are continuing work on our growth capital projects with an annual budget of $100 million per year. In September, we completed our expanded meeting and convention center in Ameristar St. Charles.

Speaker #4: While we are dealing with ongoing construction , we are encouraged that Suncoast Performance is in line with the prior year . Further increasing our confidence in the long term growth potential of this investment .

Speaker #4: Following completion of our Suncoast renovations around the middle of next year , we plan to begin , begin a similar project at the Orleans .

Speaker #4: As we look to further enhance our offerings at this important property, in addition to these property enhancements, we are continuing work on our growth capital projects with an annual budget of $100 million per year. In September, we completed our expanded meeting and convention center at Ameristar St. Charles by nearly tripling the size of its meeting space.

Keith Smith: By nearly tripling the size of its meeting space, Ameristar St. Charles can now accommodate more and larger events. This will create incremental visitation from new customers as well as groups who had previously outgrown our space. We are already seeing great interest with strong bookings in the fourth quarter and into the next several years. In Southern Nevada, construction is progressing on Cadence Crossing Casino, our newest Las Vegas Locals property. Scheduled to open in the second quarter of 2026, Cadence Crossing Casino will replace our existing Joker's Wild Casino with a modern and appealing gaming and entertainment facility. This investment will allow us to better serve the adjacent community of Cadence, one of the fastest-growing master-planned communities in the nation. We are well-positioned to keep pace with continued residential growth in the area, with future plans for a hotel, additional casino space, and more non-gaming amenities.

Speaker #4: Ameristar can now accommodate more in larger events . This will create incremental visitation from new customers as well as groups who had previously outgrown our space .

Speaker #4: We are already seeing great interest with strong bookings in the fourth quarter and into the next several years in Southern Nevada. Construction is progressing on Cadence Crossing, our newest Las Vegas locals property, scheduled to open in the second quarter of 2026.

Speaker #4: Cadence crossing will replace our existing Joker's Wild casino with a modern and appealing gaming and entertainment facility . This investment will allow us to better serve the adjacent community of cadence , one of the fastest growing master planned communities in the nation , and we are well positioned to keep pace with continued residential growth in the area .

Speaker #4: With future plans for hotel , additional casino space , and more non-gaming amenities . Next , in Illinois , we are continuing the design and planning work for our new gaming facility at Paradise and expect to start construction in late 2026 , pending regulatory approval .

Keith Smith: Next, in Illinois, we are continuing the design and planning work for our new gaming facility at Paradise and expect to start construction in late 2026, pending regulatory approval. Finally, development is well underway on our most significant growth opportunity, our $750 million resort development in Norfolk, Virginia. Pending regulatory approval, we are just a few weeks away from opening our transitional casino at the site. While we look forward to reaching this key milestone, our focus remains on the development of our permanent resort scheduled to open in November of 2027. This market-leading resort experience will feature a 65,000 square foot casino, a 200-room hotel, eight food and beverage outlets, live entertainment, and an outdoor amenity deck.

Speaker #4: Finally , development is well underway on our most significant growth opportunity . Our $750 million resort development in Norfolk , Virginia , pending regulatory approval .

Speaker #4: We are just a few weeks away from opening our casino at the site , and while we look forward to reaching this key milestone , our focus remains on the development of our permanent resort scheduled to open in November of 2027 .

Speaker #4: This market leading resort experience will feature a 65,000 square foot casino , two in a room hotel , eight food and beverage outlets , live entertainment and an outdoor amenity deck .

Speaker #4: In addition to offering the highest quality gaming experience in the market , we will have the most convenient location for much of the 1.8 million residents of the Hampton Roads region , as well as the 15 million tourists who visit nearby Virginia Beach each year .

Keith Smith: In addition to offering the highest quality gaming experience in the market, we will have the most convenient location for much of the 1.8 million residents of the Hampton Roads region, as well as the 15 million tourists who visit nearby Virginia Beach each year. In all, our capital investments are delivering strong returns for our company, enhancing our competitiveness and supporting our long-term growth. At the same time, our substantial free cash flow and strong balance sheet allow us to continue returning capital to our shareholders. During the third quarter, we repurchased $160 million in stock and paid $15 million in dividends. This year, we have returned a total of $637 million to our shareholders. Share repurchases and dividends are important components of our balanced approach to capital allocation. We intend to maintain a pace of $150 million per quarter in share repurchases, supplemented by our recurring dividend.

Speaker #4: In all , our capital investments are delivering strong returns for our company , enhancing our competitiveness and supporting our long term growth . At the same time , our substantial free cash flow and strong balance sheet allow us to continue returning capital to our shareholders .

Speaker #4: During the third quarter, we repurchased $160 million in stock and paid $15 million in dividends. So far this year, we have returned a total of $637 million to our shareholders.

Speaker #4: Share repurchases and dividends are important components of our balanced approach to capital allocation . We intend to maintain a pace of $150 million per quarter in share repurchases , supplemented by our recurring dividend .

Speaker #4: In closing, we are pleased to deliver another quarter of strong performance as we continue to execute on our strategy and create long-term value for our shareholders.

Keith Smith: In closing, we are pleased to deliver another quarter of strong performance as we continue to execute on our strategy and create long-term value for our shareholders. During the quarter, we continue to benefit from strong growth in play from our core customers as well as improving play from retail. Our capital investment program is delivering excellent returns and positioning us well for future growth. Our teams across the country are successfully maintaining efficiencies and delivering consistent property operating results. We continue to return substantial capital to our shareholders while maintaining the strongest balance sheet in our company's history. Our success is a reflection of the dedication and contributions of thousands of Boyd Gaming team members across the country. We are grateful for all that they do for our company and our guests. Thank you for your time today. I would now like to turn the call over to Josh.

Speaker #4: During the quarter, we continued to benefit from strong growth in play from our core customers, as well as improving play from retail.

Speaker #4: Our capital investment program is delivering excellent returns and positioning us well for future growth . Our teams across the country are successfully maintaining efficiencies and delivering consistent property operating results .

Speaker #4: If we continue to return substantial capital to our shareholders while maintaining the strongest balance sheet in our company's history , our success is a reflection of the dedication and contributions of thousands of Boyd Gaming team members across the country .

Speaker #4: We are grateful for all that they do for our company and our guests. Thank you for your time today. I would now like to turn the call over to Josh.

Speaker #4: Thanks , Keith and .

Josh Hirsberg: Thanks, Keith, and good afternoon, everyone. During the third quarter, play from our core customers continued its long-term growth trend, while retail customers' play also continued to improve. Our management teams did their part, remaining focused on operating efficiently and generating returns from our capital investments. As a result, excluding the effects of our recent FanDuel transaction, we continue to deliver growth in revenue and EBITDA despite weakness in our destination business. We are continuing our capital investment program to enhance our guest experience while expanding our opportunities for growth. During the third quarter, we invested $146 million in capital, bringing year-to-date capital expenditures to $440 million. We now expect total capital expenditures for this year to be approximately $600 million.

Speaker #5: Good afternoon, everyone. During the third quarter, play from our core customers continued its long-term growth trend, while retail customers' play also continued to improve.

Speaker #5: Our management teams did their part , remaining focused on operating efficiently and generating returns from our capital investments . As a result , excluding the effects of our recent FanDuel transaction , we continued to deliver growth in revenue and EBITDA despite weakness in our destination business .

Speaker #5: We are continuing our capital investment program to enhance our guest experience while expanding our opportunities for growth . During the third quarter , we invested $146 million in capital , bringing year to date capital expenditures to $440 million .

Speaker #5: We now expect total capital expenditures for this year to be approximately $600 million . Our capital plans include approximately $250 million in recurring maintenance capital and additional $100 million in maintenance capital related to hotel room renovation projects .

Josh Hirsberg: Our capital plans include approximately $250 million in recurring maintenance capital, an additional $100 million in maintenance capital related to hotel room renovation projects, $100 million in growth capital, which includes the recently completed meeting and convention space at Ameristar St. Charles and the ongoing Cadence Crossing Casino development here in Las Vegas, and then finally $150 million or so for our casino development in Virginia. Our growth capital projects remain on budget and on schedule. In terms of our shareholder capital return program, we paid a quarterly dividend of $0.18 per share during the quarter, totaling $15 million. Also, during the quarter, as Keith mentioned, we repurchased $160 million in stock, acquiring 1.9 million shares at an average price of $84.05 per share.

Speaker #5: $100 million in growth capital , which includes the recently completed meeting and convention space at Ameristar Saint Charles and the ongoing cadence Crossing development here in Las Vegas .

Speaker #5: And then finally , $150 million or so for our casino development in Virginia . Our our growth capital projects remain on budget and on schedule in terms of our shareholder capital return program , we paid a quarterly dividend of $0.18 per share during the quarter , totaling $15 million .

Speaker #5: Also during the quarter , as Keith mentioned , we purchased , we we repurchased $160 million in stock , acquiring 1.9 million shares at an average price of $84.05 per share .

Speaker #5: Actual shares outstanding at the end of the quarter were 78.6 million shares and 11% reduction . In our share count since the third quarter of last year .

Josh Hirsberg: Actual shares outstanding at the end of the quarter were 78.6 million shares, an 11% reduction in our share count since the third quarter of last year. Since we began our capital return program in October 2021, we have returned more than $2.5 billion in the form of share repurchases and dividends, while reducing our share count by 30%. Going forward, we intend to maintain repurchases of approximately $150 million per quarter, supplemented by our regular quarterly dividend. This equates to more than $650 million per year, or more than $8 per share. With strong free cash flow, low leverage, and ample liquidity, we are maintaining the strongest balance sheet in our company's history while continuing to invest in our business and return capital to shareholders. As you may recall, during the quarter, we closed on our transaction to sell our 5% stake in FanDuel.

Speaker #5: Since we began our capital return program in October 2021, we have returned more than $2.5 billion in the form of share repurchases and dividends, while reducing our share count by 30%.

Speaker #5: Going forward , we intend to maintain repurchases of approximately $150 million per quarter , supplemented by our regular quarterly dividend . This equates to more than $650 million per year , or more than $8 per share , with strong free cash flow , low leverage , and ample liquidity .

Speaker #5: We are maintaining the strongest balance sheet in our company's history . While continuing to invest in our business and return capital to shareholders .

Speaker #5: As you may recall , during the quarter , we closed on our transaction to sell our 5% stake in FanDuel . We initially used proceeds from that transaction to repay our term loan .

Josh Hirsberg: We initially used proceeds from that transaction to repay our term loan A balance and borrowings outstanding under our revolver. As a result, our total leverage ratio declined from 2.8 times at the end of the second quarter to 1.5 times at the end of the third quarter. Our lease-adjusted leverage declined from 3.2 times to 2.0 times. Finally, beginning with this quarter's financial results, we have provided the tax pass-through amounts as a separate line item on our GAAP income statement. Excluding the tax pass-through amount for this quarter, company-wide margins for the third quarter this year would have been 510 basis points above the margin we reported.

Speaker #5: A balance and borrowings outstanding, outstanding under our revolver. As a result, our total leverage ratio declined from 2.8 times at the end of the second quarter to 1.5 times at the end of the third quarter.

Speaker #5: Our lease adjusted leverage declined from 3.2 times to 2.0 times . Finally , beginning with this quarter's financial results , we have provided the tax pass through amounts as a separate line item on our GAAP income statement , excluding the tax pass through amount for this quarter , company wide margins for the third quarter this year would have been 510 basis points above the margin .

Speaker #5: We reported . In conclusion , with strong play from our core customer and improving trends among our retail customers , efficient operations , robust free cash flow , and a strong balance sheet .

Josh Hirsberg: In conclusion, with strong play from our core customer and improving trends among our retail customers, efficient operations, robust free cash flow, and a strong balance sheet, we have outstanding flexibility to continue executing our strategy for creating long-term value for our shareholders. With that, I'd like to turn the call to David to open the call for questions. David?

Speaker #5: We have outstanding flexibility to continue executing our strategy for creating long term value for our shareholders . With that , I'd like to turn the call to David to open to open the call for questions .

Speaker #5: David .

Speaker #3: Thank you . Josh . We will now begin our question and answer session . If you would like to ask a question , please press star .

David Strow: Thank you, Josh. We will now begin our question-and-answer session. If you would like to ask a question, please press star, then one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to withdraw your request, please press star, then two. If you are using a speaker phone, please use your handset when asking your question. We will pause for a moment while we compile our list of questioners. Our first question comes from Barry Jonas of Truist Securities. Barry, please go ahead.

Speaker #3: Then one on your touch tone phone . You will hear a three tone prompt acknowledging your request . Should you wish to withdraw your request , please press star then two .

Speaker #3: If you are using a speakerphone , please use your handset when asking your question . We will pause for a moment while we compile our list of questioners .

Speaker #3: Our first question comes from Barry Jonas of Truist. Barry, please go ahead.

Speaker #6: Hey guys , wanted to start on Vegas . Can you talk about what you see as the main drivers of the weakness you're seeing in the destination business ?

Barry Jonas: Hey, guys. I want to start on Vegas. Can you talk about what you see as the main drivers of the weakness you're seeing in the destination business? Just help us feel comfort that you know you think the non-destination business won't see any of that related weakness. Thank you.

Speaker #6: And just help us feel comfort that, you know, you think the non-destination business won't see any of that related weakness.

Speaker #6: Thank you .

Speaker #4: Maybe starting with the second half of your question , I think as we noted , we've seen strong play from our core customers .

Keith Smith: I'm going to be starting with the second half of your question. I think, as we noted, we've seen strong play from our core customers. As we look at the database here and the source of our revenue here in Las Vegas, our Locals customers are performing extremely well, and our core customers are growing extremely well. The shortfall really was all about the destination business. It's been kind of widely reported and talked about. How long that continues, we'll all have to see. We have seen, as we look at our forward 90-day bookings in our hotels here in Las Vegas, improvements, still soft, but certainly better results than we saw three months ago. Have we turned a corner? Hard to say, but the 90-day booking results certainly look better than they did three months ago.

Speaker #4: And as we , you know , look at the the database here and the source of our revenue here in Las Vegas . You know , our locals customers are performing extremely well .

Speaker #4: And our core customers are growing extremely well . The shortfall really was all about the destination . Business has been kind of widely reported and talked about , you know , how long that continues .

Speaker #4: You know, we'll all have to see. We have seen, as we look at our kind of forward 90-day bookings in our hotels here in Las Vegas.

Speaker #4: We've seen improvements still soft , but certainly better results than we saw three months ago . So have we turned the corner ? Hard to say , but the 90 day booking results certainly look better than they did three months ago .

Speaker #5: And Barry , one thing I would add to Keith's remarks is when we , you know , pretty much the impact of the destination business , as we said in our remarks , are focused on the Orleans .

Josh Hirsberg: Yeah, and Barry, one thing I would add to Keith's remarks is when we, you know, pretty much the impact of the destination business, as we said in our remarks, are focused on the Orleans. When you separate the Orleans from the rest of the business, you see a couple of things going on. You see growth in gaming revenues throughout the remainder of the portfolio. You see growth in overall revenues. You see growth in EBITDA. You see consistency in margins. I think you know we see, and the gaming revenue kind of is growing in line with the overall market. I think we feel pretty good about the underlying customer trends overall. It's just one aspect of the business that we're trying to deal with.

Speaker #5: So, when you separate the Orleans from the rest of the business, you see a couple of things going on. You see growth in gaming revenues throughout the remainder of the portfolio.

Speaker #5: You see growth in overall revenues . You see growth in EBITDA . You see consistency in margins . So I think , you know , we see and the gaming revenue kind of is growing in line with the overall market .

Speaker #5: So I think we feel pretty good about the underlying customer trends overall . It's just one aspect of the business that we're trying to deal with .

Speaker #5: And and in fact , you know , when you look at the segment's performance , you could really attribute the EBITDA decline in Q3 all to the Orleans because it was down even more than what we're seeing in the segment for the quarter .

Josh Hirsberg: In fact, you know, when you look at the segment's performance, you could really attribute the EBITDA decline in Q3 all to the Orleans because it was down even more than what we're seeing in the segment for the quarter.

Speaker #5: So .

Speaker #6: Got it . That's really helpful . And then just as a follow up , you know , we're starting to see some M&A deals coming .

Barry Jonas: Got it. That's really helpful. Just as a follow-up, you know we're starting to see some M&A deals come about. Curious if you could share your thoughts on the M&A pipeline, the environment, either in terms of buying whole assets or opcos. Thank you.

Speaker #6: Curious if you could share your thoughts on the M&A pipeline, the environment in terms of buying whole assets or options? Thank you.

Speaker #4: Look , we obviously have a fairly successful track record of of M&A . You know , based on a disciplined strategy of making sure it's the right asset in the right market at the right price .

Keith Smith: Yeah, look, we obviously have a fairly successful track record of M&A, you know, based on a disciplined strategy of making sure it's the right asset in the right market at the right price. We continue to look at it. We certainly note that a few things have traded recently. I don't know that we're, you know, necessarily seeing more pitch books across our desk, but we certainly pay attention and monitor opportunities. You know, for the right opportunity, we're certainly prepared to dig in. Other than that, I'm not sure we have a whole lot to comment on.

Speaker #4: And so we continue to to look at it . We certainly note that a few things have traded recently . I don't know that we're you know , necessarily seeing more pitch books across our desk .

Speaker #4: But we're certainly pay attention to monitor opportunities . And , you know , for the right opportunity . We're certainly prepared to dig in .

Speaker #4: But other than that, I'm not sure we have a whole lot to comment on.

Speaker #6: Great. Thank you so much.

Barry Jonas: Great. Thank you so much.

Speaker #7: Yep .

Keith Smith: Yep.

Speaker #3: Thank you . Our next question comes from Steve Wieczynski of Stifel . Steve , please go ahead .

David Strow: Thank you. Our next question comes from Steven Wieczynski of Stifel. Steven, please go ahead.

Speaker #8: Yeah . Hey guys . Good afternoon . So Keith or Josh , if we think about the Midwest and South properties , I mean , those results were really solid .

Steven Wieczynski: Yeah. Hey, guys. Good afternoon. Keith or Josh, if we think about the Midwest and South properties, I mean, those results were really solid, came in much better than we were expecting. If you think about that portfolio, wondering if the trends you witnessed there were pretty much, you know, broad-based or there were markets or pockets of strength versus other markets. I guess just trying to figure out if certain markets are kind of outperforming other markets. Obviously, you know, you guys called out Treasure Chest, so I guess excluding Treasure Chest.

Speaker #8: Came in much better than we were expecting. So if you think about that portfolio, I'm wondering if the trends you witnessed there were pretty much, you know, broad-based, or if there were markets or pockets of strength versus other markets. I guess I'm just trying to figure out if certain markets are outperforming other markets.

Speaker #8: And obviously , you guys called out Treasure Chest . So I guess excluding treasure chest .

Speaker #4: I think when we look across that portfolio that comprises some 17 properties , it was generally broad based . Look , there's always 1 or 2 that don't perform maybe quite as strong at any given quarter , but it generally was broad based , strong results .

Keith Smith: I think when we look across that portfolio that comprises some 17 properties, it was generally broad-based. Look, there's always one or two that don't perform maybe quite as strong in any given quarter, but it generally was broad-based strong results. We called out Treasure Chest because it's interesting to us and very positive that it continues to grow, even after anniversarying its opening. Josh, I don't know if you have anything to add.

Speaker #4: We called out Treasure Chest because it's , you know , interesting to us and very positive that it continues to grow even , you know , even after anniversary , it's opening .

Speaker #4: So Josh don't know if you have anything to add , really .

Speaker #5: Keith , I think that covers .

Steven Wieczynski: Not really, Keith. I think that covers it.

Speaker #7: It .

Speaker #8: Okay . And then Keith or Josh , a little bit of a bigger picture question , but wondering if you kind of take a step back and look at your Vegas locals assets .

Barry Jonas: Okay, and then Keith or Josh, a little bit of a bigger picture question, but wondering if you kind of take a step back and look at your Las Vegas Locals assets. How do you think they're positioned today from a, you know, from a CapEx perspective? What I mean is, do you think the majority of your assets in that market are in a pretty good spot relative to your peers in that region? Or is it something where you guys might have to spend a little bit more across your portfolio over the next couple of years to keep up with some of that newer supply? I heard your comment about Orleans and Suncoast there.

Speaker #8: How do you think they're position today from a from a CapEx perspective ? I mean , you know , what I mean is , do you think the majority of assets in that market are in a pretty good spot relative to your peers in that region ?

Speaker #8: And, you know, is it something where you guys might have to spend a little bit more across your portfolio over the next couple of years to keep up with some of that newer supply?

Speaker #8: And I heard your comment about Orleans and Suncoast there .

Speaker #4: Right . So look , we've been talking about the renovation work we're doing at the Suncoast for , you know , over the last year or so .

Keith Smith: Right. We've been talking about the renovation work we're doing at the Suncoast Casino for over the last year or so. That has been, I think, a very positive investment for us as you know, we're not even fully through it yet, and we're seeing performance that's in line with the prior year. That gives us confidence that this will be a successful investment. The Orleans Hotel needs a little bit of an updating also. It's an important asset for us. Other than that, I think our portfolio of properties here in Las Vegas are well-positioned. We're looking at a number of restaurant projects just as part of our overall capital plan to make sure the properties remain competitive. It's not significant capital, but it's important capital to be competitive.

Speaker #4: And , and so that has been , I think , a very positive investment for us is , you know , we're not even fully , fully through it yet .

Speaker #4: And we're seeing, you know, performance that's in line with the prior year. So that gives us confidence that this will be a successful investment.

Speaker #4: Look , the Orleans needs a little bit of an updating . Also . It's an important asset for us . Look , other than that I think our our portfolio of properties here in Las Vegas are , well positioned .

Speaker #4: We're looking at a number of restaurant projects just as part of our overall capital plan to make sure the properties remain competitive . It's not significant capital , but it's an important , important capital to be competitive .

Speaker #4: So, you look at our slot floors, and I would put them on par with anybody's in the market and probably better than most.

Keith Smith: You look at our slot floors, and I would put them on par with anybody's in the market and probably better than most. I think we feel pretty good with the exception of, once again, wanting, needing to make, I think, an important investment in the Orleans Hotel to make sure it's competitive for the long term.

Speaker #4: And so I think we feel pretty good with the exception of once again needing to make , I think , a , an important investment in the Orleans to make sure it's competitive for the long term .

Speaker #8: Okay . Gotcha . Thanks , guys . Appreciate it .

Barry Jonas: Okay, gotcha. Thanks, guys. Appreciate it.

Speaker #3: Thank you. Our next question comes from David Katz of Jefferies. David, please go ahead.

David Strow: Thank you. Our next question comes from David Katz of Jefferies. David, please go ahead.

Speaker #9: Evening . Thanks for taking my question . So I just wanted to get your updated thoughts on , you know , the investments that you're making internally in the portfolio and how you're thinking about returns .

David Katz: Thanks for taking my question. I just wanted to get your updated thoughts on the investments that you're making internally in the portfolio and how you're thinking about returns, the timing to those returns or hurdle rates. It'll help us think about forecasting out into the future. What's the return process after we think about the earning potential on them?

Speaker #9: The timing to those returns or hurdle rates . And , you know , just it'll help us think about forecasting out into the future .

Speaker #9: But what's the return process? And after we think about the earnings potential on them.

Speaker #7: Yeah .

Speaker #5: Hey , David . Josh I'll take it . And then . Keith jump in and add anything . You know , generally I think kind of for good rule of thumb and modeling purposes .

Josh Hirsberg: Yeah. Hey, David, Josh. I'll take it and then Keith, jump in and add anything. Generally, I think kind of for good rule of thumb and modeling purposes, we generally think of kind of a 15% to 20% kind of cash-on-cash type of return. You know, we certainly achieved that with Treasure Chest. I think we're seeing the early signs of achievement with that, with the meeting space at Ameristar St. Charles. The next one up will be Cadence, which is like a $60 million investment. You know, that'll be in that. We fully expect that property, once it comes online, to generate incremental EBITDA above what we're getting today from the current Joker's Wild facility that would generate that return. After that, I think we're more dependent on regulatory approval for Paradise, but we're excited about that opportunity. Good rule of thumb is that 15% to 20%.

Speaker #5: We generally think of kind of.

Speaker #7: A .

Speaker #5: 15 to 20% kind of cash on cash type of return . And so , you know , we certainly achieved that with treasure Chest .

Speaker #5: I think we're seeing the early signs of achievement with that , with the meeting space at Ameristar Saint Charles . The next one up will be cadence , which is like a $60 million investment .

Speaker #5: So , you know , that'll be in that . We we fully expect .

Speaker #7: That .

Speaker #5: Property once it comes online to generate incremental EBITDA over and above what we're getting today from the current Joker's wild facility that would generate that return .

Speaker #5: And then after that , I think we're more dependent on regulatory approval for Paradise . But we're excited about that opportunity . So good rule of thumb is that 15 to 20% , we've been fortunate enough to to kind of meet or exceed that on the projects that we've announced to date .

Josh Hirsberg: We've been fortunate enough to kind of meet or exceed that on the projects that we've announced to date. We have, as we've tried to condition the market to think about kind of a pipeline of these projects, and we'll continue to kind of vet or choose the ones that have the highest return potential throughout. A lot of the stuff around Suncoast, most of the hotel renovations, even the Orleans, will be in our maintenance capital budgets. As Keith mentioned, the early signs at Suncoast are, we're seeing new customers in the building. We're seeing people visit more frequently, and we're encouraged by those types of investments, even though they kind of qualify in our book as maintenance capital. I hope that kind of gives you some color.

Speaker #5: We have , as we've tried to condition the market , to think about kind of a pipeline of these projects . And , you know , we'll continue to kind of kind of vet or choose the ones that have the highest return potential throughout a lot of the stuff around Suncoast , most of the hotel renovations , even the Orleans will be in our maintenance capital budgets .

Speaker #5: But as Keith mentioned , you know , the early signs that Suncoast are you know , we're seeing new customers in the building .

Speaker #5: We're seeing people visit more frequently, and so we're encouraged by those types of investments, even though they kind of qualify in our book as maintenance capital.

Speaker #5: So I hope that kind of gives you some color .

Speaker #9: It does . If I can just follow up and clarify when when we're thinking about the Orleans , you know , because it's in the maintenance budget , you know , we aren't necessarily sort of holding it to the same , you standard or thinking about its earnings power longer term .

John DeCree: It does. If I can just follow up and clarify, when we're thinking about the Orleans, because it's in the maintenance budget, we aren't necessarily sort of holding it to the same standard or thinking about its earnings power longer term in the same way with that 15% or 20%, right?

Speaker #9: In the same way with that 15 or 20% . Right .

Speaker #5: Yeah , I think that's right . Because it gets to be a blend of maintenance and capital and growth , and it's just hard to kind of distinguish between , you know , kind of what that project is in more maintenance or is it more growth .

Josh Hirsberg: Yeah, I think that's right because it gets to be a blend of maintenance and capital and growth, and it's just hard to kind of distinguish between, yeah, you know, kind of what that project is, is it more maintenance or is it more growth? I think that's why we put it in maintenance, really.

Speaker #5: So I think that's why we put it in maintenance , really .

Speaker #9: I gotcha , thank you very much .

John DeCree: I got you. Thank you very much.

Speaker #5: Sure .

Josh Hirsberg: Sure.

Speaker #3: Thank you . Our next question comes from Brent Montour , a Barclays . Brent , please go ahead .

David Strow: Thank you. Our next question comes from Brandt Montour of Barclays. Brandt, please go ahead.

Speaker #10: Hello everybody . Thanks for taking my question . So first question is just a clarification about the Orleans project for next year , which you mentioned is that I mean , you know , I imagine your hotel rooms , you mentioned a few things .

Chad Beynon: Hello, everybody. Thanks for taking my question. First question is just a clarification about the Orleans Hotel project for next year, which you mentioned. Is that, I mean, you know, I imagine your hotel rooms, you mentioned a few things. Is that something we should consider, potentially some disruption impact? I know that it's got easy comps here and there's a couple of different things going on in the market that's affecting that property. How do you think about that property into next year?

Speaker #10: Is that something we should consider? Some potentially disruptive impact? I know that it's got easy comps here, and there are a couple of different things going on in the market that are affecting that property.

Speaker #10: So how do you think about that next year ?

Speaker #5: So, you know, I think it's a little early to try to figure out kind of disruption. I don't think our view would be that at the beginning of a project like that, if we're even able to get it started in the second half of next year.

Josh Hirsberg: I think it's a little early to try to figure out kind of disruption. I don't, I think our view would be that at the beginning of a project like that, if we're even able to get it started in the second half of next year, it'd be more limited in terms of the disruption. Once we understand the actual program scope and the timing, we can provide better color on that. Our management teams at Suncoast have done a very good job to manage through the disruption to date at that property, and it's been significant, and that construction activity continues. We're learning how to manage those processes. Each one will be unique and different. To date, we've been pretty good at managing through it at the Suncoast. No doubt it is affecting our performance in some way.

Speaker #5: It'd be more limited in terms of the disruption. Once we understand the actual program scope and the timing, we can provide better color on that.

Speaker #5: We've been very impressed with how our management teams at Suncoast have done a good job of managing through the disruption to date at that property, and it's been significant.

Speaker #5: And and that construction activity continues . So we're learning how to manage that . Those processes , each one will be unique and different .

Speaker #5: But to date we've been pretty good at managing through it . At the Suncoast , no doubt it's it is affecting our performance in some way .

Speaker #5: But the fact that it is , like Keith said , in line with prior year at this point , that that's pretty encouraging .

Josh Hirsberg: The fact that it is, like Keith said, in line with prior year at this point, that's pretty encouraging. At this point, we wouldn't be calling out expectations for disruption related to Orleans until we have better clarity on timing and the full scope of the project. Keith, I don't know if you want to add to that.

Speaker #5: So I think we at this point , we wouldn't be calling out expectations for disruption related to Orleans and until we have a better clarity on timing and the full scope of the project .

Speaker #5: Keith, I don't know if you want to add to that.

Speaker #4: No , I think just tagging on to what Josh said , as you're about 20 , 26 and thinking about the Orleans . Yeah , I wouldn't anticipate anything significant .

Keith Smith: No, I think just tagging on to what Josh said, as you're thinking about 2026 and thinking about the Orleans, yeah, I wouldn't anticipate anything significant. As we begin to have more clarity on the timing of all of that and what's going to take place first and second, and when we end up getting to "the middle of the casino," which, yes, we'll have some disruption as we get into those types of things, we'll be able to update you. At this point, as you're modeling out 2026, I wouldn't anticipate anything.

Speaker #4: You know , as we begin to have more clarity on the timing of all of that and what's going to take place first and second , and , you know , when we end up getting to , quote unquote , the middle of the casino , which , yes , we'll have some disruption as we get into those types of things , you know , we'll be able to update you at this point as you're modeling out 2026 .

Speaker #4: I wouldn't anticipate anything .

Speaker #10: Okay , great . That's helpful . Just a quick second question about Midwest and South . How would you describe the promotional environment across your markets ?

Chad Beynon: Okay. Great. That's helpful. Just a quick second question about Midwest and South. How would you describe the promotional environment across your markets? Any sort of changes quarter over quarter, or has it been pretty consistent from competitors?

Speaker #10: Any sort of changes quarter over quarter, or has it been pretty consistent from competitors?

Speaker #4: Well , there's several in several markets . You know , there there have been competitors who've been , you know , stepping on the gas , so to speak , with respect to marketing , spend and be being more aggressive .

Keith Smith: In several markets, there have been competitors who have been stepping on the gas, so to speak, with respect to marketing spend and being more aggressive. We have generally remained very disciplined. It is reflective in our margins that remain consistent year to year. While we may be up just a tick, just a little bit overall, once again, it is highly efficient, highly productive. They are highly efficient, highly productive dollars reflected, and we're able to grow revenue. We're able to grow EBITDA. We're able to maintain margins. We are seeing some enhanced marketing by our competitors, but we're not responding. Frankly, some of the enhanced marketing that we're doing is in relation to declines in destination business, not in relation to what our competitors are doing.

Speaker #4: We have generally remained very disciplined . It is reflective in our margins that remain consistent year to year . And , you know , while we may be up just a tick , just a little bit overall , once again , it is highly efficient , highly productive or highly efficient , highly productive .

Speaker #4: Dollar's reflected in we're able to grow revenue . We're able to grow EBITDA and we're able to grow and maintain margins . So we are seeing some enhanced marketing by our competitors .

Speaker #4: But we're not responding . Frankly . Some of the enhanced marketing that we're doing is in relation to declines in destination business , not in relation to what our competitors are doing .

Speaker #10: Great . Thanks everyone .

Chad Beynon: Great. Thanks, everyone.

Speaker #3: Thank you. Our next question comes from Ben Chaikin of Mizuho. Ben, please go ahead.

David Strow: Thank you. Our next question comes from Benjamin Chaiken of Mizuho. Ben, please go ahead.

Speaker #11: Hey , thanks for taking my questions on the Suncoast Renovation . You mentioned , you know , in line with the prior year , a few times , but I would I would think that there was still some disruption .

Barry Jonas: Hey, thanks for taking my question. On the Suncoast Casino renovation, you mentioned, you know, in line with the prior year a few times, but I would think that there was still some disruption. To the extent there was, could you quantify that impact in Q3 and then maybe how you're thinking about Q4, even if just anecdotally? Thanks.

Speaker #11: So to the extent there was , could you quantify that impact ? And in three . Q and then maybe how you're thinking about for Q even if just just anecdotally , thanks .

Speaker #4: Yeah , I'd love to , but it's really difficult to quantify the disruption . You know , look , when we say was in line with prior year , you know , revenue and EBITDA perspective , I think that says it all .

Keith Smith: Yeah, I'd love to, but it's really difficult to quantify the disruption. You know, look, when we say it was in line with prior year, you know, revenue and EBITDA perspective, I think that says it all. There's clearly disruption. We have fewer slots on the floor today than we did a year ago because we're in the middle of the casino. There are a lot of walls up. There's ceiling work being done. It is disruptive, and it will continue to be disruptive. If you were to walk into the building today, we have a temporary front desk because we're doing work around the front desk area. To date and through Q3, and we'd expect it to be through Q4, things are in line with the prior year. Our customers are hanging in there with us.

Speaker #4: There's clearly disruption . We have fewer slots on the floor today than we did a year ago , because we're in the middle of the casino .

Speaker #4: There are a lot of walls up. There's ceiling work being done, so it is disruptive and will continue to be disruptive.

Speaker #4: If you were to walk into building today , we have a temporary front desk because we're doing work around the front desk area .

Speaker #4: But to date, and through Q3, we'd expect it to be through Q4; you know, things are in line with the prior year.

Speaker #4: Our customers are, you know, hanging in there with us. The management team is doing a great job of taking care of our guests.

Keith Smith: The management team is doing a great job of taking care of our guests. The guests have had very, very strong positive reactions to what we've unveiled thus far. Everything's working, but hard to quantify.

Speaker #4: The guests have had very, very strong, positive reactions to what we've unveiled thus far, and so everything's working. But it's hard to quantify.

Speaker #11: Okay , understood . And then you've got a large expansion at Sky River , I believe that opens early next year . 1QI believe understanding you earned management fees here .

Barry Jonas: Okay. Understood. You've got a large expansion at Sky River, I believe, that opens early next year, Q1, I believe. Understanding you earn management fees here, is there anything we need to watch out for in Q4 in terms of construction just ahead of that opening?

Speaker #11: Is there anything we need to watch out for in Q4 in terms of construction? Just ahead of that opening.

Speaker #4: From a construction standpoint , everything is on the outside of the building . And so the really isn't any impact to , you know , on the negative side to the ongoing construction or quote unquote , the opening , whenever that happens , sometime early next year , you know , it's a parking garage , along with some added casino space that will house the added slots .

Keith Smith: From a construction standpoint, everything is on the outside of the building. There really isn't any impact, on the negative side, to the ongoing construction or the opening whenever that happens sometime early next year. It's park and garage along with some added casino space that will house the added slots. The second phase that I described, which includes a hotel tower and some more restaurants, also is on the outside of the building. There will be no immediate impact or construction disruption from that.

Speaker #4: The second phase that I described, which includes a hotel tower and small restaurants, is also on the outside of the building.

Speaker #4: And so there'll be no immediate impact or construction disruption from that .

Speaker #11: Thanks .

Barry Jonas: Thanks.

Speaker #3: Thank you . Our next question comes from Steve Pizzella of Deutsche Bank . Steve , please go ahead .

David Strow: Thank you. Our next question comes from Steven Pizzella of Deutsche Bank. Steven, please go ahead.

Speaker #12: Good evening . Thanks for taking my question . Just curious , as we think about early next year , can you share any expectations you might have for a benefit from the tax bill ?

Benjamin Chaiken: Good evening. Thanks for taking my question. Just curious, as we think about early next year, can you share any expectations you might have for a benefit from the tax bill?

Speaker #5: Yes, Steve. I mean, it's a question we get asked quite a bit. I don't think we've really found a way that we're comfortable with to kind of estimate the overall benefit from that.

Josh Hirsberg: Yeah, Steve. I mean, it's a question we get asked quite a bit. We've not really found a way that we're comfortable to kind of estimate the overall benefit from that. There's several elements to it, and I think Keith mentioned them in his remarks, ranging from tax-on-tips to certain higher standard deductions and credits for seniors. I think ultimately, we come away thinking it's just incremental benefit to us overall, but we have not quantified it in terms of revenue and EBITDA.

Speaker #5: We , you know , there's several elements to it from and I think Keith mentioned in his remarks , ranging from tax on tips to certain higher standard deductions and credits for seniors .

Speaker #5: I think, ultimately, we come away thinking it's just incremental benefit to us overall, but we have not quantified it in terms of revenue and EBITDA.

Speaker #12: Okay , great . Thank you .

Benjamin Chaiken: Okay, great. Thank you.

Speaker #3: Our next question comes from John Decree of CBRE . John , please go ahead .

David Strow: Our next question comes from John DeCree of CBRE. John, please go ahead.

Speaker #13: Hi , Josh . Hi , Keith . Good afternoon . Hey ,

Chad Beynon: Hi, Josh. Hi, Keith. Good afternoon.

Keith Smith: Hey.

Speaker #5: Jon .

John DeCree: John?

Speaker #13: Josh , Keith , I wanted to ask if you could provide a little color on kind of how the quarter played out and maybe the cadence month to month .

Chad Beynon: Josh or Keith, I wanted to ask if you could provide a little color on kind of how the quarter played out, maybe the cadence month to month. We kind of use the state GGR data to help us, but July and August looked pretty strong. September, maybe a little bit more mixed. Any color you could give us on how the quarter played out, particularly in the Midwest and South regions.

Speaker #13: You know , we kind of use the state data to help us . But July and August looks pretty strong . September maybe a little bit more mixed .

Speaker #13: So any color you could give us on kind of how the quarter played out , particularly in the Midwest and South regions .

Speaker #4: I think as we look across our portfolio , it was fairly steady . You know , you have to take into account , like in September , where the holiday fell different and therefore we got a little bit bigger benefit technically in August than we did in September .

Keith Smith: I think as we look across our portfolio, it was fairly steady. You have to take into account, like in September, where the holiday fell different, and therefore we got a little bit bigger benefit technically in August than we did in September. That's over the course of a 10-day period. It flips in one month versus the other. When we look at kind of core trends in the business week to week, not a lot of fluctuation. I don't know that I have anything else to add other than that.

Speaker #4: But , you know , that's over the course of a ten day period . It flips in one month versus the other . But when we look at kind of core trends in the business week to week .

Speaker #4: Not a lot of fluctuation, not a lot of fluctuation. So, no, I don't have anything else to add other than that.

Speaker #13: That's that's great Keith . Thank you . And then maybe I know this one's difficult to kind of track given the limited data , but I'm curious if you could give us a little bit more color again in the Midwest .

Chad Beynon: That's great, Keith. Thank you. Maybe I know this one's difficult to kind of track given the limited data, but I'm curious if you could give us a little bit more. Again,

David Strow: In the Midwest and South, specifically on the retail play, some of the better trends you're seeing there. Is that kind of year-over-year growth in kind of spend? You know, it's more customers come in the door. If you have any guesses, there's a number of theories, but what might be driving that uptick in retail play?

Speaker #13: And South , specifically on the retail play , some of the better trends you're seeing there is that kind of year over year growth in kind of spend , you know , more customers come in the door and if you have any guesses , a number of theories , but kind of what might be might be driving that uptick in retail play .

Speaker #4: So it's a trend that has actually been going on for a couple of quarters now. We've been talking about it, and it continued through the third quarter.

Keith Smith: It's a trend that actually has been going on for a couple of quarters now. We've actually been talking about it, and it continued through the third quarter. With the improvements kind of increasing, so to speak, I think we're seeing generally on the rated side increases in frequency and increases in spend. Both ADT or spend are going up and frequency is increasing, which are positive trends. Josh, I don't know if there's anything else to add.

Speaker #4: You know , with the improvements kind of increasing , so to speak . I think we're seeing generally on the rated side , you know , increases in frequency and increases in spend .

Speaker #4: So both ADT or spend are going up in frequencies increasing , which are positive trends . Josh I don't know if there's anything else to add .

Speaker #5: Yeah I would just add you know , just to clarify for everyone retail is two buckets . It's the lower end of the rated .

Josh Hirsberg: Yeah, I would just add, you know, just to clarify for everyone, retail is two buckets. It's the lower end of the rated. That's what Keith was just talking about in terms of spend and frequency. Then there's the unrated component as well. We can kind of understand what's going on with the lower end of the rated piece. What's interesting as a group is the unrated business has also been improving sequentially over time as well. It's actually been a big driver of the retail component. Both the low end of the retail rated piece that we know about and the unrated segment have both been kind of in lockstep improving year over year as we've moved through this year, and it's been a consistent trend. It's been very interesting to watch.

Speaker #5: That's what Keith was just talking about in terms of spend and frequency . And then there's the unrated component as well . So we can kind of understand what's going on with the lower end of the of the rated piece .

Speaker #5: What's interesting is a group is the unrated business has also been improving sequentially over time as well . It's actually been a driver of the retail component .

Speaker #5: So you know , both the low end of the retail rated piece that we that we know about and the unrated segment have both been kind of in lockstep , improving year over year as we've moved through this year .

Speaker #5: So and it's been a a consistent trend . It's been very interesting to watch .

Speaker #13: Sounds good . Thanks , Josh . Thank you Keith .

David Strow: Sounds good. Thanks, Josh. Thank you, Keith.

Speaker #5: Sure .

Josh Hirsberg: Sure.

Speaker #4: Yes .

Barry Jonas: Yes.

Speaker #3: Thank you . Our next question comes from Dan Pollitzer of JP Morgan . Dan , please go ahead .

David Strow: Thank you. Our next question comes from Daniel Politzer of JPMorgan. Daniel, please go ahead.

Speaker #14: Hey good afternoon everyone . Thanks for taking my questions . I was wondering , maybe we can walk through the fourth quarter . It seems like there's a few moving pieces there , so maybe just to get some clarity .

Steven Wieczynski: Hey, good afternoon, everyone. Thanks for taking my questions. I was wondering if maybe we can walk through the fourth quarter. It seems like there's a few moving pieces there. To get some clarity, I think Tunica is closing in November. The Norfolk, I think there's a temporary casino that opens also in November. I don't know if you gave it, I don't think you gave an update for managed and other, but that would help. Any impact from the cybersecurity incident in the quarter. Thanks.

Speaker #14: I think Tunica is closing in November in Norfolk. I think there's a temporary casino that opens also in November, and then I don't know if you gave.

Speaker #14: I don't think you gave an update for Managed and Other, but then also that would help. But then, any impact from the cybersecurity incident in the quarter?

Speaker #14: Thanks .

Speaker #4: I think as you think about Tunica , you know , you should expect obviously a fairly negative , negligible impact . I wouldn't adjust your your models for anything related to that or for Norfolk for that matter .

Keith Smith: I think as you think about Tunica, you should expect, obviously, a fairly negligible impact. I wouldn't adjust your models for anything related to that or for Norfolk, for that matter. We've talked in previous calls about this as a very small, modest, temporary facility, and our focus really is on the permanent. You assume that this will be a break-even as you think about the fourth quarter or even next year. As you think about the cyber event, once again, not much we can say other than what was in the 8K, which is it did not have any impact to our business operation. We've got cyber insurance to backstop us. There was a third question in there. I lost a fourth, I lost track of.

Speaker #4: We've talked in previous calls about this is a very small , modest temporary facility . And our focus really is on the permanent .

Speaker #4: And so you assume that this will be a break even as you think about the fourth quarter , even next year , as you think about the cyber event , once again , not much we can say other than what was in the 8-K , which is it did not have any impact to our business operation .

Speaker #4: And , you know , we've got cyber insurance to backstop us . There was a third question in there . I lost a fourth .

Speaker #4: I lost track of .

Josh Hirsberg: The managed and other.

Speaker #14: The managed .

Speaker #4: I'll let you answer that .

Keith Smith: I'll let you answer that.

Speaker #5: So manage another . I think , you know , the key for managing other . It's going to be a pretty stable business in Q4 relative to when you think about the trends of this year , just because , you know , the business is operating at or very near capacity , and then once it gets the incremental slots early next year , that's in the quarters .

Josh Hirsberg: Managed and other, I think the key for managed and other, it's going to be a pretty stable business in Q4 relative to when you think about the trends of this year, just because the business is operating at or very near capacity. Once it gets the incremental slots early next year, that's in the quarters following that, I think, is where we'll start to see the benefit of that. Eventually, from the expansion of the hotel and meeting space in probably mid.

Speaker #5: Following that , I think , is where we'll start to see the benefit of that . And then eventually from the expansion of the hotel and meeting space in mid , probably mid 27 , 2027 .

Keith Smith: 2027.

Josh Hirsberg: 2027. I think for managed and other for Q4, it'll be very similar to what you've seen in the quarters of the earlier quarters of this year.

Speaker #5: So, I think for managing others for Q4, it will be very similar to what you've seen in the earlier quarters of this year.

Speaker #5: So .

Speaker #14: Got it. And then just for my follow-up, I don't think you paid the taxes in the quarter on the FanDuel stake sale.

David Strow: Got it. Just for my follow-up, I don't think you paid the taxes in the quarter on the FanDuel stake sale. When can we expect that? Along with that, on the tax front, the one big beautiful bill, is there any impact or, you know, offset you could get from that that may be applied here?

Speaker #14: When can we expect that ? And then along with the on the tax front , the one big beautiful bill , is there any impact or you know , offset you could get from that that that may be applied here .

Speaker #5: Not much of an offset. The more than likely the payment will occur sometime in the first quarter of next year.

Josh Hirsberg: Not much of an offset. More than likely, the payment will occur sometime in the first quarter of next year.

Speaker #14: Thanks so much .

David Strow: Thanks so much.

Speaker #5: Yep .

Josh Hirsberg: Yeah.

Speaker #3: Thank you. Our next question comes from Stephen Grambling of Morgan Stanley. Stephen, please go ahead.

David Strow: Thank you. Our next question comes from Steven Grambling of Morgan Stanley. Steven, please go ahead.

Speaker #15: Hey, thank you. I was hoping you could dig into the balance sheet a little bit. Just how are you thinking about the optimal leverage of the business, particularly if M&A opportunities maybe don't come to fruition?

David Katz: Hey, thank you. I was hoping you could dig into the balance sheet a little bit. Just how are you thinking about the optimal leverage of the business, particularly if M&A opportunities maybe don't come to fruition? Could we see that leverage tick back up, or what would you be looking to do in terms of optimizing the balance sheet longer term?

Speaker #15: Could we see that leverage tick back up, or what would you be looking to do in terms of optimizing the balance sheet longer term?

Speaker #5: Yeah , Steve . So you know , that's so before the FanDuel transaction , our leverage was about 2.8 times as and our leverage target was around two and a half times long term post .

Josh Hirsberg: Yes, Steve. Before the FanDuel transaction, our leverage was about 2.8 times, and our leverage target was around 2.5 times long term. As a result of the FanDuel transaction, which happened in late July, early August, our leverage is, as I stated in my remarks, around 1.5 times. I think, based on just the capital plans that we have now, primarily related to Virginia coming up, the capital related to the permanent of Virginia, our leverage will tick up over time. It'll go back up to around probably in the next year and a half or so to around 2.5 times. I think it's odd to talk about your optimal leverage being, at least for us, it's odd for optimal leverage to be above where a target above where we are. I think that it doesn't, it's not something we strive to achieve given where we are today.

Speaker #5: As a result of FanDuel transaction , which happened in late July early August . Our leverage is , as I stated in my remarks , around one and a half times , I think based on just the capital plans that we have now primarily related to Virginia coming , you know , the capital related to the permanent of Virginia , our leverage will tick up over time .

Speaker #5: It'll go back up to around, probably in the next year and a half or so, to around two and a half times, I think you know.

Speaker #5: It's odd to talk about your optimal leverage being, at least for us. It's odd for optimal leverage to be above where a target, above where we are.

Speaker #5: But I think that , you know , it doesn't . It's it's not a it's not something we strive to achieve given where we are today to the extent that we have opportunities .

Josh Hirsberg: To the extent that we have opportunities, I guess the way I would say it, in other words, we're not trying to hit the target just because we're at 1.5 times and we want to be at our target leverage. It could be that our leverage remains at 1.5 times over time. We don't think that's probably the right leverage, but we don't have anything that warrants increasing our leverage at this point. We will continue to think through this and continue to be kind of prudent on how we think about it. It's kind of like we were in a good place and doing everything we were doing at 2.5 times. We happened to get a big windfall. We're 1.5 times, and that doesn't really change the way we think about anything that we were doing before.

Speaker #5: I guess the way I would say it, in other words, we're not trying to hit the target just because we're at one and a half times and we want to be at our target leverage.

Speaker #5: It could be that our leverage remains at one and a half times over time. We don't think that's probably the right leverage, but we don't have anything that warrants increasing our leverage at this point.

Speaker #5: And so, you know, we'll continue to think through this and continue to be kind of prudent on how we think about it.

Speaker #5: But, you know, it's kind of like we were in a good place and doing everything we were doing at two and a half times.

Speaker #5: We happened to get a big windfall for one and a half times, and that doesn't really change the way we think about anything that we were doing before.

Speaker #5: If opportunities come along, if we decide to buy back more shares or return more capital, then that'll be just part of our thought process that we develop over time.

Josh Hirsberg: If opportunities come along, if we decide to buy back more shares or return more capital, then that'll be just part of our thought process that we develop over time. Until then, we'll be running the business between 1.5 and 2 times, and it'll gradually tick up as a result of our capital plans and the plans we have in place today. Keith, I don't know if there's anything you want to add to that.

Speaker #5: But until then , we'll be running the business between one and a half and two times , and we'll gradually tick up as a result of our capital plans and the plans we have in place today .

Speaker #5: Keith, I don't know if there's anything you want to add to that.

Speaker #4: No . Look , I think what Josh was alluding to is , you know , first , it's only been less than 90 days since we've received the payment .

Keith Smith: No, look, I think what Josh was alluding to is, first, it's only been, it's less than 90 days since we've received the payment and leverage has been pushed down to 1.5. We want to take a long-term view, be thoughtful about what to do with the current leverage, how best to position the company. Could be M&A, could be other things, could tick back up. We don't have an answer for you right now other than we understand it and we're having thoughtful discussions about where that should be. I'm sure we'll have more to talk to you about in future quarters, but nothing really to say right now.

Speaker #4: And leverage has been , you know , pushed down to to one and a half . And we want to take a long term view , be thoughtful about what to do with the leverage , how best to position the company could be M&A , could be other things could tick back up .

Speaker #4: And so we don't have an answer for you right now other than , you know , we understand it . And you know , we're having thoughtful discussions about , you know , where that should be .

Speaker #4: I'm sure we'll have more to talk to you about in future quarters , but nothing really to say right now . .

Speaker #15: That all makes sense . If I can sneak one unrelated follow up in , you know , as we look at the locals market and you talked about this 6% wage growth , there seems like it's about as wide as I've seen it relative to the ggr growth .

David Katz: That all makes sense. If I can sneak one unrelated follow-up in, you know, as we look at the locals market, and you talked about this 6% wage growth there, it seems like it's about as wide as I've seen it relative to the GGR growth for that market in aggregate. Do you think that there's a lead lag here, or is there anything else that you would point out that's maybe creating that wider gap versus history? Thanks.

Speaker #15: For that market in aggregate , do you think that there's a lead lag here , or is there is there anything else that you would point out that's maybe creating that wider gap versus history ?

Speaker #15: Thanks .

Speaker #5: Yeah . So Steve , I think that like I mean , it's a good observation , but I think it you perhaps at least in our business , the impact of the destination business is shown invisible on the income statement .

Josh Hirsberg: Yeah. Steve, I think that, I mean, it's a good observation, but I think, at least in our business, the impact of the destination business is shown and visible on the income statement when you look at hotel revenues year over year. You can look at that, see they were down about $5 million. That destination business is a significant amount of hotel room nights. While it's not primarily at the Orleans Hotel, it affected really every property in Las Vegas and outside of Las Vegas to some degree. There is F&B, there's banquet business that's highly profitable to us, and there's a significant amount of gaming revenue associated with that business. It's a very profitable business to us. While it's very difficult to estimate the impact, I think the reality is that that's probably what's creating that gap.

Speaker #5: When you look at hotel revenues year over year , you can look at that and see they were down about $5 million , but that destination business is a significant amount of hotel room nights .

Speaker #5: While it's primarily at the Orleans, it really affected every property in Las Vegas and outside of Las Vegas to some degree.

Speaker #5: And there's the fab. The banquet business is highly profitable to us, and there's a significant amount of gaming revenue associated with that business.

Speaker #5: So it's very profitable business to us . And while it's very difficult to estimate the impact , I think the reality is , is that that's probably what's creating that gap .

Speaker #5: There's wage growth that we're seeing show up in our business in terms of a stronger local customer . But if you had backed up and said , okay , we had that wage growth and destination business , you would see probably a healthy gaming revenue growth that would mirror maybe what your expectations were .

Josh Hirsberg: There's wage growth that we're seeing show up in our business in terms of a stronger local customer. If you had backed up and said, "Okay, we had that wage growth and destination business," you would see probably a healthy gaming revenue growth that would mirror maybe what your expectations were. That's how I think about it, at least.

Speaker #5: So that's how I that's how I think about it , at least .

Speaker #15: That's helpful. Thank you.

David Katz: That's helpful. Thank you.

Speaker #3: Thank you. Our next question comes from David Hargreaves of Barclays. David, please go ahead.

David Strow: Thank you. Our next question comes from David Katz of Barclays. David, please go ahead.

Speaker #16: Hi . So in terms of Hawaii , I think you said revenue was was steady . I'm wondering about headcount and and volumes .

John DeCree: Hi. In terms of Hawaii, I think you said revenue was steady. I'm wondering about headcount and volumes. How are things there?

Speaker #16: How are things there .

Speaker #4: Specifically coming out of Hawaii?

Keith Smith: Specifically coming out of Hawaii?

Speaker #16: Yes. Well, downtown.

John DeCree: Yes, downtown.

Speaker #4: Look , you know , downtown volumes on the street are down and that's frankly driven by visitation . Las Vegas because there's a strong , strong correlation between visitor volumes downtown and visitor volumes to Las Vegas .

Keith Smith: Look, you know, Downtown Las Vegas volumes on the street are down, and that's frankly driven by visitation to Las Vegas because there's a strong, strong correlation between visitor volumes downtown and visitor volumes to Las Vegas. Visitation on the street is down, which is what kind of impacted what we call a destination business in the downtown area for us. Kind of our core market, which is the Hawaiian market, performed, you know, normally, but, you know, we felt softness in the destination business. We felt softness from lack of tourism on the street.

Speaker #4: And so visitation on the street is down , which is what kind of impacted , we call it destination business in the downtown area .

Speaker #4: For us , you know , kind of our core market , which is the Hawaiian market performed , you know , normally and but , you know , we felt softness in the destination business .

Speaker #4: We felt softness from the lack of tourism on the street.

Speaker #16: I see . And then with respect to the Tunica closure , I'm just wondering if there's , you know , just leaving the building and , and leaving town something that maybe happens with the gaming equipment .

John DeCree: I see. With respect to the Tunica closure, I'm just wondering if there's, you know, just leaving the building and leaving town, something that maybe happens with the gaming equipment. Did you try to sell that property? Curious as to what happened there.

Speaker #16: Did you try to sell that property? Curious as to what happened there?

Speaker #4: I think I think the way to think about , the closure of Tunica , first of all , when we're all done with this , you know , the site will be scraped clean .

Keith Smith: I think the way to think about, you know, the closure of Tunica, first of all, when we're all done with this, the site will be scraped clean. We'll take everything down. We've already found homes for the equipment and all the recoverable assets, so to speak, in the building. The property had gotten to a point where EBITDA was fairly small and the level of capital maintenance capital required to maintain it at our standards was growing. Frankly, there was not going to be a good return on that capital investment to maintain that building to our standards because we do have standards as to how we want our buildings to look and feel and what we want our guests to experience.

Speaker #4: We'll take everything down . We've already found homes for the equipment and , you know , all the the recoverable assets , so to speak , in the building .

Speaker #4: You know , the property had gotten to a point where EBITDA was fairly small and the level of of capital maintenance , capital required to maintain it at our standards , you know , was growing .

Speaker #4: And frankly , there was not going to be a good return on that capital investment to maintain that building or standards , because we do have , you know , standards as to how we want our buildings to look and feel and what we want our guests to experience .

Speaker #4: And so , you know , we just looking at looking at the data , looking at the maintenance capital that we're going to be required and the current level of EBITDA and where the market is , it just made sense to close the building down , not a decision .

Keith Smith: Looking at the data, looking at the maintenance capital that was going to be required, and the current level of EBITDA and where the market is, it just made sense to close the building down. Not a decision we came to lightly, but it's a decision we came to. Once again, we will be able to reuse a lot of the gear and a lot of the equipment, sell off some stuff that we don't have use for. Everything will be scraped clean. It'll be turned back into just raw land, and we'll attempt to dispose of the land.

Speaker #4: We came to this decision lightly, but it's a decision we came to. Once again, we will be able to reuse a lot of the gear and a lot of the equipment, and sell off some stuff that we don't have use for.

Speaker #4: Everything will be scraped clean. It'll be turned back into just raw land, and we'll attempt to dispose of the land.

Speaker #16: Last one . Thank you . I really applaud your conservatism with the balance sheet . If we look at your properties that are that are leased , are you happy with the coverage of interest and rent at this point , as you are with your leverage , how do you feel about the rent coverage picture ?

John DeCree: Thank you. I really applaud your conservatism with the balance sheet. If we look at your properties that are leased, are you happy with the EBITDA coverage of interest and rent at this point? As you are with your leverage, how do you feel about the rent coverage picture?

Speaker #5: Yeah , I think we're happy with it . And our landlord's happy with it . Quite honestly , they don't have a corporate guarantee , but they really don't need one .

Josh Hirsberg: Yeah, I think we're happy with it, and our landlord's happy with it, quite honestly. They don't have a corporate guarantee, but they really don't need one given the coverage there. Everything's a happy partnership there.

Speaker #5: Given the coverage there . So everything's a happy partnership . There .

Speaker #16: Great. Thank you so much.

John DeCree: Great. Thank you so much.

Speaker #3: Our last question comes from Chad Beynon of Macquarie. Chad, please go ahead.

David Strow: Our last question comes from Chad Beynon of Macquarie. Chad, please go ahead.

Speaker #17: Hi. Good afternoon, Josh and Keith. Thanks for taking my question. The first one is on the opening or start of Missouri sports betting.

Chad Beynon: Hi, good afternoon. Josh and Keith, thanks for taking my question. First one on the opening or start of Missouri sports betting. I know you have a partnership with Fanatics. I believe it might be the first with them. I know that includes some of their branded retail sports books at your property. Can you maybe talk about anything you're willing to disclose in terms of the relationship and then maybe future opportunities with this company given their ascension on market share that we've been able to track? Thank you.

Speaker #17: I know you have a partnership with fanatics . I believe it might be the first with them . And I know that includes some of their their branded retail sports books at your property .

Speaker #17: So, could you maybe talk about anything you're willing to disclose in terms of the relationship and then maybe future opportunities with this company, given their ascension in market share that we've been able to track?

Speaker #17: Thank you .

Speaker #4: Yeah . So you're right . We have two properties in Missouri Ameristar Kansas City , Ameristar Saint Charles , and both of them received , you licenses , as did fanatics yesterday when the Missouri Gaming Commission issued issued licenses .

Keith Smith: Yeah, so you're right. We have two properties in Missouri, Ameristar Kansas City and Ameristar St. Charles. Both of them received, you know, licenses as did Fanatics yesterday when the Missouri Gaming Commission, you know, issued licenses, so people could be prepared to open the 1st of December. It is our first relationship with Fanatics, and whether or not that expands, always hard to tell. It's a strong relationship thus far. We know some of the folks in that organization, so we have a good relationship there. We'll see, once again, how it develops and what other opportunities exist to, you know, take that relationship further. Nothing really to report other than that at this point.

Speaker #4: So people could be prepared to open on the 1st of December. It is our first relationship with Fanatics, and whether or not that expands is always hard to tell.

Speaker #4: It's a strong relationship thus far . We know some of the folks in that organization , so we have a good relationship . There , and we'll see once again how it develops and what other opportunities exist to , you know , take that , take that relationship further .

Speaker #4: Nothing really to report other than that at this point.

Speaker #17: Okay , great . And then in terms of some of the near-term , I guess , inflection in Vegas in the destination market , you know , we met with a lot of the the companies on the strip in the past couple of weeks .

Chad Beynon: Okay. Great. In terms of some of the near-term, I guess, inflection in Vegas and in the destination market, we met with a lot of the companies on the Strip in the past couple of weeks, and some pointed to November, others obviously talked about F1 maybe being more of a good guy this year, and then the strength into Q1. Should all of that help you as well? In terms of internal bookings, are you viewing maybe November as kind of an inflection point where you're starting to see good year-over-year growth? I guess that would be more Downtown, maybe excluding Orleans with some of the things that you've talked about. Thank you.

Speaker #17: And, you know, at some point in November, others obviously talked about F1 maybe being more of a good guy this year.

Speaker #17: And then the strength into Q1 should all of that , you know , help you as well . And in terms of internal bookings , are you viewing maybe November as kind of an inflection point where you're starting to see , you know , good year over year growth ?

Speaker #17: I guess that would be more downtown, maybe excluding Orleans with some of the things that you've talked about. Thank you.

Speaker #4: Yeah . So once again , I noted earlier that as we look at our kind of 90 day booking pattern today , sitting here today or a week or so ago , it is much more positive than it was three months ago .

Keith Smith: Yeah. Once again, I noted earlier that as we look at our kind of 90-day booking pattern today, sitting here today or, you know, a week or so ago, it is much more positive than it was three months ago. It's still soft, but it is significantly better than it was three months ago. That makes us feel good about kind of the next several months, given those numbers. That's true for Downtown Las Vegas as well as it is for our Las Vegas Locals properties with hotels. We'll see how it all comes together. As the Strip continues to do better, as occupancy and rate on the Strip continue to rebound, clearly that will benefit us. It's just an indication that people are traveling again and coming back out. That will help us.

Speaker #4: And it's still soft , but it is significantly better than it was three months ago . And so that makes us , you know , feel good about kind of the next several months , you know , given those numbers .

Speaker #4: And that's , you know , true for downtown as well as it is for our local properties with hotels . So , you know , we'll see how it all comes together as the strip continues to do better as occupancy and rate on the strip continue to rebound .

Speaker #4: Clearly , that will benefit us . You know , it's just an indication that people are traveling again and coming back out . So , you know , that will help us .

Speaker #4: But overall, our own bookings are once again better over the next 90 days than they were a couple of months ago.

Keith Smith: Overall, our own bookings are, once again, better over the next 90 days than they were a couple of months ago.

Speaker #17: Thanks, Keith. I appreciate it.

Chad Beynon: Thanks, Keith. Appreciate it.

Speaker #8: Yep .

Keith Smith: Yep.

Speaker #3: Thank you . This concludes our question and answer session . I'd now like to turn the call over to Josh for concluding remarks .

David Strow: Thank you. This concludes our question and answer session. I'd now like to turn the call over to Josh for concluding remarks.

Speaker #5: Thanks , David , and thanks to everyone for joining the call and the questions we've received today . If you have any follow ups , please feel free to reach out to the company .

Josh Hirsberg: Thanks, David, and thanks to everyone for joining the call and the questions we've received today. If you have any follow-ups, please feel free to reach out to the company. This concludes our call and you can now disconnect. Have a good day.

I'll be the moderator for today's call, which we are hosting on Thursday October 23 2025.

Indications for Boyd gaming.

Indications for Boyd gaming.

That will be the moderator for today's call, which we are hosting on Thursday October 23 2025.

It will be the moderator for today's call, which we are hosting on Thursday October 23 2025.

At this time all lines are in listen only mode. Following our remarks, we will conduct a question and answer session.

At this time all lines are in listen only mode. Following our remarks, we will conduct a question and answer session.

At this time all lines are in listen only mode.

Knowing our remarks, we will conduct a question and answer session.

If at any time during this call you require immediate assistance. Please press Star then zero for the operator.

If at any time during this call you require immediate assistance. Please press Star then zero for the operator.

If at any time during this call you require immediate assistance. Please press Star then zero for the operator.

Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirschberg, Chief Financial Officer.

Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirschberg, Chief Financial Officer or.

Our speakers for today's call are Keith Smith, President and Chief Executive Officer, and Josh Hirschberg, Chief Financial Officer.

Our comments today will include statements that are forward looking statements within the meaning of the private Securities Litigation Reform Act.

Our comments today will include statements that are forward looking statements within the meaning of the private Securities Litigation Reform Act.

Our comments today will include statements that are forward looking statements within the meaning of the private Securities Litigation Reform Act.

All forward looking statements in our comments are as of today's date and we undertake no obligation to update or revise the forward looking statements actual results may differ materially from those projected in any forward looking statements. There are certain risks and uncertainties, including those disclosed in our filings with the SEC that may impact our results.

All forward looking statements in our comments are as of today's date and we undertake no obligation to update or revise the forward looking statements actual results may differ materially from those projected in any forward looking statements.

All forward looking statements in our comments are as of today's date and we undertake no obligation to update or revise the forward looking statements actual results may differ materially from those projected in any forward looking statements. There are certain risks and uncertainties, including those disclosed in our filings with the SEC that may impact our results.

There are certain risks and uncertainties, including those disclosed in our filings with the SEC that may impact our results.

During our call today, we will make reference to non-GAAP financial measures for a complete reconciliation of historical non-GAAP to GAAP financial measures. Please refer to our earnings press release, and our form 8-K furnished to the SEC today, both of which are available at investors Dot Boyd gaming Dot com.

During our call today, we will make reference to non-GAAP financial measures for a complete reconciliation of historical non-GAAP to GAAP financial measures. Please refer to our earnings press release, and our form 8-K furnished to the SEC today, both of which are available at investors Dot Boyd gaming Dot com.

During our call today, we will make reference to non-GAAP financial measures for a complete reconciliation of historical non-GAAP to GAAP financial measures. Please refer to our earnings press release, and our form 8-K furnished to the SEC today, both of which are available at investors Boyd gaming Dot com.

We do not provide a reconciliation of forward looking non-GAAP financial measures due to our inability to project special charges and certain expenses.

We do not provide a reconciliation of forward looking non-GAAP financial measures due to our inability to project special charges and certain expenses.

We do not provide a reconciliation of forward looking non-GAAP financial measures due to our inability to project special charges and certain expenses.

Today's call is being webcast live at Boyd gaming Dot com and will be available for replay in the Investor Relations section of our web site. Shortly after the completion of this call with that I would now like to turn the call over to Keith Smith Keith.

Today's call is being webcast live at Boyd gaming Dot com and will be available for replay in the Investor Relations section of our web site. Shortly after the completion of this call with that I would now like to turn the call over to Keith Smith Keith.

Today's call is being webcast live at Boyd gaming Dot com and will be available for replay in the Investor Relations section of our web site. Shortly after the completion of this call with that I would now like to turn the call over to Keith Smith Keith.

Thanks, David and good afternoon, everyone.

Thanks, David and good afternoon, everyone.

Thanks, David and good afternoon, everyone.

Third quarter was another quarter of growth for our company with revenues once again exceeding $1 billion, while EBITDAR was $322 million for the quarter.

The third quarter was another quarter of growth for our company with revenues once again exceeding $1 billion, while EBITDA was $322 million for the quarter.

Third quarter was another quarter of growth for our company with revenues once again exceeding $1 billion, while EBITDAR was $322 million for the quarter.

After adjusting for our recent <unk> transaction, we continue to deliver revenue and EBITDAR growth on a companywide basis, while margins were consistent with the prior year at 37% as we successfully maintained efficiencies throughout our operations.

After adjusting for our recent <unk> transaction, we continue to deliver revenue and EBITDAR growth on a companywide basis, where margins were consistent with the prior year at 37% as we successfully maintained efficiencies throughout our operations.

After adjusting for our recent <unk> transaction, we continue to deliver revenue and EBITDAR growth on a companywide basis, while margins were consistent with the prior year at 37% as we successfully maintained efficiencies throughout our operations.

During the third quarter from our core customers continued its long term growth trend and we saw further improvements in play from our retail customers.

During the third quarter from our core customers continued its long term growth trend and we saw further improvements in play from our retail customers.

During the third quarter from our core customers continued its long term growth trend in <unk>.

Further improvements in play from our retail customers.

This strength in play drove healthy gaming revenue growth across all three of our property operating segments and more than offset the weakness in destination business.

The strength in play drove healthy gaming revenue growth across all three of our property operating segments and more than offset the weakness in destination business.

The strength in play drove healthy gaming revenue growth across all three of our property operating segments and more than offset the weakness in destination business.

Across the portfolio our results reflect continued broad based improvements in customer demand sustained operating and marketing efficiencies and the success of our capital investments focused on enhancing our property offerings.

Across the portfolio our results reflect continued broad based improvements in customer demand sustained operating and marketing efficiencies and the success of our capital investments focused on enhancing our property offerings.

Across the portfolio our results reflect continued broad based improvements in customer demand sustained operating and marketing efficiencies and the success of our capital investments focused on enhancing our property offerings.

Now turning to segment results.

Now turning to the segment results.

Now turning to segment results.

Vegas local segment posted revenues of $211 million in EBITDAR of $92 million for the quarter.

Las Vegas local segment posted revenues of $211 million in EBITDAR of $92 million for the quarter.

Vegas local segment posted revenues of $211 million and EBITDAR of $92 million for the quarter.

Gaming revenues continued to grow during the quarter driven by strong demand from our local customers. We continue to benefit from ongoing growth in play from our core customers as well as improving trends in play from our retail customers.

Gaming revenues continued to grow during the quarter driven by strong demand from our local customers. We continue to benefit from ongoing growth in play from our core customers as well as improving trends in play from our retail customers.

Gaming revenues continued to grow during the quarter driven by strong demand from our local customers. We continue to benefit from ongoing growth in play from a core.

As well as improving trends in play from our retail customers.

This growth in gaming revenue was offset by declines in our destination business, primarily at the Orleans.

This growth in gaming revenue was offset by declines in our destination business, primarily at the Orleans.

Growth in gaming revenue was offset by declines in our destination business, primarily at the Orleans.

Excluding the Orleans, our local segment delivered year over year growth of 2% in both revenues and EBITDAR with gaming revenue growth in line with the broader locals market for the quarter.

Excluding the Orleans, our local segment delivered year over year growth of 2% in both revenues and EBITDAR with gaming revenue growth in line with the broader locals market for the quarter.

Excluding the Orleans, our local segment delivered year over year growth of 2% in both revenues and EBITDAR with gaming revenue growth in line with the broader locals market for the quarter.

While margins for the third quarter were consistent with the prior year at 47% supported by disciplined marketing and operating efficiencies.

While margins for the third quarter were consistent with the prior year at 47% supported by a disciplined marketing and operating efficiencies.

While margins for the third quarter were consistent with the prior year at 47% supported by disciplined marketing and operating efficiencies.

For the broader Las Vegas locals market as a whole gaming revenue growth was up more than 3% over the last 12 months, reflecting the resilience of the locals market.

For the broader Las Vegas locals market as a whole gaming revenue growth was up more than 3% over the last 12 months, reflecting the resilience of the locals market.

For the broader Las Vegas locals market as a whole game revenue growth was up more than 3% over the last 12 months, reflecting the resilience of the locals market.

The health of the locals market is supported by solid wage growth throughout so throughout the southern Nevada economy.

The health of the locals market is supported by solid wage growth throughout southern throughout the southern Nevada economy.

The health of the locals market is supported by solid wage growth throughout so throughout the southern Nevada economy.

Through August average weekly wages were up more than 6% over the trailing 12 months outpacing the national average.

Through August average weekly wages were up more than 6% over the trailing 12 months outpacing the national average.

Through August average weekly wages were up more than 6% over the trailing 12 months outpacing the national average.

Over the last 10 years, the local population has grown at twice the national rate, reaching $2 4 million last year.

Over the last 10 years, the local population has grown at twice the national rate, reaching $2 4 million last year and during the same timeframe per capita income in the Las Vegas Valley has grown by more than 5% on an annual basis, while total personal income in southern Nevada has nearly doubled.

Over the last 10 years, the local population has grown at twice the national rate, reaching $2 4 million last year.

And during the same timeframe per capita income in the Las Vegas Valley has grown by more than 5% on an annual basis, while total personal income in southern Nevada has nearly doubled.

And during the same timeframe per capita income in the Las Vegas Valley has grown by more than 5% on an annual basis, while total personal income in southern Nevada has nearly doubled.

An important driver of this growth has been the increasing diversification of our local economy.

An important driver of this growth has been the increasing diversification of our local economy.

An important driver of this growth has been the increasing diversification of our local economy.

While hospitality has continued to grow over the past decade, and currently represents approximately 25% of the local job market job gains have been more substantial than other sectors. These include education health services transportation, warehousing and professional and business services sectors.

While hospitality has continued to grow over the past decade, and currently represents approximately 25% of the local job market.

While hospitality has continued to grow over the past decade, and currently represents approximately 25% of the local job market job gains have been more substantial than other sectors. These include education health services transportation.

Things have been more substantial than other sectors. These include education health services transportation, warehousing and professional and business services sectors.

Using professional and business services sectors.

Construction jobs are also remained steady performer growing more than 5% and two thirds since 2019.

Construction jobs are also remains a steady performer growing more than 5% and two thirds since 2019.

Construction jobs are also remain a steady performer growing more than 5% in <unk> since 2019.

With more than $10 billion of projects currently underway across the Las Vegas Valley construction employment should remain healthy well into the future.

With more than $10 billion and projects currently underway across the Las Vegas Valley construction employment should remain healthy well into the future.

With more than 10 billion in projects currently underway across the Las Vegas Valley construction employment should remain healthy well into the future.

And as we head into next year's tax season, we believe that our customers around the country will benefit from the tax Bill passed by Congress This summer, including new deductions for tips and overtime and an additional deduction for seniors as well as a larger standard deduction for all taxpayers.

And as we head into next year's tax season, we believe that our customers around the country will benefit from the tax Bill passed by Congress This summer, including new deductions for tips and overtime and an additional deduction for seniors as well as a larger standard deduction for all taxpayers.

And as we head into next year's tax season, we believe that our customers around the country will benefit from the tax Bill passed by Congress This summer, including new deductions for tips and overtime and an additional deduction for seniors as well as a larger standard deduction for all taxpayers.

All of the southern Nevada economy remains resilient and is more diversified than ever positioning our Las Vegas locals business for continued success.

All of the southern Nevada economy remains resilient and is more diversified than ever positioning our Las Vegas locals business for continued success.

All of the southern Nevada economy remains resilient and is more diversified than ever.

<unk>, our Las Vegas locals business for continued success.

Next in our downtown Las Vegas segment revenues and EBITDA were in line with the prior year supported by continued strength in play from our Hawaiian customers.

Next in our downtown Las Vegas segment revenues and EBITDA were in line with the prior year supported by continued strength in play from our Hawaiian customers.

Next in our downtown Las Vegas segment revenues and EBITDA were in line with the prior year supported by continued strength in play from our Hawaiian customers.

Much like our local segment growth in gaming revenues were offset by softness in destination business, including lower hotel revenues and reduced pedestrian traffic along the Fremont Street experience.

Much like our local segment growth in gaming revenues were offset by softness in destination business, including lower hotel revenues and reduced pedestrian traffic along the Fremont Street experience.

Much like our local segment growth in gaming revenues were offset by softness in destination business, including lower hotel revenues and reduced pedestrian traffic along the Fremont Street experience.

Next our Midwest and South segment achieved the strongest third quarter revenue and EBITDAR performance in three years.

Next our Midwest and South segment achieved the strongest third quarter revenue and EBITDAR performance in three years.

Next our Midwest and South segment achieved the strongest third quarter revenue and EBITDAR performance in three years.

For the quarter revenues rose, 3% to $539 million, while EBITDAR grew to $202 million.

For the quarter revenues rose, 3% to $539 million, while EBITDAR grew to $202 million.

For the quarter revenues rose, 3% to $539 million, while EBITDAR grew to $202 million.

More than 2% over the prior year.

More than 2% over the prior year.

More than 2% over the prior year.

Operating margins once again exceeded 37% as we remain disciplined in our cost structure and marketing spend.

Operating margins once again exceeded 37% as we remain disciplined in our cost structure and marketing spend.

Operating margins once again exceeded 37% as we remain disciplined in our cost structure and marketing spend.

Growth in this segment was broad based including continued gains a treasure chest more than a year. After the opening of our new land based facility there.

Growth in this segment was broad based including continued gains at treasure chest more than a year. After the opening of our new land based facility there.

Growth in this segment was broad based including continued gains at treasure chest more than a year. After the opening of our new land based facility there.

Similar to our Nevada segments gaming revenues increased year over year in the Midwest and South driven by continued growth in play from our core customers and further improvements in play from our retail customers.

Similar to our Nevada segments gaming revenues increased year over year in the Midwest and South driven by continued growth in play from our core customers and further improvements in play from our retail customers.

Similar to our Nevada segments gaming revenues increased year over year in the Midwest and South driven by continued growth in play from our core customers and further improvements in play from our retail customers.

Next results in our online segment reflected growth from Boyd interactive as well as changes related to our recent <unk> transaction.

Next results in our online segment reflected growth from Boyd interactive as well as changes related to our recent <unk> transaction.

Next results in our online segment reflected growth from Boyd interactive as well as changes related to our recent <unk> transaction.

Given current trends, we are increasing our guidance for this segment to $60 million in EBITDAR for this year for.

Given current trends, we are increasing our guidance for this segment to $60 million in EBITDAR for this year for.

Given current trends, we are increasing our guidance for this segment to $60 million in EBITDAR for this year for.

For 2026, we expect approximately $30 million in EBITDAR from this segment.

For 2026, we expect approximately $30 million in EBITDAR from this segment.

For 2026, we expect approximately $30 million in EBITDAR from this segment.

Finally, our managed business had another strong performance with continued growth in management fees from Sky River Casino.

Finally, our managed business had another strong performance with continued growth in management fees from Sky River Casino.

Finally, our managed business had another strong performance with continued growth in management fees from Sky River Casino.

Demand has remained strong over the three years since Sky River opened giving us and the Wilton Rancheria tribe, great confidence in the growth potential of the property is ongoing expansion.

Demand has remained strong over the three years since Gary were opened giving us and the Wilton Rancheria drive great confidence in the growth potential of the property is ongoing expansion the.

Demand has remained strong over the three years since Sky River opened giving us and the Wilton Rancheria tribe, great confidence in the growth potential of the property is ongoing expansion.

The first phase of this expansion will add 400 slot machines and a 1600 space parking garage upon completion in the first quarter of next year.

The first phase of this expansion will add 400 slot machines and a 1600 space parking garage upon completion in the first quarter of next year.

The first phase of this expansion will add 400 slot machines and a 1600 space parking garage upon completion in the first quarter of next year.

Once this first phase is complete we will.

Once this first phase is complete we will begin a second phase that will further enhance sky rivers appeal by adding 300 room hotel three new food and beverage outlets, a full service resort Spa and an entertainment and event center.

Once this first phase is complete we will begin a second phase that will further enhance sky rivers appeal by adding 300 room hotel three new food and beverage outlets, a full service resort Spa and an entertainment and event center.

Begin a second phase that will further enhance sky rivers appeal by adding 300 room hotel three new food and beverage outlets, a full service resort Spa and an entertainment and event center.

On its completion in mid 2027, and we are confident this expansion will further strengthen <unk> position as one of northern California's leading gaming and entertainment destinations.

On its completion in mid 2027, we are confident this expansion will further strengthen sky reverse position as one of northern California's leading gaming and entertainment destinations.

On its completion in mid 2027, we are confident this expansion will further strengthen <unk> position as one of northern California's leading gaming and entertainment destinations.

So when all of the third quarter was another quarter of growth for our company across the country. We continue to see strengthening play from our core customers and improvements in play from our retail customers against the backdrop of consistent and efficient property operations.

So when all of the third quarter was another quarter of growth for our company across the country. We continue to see strengthening play from our core customers and improvements in play from our retail customers against the backdrop of consistent and efficient property operations.

So in all of the third quarter was another quarter of growth for our company across the country. We continue to see strengthening play from our core customers and improvements in play from our retail customers against the backdrop of consistent and efficient property operations.

And while the fourth quarter has just started it is worth noting that the customer trends. We saw in the third quarter have continued into October including improving play from both core and retail customers.

And while the fourth quarter has just started it is worth noting that the customer trends. We saw in the third quarter have continued into October including improving play from both core and retail customers.

And while the fourth quarter has just started it is worth noting that the customer trends. We saw in the third quarter continued into October, including improving play from both core and retail customers.

Our strong operating performance is supported by the investments we are making throughout our portfolio as we enhance our casino floors food and beverage outlets in hotel rooms.

Our strong operating performance is supported by the investments we are making throughout our portfolio as we enhance our casino floors food and beverage outlets in hotel rooms.

Our strong operating performance is supported by the investments we are making throughout our portfolio as we enhance our casino floors food and beverage outlets in hotel rooms.

Hotel room renovations will be completed early next year at the IP and work is set to begin next month on our room renovation project at the Orleans.

Hotel room renovations will be completed early next year at the IP and work is set to begin next month on our room renovation project at the Orleans.

Hotel room renovations will be completed early next year at the IP and work is set to begin next month on our room renovation project at the Orleans.

We're also continuing our modernization project at Suncoast with a complete transformation of our casino floor as well as enhanced meeting and public spaces. While we are dealing with ongoing construction. We are encouraged that suncoast performance is in line with the prior year further increasing our confidence in the long term growth potential of this investment.

We're also continuing our modernization project at Suncoast with a complete transformation of our casino floor as well as enhanced meeting and public spaces.

We're also continuing our modernization project at Suncoast with a complete transformation of our casino floor as well as enhanced meeting and public spaces.

While we are dealing with ongoing construction. We are encouraged that suncoast performance is in line with the prior year further increasing our confidence in the long term growth potential of this investment.

What we are dealing with ongoing construction. We are encouraged that suncoast performance is in line with the prior year further increasing our confidence in the long term growth potential of this investment.

Following completion of our suncoast renovations around the middle of next year. We plan to begin begin a similar project at the Orleans as we look to further enhance our offerings at this important property.

Following completion of our suncoast renovations around the middle of next year. We plan to begin begin a similar project at the Orleans as we look to further enhance our offerings at this important property.

Following completion of our suncoast renovations around the middle of next year. We plan to begin begin a similar project at the Orleans as we look to further enhance our offerings at this important property.

In addition to these property enhancements, we are continuing work on our growth capital projects with an annual budget of $100 million per year.

In addition to these property enhancements, we are continuing to work on our growth capital projects with an annual budget of $100 million per year.

In addition to these property enhancements, we are continuing to work on our growth capital projects with an annual budget of $100 million per year in.

In September we completed our expanded meeting and Convention center at <unk> St. Charles.

In September we completed our expanded meeting and Convention Center and <unk> St. Charles.

In September we completed our expanded meeting and Convention Center and <unk> St. Charles.

By nearly tripling the size of its meeting space <unk> can now accommodate more and larger events. This will create incremental visitation from new customers as well as groups, who had previously outgrown our space.

By nearly tripling the size of its meeting space <unk> can now accommodate more and larger events. This will create incremental visitation from new customers as well as groups, who had previously outgrown our space.

By nearly tripling the size of its meeting space <unk> can now accommodate more and larger events. This will create incremental visitation from new customers as well as groups, who had previously outgrown our space.

We are already seeing great interest with strong bookings in the fourth quarter and into the next several years.

We are already seeing great interest with strong bookings in the fourth quarter and into the next several years.

We are already seeing great interest with strong bookings in the fourth quarter and into the next several years.

In southern Nevada, construction is progressing on cadence crossing our newest Las Vegas locals property.

In southern Nevada, construction is progressing on cadence crossing our newest Las Vegas locals properties.

In southern Nevada, construction is progressing on cadence crossing our newest Las Vegas locals property.

Scheduled to open in the second quarter of 2026 cadence crossing will replace our existing jokers, well casino with a modern and appealing gaming entertainment facility. This.

Scheduled to open in the second quarter of 2020 cadence crossing will replace our existing jokers, well casino with a modern and appealing gaming entertainment facility. This.

Scheduled to open in the second quarter of 2026, kittens crossing will replace our existing jokers casino with a modern and appealing gaming and entertainment facility. This.

This investment will allow us to better serve the adjacent community of cadence one of the fastest growing masterplan communities in the nation.

This investment will allow us to better serve the adjacent community of cadence one of the fastest growing master planned communities in the nation.

This investment will allow us to better serve the adjacent community of cadence one of the fastest growing master planned communities in the nation.

And we are well positioned to keep pace with continued residential growth in the area.

And we are well positioned to keep pace with continued residential growth in the area future plans for hotel additional casino space and more non gaming amenities.

And we are well positioned to keep pace with continued residential growth in the area.

Plans for hotel additional casino space and more non gaming amenities.

Okay.

Casino space and more non gaming amenities.

Next in Illinois, we're continuing the design and planning work for a new gaming facility at Paradise and expect to start construction in late 2026 pending regulatory approval.

Next in Illinois, we're continuing the design and planning work, our new gaming facility at Paradise, and expect to start construction in late 2026 pending regulatory approval.

Next in Illinois, we're continuing the design and planning work for a new gaming facility at Paradise and expect to start construction in late 2026 pending regulatory approval.

Finally development is well underway on our most significant growth opportunity, our $750 million resort development in Norfolk, Virginia.

Finally development is well underway on our most significant growth opportunity, our $750 million resort development in Norfolk, Virginia.

Finally development is well underway on our most significant growth opportunity, our $750 million resort development in Norfolk, Virginia.

Pending regulatory approval, we are just a few weeks away from opening our transitional casino at the site.

Pending regulatory approval, we are just a few weeks away from opening our transitional casino at the site.

Pending regulatory approval, we are just a few weeks away from opening our transitional casino at the site.

And while we look forward to reaching this key milestone our focus remains on the development of our permanent resort scheduled to open in November of 2027.

And while we look forward to reaching this key milestone our focus remains on the development of our permanent resort scheduled to open in November of 2027.

And while we look forward to reaching this key milestone our focus remains on the development of our permanent resort scheduled to open in November of 2027.

This market, leading resort experience will feature a 65000 square foot Casino 200 room hotel eight food and beverage outlets live entertainment and an outdoor amenity deck.

This market, leading resort experience will feature a 65000 square foot Casino 200 room hotel eight food and beverage outlets live entertainment and an outdoor amenity deck.

This market, leading resort experience will feature a 65000 square foot Casino 200 room hotel eight food and beverage outlets live entertainment and an outdoor amenity deck.

In addition to offering the highest quality gaming experience in the market. We will have the most convenient location for much of the $1 8 million residents of the Hampton roads region as well as the 15 million tourists, who visit nearby Virginia Beach each year.

In addition to offering the highest quality gaming experience in the market. We will have the most convenient location for much of the $1 8 million residents of the Hampton roads region as well as the 15 million tourists to visit nearby Virginia Beach each year.

In addition to offering the highest quality gaming experience in the market. We will have the most convenient location for much of the $1 8 million residents of the Hampton roads region as well as the 15 million tourists to visit nearby Virginia Beach each year.

And all our capital investments are delivering strong returns for our company enhancing our competitiveness and supporting our long term growth.

And all our capital investments are delivering strong returns for our company enhancing our competitiveness and supporting our long term growth.

All our capital investments are delivering strong returns for our company enhancing our competitiveness and supporting our long term growth.

At the same time, our substantial free cash flow and strong balance sheet allow us to continue returning capital to our shareholders.

Yeah.

At the same time, our substantial free cash flow and strong balance sheet allow us to continue returning capital to our shareholders.

At the same time, our substantial free cash flow and strong balance sheet allow us to continue returning capital to our shareholders.

During the third quarter, we repurchased $160 million in stock and paid $15 million in dividends. So far this year. We have returned a total of $637 million to our shareholders.

During the third quarter, we repurchased $160 million in stock and paid $15 million in dividends. So far this year. We have returned a total of $637 million to our shareholders.

During the third quarter, we repurchased $160 million in stock and paid $15 million in dividends. So far this year. We have returned a total of $637 million to our shareholders.

Share repurchases and dividends are important components of our balanced approach to capital allocation.

Share repurchases and dividends are important components of our balanced approach to capital allocation, we intend to maintain a pace of $150 million per quarter in share repurchases supplemented by a recurring dividend.

Share repurchases and dividends are important components of our balanced approach to capital allocation, we intend to maintain a pace of $150 million per quarter in share repurchases supplemented by our recurring dividend.

We intend to maintain a pace of $150 million per quarter in share repurchases supplemented by a recurring dividend.

In closing we are pleased to deliver another quarter of strong performance as we continue to execute on our strategy and create long term value for our shareholders do.

In closing we are pleased to deliver another quarter of strong performance as we continue to execute on our strategy and create long term value for our shareholders.

In closing we are pleased to deliver another quarter of strong performance as we continue to execute on our strategy and create long term value for our shareholders during.

During the quarter, we continued to benefit from strong growth in play from our core customers as well as improving fleet from retail or.

During the quarter, we continued to benefit from strong growth in play from our core customers as well as improving plate from retail.

During the quarter, we continued to benefit from strong growth in play from our core customers as well as improving plate from retail or.

Our capital investment program is delivering excellent returns are positioning us well for future growth.

Our capital investment program is delivering excellent returns positioning us well for future growth.

Our capital investment program is delivering excellent returns are positioning us well for future growth.

Our teams across the country are successfully maintaining efficiencies and delivering consistent property operating results.

Our teams across the country are successfully maintaining efficiencies and delivering consistent property operating results.

Our teams across the country are successfully maintaining efficiencies and delivering consistent property operating results.

Continue to return substantial capital to our shareholders, while maintaining the strongest balance sheet in our company's history.

Continue to return substantial capital to our shareholders, while maintaining the strongest balance sheet in our company's history.

Continue to return substantial capital to our shareholders, while maintaining the strongest balance sheet in our company's history.

Our success is a reflection of the dedication and contributions thousands of Boyd gaming team members across the country and we are grateful for all that they do for our company and our guests.

Our success is a reflection of the dedication and contributions thousands of Boyd gaming team members across the country and we are grateful for all that they do for our company and our guests. Thank you for your time today I would now like to turn the call over to Josh.

Our success is a reflection of the dedication and contributions thousands of Boyd gaming team members across the country and we are grateful for all that they do for our company and our guests.

Thank you for your time today I would now like to turn the call over to Josh <unk>.

Thank you for your time today I would now like to turn the call over to Josh.

Thanks, Keith and good afternoon, everyone during.

Thanks, Keith and good afternoon, everyone.

Thanks, Keith and good afternoon, everyone during.

During the third quarter play from our core customers continued its long term growth trend while retail customers play also continued to improve.

During the third quarter play from our core customers continued its long term growth trend while retail customers play also continued to improve.

During the third quarter play from our core customers continued its long term growth trend while retail customers play also continued to improve.

Management teams did their part remaining focused on operating efficiently and generating returns from our capital investments at.

Our management teams to their par remaining focused on operating efficiently and generating returns from our capital investments at.

Management teams did their part remaining focused on operating efficiently and generating returns from our capital investments at.

As a result, excluding the effects of our recent <unk> transaction, we continue to deliver growth in revenue and EBITDAR despite weakness in our destination business.

As a result, excluding the effects of our recent <unk> transaction, we continue to deliver growth in revenue and EBITDAR despite weakness in our destination business.

As a result, excluding the effects of our recent <unk> transaction, we continue to deliver growth in revenue and EBITDAR despite weakness in our destination business.

We are continuing our capital investment program to enhance our guest experience, while expanding our opportunities for growth.

We are continuing our capital investment program to enhance our guest experience, while expanding our opportunities for growth.

We are continuing our capital investment program to enhance our guest experience, while expanding our opportunities for growth.

During the third quarter, we invested $146 million in capital, bringing year to date capital expenditures to $440 million.

During the third quarter, we invested $146 million in capital, bringing year to date capital expenditures to $440 million we.

During the third quarter, we invested $146 million in capital, bringing year to date capital expenditures to $440 million we.

We now expect total capital expenditures for this year to be approximately $600 million.

We now expect total capital expenditures for this year to be approximately $600 million.

We now expect total capital expenditures for this year to be approximately $600 million.

Our capital plans include approximately $250 million in recurring maintenance capital.

Our capital plans include approximately $250 million and recurring maintenance capital.

Our capital plans include approximately $250 million in recurring maintenance capital.

An additional $100 million of maintenance capital related to hotel room renovation projects.

An additional $100 million of maintenance capital related to hotel room renovation projects.

An additional $100 million of maintenance capital related to hotel room renovation projects.

$100 million in growth capital, which includes the recently completed meeting and convention space at <unk>, St. Charles and the ongoing cadence crossing development here in Las Vegas and.

$100 million in growth capital, which includes the recently completed meeting and convention space at <unk>, St. Charles and the ongoing cadence crossing development here in Las Vegas.

<unk> and.

Growth capital, which includes the recently completed meeting and convention space from Aerostar, St Charles and the ongoing cadence crossing development here in Las Vegas.

And then finally $150 million or so for our casino development in Virginia.

And then finally $150 million or so for our casino development in Virginia.

And then finally $150 million or so for our casino development in Virginia.

Our growth capital projects remain on budget and on schedule.

Our growth capital projects remain on budget and on schedule.

Our growth capital projects remain on budget and on schedule.

In terms of our shareholder capital return program, we paid a quarterly dividend of <unk> 18 per share during the quarter totaling $15 million.

In terms of our shareholder capital return program, we paid a quarterly dividend of <unk> 18 per share during the quarter totaling $15 million.

In terms of our shareholder capital return program, we paid a quarterly dividend of <unk> 18 per share during the quarter totaling $15 million.

Also during the quarter as Keith mentioned, we purchased.

Also during the quarter as Keith mentioned, we purchased.

Also during the quarter as Keith mentioned, we purchased we.

We repurchased $160 million in stock acquiring $1 9 million shares at an average price of $84 five per share.

We repurchased $160 million and start acquiring $1 9 million shares.

We repurchased $160 million in stock acquiring $1 9 million shares at an average price of $84 five per share.

An average price of $84 <unk> per share.

Actual shares outstanding at the end of the quarter were $78 6 million shares and 11% reduction in our share count since the third quarter of last year.

Actual shares outstanding at the end of the quarter were $78 6 million shares and.

Actual shares outstanding at the end of the quarter were $78 6 million shares and 11% reduction in our share count since the third quarter of last year.

An 11% reduction in our share count since the third quarter of last year.

Since we began our capital return program in October 2021.

Since we began our capital return program in October 2021.

Since we began our capital return program in October 2021.

We have returned more than $2 $5 billion in the form of share repurchases and dividends while.

We have returned more than $2 $5 billion in the form of share repurchases and dividends while.

We have returned more than $2 $5 billion in the form of share repurchases and dividends while.

While reducing our share count by 30%.

While reducing our share count by 30%.

While reducing our share count by 30%.

Going forward, we intend to maintain repurchases of approximately $150 million per quarter.

Going forward, we intend to maintain repurchases of approximately $150 million per quarter.

Going forward, we intend to maintain repurchases of approximately $150 million per quarter.

Supplemented by our regular quarterly dividend this equates to more than $650 million per year or more than $8 per share.

Supplemented by our regular quarterly dividend this equates to more than $650 million per year or more than $8 per share.

Supplemented by our regular quarterly dividend this equates to more than $650 million per year or more than $8 per share.

The strong free cash flow low leverage and ample liquidity, we are maintaining the strongest balance sheet in our company's history, while continuing to invest in our business and return capital to shareholders.

The strong free cash flow low leverage and ample liquidity, we are maintaining the strongest balance sheet in our company's history, while continuing to invest in our business and return capital to shareholders.

The strong free cash flow low leverage and ample liquidity, we are maintaining the strongest balance sheet in our company's history, while continuing to invest in our business and return capital to shareholders.

As you may recall during the quarter, we closed on our transaction to sell our 5% stake in Fanjul.

As you may recall during the quarter, we closed on our transaction to sell our 5% stake in <unk>.

As you may recall during the quarter, we closed on our transaction to sell our 5% stake in <unk>.

We initially used proceeds from that transaction to repay our term loan balance and borrowings outstanding outstanding under our revolver.

We initially used proceeds from that transaction to repay our term loan balance and borrowings outstanding outstanding under our revolver.

We initially used proceeds from that transaction to repay our term loan balance and borrowings outstanding outstanding under our revolver.

As a result, our total leverage ratio declined from two eight times at the end of the second quarter to one five times at the end of the third quarter.

As a result, our total leverage ratio declined from two eight times at the end of the second quarter to one five times at the end of the third quarter.

As a result, our total leverage ratio declined from two eight times at the end of the second quarter to one five times at the end of the third quarter.

Our lease adjusted leverage declined from three two times to 2.0 times.

Our lease adjusted leverage declined from three two times to two point out times.

Our lease adjusted leverage declined from three two times to 2.0 times.

Finally, beginning with this quarter's financial results, we have provided the tax pass through amounts as a separate line item on our GAAP income statement.

Finally, beginning with this quarter's financial results, we have provided the tax pass through amounts as a separate line item on our GAAP income statement.

Finally, beginning with this quarter's financial results, we have provided the tax pass through amounts as a separate line item on our GAAP income statement.

Excluding the tax pass through amount for this quarter companywide margins for the third quarter of this year would have been 510 basis points above the margin we reported.

Excluding the tax pass through amount for this quarter companywide margins for the third quarter of this year would have been 510 basis points above the margin we reported.

Excluding the tax pass through amount for this quarter companywide margins for the third quarter of this year would have been 510 basis points above the margin we reported.

In conclusion with strong play from our core customer and improving trends among our retail customers.

In conclusion with strong play from our core customer and improving trends among our retail customers efficient operations robust free cash flow and a strong balance sheet, we have outstanding flexibility to continue executing our strategy for creating long term value for our shareholders.

In conclusion with strong play from our core customer and improving trends among our retail customers efficient operations robust free cash flow and a strong balance sheet, we have outstanding flexibility to continue executing our strategy for creating long term value for our shareholders.

Efficient operations robust free cash flow and a strong balance sheet, we have outstanding flexibility to continue executing our strategy for creating long term value for our shareholders.

With that I'd like to turn.

The call to David to open.

With that I'd like to turn the call to David to open.

With that I'd like to turn the call to David to open.

Well open the call for questions Davis, Thank you Josh.

To open the call for questions David Thank you Josh.

Open the call for questions Davis, Thank you Josh.

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Yes.

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Our first question comes from Barry Jonas of Truest Berry. Please go ahead.

Our first question comes from Barry Jonas of Truest Berry. Please go ahead.

Our first question comes from Barry Jonas of Truest Berry. Please go ahead.

Hey, guys.

Hey, guys.

I wanted to start on Vegas can you talk about what you see as the main drivers of the weakness you are seeing in the destination business and just help us feel comfort that.

Hey, guys.

I wanted to start on Vegas can you talk about what you see as the main drivers of the weakness you are seeing in the destination business and just help us feel comfort that.

Wanted to start on Vegas can you talk about what you see as the main drivers of the weakness you are seeing in the destination business and just help us feel comfort that.

You take the non destination business won't won't see any of that related weakness. Thank you.

You take the non destination business won't won't see any of that related weakness. Thank you.

You take the non destination business won't that won't see any of that related weakness. Thank you.

And maybe starting with the second half of your question I think as we noted we've seen strong play from our core customers and as we look at.

So maybe starting with the second half of your question I think as we noted we've seen strong play from our core customers and as we look at the.

So maybe starting with the second half of your question I think as we noted we've seen strong play from our core customers and as we look at the.

The database here and the source of our revenue here in Las Vegas, our locals customers are performing extremely well and our core customers are growing extremely well. The shortfall really was all about the destination business has been kind of widely reported and talked about.

<unk>.

The database here and the source of our revenue here in Las Vegas, our locals customers are performing extremely well and our core customers are growing extremely well. The shortfall really was all about the destination business has been kind of widely reported and talked about.

From the database here the source of our revenue here in Las Vegas, our locals customers are performing extremely well and our core customers are growing extremely well. The shortfall really was all about the destination business has been kind of widely reported and talked about.

How long that continues.

How long that continues.

How long that continues.

We'll have to see.

We have seen as we look at our kind of forward 90 day bookings at our hotels here in Las Vegas, we have seen improvements still soft, but certainly better results than we saw three months ago. So yes have we turned the quarter hard to say, but the 90 day booking results certainly look better than they did three months ago.

We'll have to see we have seen as we look at our kind of forward 90 day bookings at our hotels here in Las Vegas, we have seen improvements still soft, but certainly better results than we saw three months ago. So we turned the quarter hard to say, but the 90 day booking results certainly look better than.

We'll have to see.

We have seen as we look at our kind of forward 90 day bookings at our hotels here in Las Vegas, we have seen improvements still soft, but certainly better results than we saw three months ago. So yes have we turned the quarter hard to say, but the 90 day booking results certainly look better than they did three months ago.

They did three months ago.

And one thing I would add to Keith's remarks is when we pretty much.

And Barry one thing I would add to Keith's remarks is when we pretty much.

And Barry one thing I would add to Keith's remarks is when we pretty much the impact of the destination business as we said in our remarks, our focus on the Orleans. So when you separate the Orleans from the rest of the business you see a couple of things going on you see growth.

Impact of the destination business as we said in our remarks, our focus on the Orleans. So when you separate the Orleans from the rest of the business you see a couple of things going on you see growth and.

Impact of the destination business as we said in our remarks, our focus on the Orleans. So when you separate the Orleans from the rest of the business you see a couple of things going on you see growth and.

Gaming revenues throughout the remainder of the portfolio you see growth in overall revenues you see growth in EBITDAR you size consistency in March.

And <unk>.

<unk> revenues throughout the remainder of the portfolio you see growth in overall revenues you see growth in EBITDA size consistency in March.

Gaming revenues throughout the remainder of the portfolio you see growth in overall revenues you see growth in EBITDAR you size consistency in March.

So.

We see in the gaming revenue.

So I think we see and the gaming revenue.

So.

Thank you.

We see in the gaming revenue.

Is growing in line with the overall market. So I think we feel pretty good about the underlying customer trends overall is just one aspect of the business that were.

Is growing in line with the overall market. So I think we feel pretty good about the underlying customer trends overall is just one aspect of the business there.

Is growing in line with the overall market. So I think we feel pretty good about the underlying customer trends overall is just one aspect of the business that we're.

Trying to deal with and in fact, when you look at the segments performance you could really attribute the EBITDA decline in.

Trying to deal with and in fact, when you look at the segments performance you could really attribute the EBITDA decline in.

Trying to deal with and in fact when you.

You look at the segments performance, you could really attribute the EBITDA decline.

In Q3, all to the Orleans, because it was down even more than what we're seeing in the segment for the quarter. So.

In Q3, all to the Orleans, because it was down even more than what we're seeing in the segment for the quarter. So.

In Q3, all to the Orleans, because it was down even more than what we're seeing in the segment for the quarter. So.

Got it that's really helpful. And then just as a follow up you know, we're starting to see some M&A deals.

Got it that's really helpful. And then just as a follow up we're starting to see some M&A deals.

Got it that's really helpful. And then just as a follow up we're starting to see some M&A deals.

Come about curious if you could share your thoughts on the M&A pipeline the environment either in terms of buying whole assets or op dose. Thank you.

Come about curious if you could share your thoughts on the M&A pipeline the environment either in terms of buying whole assets or op dose. Thank you.

I was curious if you could share your thoughts on the M&A pipeline the environment either in terms of buying whole assets or iqos. Thank you.

Yeah look we obviously have a fairly successful track record of M&A.

Look we obviously have a fairly successful track record of M&A.

Look we obviously have a fairly successful track record of M&A.

Based on our disciplined strategy of making sure. It's the right asset in the right market at the right price and so we continue to look at it.

Based on our disciplined strategy of making sure. It's the right asset in the right market at the right price and so we continue to look at it.

Based on our disciplined strategy of making sure. It's the right asset in the right market at the right price and so we continue to look at it.

We certainly note that a few things have traded recently I don't know that we're in.

We certainly note that a few things have traded recently I don't know.

We certainly note that a few things have traded recently I don't know.

Necessarily seeing more pitch books across our desk, but we certainly pay attention to monitor opportunities.

Know that we are.

Know that we're in.

Necessarily seeing more pitch books across our desk, but we certainly pay attention to monitor opportunities.

Necessarily seeing more pitch books cross our desk, but we certainly pay attention to monitor opportunities.

And for the right opportunity were certainly prepared to dig in but other than that im not sure. We have a whole lot to comment on.

And for the right opportunity were certainly prepared to dig in but other than that I'm not sure. We have a whole lot to comment on.

And for the right opportunity were certainly prepared to dig in but other than that I'm not sure. We have a whole lot to comment on.

Great. Thank you so much.

Great. Thank you so much.

Great. Thank you so much.

Yes.

<unk>.

Our next question comes from Steve Lesinski of Stifel. Steve. Please go ahead.

Yes.

Yep.

Thank you.

Thank you.

Our next question comes from seed within ski of Stifel. Steve. Please go ahead.

Our next question comes from Steve within ski of Stifel. Steve. Please go ahead.

Yeah, Hey, guys good afternoon.

Yeah, Hey, guys good afternoon.

Yeah, Hey, guys good afternoon.

So key to Josh if we think about the Midwest and South properties. I mean, those results were really solid came in much better than we were expecting so.

So key to Josh if we think about the Midwest and South properties. I mean, those results were really solid came in much better than we were expecting so.

So key to Josh if we think about the Midwest and south properties.

Those results were solid came in much better than we were expecting so.

If you think about that portfolio wondering if the trends you witness there we're pretty much.

If you think about that portfolio wondering if the trends you witness there we're pretty much.

If you think about that portfolio wondering if the trend you witness there we're pretty much.

Broad based or there were markets or pockets of strength versus other markets. I guess, just trying to figure out of certain markets are kind of outperforming other markets and obviously you guys called out treasure chest, So I guess, excluding treasure chest.

Broad based or there were markets or pockets of strength versus other markets. I guess, just trying to figure out of certain markets are kind of outperforming other markets and obviously you guys called out treasure chest, So I guess, excluding treasure chest.

Broad based or there were markets or pockets of strength versus other markets. I guess, just trying to figure out of certain markets are kind of outperforming other markets and obviously you guys called out treasure chest, So I guess, excluding treasure chest.

I think when we look across that portfolio that comprises 17 properties. It was generally broad based look there's always one or two that don't perform maybe quite as strong in any given quarter, but generally was broad based strong results, we called out treasure chest because it's.

I think when we look across that portfolio that comprises 17 properties. It was generally broad based look there's always one or two that don't perform maybe quite as strong in any given quarter, but generally was broad based strong results, we called out treasure chest because it's.

I think when we look across that portfolio that comprises 17 properties. It was generally broad based look there's always one or two that don't perform maybe quite as strong in any given quarter, but generally was broad based strong results, we called out treasure chest because it's.

Interesting to us and very positive that it continues to grow even even after anniversarying its opening so.

Interesting to us and very positive that it continues to grow even even after anniversarying its opening so.

Interesting to us and very positive that it continues to grow even even after anniversarying its opening so.

Josh on the pivoting that really Keith I think that covers it.

Josh under the pivoting that are really key.

Josh I'm going to give anything that are really key to think that covers it.

Okay.

It covers it.

And then Keith Josh little bit of a bigger picture question, but I'm wondering if you can kind of take a step back and look at your Vegas.

Okay.

Okay.

And then Keith Josh little bit of a bigger picture question, but wondering if you can.

And then Keith Josh little bit of a bigger picture question, but wondering if you kind of take a step back and look at your Vegas.

Step back and look at your biggest.

Locals assets, how do you think they're positioned today from.

Locals assets, how do you think they're positioned today from.

Locals assets, how do you think they're positioned today from.

From a capex perspective, I mean.

From a capex perspective.

From a capex perspective again.

What I mean is do you think the majority of our assets in that market or in a pretty good spot relative to your peers in that region.

What I mean is do you think the majority of our assets in that market or in a pretty good spot relative to your peers in that region.

What I mean is do you think the majority of our assets in that market or in a pretty good spot relative to your peers in that region.

Or is it something where you guys might have to spend a little bit more across your portfolio over the next couple of years to keep up with some of that newer supply.

Or is it something where you guys might have to spend a little bit more across your portfolio over the next couple of years to keep up with some of that newer supply.

Or is it something where you guys might have to spend a little bit more across your portfolio over the next couple of years keep up with some of that newer supply.

I heard your comment about Orleans Suncoast there.

I heard your comment about Orleans Suncoast there.

Your comment about Orleans Suncoast there.

So look we've been talking about the renovation work we're doing at the Suncoast.

So look we've been talking about the renovation work we're doing at the Suncoast.

So look we've been talking about the renovation work we're doing at the Suncoast.

Over the last year or so and so that has been I think a very positive investment for US is we're not even full fully through it yet and we are seeing.

Over the last year or so and so that has been I think a very positive investment for US is we're not even full fully through it yet and we are seeing.

Over the last year or so and so that has been I think a very positive investment for US is we're not even full fully through it yet and we are seeing.

Performance that's in line with the prior year, so that gives us confidence that this will.

Performance, it's in line with the prior year, so that gives us confidence that this will.

Performance, it's in line with the prior year. So it gives us confidence that this will be.

Be a successful investment look the orleans needs a little bit of an updating also it's an important asset for us, but other than that I think R. R.

Be a successful investment look the orleans needs a little bit of an updating also it's an important asset for us, but other than that I think R. R.

Be a successful investment and look the orleans needs a little bit of an updating also it's an important asset for us, but other than that I think R. R.

Portfolio of properties here in Las Vegas are well positioned we're looking at a number of restaurant projects just as part of our overall capital plan.

Portfolio of properties here in Las Vegas are well positioned we're looking at a number of restaurant projects just as part of our overall capital plan.

The portfolio of properties here in Las Vegas are well positioned we're looking at a number of restaurant projects just as part of our overall capital plan.

To make sure the properties remain competitive its not significant capital, but it's an important important capital to be competitive. So you look at our slot floors and I would put them on par with anybody's in the market and probably better than most and so.

To make sure the properties remain competitive its not significant capital, but it's an important important capital to be competitive. So you look at our slot floors and I would put them on par with anybody in the market and probably better than most and so.

To make sure the properties remain competitive its not significant capital, but it's an important important capital to be competitive. So you look at our slot floors and I would put them on par with anybody in the market and probably better than most and so.

I think we feel pretty good with exception of once again wanted needing to make I think a an important investment in new Orleans to make sure it's competitive for the long term.

I think we feel pretty good with the exception of once again wanted needing to make I think a an important investment in new Orleans to make sure it's competitive long term.

I think we feel pretty good with the exception of once again wanted needing to make I think a an important invest in new Orleans to make sure it's competitive for the long term.

Okay got it thanks, guys appreciate it.

Okay got it thanks, guys appreciate it.

Okay got it thanks, guys appreciate it.

Thank you.

Our next question comes from David Katz of Jefferies. David. Please go ahead.

Thank you.

Thank you.

Our next question comes from David Katz of Jefferies. David. Please go ahead.

Our next question comes from David Katz of Jefferies. Please go ahead.

Thanks for taking my question so I.

Thanks for taking my question so.

Thanks for taking my question. So I just wanted to get your updated thoughts on the investments that you're making internally in the portfolio and how youre thinking about returns the timing to those returns our hurdle rates.

Just wanted to get your updated thoughts on the investments that you're making internally in the portfolio and how youre thinking about returns the timing to those returns our hurdle rates.

Just wanted to get your updated thoughts on the investments that you're making internally in the portfolio and how youre thinking about returns the timing to those returns our hurdle rates.

It will help us think about forecasting into the future.

Just help us think about forecasting into the future.

It will help us think about forecasting into the future.

But what's the what's the return.

But what's the what's the return.

Whats the whats the return process.

Yes, actually we think about the earnings potential on them.

<unk> actually we think about the earnings potential outlook.

Process, how should we think about the earnings potential on them.

Yes, Hey, Dave It's Josh <unk>.

Yes, Hey, Dave it's Josh.

Yes, Hey, Dave it's Josh.

And then Keith can jump in and add anything.

Take it and then Keith can jump in and add anything.

I'll take it and then Keith can jump in and add anything.

Generally I think kind of for good rule of thumb for modeling purposes.

Generally I think kind of a good rule of thumb for modeling purposes.

Generally I think kind of a good rule of thumb for modeling purposes, we generally think of calendar <unk>.

I really think of accountable, 15% to 20% kind of cash on cash type of return.

Generally think of accountable, 15% to 20% kind of cash on cash type of return.

15% to 20% kind of cash on cash type of return.

And so you know.

We certainly achieved that with treasure chest I think we're seeing the early signs of achievement with that with the meeting space at <unk> St. Charles.

And so.

And so.

We certainly achieved that with treasure chest I think we're seeing the early signs of achievement with that with the meeting space at <unk> St. Charles.

We certainly achieved that with treasure chest I think we're seeing the early signs of achievement with that with the meeting space at <unk> St. Charles.

The next one up will be cadence, which is like a 60 million dollar investments so that will be and that we fully expect that.

The next one up will be cadence, which is like a $60 million investment so that will be and that we fully expect that.

The next one up will be cadence, which is like a $60 million investment so that will be and that we fully expect that.

The property once it comes online to generate incremental EBITDA.

The property once it comes online to generate incremental EBITDA.

Property once it comes online to generate incremental EBITDA.

What we're getting today.

We are getting today.

The current jokers, while facility that will generate that return.

What we're getting today.

From the current jokers wild so that will generate that return.

From the current jokers wild so that will generate that return.

And then after that I think we're more dependent on regulatory approval for Paradise, but.

And then after that I think we're more dependent on regulatory approval for Paradise.

And then after that I think we're more dependent on regulatory approval for Paradise.

We're excited about that opportunity.

We're excited about that opportunity.

But we're excited about that opportunity.

Good rule of thumb is at 15% to 20%, we've been fortunate enough to kind of meet or exceed that on the projects that we've announced to date.

Good rule of thumb is at 15% to 20%, we've been fortunate enough to kind of meet or exceed that on the projects that we've announced to date.

So good rule of thumb is up 15% to 20% we've been fortunate enough to kind of meet or exceed that on the projects that we've announced to date.

We have as we've tried to condition the market to think about kind of a pipeline of these projections, we will continue to kind of.

We have as we've tried to condition the market to think about kind of a pipeline of these projections, we will continue to kind of.

We have as we've tried to condition the market to think about kind of a pipeline of these projects and we'll continue to kind of.

Kind of bad or choose the ones that have the highest return potential.

Kind of bad or choose the ones that have the highest return potential.

Kind of a vet or choose the ones that have the highest return potential.

Throughout allows the stuff around suncoast most of the hotel renovations, even the Orleans, Dolby and our maintenance capital budgets.

Throughout a lot of the stuff around suncoast most of the hotel renovations, even the Orleans, Dolby and our maintenance capital budgets.

<unk> allows the staff around Suncoast most of the hotel renovations, even the Orleans, Dolby and our maintenance capital budgets.

But as Keith mentioned.

But as Keith mentioned.

But as Keith mentioned.

The early signs at Suncoast, or we're seeing new customers in the building, we're seeing people visit more frequently and so we're encouraged by those type of investments, even though they cannot qualify in our book.

The early signs at Suncoast, or we're seeing new customers in the building, we're seeing people visit more frequently and so we're encouraged by those type of investments, even though they cannot qualify in our book.

The early signs at Suncoast, or we're seeing new customers in the building, we're seeing people visit more frequently and so we're encouraged by those type of investments, even though they cannot qualify on our book.

Maintenance capital, So I hope that kind of gives you some color.

Maintenance capital, So I hope that kind of gives you some color.

Maintenance capital, So I hope that kind of gives you some color.

It does if I can just follow up and clarify one we're more thinking about the Orleans, because it's in the maintenance budget.

It does if I can just follow up and clarify one we're more thinking about the Orleans.

It does if I can just follow up and clarify one we're more thinking about the Orleans.

It's in the maintenance budget.

Arent necessarily sort of holding it to the same standard or thinking about its earnings power longer term in the same way with that 15% or 20% right.

It's in the maintenance budget.

We arent necessarily sort of holding it to the same standard or thinking about earnings power longer term, the same way with that 16% or 20% right.

We arent necessarily sort of holding it to the same standard or thinking about its earnings power longer term in the same way with that 15% or 20% right.

Yes, I think thats right.

It gets to be a blend of maintenance capital and growth and it's just hard to kind of distinguish between.

Yeah, I think thats right.

Yeah, I think thats right.

It gets to be a blend of maintenance capital and growth and it's just hard to kind of distinguish between.

It gets to be a blend of maintenance capital and growth and it's just hard to kind of distinguish between.

Kind of what that project is it more maintenance or is it more growth. So I think.

Kind of what that project is it more maintenance or growth. So I think.

So kind of what that project is it more maintenance.

More growth so I think.

That's why we put it in maintenance really.

That's why we put it in maintenance really.

That's why we put it in maintenance really.

I gotcha, Thank you very much.

I gotcha, Thank you very much.

I gotcha, Thank you very much.

Sure.

Thank you.

Sure.

Our next question comes from Brent <unk> of Barclays. Brent. Please go ahead.

Sure.

Thank you.

Thank you.

Our next question comes from Brian <unk> of Barclays. Brent. Please go ahead.

Our next question comes from Brent <unk> of Barclays. Brent. Please go ahead.

Hello, everybody. Thanks for taking my question so.

Hello, everybody. Thanks for taking my question so.

Hello, everybody. Thanks for taking my question so.

First question is just a clarification.

First question is just a clarification.

About the Orleans.

First question is just a clarification about the Orleans.

About the Orleans.

Project for next year, which you mentioned is that I mean, I imagine your hotel rooms, you mentioned a few things is that something we should consider some potentially some disruption.

Project for next year, which you mentioned is that I mean, I imagine your hotel rooms, you mentioned that you think is that something we should consider some potentially some disruption.

Project for next year, which you mentioned is that I mean.

I imagine your hotel or as you mentioned, if you think is that something we should consider some potentially some disruption impact I know that it's got easy comps here.

Impact I know that it's got easy comps here and there.

Impact I know that it's got easy comps here.

There's a couple of different things going on in the market that's affecting that properties. How do you think about.

There's a couple of different things going on in the market that's affecting that properties. How do you think about.

And there's a couple of different things going on in the market that's affecting that properties. How do you think about that property into next year.

That property and in next year.

That property into next year.

So.

I think it's a little early to try to figure out kind of.

So.

So.

I think it's a little early to try to figure out kind of.

I think it's a little early to try to figure out kind of.

Disruption.

I think our view would be that at the beginning of a project like that if we are even able to get it started in the second half of next year.

Disruption.

Disruption I think our view would be that at the beginning of a project like that if we are even able to get it started in the second half of next year.

I think our view would be that at the beginning of a project like that if we are even able to get it started in the second half of next year.

Be more limited in terms of the disruption once we understand the actual program scope and the timing we can provide better color on that we've been our management teams at Suncoast have done a very good job.

Be more limited in terms of the disruption once we understand the actual program scope and the timing we can provide better color on that we've been our management teams at Suncoast have done a very good job.

Be more limited in terms of the disruption once we understand the actual program scope and the timing we can provide better color on that we've been our management teams at Suncoast have done a very good job.

Sure.

To manage through the disruption to date at that property and its been significant and that construction activity continues. So we're learning how to manage that post processes. Each one will be unique and different but to date, we've been pretty good at managing through it at the Suncoast no doubted it is affecting our performance.

Sure.

To manage through the disruption to date at that property and its been significant.

To manage through the disruption to date at that property and its been significant.

And that construction activity continues so we're learning how to manage that post processes. Each one will be unique and different but to date, we've been pretty good at managing through it at the Suncoast no doubted it is affecting our performance in some way, but the fact that it is like Keith said in line with prior year at this.

And that construction activity continues so we're learning how to manage that those processes. Each one will be unique and different but to date, we've been pretty good at managing through it at the Suncoast no doubted it is affecting our performance in some way, but the fact that it is like Keith said in line with prior year at this.

Some way, but the fact that it is like Keith said in line with prior year at this point, that's pretty encouraging. So I think we at this point, we wouldn't be calling out expectations for disruption related to four lanes.

Point, that's pretty encouraging so I think we at this point, we wouldn't be calling out expectations for disruption related to four lanes.

Point, that's pretty encouraging.

I think we at this point, we wouldn't be calling out expectations for disruption related to four lanes.

Two we havent better clarity on timing and the full scope of the project Keith I don't know if you want to add to that no I think just tagging on to adjust that as you're thinking about 2026 and thinking about the Orleans.

Until we have better clarity on timing and the full scope of the project Keith I don't know if you want to add to that no I think just tagging on to adjust that as you're thinking about 2026 and thinking about the Orleans.

Until we have better clarity on timing and the full scope of the project Keith I don't know if you want to add to that no I think just tagging on to adjust that as you're thinking about 2026 and thinking about the Orleans.

I wouldn't anticipate anything significant.

I wouldn't anticipate anything significant.

I wouldn't anticipate anything significant.

<unk> begin to have more clarity on the timing of all of that and what's going to take place first and second and when we end up getting to a quote unquote the middle of the casino, which yes, we will have some disruption as we get into those types of things.

<unk> begin to.

We begin to have more clarity on the timing of all of that and what's going to take place first and second and when we end up getting to a quote unquote the middle of the casino, which yes, we'll have some disruption as we get into those types of things.

We have more clarity on the timing of all of that and what's going to take place first and second.

When we ended up getting to a quote unquote the middle of the casino, which yes, we will have some disruption as we get into those types of things.

We will be able to update you at this point as you're modeling out 2026, I wouldn't anticipate anything.

We will be able to update you at this point as you're modeling out 2026, I wouldn't anticipate anything.

We will be able to update you at this point as you're modeling out 2026, I wouldn't anticipate anything.

Great. That's helpful. Just a quick second question about the Midwest and South.

Great. That's helpful. Just a quick <unk>.

Great. That's helpful. Just a quick second question about the Midwest and South.

Second question about the Midwest and South.

How would you describe the promotional environment across your markets any any sort of changes quarter over quarter or has it been pretty consistent from competitors.

How would you describe the promotional environment across your markets.

How would you describe the promotional environment across your markets any any sort of changes quarter over quarter or has it been pretty consistent from competitors.

Any sort of changes quarter over quarter or has it been pretty consistent from competitors.

Several and several markets there have been competitors who've been.

So there is several several markets there have been competitors who've been.

So there's several in several markets.

There have been competitors who've been.

Stepping on the gas so to speak with respect to marketing spend and being more aggressive.

Stepping on the gas so to speak with respect to marketing spend.

Stepping on the gas so to speak with respect to marketing spend.

And b being more aggressive.

And b being more aggressive.

We have generally remained very disciplined reflective in our margins that remained consistent year to year.

Have generally remained very disciplined.

Have generally remained very disciplined.

Selective in our margins that remained consistent year to year.

And our margins that remained consistent year to year.

While we may be up just a tick.

While we may be up just a tick.

While we may be up just a tick.

A little bit overall.

Just a little bit overall.

Once again it is highly efficient highly productive highly efficient highly productive dollars reflected and we're able to grow revenue, we're able to grow EBITDA and we're able to maintain.

Just a little bit overall.

Again, it is highly efficient highly productive highly efficient highly productive dollars reflected and we're able to grow revenue, we're able to grow EBITDA and <unk>.

Once again it is highly efficient highly productive highly efficient highly productive dollars reflected and we're able to grow revenue, we're able to grow EBITDA and <unk>.

Maintain margins. So we are seeing some enhanced marketing by our competitors who are not responding frankly some of the enhanced marketing that we're doing is in relation to declines in destination business not in relation to what our competitors are doing.

Jane margin. So we are seeing some enhanced marketing by our competitors, who are not responding frankly some of the enhanced marketing that we're doing is relation to declines in destination business.

Maintain margin. So we are seeing some enhanced marketing by our competitors who are not responding frankly some of the enhanced marketing that we're doing is in relation to declines in destination business not in relation to what our competitors are doing.

Not in relation to what our competitors are doing.

Alright, thanks, everyone.

Alright, thanks, everyone.

Thank you.

Great. Thanks, everyone.

Our next question comes from Ben Chaiken of Mizuho Ben. Please go ahead.

Thank you.

Thank you.

Our next question comes from Ben Chaiken of Mizuho Ben. Please go ahead.

Our next question comes from Ben Chaiken of Mizuho Ben. Please go ahead.

Hey, Thanks for taking my questions.

Hey, Thanks for taking my questions.

Hey, Thanks for taking my questions.

On the Suncoast renovation you mentioned in line with the prior year, a few times, but I would I would think that there was still some disruption.

On the Suncoast renovation you mentioned in line with the prior year, a few times, but I would I would think that there was still some disruption.

On the Suncoast renovation you mentioned in line with the prior year, a few times, but I would I would think that there was still some disruption.

To the extent there was could you quantify that impact in.

To the extent there was could you quantify that impact in.

In <unk> and then maybe how youre thinking about before you even if just just anecdotally.

To the extent there was could you quantify that impact in.

In <unk> and then maybe how youre thinking about for you even if just just anecdotally.

In <unk> and then maybe how youre thinking about for you even if just just anecdotally.

Yes, I'd love to but it's really difficult to quantify the disruption look when we say was in line with prior year revenue and EBITDA perspective.

Yes, I'd love to but it's really difficult to quantify the disruptive look when we say was in line with prior year revenue and EBITDA perspective.

Yes, I'd love to but it's really difficult to quantify the disruption look when we say was in line with prior year revenue and EBITDA perspective.

I think that says it all there is clearly a disruption we have fewer slots on the floor today than we did a year ago because we're in the middle of the casino. There are a lot of walls up theres sealing work being done. So it is disruptive and it will continue to be disruptive. If you were to walk in the building today, we have a temporary front desk, because we're doing work around the front desk area.

I think that says it all there's clearly disruption we have fewer slots on the floor today than we did a year ago because we're in the middle of the casino. There are a lot of walls up theres sealing work being done. So it is disruptive and it will continue to be disruptive.

I think that says it all there is clearly a disruption we have fewer slots on the floor today than we did a year ago because we're in the middle of the casino. There are a lot of walls up theres sealing work being done. So it is disruptive and it will continue to be disruptive. If you were to walk in the building today, we have a temporary front desk, because we're doing work around the front desk area.

If you were to walk in the building today, we have a temporary front desk, because we're doing work around the front desk area.

<unk>.

To date and through Q3, and we would expect it to be through Q4 things are in line with the prior year our customers are.

But.

<unk>.

To date and through Q3, and we would expect it to be through Q4 things are in line with the prior year our customers are hanging in there with US the management team is doing a great job of taking care of our guests.

To date and through Q3, and we would expect it to be through Q4 things are in line with the prior year our customers are.

Hanging in there with us the management team is doing a great job of taking care of our guests.

Hanging in there with us the management team is doing a great job of taking care of our guests the.

The guests have had very very strong positive reactions to what we've unveiled thus far and so everything is working but hard to quantify.

The guests have had very very strong positive reactions to what we've unveiled thus far and so everything is working but hard to quantify.

The guests have had very very strong positive reactions to what we've unveiled thus far and so everything is working but hard to quantify.

Okay understood and then you've got a large expansion.

Okay understood and then you've got a large expansion.

Okay understood and then you've got a large expansion.

At Sky River I believe.

Early next year.

At Sky River I believe that opened early next year.

At Sky River I believe that opened early next year.

<unk> I believe.

Understanding you earn management fees here is there anything we need to watch out for in Q4 in terms of the construction.

<unk> I believe understand.

<unk> I believe.

Understanding you earn management fees here is there anything we need to watch out for in Q4 in terms of construction.

Understanding you earn management fees here is there anything we need to watch out for in Q4 in terms of construction.

Just ahead of that opening.

From a construction standpoint everything is on the outside of the building and so there really isn't any impact to the.

Just ahead of that opening.

Just ahead of that opening.

From a construction standpoint everything is on the outside of the building and so there really isn't any impact to the.

From a construction standpoint everything is on the outside of the building and so there really isn't any impact to the.

The negative side to the ongoing construction of a quote unquote the opening.

The negative side to the ongoing construction of a quote unquote the opening.

The negative side to the ongoing construction of a quote unquote the opening.

Whenever that happens sometime early next year.

Whenever that happens sometime early next year.

Whenever that happens sometime early next year.

It has a parking garage along with some <unk>.

It has a parking garage along with some <unk>.

It's parking garage along with some added casino space that will house the added slots.

Added casino space that will house the added slots.

Added casino space that will house the added slots.

The second phase that I described which includes hotel towers more restaurants also is on the outside of the building.

The second phase that I described.

The second phase that I described which includes hotel towers more restaurants also is on the outside of the building.

So restaurants also is on the outside of the building.

And so there'll be no immediate impact or construction disruption from that.

And so there'll be no immediate impact or construction disruption from that.

And so there'll be no immediate impact or construction disruption from that.

Thanks.

Thanks.

Thanks.

Thank you.

Our next question comes from Steve <unk> of Deutsche Bank, Steve. Please go ahead.

Thank you.

Thank you.

Our next question comes from Steve <unk> of Deutsche Bank, Steve. Please go ahead.

Our next question comes from Steve <unk> of Deutsche Bank, Steve. Please go ahead.

Good evening, Thanks for taking my question.

Good evening, Thanks for taking my questions.

Good evening, Thanks for taking my question.

Just curious are we spoke about early next year can you share any expectations you might have for our benefit from the tax bill.

Just curious.

Just curious.

Early next year can you share any expectations you might have for our benefit from the tax bill.

Early next year can you share any expectations you might have for our benefit from the tax bill.

Yes, Steve I mean, it's a question we get asked quite a bit.

Yes, Dave I mean, it's a question we get asked quite a bit.

Yes, Dave I mean, it's a question we get asked quite a bit.

I don't we've not really found a way that we're comfortable to kind of estimate the overall benefit from that.

I don't we've not really found a way that we are comfortable to kind of estimate the overall benefit from that.

I don't we've not really found a way that we're comfortable to kind of estimate the overall benefit from that.

There are several elements to it.

There are several elements to it.

There are several elements to it.

From and I think Keith mentioned in his remarks, ranging from tax on <unk>.

From and I think Keith mentioned in his remarks, ranging from tax on <unk>.

From and I think Keith mentioned in his remarks, ranging from tax on <unk>.

Higher standard deductions and credits for seniors I think ultimately we come away thinking, it's just incremental benefit to us overall, but.

Higher standard deductions and credits for seniors I think ultimately we come away thinking, it's just incremental benefit to us overall, but.

Higher standard deductions and credit for seniors I think ultimately we come away thinking, it's just incremental benefit to us overall, but.

But we have not quantified it in terms of revenue and EBITDAR.

But we have not quantified it in terms of revenue and EBITDAR.

But we have not quantified it in terms of revenue and EBITDAR.

Okay, great. Thank you.

Okay, great. Thank you.

Okay, great. Thank you.

Our next question comes from John Decree of CB R. E. John Please go ahead.

Our next question from John Decree of CEB Ari John Please go ahead.

Our next question comes from John Decree of CB R. E. John Please go ahead.

Hi, Josh Hi, Keith Good afternoon John.

Hi, Josh Hi, Keith good afternoon.

Hi, Josh Hi, Keith Good afternoon John.

John.

Keith I wanted to ask if you could provide a little color on kind of how the quarter played out and made a cadence month to month.

John.

John.

Keith I wanted to ask if you could provide a little color on kind of how the quarter played out and made a cadence month to month and week.

Keith I wanted to ask if you could provide a little color on kind of how the quarter played out and maybe the cadence month to month.

Kind of use the state GTR data to help us, but July and August looks pretty strong.

Kind of use the state GTR data to help us, but July and August looks pretty strong.

State GTR data to help us, but July and August looks pretty strong.

September maybe a little bit more on mix. So any color you could give us on kind of how the quarter played out, particularly in the Midwest and south regions.

September maybe a little bit more on mix. So any color you could give us on kind of how the quarter played out, particularly in the Midwest and south regions.

September maybe a little bit more on mix. So any color you could give us on kind of how the quarter played out, particularly in the Midwest and south regions.

I think as we look across our portfolio. It was fairly steady you have to take into account like in September where the holiday fell different and therefore, we got a little bit bigger benefit technically in August than we did in September but that's over the course of a 10 day period. It flips in one more.

I think as we look across our portfolio. It was fairly steady you know you have to take into account like in September where the holiday fell different and therefore, we got a little bit bigger benefit technically in August than we did in September but that's over the course of a 10 day period that flips over.

I think as we look across our portfolio. It was fairly steady you have to take into account like in September where the holiday fell different and therefore, we got a little bit bigger benefit technically in August than we did in September but that's over the course of a 10 day period. It flips in one more.

<unk> versus the other but when we look at kind of core trends in the business week to week.

One month versus the other but when we look at kind of core trends in the business week to week.

<unk> versus the other but when we look at kind of core trends in the business week to week.

Not a lot of fluctuation.

Not a lot of fluctuation so.

Not a lot of fluctuation.

Not a lot of fluctuation.

Not a lot of fluctuation so.

Not a lot of fluctuation so.

No that I have anything else to add other than that.

No that I have anything else to add other than that.

No that I have anything else to add other than that.

That's great. Thank you and then maybe I know.

That's great. Thank you.

That's great. Thank you and then maybe I know this one is difficult to kind of track given the limited data but.

This one is difficult to kind of track given the limited data but.

And then maybe I know.

This one is difficult.

I'm curious if you could give us a little bit more color again in the Midwest and south specifically on the retail play some of the better trends Youre seeing there is that kind of year over year growth in kind of spend.

Tracking in a limited gain.

I'm curious if you could give us a little bit more color again in the Midwest and south specifically on the retail play some of the better trends Youre seeing there is that kind of year over year growth in kind of spend.

Curious if you could give us a little bit more color again in the Midwest and south specifically on the retail play some of the better trends Youre seeing there is that kind of year over year growth in kind of spend.

Yes.

More customers come in the door.

<unk>.

Customers come in the door.

More customers come in the door.

If you have any guesses number of theories, but kind of what might be might be driving that uptick in retail play.

If you have any guesses number of theories, but kind of what might be might be driving that uptick in retail play.

If you have any guesses number of theories, but kind of what might be might be driving that uptick in retail play.

So it's a trend that it actually has been going on for a couple of quarters now we've actually been talking about it and it continued in through the third quarter.

So it's a trend that it actually has been going on for a couple of quarters now we've actually been talking about it and it continued in through the third quarter.

So it's a trend that actually has been going on for a couple of quarters now we've actually been talking about it and it continued in through the third quarter.

The improvements kind of increasing so to speak I think we're seeing generally on the rated side.

The improvements kind of increasing so to speak I think we're seeing generally on the rated side <unk>.

The improvements kind of increasing so to speak I think we are seeing generally on the rated side.

<unk> and frequency and increases in spend so both ADT or spend are going up in frequency is increasing which are positive trends.

Increases in frequency and increases in spend so both ADT or spend theyre going up in frequency is increasing.

<unk> and frequency and increases in spend so both ADT or spend theyre going up in frequency is increasing.

Which are positive trends.

Which are positive trends.

Josh I don't know if theres anything else to add yes, I would just add just to clarify for everyone. Retail is two buckets at the lower end of the rated Thats. What Keith was just talking about in terms of spend and frequency and then the xeon rated component as well. So we can kind of understand what's going on with the lower end of the REIT.

Josh I don't know if theres anything else to add yes, I would just add just to clarify for everyone. Retail is two buckets. It's the lower end of the re rated that's what Keith was just talking about in terms of spend and frequency and then the xeon rated component as well. So we can kind of understand what's going on with the lower end of the week.

Josh I don't know if theres anything else to add I would just add just to clarify for everyone. Retail is two buckets. It's the lower end of the re rated Thats. What Keith was just talking about in terms of spend and frequency and then the xeon rated component as well. So we can kind of understand what's going on with the lower end of the of the <unk>.

The rated pace, what's interesting as a group is the unrated business has also been improving sequentially over time as well actually benefit.

Of the rated pace, what's interesting as a group is the unrated business has also been improving sequentially over time as well, but actually benefit.

<unk> pace, what's interesting as a group as the unrated business has also been improving sequentially over time as well, but actually benefit of.

The retail component so.

Both the low end of the retail rated piece that we that we know about and the unrated segment have both been kind of in lockstep in propane.

Of the retail component so.

The retail component so.

Both the low end of the retail rated piece that we that we know about and the unrated segment have both been kind of in lock step and protein.

Both the low end of the retail rated piece that we that we know about and the unrated segment have both been kind of in lockstep in bromine.

Year over year as we've moved through this year.

Year over year as we've moved through this year.

Year over year as we've moved through this year.

So and it's been a.

The consistent trend, it's been very interesting to watch.

So and it's been a consistent trend it's been very interesting to watch.

So and it's been a.

Our consistent trend, it's been very interesting to watch.

Sounds good thanks, Josh Thank you Keith sure yes. Thank you.

Sounds good thanks, Josh Thank you Keith sure yes. Thank you.

Sounds good thanks Kash. Thank you Keith sure yes. Thank you.

Our next question comes from Dan <unk> of J P. Morgan and please go ahead.

Our next question comes from Dan <unk> of J P. Morgan and please go ahead.

Our next question comes from Dan <unk> of J P. Morgan and please go ahead.

Hey, good afternoon, everyone and thanks for taking my questions.

Hey, good afternoon, everyone and thanks for taking my questions.

Hey, good afternoon, everyone and thanks for taking my questions.

Was wondering maybe you can walk through the fourth quarter. It seems like there's a few moving pieces. There. So maybe just to get some clarity I think tunica is closing in November.

Was wondering maybe you can walk through the fourth quarter. It seems like there's a few moving pieces. There. So maybe just to get some clarity I think tunica is closing in November.

Was wondering if maybe you can walk through the fourth quarter. It seems like there's a few moving pieces. There. So maybe just to get some clarity I think tunica is closing in November no.

I think there is a temporary casino that opened also in November.

Norfolk, I think Theres a temporary casino that opened also in November.

I think there is a temporary casino that opened also in November.

And then I don't know if you gave it I don't think you gave an update for managed and other.

And then I don't know if you gave it I don't think you gave an update for managed and other.

And then I don't know if you gave it I don't think you gave an update for managed and other.

But then also that would help and then any impact from the cyber security incident in the quarter. Thanks.

But then also that would help and then any impact from the cyber security incident in the quarter.

But then also that would help and then any impact from the cyber security incident in the quarter. Thanks.

I think as you think about tunica.

I think as you think about tunica.

I think as you think about tunica.

Should expect obviously, a fairly negligible impact I wouldn't adjust your.

Should expect obviously, a fairly negligible impact I wouldn't adjust your.

You would expect obviously, a fairly negligible impact I wouldn't adjust your.

Our models for anything related to that or for Norfolk for that matter we've talked.

Your models for anything related to that or for Norfolk for that matter, we've taught and.

Our models for anything related to that or for Nord pool for that matter we've talked.

In previous calls about this very small modest temporary facility and our focus really is on the permanent and so you assume that this will be a breakeven. This should think about the fourth quarter or even next year.

In previous calls about the severe small modest temporary facility and our focus really is on the permanent and so you assume that this will be a breakeven. This should think about the fourth quarter or even next year.

In previous calls about this very small modest temporary facility and our focus really is on the permanent and so you assume that this will be a breakeven. This should think about the fourth quarter or even next year.

<unk>.

And as you think about the cyber event once again not much we can say other than what was in the 8-K, which as it did not have any impact to our business operation.

<unk>.

As you think about the cyber event once again not much we can say other than what was in the 8-K, which as it did not have any impact to our business operation.

And as you think about the cyber event once again not much we can say other than what was in the 8-K.

Which is it did not have any impact to our business operation.

And we've got <unk>.

Cyber insurance.

And we've got <unk>.

And we've got cyber.

To backstop US there was a third question in there or loss drove fourth I lost track of.

Cyber insurance.

Cyber insurance.

To backstop US there was a third question in there or loss fourth I lost track of.

To backstop US there was a third question in there I lost fourth I lost track of well known.

The management of <unk>.

I'll, let you answer that so managed and other I think.

The management of <unk>.

Okay.

I'll, let you answer that so managed and other I think.

Let you answer that so managing other I think.

The key for managed and others, it's going to be a pretty stable business in Q4 relative to when you think about the trends of this year just because the business is operating at or very near capacity and then once it gets the.

The key for managed and others, it's going to be a pretty stable business in Q4 relative to when you think about the trends of this year just because the business is operating at or very near capacity and then once it gets the.

The key for managing and others, it's going to be a pretty stable business in Q4 relative to when you think about the trends of this year just because the business is operating at or very near capacity and then once it gets the.

Incremental slots early next year.

Incremental slots early next year that in the quarters. Following that I think is where it will start to see the benefit of that and then eventually from.

Incremental slots early next year.

Quarters. Following that I think is where we will start to see the benefit of that and then eventually from.

Following that I think is where we will start to see the benefit of that and then eventually from.

The expansion.

The hotel and meeting space in mid probably too tight.

The expansion of the hotel and meeting space in mid probably.

The expansion of the hotel and meeting space in mid probably mid.

<unk> 2000 2027.

<unk> 2000 2027 so.

Mid 2011 2027 so.

I think for managed and other for Q4 will be very similar to what you've seen in <unk>.

I think for managed and other for Q4 will be very similar to what you've seen in <unk>.

I think for managed and other for Q4 will be very similar to what you've seen in <unk>.

The quarter's of other earlier quarters of this year.

The quarters.

The quarters.

Further earlier quarters of this year.

Further earlier quarters of this year.

So.

Got it and then just for my follow up I don't think you paid the taxes in the quarter on the <unk> stake sale. When can we expect that and then along with it on the tax front. The one big Bill is there any impact there.

So.

So.

Got it and then just for my follow up I don't think you paid the taxes.

Got it and then just for my follow up I don't think you paid the taxes in the quarter on the <unk> stake sale.

Sandals stake sale.

When can we expect that and then along with it on the tax front. The one big Bill is there any impact or.

And along with it.

The one big Bill is there any impact there.

I'll set you could get from that that may be applied here.

All set you could get from that that may be applied here.

All said you could get from that that may be applied here.

Not much of an offset.

Not much of an offset.

Not much of an offset.

More than likely the payment of a car sometime in the first quarter of next year.

More than likely the the payment of a car sometime in the first quarter of next year.

More than likely the the payment of course sometime in the first quarter of next year.

Thanks, so much.

Yes.

Thanks, so much.

Thanks, so much.

Thank you.

Our next question comes from Stephen Grambling of Morgan Stanley Steven. Please go ahead.

Yes.

Yes.

Thank you.

Thank you.

Our next question comes from Stephen Grambling of Morgan Stanley Steven. Please go ahead.

Our next question comes from Stephen Grambling of Morgan Stanley Steven. Please go ahead.

Hey, Thank you I was hoping you could dig into the balance sheet a little bit just how are you thinking about the optimal leverage of the business, particularly if M&A opportunities maybe don't come to fruition could we see that leverage ticked back up or what would you be looking.

Hey, Thank you I was hoping you could dig into the balance sheet a little bit just how are you thinking about the optimal leverage of the business, particularly if M&A opportunities maybe don't come to fruition could we see that average ticked back up or what would you be looking.

Hey, Thank you I was hoping you could dig into the balance sheet a little bit just how are you thinking about the optimal leverage of the business, particularly if M&A opportunities maybe don't come to fruition could we see that leverage tick back up or what would you be looking.

To do in terms of optimizing the balance sheet longer term.

To do in terms of optimizing the balance sheet longer term.

To do in terms of optimizing the balance sheet longer term.

Steve.

So.

Steve.

Steve.

So before the <unk> transaction, our leverage was about two eight times.

So.

So.

So before the <unk> transaction, our leverage was about two eight times.

So before the <unk> transaction, our leverage was about two eight times.

And our leverage target was around two five times long term.

And our leverage target was around two five times long term.

And our leverage target was around two five times long term.

Post as a result of the <unk> transaction, which happened in late July early August.

Post as a result of the <unk> transaction, which happened in late July early August.

Post as a result of the <unk> transaction, which happened in late July early August.

Our leverages as I stated in my remarks around one five times.

<unk> Leverages as I stated in my remarks around one five times.

Our leverages as I stated in my remarks around one five times.

I think.

Based on just the capital plans that we have now primarily related to.

I think.

I think.

Based on just the capital plans that we have now primarily related to.

Based on just the capital plans that we have now primarily related to for.

Virginia coming out the capital related to the permanent of Virginia, our leverage will tick up over time. It will go back up to around probably in next.

Virginia coming out the capital related to the permanent of Virginia, our leverage will tick up over time. It will go back up to around probably in next.

Virginia coming out the capital related to the permanent of Virginia, our leverage will tick up over time. It will go back up to around probably in next.

Year, and a half or so to around two five times.

Year, and a half or so to around two five times.

Year, and a half or so to around two five times.

<unk>.

Thank you.

<unk>.

It's odd to talk about your optimal leverage being at least for us it's odd for optimal leverage to be above where a target about where we are but I think that.

It's odd to talk about your optimal leverage being at least for us it's odd for optimal leverage to be above where it is.

It's odd to talk about your optimal leverage being at least for us it's odd for optimal leverage to be above where a target about where we are but I think that.

Target about where we are but I think that.

It's not a.

Doesn't it.

Doesn't it.

Okay.

It's not something we strive to achieve given where we are today to the extent that we have opportunities I guess the way I would say in other words, we're not trying to hit the target just because we're at one five times and we want to be at our target leverage.

It's not a.

It's not a.

It's not something we strive to achieve given where we are today to the extent that we have opportunities I guess the way I would say it in other words, we're not trying to hit the target just because we're at one five times and we want to be at our target leverage.

It's not something we strive to achieve given where we are today to the extent that we have opportunities I guess the way I would say it in other words, we're not trying to hit that target just because we're at one five times and we want to be at our target leverage.

It could be that our leverage remains at one five times over time, we don't think that's probably the right leverage, but we don't have anything.

It could be that our leverage remains at one five times over time, we don't think thats, probably the right leverage.

It could be that our leverage remains at one five times over time, we don't think that's probably the right leverage.

The warrants increasing our leverage at this point.

We don't have anything.

We don't have anything.

The warrants increasing our leverage at this point.

The warrants increasing our leverage at this point.

And so we'll continue to think through this and continue to be kind of prudent on how we think about it.

And so.

And so.

We will continue to think through this and continue to be kind of prudent on how we think about it.

We will continue to think through this and continue to be kind of prudent on how we think about it.

But.

It's kind of like we were in a good place and doing everything we were doing at two five times cap.

Sure.

Sure.

But.

But.

It's kind of like we were in a good place and doing everything we were doing at two five times.

It's kind of like we were in a good place and doing everything we were doing at two five times.

Happen to get a big windfall, one five times and that doesn't really change the way we think about anything that we were doing before if opportunities come along if we decide to buy back more shares or return more capital and that will be just part of our thought process that we develop over time.

Happen to get a big windfall.

Happened to get a big windfall, one five times and that doesn't really change the way we think about anything that we were doing before if opportunities come along if we decide to buy back more shares or return more capital and that will be just part of our thought process that we develop over time.

Five times and that doesn't really change the way, we think about anything that we were doing before if opportunities come along.

We decided to buy back more shares or return more capital and that will be just part of our thought process that we develop over time.

But until then we will be running the business between one five and two times and it'll gradually tick up as a result of our capital plans and the plans we have in place today, Keith I don't know if theres anything you want to add to that look I think with Josh was alluding to is first it's only been less than 90 days since we received the payment and leverage has been.

But until then we will be running the business between one five and two times general gradually tick up as a result of our capital plans and the plans we have in place today, Keith I don't know if theres anything you want to add to that look I think what Josh was alluding to is first it's only been less than 90 days since we received the payment and leverage has been.

But until then we will be running the business between one five and two times and it'll gradually tick up as a result of our capital plans and the plans we have in place today, Keith I don't know if theres anything you want to add to that.

And then with Josh was alluding to is first it's only been less than 90 days since we received the payment and leverage has been.

Then.

<unk> down to one and a half and we wanted to take a long term view be thoughtful about what to do with the current leverage how best to position the company could be M&A could be other things could tick back up and so we don't have an answer for you right now other than we understand it and we're having thoughtful.

Yes.

Pushed down to one and a half and we wanted to take a long term view be thoughtful about what to do with the current leverage.

<unk> down to one and a half and we wanted to take a long term view be thoughtful about what to do with the kind of leverage.

Best to position the company could be M&A could be other things could tick back up and so we don't have an answer for you right now other than.

To position the company could be M&A could be other things could tick back up and so we don't have an answer for you right now other than.

We understand that.

We understand that and we're having thoughtful discussions about.

Discussions about where that should be I'm sure. We'll have more to talk to you about in future quarters, but nothing really to say right now.

We're having thoughtful discussions about.

Where that should be I am sure. We will have more to talk to you about in future quarters, but nothing really to say right now.

Where that should be I'm sure, we'll have more to talk to you about in future quarters, but nothing really to say right now.

That all makes sense and if I can sneak one unrelated follow up in.

That all makes sense and if I can sneak one unrelated follow up in.

That all makes sense and if I can sneak one unrelated follow up in.

If you look at the locals market and you talked about the 6% wage growth there. It seems like it's about as wide as I've seen it relative to the GTR growth for that market in aggregate do you think that there is a lead lag here or is there is there anything else that you would point out that's maybe creating that wider gap versus.

Yes, if you look at the locals market and you talked about the 6% wage growth there. It seems like it's about as wide as I've seen it relative to the <unk> growth for that market in aggregate do you think that there is a lead lag here or is there is there anything else that you would point out that's maybe creating that wider gap versus.

Yes, if you look at the locals market and you talked about the 6% wage growth there. It seems like it is about as wide as I've seen it relative to the GTR growth for that market in aggregate do you think there's a lead lag here or is there or is there anything else that you would point out that's maybe creating that wider gap versus.

History. Thanks.

Yes, so Steve I think that like I mean, it's a good observation, but I think it.

As history. Thanks.

History. Thanks.

Yes, so Steve I think that I mean, it's a good observation, but I think.

Yes, so Steve I think that like I mean, it's a good observation, but I think it.

Perhaps at least in our business the impact of the destination business not as shown in visible on the income statement. When you look at hotel revenues year over year, you can look at that so they were down about $5 million with that destination businesses, a significant amount of hotel room nights, while it's primarily at the Orleans.

Perhaps at least in our business the impact of the destination business not as shown invisible in the income statement. When you look at hotel revenues year over year, you can look at that say they were down about $5 million, but that destination businesses, a significant amount of hotel room nights, while it's Bob primarily at the Orleans.

Perhaps at least in our business the impact of the destination business not as shown in visible on the income statement. When you look at hotel revenues year over year, you can look at that and see they were down about $5 million with that destination businesses, a significant amount of hotel room nights, while it's primarily at the Orleans.

It.

Affected really every property in Las Vegas, and outside of Las Vegas to some degree.

It.

It <unk>.

Affected really every property in Las Vegas, and outside of Las Vegas to some degree.

Affected really every property in Las Vegas, and outside of Las Vegas to some degree.

And there is there is F&B theres banquet business is highly profitable to us and there is a significant amount of gaming revenue associated with that business.

And there is there is F&B theres banquet business is highly profitable to us and there is a significant amount of gaming revenue associated with that business.

And there is there is F&B theres banquet business is highly profitable to us and there is a significant amount of gaining revenue associated with that business.

So it's very profitable business to us.

So it is very profitable business to us.

So it's very profitable business to us.

And while it's very difficult to estimate the impact I think.

And while it's very difficult to estimate the impact I think.

And while it's very difficult to estimate the impact I think the real.

Is that that's probably what's creating that gap there is wage growth that we're seeing show up in our business in terms of a stronger local customer.

Reality is that that's probably what's creating that gap. There is wage growth that we're seeing show up in our business in terms of a stronger local customer.

Is that that's probably what's creating that gap there is wage growth that we're seeing show up in our business in terms of a stronger local customer.

But if you had backed up and said, okay. We had that wage growth and destination business you would see probably a healthy gaming revenue growth that would mirror, maybe what your expectations were.

But if you had backed up and said, okay. We had that wage growth and destination business you would see a probably a healthy gaming revenue growth that would mirror, maybe what your expectations were.

But if you had backed up and said, okay. We had that wage growth and destination business you would see probably a healthy gaming revenue growth that would mirror, maybe what your expectations were.

So that's how that's how I think about it at least.

So that's how that's how I think about it at least.

So that's how that's how I think about it at least.

That's helpful. Thank you.

That's helpful. Thank you.

That's helpful. Thank you.

Thank you our.

Our next question comes from David Hargreaves of Barclays. David. Please go ahead.

Thank you.

Thank you.

Our next question comes from David Hargreaves of Barclays. David. Please go ahead.

Our next question comes from David Hargreaves of Barclays. David. Please go ahead.

Hi.

So in terms of Hawaii I think you said revenue was was steady I'm wondering about head count and volumes how are things there.

Hi.

Hi.

So in terms of Hawaii I think you said revenue was was steady I'm wondering about head count and.

So in terms of Hawaii I think you said revenue was steady I'm wondering about head count and volumes how are things there.

Volumes, how are things there.

Specifically, we're coming out of Hawaii.

Yes.

Specifically, we're coming out of Hawaii.

Specifically coming out of Hawaii.

Yeah.

Downtown.

Yes.

Yes.

But downtown volumes on the street are down.

Downtown.

Downtown.

But downtown volumes on the street are down.

But downtown volumes on the street are down.

And that's frankly, driven by visitation to Las Vegas, because theres, a strong strong correlation between visitor volumes downtown visitor volumes to Las Vegas, and so visitation on the street is down which is what kind of impacted we call a destination business in the downtown area for us.

And that's frankly, driven by visitation to Las Vegas, because theres, a strong strong correlation between visitor volumes downtown visitor volumes to Las Vegas, and so visitation on the street is down which is what kind of impacted we call a destination business in the downtown area for us.

And that's frankly, driven by visitation in Las Vegas, because theres, a strong strong correlation between visitor volumes downtown visitor volumes to Las Vegas, and so visitation on the street is down which is what kind of impacted we call a destination business in the downtown area for us.

Kind of our core market, which is the Hawaiian market performed.

Kind of our core market, which is the Hawaiian market performed well.

Kind of our core market, which is a Hawaiian market performed well.

Normally.

And but.

Normally.

Normally.

We felt softness and the destination business, we felt softness from lack of tourism on the street.

And but we felt softness and the destination business, we felt softness from lack of tourism on the streets.

And but we felt softness and the destination business, we felt softness from lack of tourism on the street.

Okay, and then with respect to the Tunica closure I am just wondering if there is.

Okay, and then with respect to the Tunica closure I'm just wondering if there is.

Okay, and then with respect to the Tunica closure I'm just wondering if there is.

Just leaving the building and leaving town.

Just leaving the building and leaving town.

Just leaving the building and leaving town.

Something maybe happens at the gaming equipment.

That's something that maybe happens at the gaming equipment.

That's something that maybe happens at the gaming equipment issue.

Did you try to sell that property.

Did you try to sell that property.

Curious as to what.

Did you try to sell that property.

What happened.

Curious as to.

Curious as to.

I think the way to think about the closure of Tunica first of all when we're all done with this.

What happened.

What happened.

I think I think the way to think about the closure of Tunica first of all when we're all done with this.

I think the way to think about the closure of Tunica first of all when we're all done with this.

The site will be scraped clean.

The site will be scraped clean.

The site will be scraped clean.

We will take everything down we've already found homes for the equipment and all the the recoverable asset so to speak in the building.

We will take everything down we've already found homes for the equipment and all the the recoverable assets so to speak in the building.

We will take everything down we've already found homes for the equipment and all the the recoverable assets so to speak in the building.

<unk> had gotten to a point, where EBITDA was fairly small.

Property had gotten to a point, where EBITDA was fairly small.

The property had gotten to a point, where EBITDA was fairly small.

And the level of Av.

And the level of of.

The level of.

Capital maintenance capital required to maintain it at our standards was growing and frankly, there was not going to be a good return.

Capital maintenance capital required to maintain it at our standards.

Capital maintenance capital required to maintain it at our standards.

Growing and frankly, there was not going to be a good return.

It was growing and frankly, there was not going to be a good return on.

On the capital investment to maintain that buildup of our standards because we do have standards as to how we want our buildings to look and feel and what we want our guests to experience and so we just looking at looking at the data looking at the maintenance capital required and the current level EBITDA and where the market is it just made sense to.

That capital investment to maintain that building standards, because we do have.

On that capital investment to maintain that building standards, because we do have.

Standards as to how we want our buildings will look and feel and what we want our guests to experience and so we just looking at looking at the data looking at the maintenance capital required and the current level EBITDA and where the market is it just made sense to.

Standards as to how we want our buildings to look and feel and what we want our guests to experience and so we're just looking at looking at the data looking at the maintenance capital.

Wired and the current level EBITDA and where the market is it just made sense to <unk>.

Close the building down not a decision we came to lightly but.

Close.

Those the building down not a decision we came to lightly but to.

That's a decision we came to and once again, we will be able to reuse a lot of the gear and a lot of the equipment. So off some stuff that we don't have use for everything will be scraped clean it'll be turned back into just raw land and we will attempt to dispose of the land.

Came to lightly.

But.

Thats a decision we came to and once again, we will be able to reuse a lot of the gear and a lot of the equipment sell off some stuff that we don't have use for everything will be scraped clean it'll be turned back into just for all land.

The decision we came to and once again, we will be able to reuse a lot of the gear and a lot of the equipment. So off some stuff that we don't have use for everything will be scraped clean it'll be turned back to just raw land and we will attempt to dispose of the land.

Last one thank you.

We will attempt to dispose of the land.

I really applaud your conservatism on the balance sheet. If we look at your properties that are.

Last one I think.

Last one thank you.

I really applaud your conservatism on the balance sheet. If we look at your properties that are.

I really applaud your conservatism on the balance sheet. If we look at your properties that are.

Or at least are you happy with the EBIT of our coverage of an interest in rent at this point as you are with your leverage how do you feel about the rent coverage picture.

Or at least are you happy with the EBITDA coverage of interest in rent at this point as you are with your leverage how do you feel about the rent coverage picture.

Or at least are you happy with the coverage of an interest in rent at this point as you are with your leverage how do you feel about the rent coverage picture.

Yes, I think.

We're happy with it and our landlords happy with it quite honestly I don't have a corporate guarantee but they really don't need one given the coverage there so everything's.

Yes, I think.

Yes, I think.

We're happy with it and our landlords happy with it quite honestly they don't have a <unk>.

We're happy with it and our landlords happy with it quite honestly, they don't have a corporate guarantee but they really don't need one given the coverage there so everything's.

Corporate guarantee but they really don't need one given the coverage there so everything's.

Happy partnership there.

Great. Thank you so much.

Happy partnership there.

Happy partnership there.

Great. Thank you so much.

Great. Thank you so much.

Our last question comes from Chad Beynon of Macquarie Chad. Please go ahead.

Our last question comes from Chad Beynon of Macquarie Chad. Please go ahead.

Our last question comes from Chad Beynon of Macquarie Chad. Please go ahead.

Good afternoon, Josh and Keith Thanks for taking my question.

Hi, Good afternoon, Josh and Keith Thanks for taking my question.

Hi, Good afternoon, Josh and Keith Thanks for taking my question.

First one on the <unk>.

Opening or start of Missouri sports betting I know you have a partnership with fanatics I believe it might be the first with them and I know that includes some of there.

First one on the <unk>.

First one on the.

Opening or start of Missouri sports betting I know you have a partnership with fanatics I believe it might be the first with them and I know that includes some of there.

Opening or start of Missouri sports betting I know you have a partnership with fanatics I believe it might be the first with them and I know that includes some of there.

They are branded retail sports books at your properties. So could you maybe talk about.

They are branded retail sports books at your property. So could you maybe talk about.

They are branded retail sports books at your properties. So could you maybe talk about.

Anything you're willing to disclose in terms of the relationship and then maybe.

Anything you're willing to disclose in terms of the relationship and then maybe.

Anything you are willing to disclose in terms of the relationship and then maybe.

Future opportunities with this company given their ascension on market share that we've been able to track. Thank you.

Future opportunities with this company given their ascension on market share that we've been able to track. Thank you.

Future opportunities with this company given their ascension on market share that we've been able to track. Thank you.

Yes, so youre right, we have two properties in Missouri, or Kansas City <unk> St. Charles.

Yes, so youre right, we have two properties in Missouri, or Kansas City Mo.

Yes. So you are right we have two properties in Missouri, <unk>, Kansas City <unk> St. Charles.

And both of them received licenses as did fanatics yesterday, when the Missouri Gaming Commission.

Charles.

And both of them received licenses as did fanatics yesterday, when the Missouri Gaming Commission.

And both of them received licenses as did fanatics yesterday, when the Missouri Gaming Commission.

Issued licenses so people could be prepared to open the first of December it is our first relationship with fanatics.

Issued licenses so people could be prepared to open the first of December it is our first relationship with fanatics.

Issued licenses so people could be prepared to open the first of December it is our first relationship with fanatics.

And whether or not that expands always hard to tell it's a strong relationship. Thus far we know some of the folks in the organization. So we have a good relationship there and we will see once again, how it develops and what other opportunities exist to take.

And whether or not that expands always hard to tell it's a strong relationship thus far.

And whether or not that expands always hard to tell it's a strong relationship. Thus far we know some of the folks in the organization. So we have a good relationship there and we will see once again, how it develops and what other opportunities exist to take.

Some of the folks in the organization. So we have a good relationship there and we will see once again, how it develops and what other opportunities exist to.

Take that take that relationship further nothing really to report other than that at this point.

Take that take that relationship further nothing really to report other than that at this point.

Take that take that relationship further nothing really to report other than that at this point.

Okay, Great and then in terms of some of the near term I guess inflection.

Okay, Great and then in terms of some of the near term I guess inflection.

Okay, Great and then in terms of some of the near term I guess an inflection.

Inflection.

In Vegas, and the destination market.

Inflection.

Inflection.

In Vegas, and the destination market.

We met with a lot of the companies on the strip in the past couple of weeks.

In Vegas, and the destination market.

We met with a lot of the companies on the strip in the past couple of weeks.

We met with a lot of the companies on the strip in the past couple of weeks and.

Some pointed to November others, obviously, you talked about F. One maybe being more of a good guy this year and then the strength into Q1 should all of that.

Some pointed to November others, obviously, you talked about F. One maybe being more of a good guy this year and then the strength into Q1 should all of that.

Some pointed to November or others.

Obviously, you talked about F. One maybe being more of a good guy this year and then the strength into Q1 should all of that.

To help you as well and in terms of internal bookings are you viewing maybe November as kind of an inflection point, where you're starting to see good year over year growth I guess that would be more downtown.

Help you as well and in terms of internal bookings are you viewing maybe November as kind of an inflection point, where you're starting to see.

Help you as well and in terms of internal bookings are you viewing maybe November as kind of an inflection point, where you're starting to see good year over year growth I guess that would be more downtown.

Good year over year growth I guess that would be more downtown.

Maybe excluding Orleans with some of the things that you've talked about thank you.

Hum.

Maybe excluding Orleans with some of the things that you've talked about thank you.

Maybe excluding Orleans with some of the things that you've talked about thank you.

Yes, so once again I noted earlier that as we look at our kind of 90 day booking pattern today sitting here today or a week or so ago. It is much more positive than it was three months ago and it is still soft, but it is significantly better than it was three months ago and so.

Yes.

Yes, so once again I noted earlier that as we look at our kind of 90 day booking pattern today sitting here today.

Noted earlier that as we look at our kind of 90 day booking pattern today sitting here today or a week or so ago. It is much more positive than it was three months ago and its still soft, but it is significantly better than it was three months ago, and so that makes us feel good about.

A week or so ago. It is much more positive than it was three months ago.

Its still soft, but it is significantly better than it was three months ago, and so that makes us feel good about kind of the next several months.

That makes us feel good about kind of the next several months.

Kind of the next several months.

Given those numbers and that's true for downtown as well as it is for our locals properties with hotels. So.

Given those numbers and that's true for downtown as well as it is for our locals properties with hotels. So.

Given those numbers and that's true for downtown as well as it is for our locals properties with hotels. So.

We'll see how it all comes together as the strip continues to do better.

We'll see how it all comes together as the strip continues to do better those.

We'll see how it all comes together as the strip continues to do better those occupancy and rate on the strip continue to rebound.

Occupancy and rate on the strip continue to rebound.

You can see in rate on the strip continue to rebound clearly that will benefit us. It's just an indication that people are traveling again and coming back out so that will help us but overall our own bookings are what's getting better over the next 90 days.

Clearly that will benefit us. It's just an indication that people are traveling again and coming back out so that will help us but overall our own bookings are once again better over the next 90 days.

Nearly that will benefit us. It's just an indication that people are traveling again and coming back out so that will help us but overall our own bookings are what's getting better over the next 90 days are than they were a couple.

Then they were a couple of months ago.

Then they were a couple of months ago.

Thanks, Keith I appreciate it.

Yes.

Thank you.

I appreciate it.

This concludes our question and answer session I would now like to turn the call over to Josh for concluding remarks, thanks, David and thanks to everyone for joining the call and the questions. We received today. If you have any follow ups. Please feel free to reach out to the company. This concludes our call and can now disconnect have a good day.

Thank you.

This concludes our question and answer session I would now like to turn the call over to Josh for concluding remarks, thanks, David and thanks to everyone for joining the call and the questions. We received today. If you have any follow ups. Please feel free to reach out to the company. This concludes our call and can now disconnect have a good day.