Bally's Corp Q3 FY2020 Earnings Call

Good morning, and welcome to the Twin River Worldwide Holdings Third Quarter 2020 Earnings Conference Call. I would now like to turn the call over to Craig Eaton, Executive Vice President and General Counsel. Please go ahead, sir.

Good morning, everyone, and thank you for joining us on today's call. By now, you should have received a copy of our Q3 2020 earnings release issued earlier this morning. If you haven't, the earnings release and presentation that accompanies this call are available in the Investor Relations section of our website at www.twinriverwwholdings.com under the News and Events and Presentations tabs. With me on today's call are George Papanier, our President and Chief Executive Officer; Steve Capp, our Chief Financial Officer; Marc Crisafulli, our Executive Vice President of Strategy and Operations and he's also President of our Rhode Island Operations; Phil Juliano, our Chief Marketing Officer; and Joe McGrail, our Chief Accounting Officer. Before we begin, we would like to remind everyone that comments made by management today will contain forward-looking statements. These forward-looking statements include plans, expectations, estimates and projections that involve significant risks and uncertainties. These risks are discussed in the company's earnings release and SEC filings. Actual results may differ materially from the results discussed in these forward-looking statements. During today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable GAAP financial measures are included in the schedules contained in our earnings release. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project special charges within certain expenses. Today's call is also being broadcast live on our Investors site and will be available for replay shortly after the completion of this call. I will now turn the call over to George. George?

Thank you, Craig. Good morning, everyone. We're extremely excited to take this time to provide some additional color on the multitude of recent announcements we've made, and we appreciate you joining us. Since our last call, we have made significant progress on many of our strategic growth initiatives, and there's a lot to cover so we'll just get right into this. Dating back to our first acquisition of Hard Rock Biloxi in 2014, continuing to our Dover Downs' merger and going public in early 2019, then through the strategic acquisitions that we have announced or consummated in just the last 6 months, we have been disciplined in our targeted growth initiatives. We have transformed from a single-property operator in Rhode Island to an increasing national player with soon to be 14 casino properties, and more importantly, operating in 10 states. We have made significant progress towards our goal of becoming the industry leader for gaming and entertainment in America. There's still a lot of work to do, but we feel we've reached a major milestone with yesterday's announcement that after acquiring the iconic Bally's brand from Caesars back on October 13, we will be rebranding the company as Bally's Corporation and begin trading on the New York Stock Exchange under the ticker symbol B-A-L-Y beginning November 9. Bally's is an iconic brand that's commensurate to the premier properties and amenities that define our diversified portfolio. The brand has a rich history of gaming and entertainment that will provide immediate and enhanced nationwide brand recognition. This is a significant part of our long-term growth strategy. And acquiring this brand now accelerates our ability to execute on it. We have begun the process of evaluating how we will best leverage this prestigious brand. I look forward to talking more about our vision for the brand over the next several months. Since our last call, we've taken significant steps in our evolution of advancing our disciplined portfolio diversification strategy, opportunistically expanding our regional presence through accretive transactions in Illinois with Jumer's, and just 2 days ago with the announcement of our latest acquisition, Tropicana Evansville property from Caesars. Unlike our past acquisition in Indiana, we have partnered with a REIT to purchase the operations at Evansville with GLPI acquiring the real estate. With this transaction, we will also be selling the real estate of Dover Downs to GLPI, and entering into a long-term master lease on both properties with rent totaling $40 million per year. Structuring the deal with GLPI allows us to acquire the operations in Evansville for $140 million, which represents an adjusted EBITDA multiple of 4.4x on a pre-COVID basis without using any cash, without increasing outstanding debt as a result of this transaction. Net of the master lease payments, we expect to pick up $20 million of EBITDA as a result of this transaction. On top of that, we're also acquiring unencumbered rights to the sports betting and iGaming skins associated with the Evansville operations to access the growing Indiana market. This transaction represents our first foray into a propco/opco structure. We look forward to partnering with GLPI on both the Evansville and Dover properties as well as our potential opportunities in the future. Steve will provide more detail on the transaction and specifically the REIT financing aspect of this transaction in a few minutes. In addition to this week's announcements, earlier this month, we announced our intention to acquire the Jumer's Casino & Hotel in Rock Island, Illinois from Delaware North. The purchase price for this acquisition is $120 million, which represents a 7.4x multiple based on Jumer's adjusted EBITDA for the year ended December 31, 2019. Of note, we completed our offering of $125 million additional senior notes on October 9. This will aid in the payment of the purchase price for Jumer's. This acquisition is expected to be immediately accretive to earnings. We are confident that both of these acquisitions represent value-accretive multiples for bricks-and-mortar operations on a stand-alone basis, while further expanding our geographic reach into additional attractive markets. This transaction also provides access to growing gaming markets in Indiana and Illinois with the potential to capitalize on lucrative sports betting and iGaming opportunities. We look forward to the opportunity to leverage our operational expertise and proven integration approach to drive incremental revenues and cash flow improvements at both locations. We continue to be very active in the M&A market, taking a disciplined approach. Our pipeline is strong, and the markets are seeing increased activity. We will continue to be opportunistic in finding the right opportunities that align with our long-range strategic goals. But M&A is not our only growth strategy. During the third quarter, anticipating the closing of Bally's in Atlantic City in Q4, we announced several exciting strategic partnerships, both in sports betting and iGaming for several of the licenses we will be acquiring as part of the transaction. We remain enthusiastic about the proposed IGT joint venture in Rhode Island, and we expect these partnerships to be accretive to earnings. Marc will provide a further strategic update shortly. In addition to all these announcements, we reported strong third quarter financial results. We closed out the quarter with adjusted EBITDA of $38 million, up $2.4 million or 6.8% in the same period in 2019. Most encouraging in these results was the improved margin performance, which when coupled with the incremental EBITDA provided by our newly acquired properties, helped to offset the decrease in revenue we experienced as a result of COVID-related capacity restrictions and ensured that operationally, we were cash flow positive for the quarter. Consistent with what we discussed on our last call about our operational performance in late Q2 and early Q3, in segments where the company was able to operate at closer to normal capacity, we were with more amenities available for most of June, most notably in the Southeast segment, which consists of Biloxi and Vicksburg. In the Mid-Atlantic segment, which consists of Dover, we experienced strong demand and significantly improved margins. For the second quarter in a row, the strongest individual performer in the portfolio was our Hard Rock Casino in Biloxi. Overall, the Southeast segment provided adjusted EBITDA of $16.4 million for the quarter. But within that segment, Hard Rock accounted for $14.4 million of adjusted EBITDA in Q3, which represents an increase of $4.5 million or 46% over the prior year. Vicksburg also outperformed our expectations for the quarter and contributed year-over-year adjusted EBITDA percentage growth consistent with that of Biloxi. Dover also shows strong adjusted EBITDA growth in the quarter increasing $1.3 million or 20.6%. While Dover revenue was down approximately 24%, adjusted EBITDA margin showed an almost 1,400 basis point improvement year-over-year. We also saw the gradual lessening of restrictions in Rhode Island over the quarter. It did sort of impact results, especially compared to our initial reopen period in June. Although demand in Rhode Island has rebounded, it's still below pre-COVID levels. Travel restrictions that went into place in Massachusetts in August, coupled with minimal food and beverage offerings and the continued closure of hotels still remain headwinds. However, in spite of this, the Rhode Island segment still produced adjusted EBITDA of $15.1 million as margin improvements of over 300 basis points somewhat mitigated the revenue reductions and helped ensure the segment generated positive cash flow. On our West segment, and specifically, some commentary on the performance of Casino KC and our first quarter of ownership. For the first quarter, the segment contributed approximately $19 million of revenue and $4.7 million of adjusted EBITDA. These results are extremely encouraging as not only do they represent a strong first quarter in Kansas City, which was relatively in line with the historical performance for the property, but they were also only recently allowed to open 24 hours. We are still operating with limited food and beverage operations. Additionally, these strong results do not reflect any upside you might expect as a result of the planned $40 million capital improvements, which will commence next year. A recurring theme of this quarter was robust margin improvements. Digging into the numbers a bit more, since reopening, we have realized meaningful new efficiencies with reductions in labor expense and marketing spend, which have helped to drive operational free cash flow. We continue to be selective with our amenities in Q3, focusing on higher-margin business. As a result of these expense reductions and new efficiencies, we are now operating at an even higher margin than prior to the pandemic. For the third quarter, on a same-store basis, we noted an adjusted EBITDA margin increase of approximately 650 basis points. Labor savings accounted for approximately 270 basis points of the improvement. Our marketing savings led to another 160 basis points. The remainder of the increase can be attributed to lower cost of goods and the elimination of certain lower-margin revenue offerings such as buffets. While the acquired properties were slightly dilutive to adjusted EBITDA margins for the third quarter, it should be noted that the same-store margin is artificially high because revenue in Rhode Island and Dover is reported net of gaming taxes, which is atypical for the industry. Even with this impact, the overall adjusted EBITDA margins were up over 500 basis points. While the margin results are very encouraging, and we think there is certainly a component of this improvement that is likely to be more permanent in nature, the gaming environment continues to be very dynamic. We will remain adaptive and will continue to be willing to spend money to retain and to capture market share and drive revenue. We believe many of the efficiencies we have realized are sustainable over the long term and will result in improved profitability for our properties going forward, even though increased sanitation and safety costs are likely to become the norm. Before I turn the call over to Marc, I also want to comment on exactly where we are from an operations perspective. As we go into Q4, particularly given the ongoing pandemic, rather than going through the list line by line, I would refer you to Slide 5 of the Q3 investor presentation we posted on our investor site this morning for a current rundown of our operations in light of COVID restrictions at the property level. Overall, we are operating with greater capacity and amenities versus the end of Q2. It seems as though we continue to get closer to full capacity. However, we are still somewhat limited. We're excited for the day when we can fully reopen and provide all amenities to our customers. In the meantime, we remain committed to meeting or exceeding all guidelines established by the CDC as well as our property-specific comprehensive health and safety protocols that we have been developing in close consultation with state regulators, health officials and local jurisdictions. I'm very proud of how hard the teams at the property level are working to keep our customers and team members safe during this challenging environment. I will now turn it over to Marc.

Thanks, George, and good morning, everyone. Let's begin with Bally's Atlantic City. We are progressing with the licensing process with the New Jersey Division of Gaming Enforcement, and we have a hearing with the Casino Control Commission next week. We are hopeful that we will receive approval and take ownership in mid-November. While this process is ongoing, our team has been dedicated to creating an exciting integration and strategic initiative plan for Bally's AC, which we will implement right after closing. Our targeted efforts will significantly enhance the property and improve the customer experience, including a phased refurbishment of hotel rooms and the introduction of new amenities. These capital projects will be spread out over several years, starting in early 2021, to reduce any disruption for customers. Sports betting is a key aspect of our strategy for New Jersey, and we are excited to announce a partnership with FanDuel to operate our sports book at Bally's AC, pending licensing and regulatory approvals. FanDuel has been a strong partner for us in Colorado, and we are eager to expand our collaboration into the Atlantic City market. The sports book will be ideally located just steps from the Boardwalk, where millions visit each year, and we look forward to starting construction on the permanent location soon after closing, anticipating its opening in the spring of 2021. While we construct the permanent facility, we will operate a temporary sports book on the casino's first floor. This partnership with FanDuel is a significant step in our involvement with sports betting and iGaming in New Jersey, where we expect to acquire three sports betting skins and five iGaming skins upon closing the transaction. We have also formed strategic partnerships with PointsBet, Esports Entertainment, Sporttrade, and theScore Bet, all of which will enhance our earnings and contribute to the thriving New Jersey mobile gaming landscape. We will retain one sports betting skin and one iGaming skin in New Jersey for our future use, which aligns with our national interactive strategy. As George pointed out, with our upcoming acquisitions, we will operate in ten states, expanding our footprint to serve over 80 million customers in these 14 premier casino properties. Additionally, our customer database will grow to about 14 million. We plan to continue expanding our footprint with the same careful approach we have always maintained. With the Bally brand and our new skins, we can integrate our customer offerings across physical locations while also creating a unified online and mobile presence associated with gaming. Our goal is to be the first omnichannel gaming company that operates both physical casinos and seamlessly connected digital solutions. We will not be a traditional operator stuck in the past; instead, we will leverage our regulatory advantages and retail customer data to harness the substantial growth opportunities of a digital future. This process is unfolding in real-time, and with every announcement, we are putting another piece of the puzzle in place. We look forward to revealing our rebranding strategy in the first half of 2021. Now, let me give you an update on our other pending transactions. We are making headway on regulatory approvals in Louisiana and Nevada and believe we are on track to finalize those acquisitions in late Q1. We anticipate that Jumer's Illinois will close in Q2 of 2021, and we aim for Indiana to close in the first half of 2021. We are eager to collaborate with local regulatory authorities to secure all necessary approvals for these acquisitions. Now let's discuss the IGT joint venture, which George mentioned. As noted in our last call, the proposed legislation enabling this venture has strong support from leadership in both chambers of the General Assembly, as well as the governor and her administration. We are optimistic that the assembly will reconvene after the November election to pass this legislation. If it does, we are ready to quickly proceed with the expansion of our Twin River property in Lincoln. We are nearing completion of the design and obtaining the required permits and approvals, making the project essentially ready to go. Regarding the terms of the legislation, we expect to take over management of a portion of the VLTs on the casino floor in early 2021 and plan to launch the joint venture with IGT on January 1, 2022, as previously announced. We will provide further updates as things progress. The last item I want to cover is CapEx. The Lincoln expansion project will take place over 18 months, starting right after the legislation is passed. We expect this CapEx to impact both 2021 and 2022. We have also resumed some projects that were put on hold. The Sugar Factory in Dover is now under construction, and we just finished developing a new restaurant at Twin River in Lincoln called Jerry Longo's Meatballs & Martinis, which is expected to open as early as next week. Additionally, we are advancing our redevelopment plan at Casino KC with an investment of around $40 million, which should significantly enhance the property and guest experience, yielding a strong return on our investment. The Casino KC project will mainly occur in 2021, with completion expected in early 2022. On a broader scale, we are continuing to plan and position ourselves to fully return to pre-pandemic activity levels, and at this point, there have been no significant changes to our project CapEx plans discussed last quarter.

Thank you, Marc. First, I want to discuss cash, liquidity, and our recent financing activities. As George mentioned, on October 9, we closed on an additional $125 million in 6.75% senior unsecured notes due 2027. These new notes complement our existing senior notes due 2027. We capitalized on favorable market conditions to partially fund our acquisition of Jumer's while maintaining a healthy liquidity position. As of September 30, we had about $115 million in cash. Considering the $125 million bond offering we just completed and $250 million available under our revolving credit facility, our total liquidity is approximately $490 million. When we look at the cash outflows expected from committed acquisitions over the next 12 months, which includes $25 million for Bally's, $140 million for Shreveport and MontBleu at Lake Tahoe, and $120 million for Jumer's, we have a pro forma liquidity of around $200 million. We also anticipate continuing to generate free cash flow from operations, like we did this quarter, as George noted. We believe this is a comfortable position to be in. With the EBITDA we have accumulated, we maintain a conservative leverage ratio and have ample resources to remain active in the M&A market. Regarding the Indiana acquisition and GLPI, we frequently receive questions about the REIT structure and why we have not pursued such a structure until now. What differentiates this transaction is that we see a debt-free opportunity for significant growth without any cash outlay, while acquiring valuable assets in the attractive Indiana market. We're moving forward because we want to seize this opportunity. We have a positive outlook on the Evansville market and this particular asset as it faces limited incoming competition. The Indiana assets are highly appealing, and we believe this property aligns well with our growth strategy. Additionally, in relation to the transaction with GLPI, I want to highlight another perspective. We merged with Dover Downs for $97 million of equity in March of last year, retaining around $12 million of that EBITDA after lease payments. This will allow us to exchange the real estate for an estimated $32 million of incremental EBITDA. In total, we're investing $97 million for $44 million of total EBITDA, resulting in an ownership multiple of 2.2x. Moreover, as Marc mentioned, we acquire important Indiana assets that will enhance our interactive strategy. We are excited about our new partnership with GLPI and these transactions overall. I also want to briefly touch on segment reporting and our Q3 financials. As you'll see in our release, we have restructured our reportable segments to better align with our growth strategies following recent and upcoming acquisitions. We will now report four segments: the Rhode Island segment, which includes the Lincoln and Tiverton properties; the Southeast segment, covering the Hard Rock Biloxi and Vicksburg properties; the Mid-Atlantic segment, currently just Dover Downs; and the West segment, which consists of the Kansas City and Black Hawk properties. We're still figuring out how to integrate Illinois and Indiana, so a fifth Midwest segment may be forthcoming. Stay tuned. Regarding taxes, we mentioned last quarter that certain sections of the CARES Act would benefit us. We continue to benefit from the employee retention credit, which provided the company with $1.2 million in the third quarter. Additionally, we are looking into maximizing NOL carrybacks and leveraging the relaxed interest deduction limits. We believe the positive cash flow for the company over the next year could exceed the $25 million to $30 million range we discussed on our last earnings call. As for guidance, consistent with our previous statement, we are in uncertain times, especially in the short term. While we do not foresee significant operational disruptions, near-term results are heavily influenced by COVID-19 and the country's response. Therefore, we are unable to provide specific guidance at this time. Lastly, as demonstrated by our new partnership with GLPI, which we are quite pleased about, we will remain opportunistic in our growth strategies to deliver value for our shareholders and stakeholders. Our leverage is moderate, our liquidity is robust, and we possess significant unencumbered real estate. This combination is crucial for our ongoing growth ambitions as a provider of both physical and interactive gaming entertainment to an expanding customer base. With that, I'll turn it back to George.

So maybe just to start, you've obviously been very opportunistic in M&A at very attractive prices. But going forward, what would you want to see from a strategic perspective as you start thinking about really amassing a portfolio here? Just what would you want to see in future M&A? What are you looking for?

Thanks for the question, Barry. This is George. So obviously, we've been pretty effective in the execution of what I'll call a disciplined growth strategy. And quite frankly, have been acquiring properties at reasonable, in some cases, immediately accretive low multiples. These properties that we are acquiring, we know based on our operations style, that we'll be able to improve on that from a bricks-and-mortar perspective. But following on to that, we've assembled property now in 10 states and have positioned ourselves as what I believe is the most important regional portfolio in states where we have unencumbered sports betting licenses and what we feel is the future potential for legislation that's going to make us well positioned for iGaming licenses. And we're going to continue to add more states as the opportunities present themselves. So where we are now is we feel we're in a great position to take advantage of the transformative opportunity presented by sports betting and iGaming, given the access we have to capital and now the broad market access and databases we possess and the newly announced brand that we just acquired on October 13, that we'll be rolling out. So we're exploring next steps really to deliver what we consider to be the best omnichannel in gaming. And again, under the radar, we've built the foundation to take advantage of this, what we feel is a really incredible opportunity.

Yes, Barry, we're building a portfolio with significant potential. As Marc mentioned, our interactive strategy is developing, and we are currently focused on that, so we cannot provide specific numbers for the market right now. However, based on a pre-COVID run rate for our various contracted properties and existing ones, we estimate this portfolio's EBITDA to be in the low $300 million range. This figure excludes potential gains from upcoming initiatives like the capital expenditures at Kansas City, the new casino floor in Rhode Island, and the rolling capital expenditures in Atlantic City that Marc discussed. Therefore, there is room for growth beyond this baseline figure we are currently using. We view the world largely in terms of cash flow as it was before COVID, as we believe it will return to that state. In fact, we think the potential after COVID could be even better, especially given the margin improvements we're observing in the regional gaming industry, which George discussed this week. Currently, that number is in the low 4s, which we are comfortable with. Historically, we have seen it in the low 4s to mid-3s range, although mid-3 might be a bit low concerning ideal shareholder returns. We expect to maintain a target around the mid- to low-4s in the long run, which we are comfortable with, along with a strong preference for high liquidity for obvious reasons.

We are currently assembling the different components of a complex situation. We have been in a phase of rapid expansion, as reflected in the various headlines regarding our acquisitions under contract. As George pointed out, we aim to be one of the leading operators nationwide in both traditional and interactive gaming strategies for sports betting and iGaming as they become more widely available. We possess the financial strength and liquidity to support customer acquisition costs as we move forward, regardless of their nature across our offerings. We are well-informed about these challenges and are incorporating them into our portfolio. We believe that as the interactive markets evolve, it will be crucial to remain agile with technology and to offer one of the most competitive products, which is an integral part of our strategy. We are committed to this industry for the long term and are considering these costs in our planning. Yes. Let me just add to that, Steve. So Barry, at the end of the day, this is a customer acquisition game. And we feel because of the portfolio that we've built, we have significant database, and it gives us the ability now to integrate land-based database and interactive platforms. So with our physical property database, we have the ability now to drive down customer acquisition costs. We think that's a metric that's going to be beneficial in the long term. And this is a significant part of building the omnichannel that we're talking about, which I mentioned earlier.

Congratulations on the recent acquisition announcements. Perhaps, let's start there. And I guess we kind of look at your news every kind of Monday morning, it seems like Twin River has another interesting and strategic announcement to make. And I've got to imagine there's some competition for the acquisitions that you guys have successfully announced. And yet Twin River continues to kind of get ink on the paper and still pay with a pretty attractive entry multiples on the surface and then with even improved in some of the financial moves you've made. So I guess my question, George or Steve, is what do you attribute to your success in this environment over the last 6 or 10 months to kind of continue to find deals to do and grow at reasonable prices.

I’ll start, Steve. A significant factor in our success has been our preparation before COVID. We maintained low leverage and high liquidity, which positioned us well to seize opportunities as they arose. The consolidation, specifically the acquisition of Caesars by Eldorado, further created opportunities for us. As we pursued our strategy to expand our presence in various states, particularly for our interactive sector, we found ourselves well-placed to close deals. Now that others recognize our capability to finalize these arrangements, we have increased access to similar opportunities. Steve, do you have anything to add?

Well, that's exactly right, George. John, I want to point out that we're benefiting from a strategy the Board intended to implement a few years ago. We've mentioned this before, but I believe we find ourselves in a favorable position, and it’s intentional. In the past, there were numerous small and mid-sized regional players like Aztar, Ameristar, Pinnacle, and Columbia Sussex. Now, this industry has consolidated, and those names are gone. The regional players have grown larger and are less interested in some properties that we have been able to acquire. Other competitors tend to be much smaller, perhaps private, and have limited access to capital. We have positioned ourselves in what I see as a favorable sweet spot, enabling us to drive growth with properties that some competitors overlook and others cannot access. All the while, we're building the size and financial capacity to operate at a larger level, which is our current situation. So, John, it’s a mix of being in the right place at the right time and, as George mentioned, being prepared and thoroughly exploring M&A opportunities. It’s a very good question, John. Thanks.

Sure, John. I'm going to turn this over to Marc to answer.

Thanks, John. So obviously, we don't go into details with any one of the specific contracts, but it has been our strategy to try and partner with the likes of DraftKings and FanDuel wherever we can and then other players and retain a skin for ourselves. Generally speaking, those deals are on market-type terms. So you should think about it in terms of rev shares with some minimum annual guarantees, some other considerations market by market. It is accretive day 1. There's very little investment required by us other than in some of the hard costs when we're doing the sports books. And we're going to continue to do deals like that, but we don't really get into the specifics of any one deal.

Well, John, that's a good question. That's a pretty long list of new properties, frankly. So rather than go through that with you online, let me take you off-line and we'll talk about that post facto, if you don't mind.

Congrats on a great quarter here, all circumstances considered. My one question has to do with the difference between margins, this great margin performance you got at the consolidated company level versus margins just looking at the gaming floor itself. Because when I look at the $26 million or so in gaming and racing expenses for 3Q '20, that's about the same as the $26 million that we got in 3Q '19, but it's on a lower sales amount. So it almost looks as if the margin got worse. Just optically, I'm curious if that's something going on at the gaming level. Or maybe that just reflects the inclusion of new, acquired properties with a different margin structure. So if you could talk about those dynamics, that would be helpful.

I'm not entirely sure what data you're referencing. However, we have certainly increased the number of properties in our portfolio, which would influence the numbers. In Rhode Island, the current COVID protocols are impacting margins. However, our same-store margins have increased by approximately 6.5%. When we factor in the new properties, we're seeing an increase of about 500 basis points. We're definitely experiencing some improvement in margins. If you could clarify what you're looking at, I could provide more specific insights. It's worth noting that Rhode Island and Delaware are somewhat anomalies when compared to the industry. Since GDR isn't used and we account for the tax impact, the net revenues appear significantly lower for comparison, which skews the margin data.

I've got a two-part question. I wonder about your 14 million customers, pro forma, and your database. Where are you in organizing the database now, the existing program? Do you have a loyalty program? Will you get a loyalty program? And how long will it take to get that database in order to go after the customer acquisition for sports betting, iGaming and also for a loyalty program?

Sure, I'll address that. We currently have loyalty programs at all our properties, but they are not unified under a single brand or national brand at this time. This is one of the reasons we acquired the Bally's brand. We plan to create a comprehensive strategy to fully integrate the Bally's brand across all our properties and enhance our interactive technologies for sports betting and iGaming. This brand will be utilized across all those platforms, but we won't simply rename our buildings. Our goal is to fulfill the promise of the Bally's brand. We will implement property standards, services, and a one-card system, and we will introduce these at each of our properties once we are confident we can deliver on that promise.

Do you have a sense of how long it will take? And what it will cost to get it done?

We've explored opportunities in the past to incorporate this. So we understand, from a technology perspective, how to handle it. But this is something that's going to probably be rolled out over the next 12 months to maybe even 18 months period of time.

Excellent. Once you establish the national Bally's brand and set up the database and loyalty program, what are the chances of creating a deal with Bally's Las Vegas to form a sort of synthetic hub and spoke? Even though they have different ownership, they share the same brand, and no one will notice the difference. Could this potentially be in the cards for you and Caesars?

Yes. I mean listen, again, it's situational in nature. We're not exploring those types of relationships. And we feel, from a portfolio perspective, that we have more destination-type markets than we have had historically with the adding of AC, with the adding of Lake Tahoe. And we've utilized it in the past with our Hard Rock property in Biloxi. So we think we have more than enough cross opportunities, cross-marketing opportunities. So we're not going to get into that type of relationship.

This does conclude today's Twin River Worldwide Holdings Third Quarter 2020 Earnings Call. Please disconnect your lines at this time, and have a wonderful day.