Full House Resorts Inc Q1 FY2020 Earnings Call

Good day and welcome to the Full House Resorts Incorporated First Quarter Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Lewis Fanger, Chief Financial Officer of Full House Resorts. You may begin.

Thank you and good afternoon, everyone. Welcome to our first quarter earnings call. As always, before we begin, we remind you that today's conference call may contain forward-looking statements that we're making under the Safe Harbor provision of Federal Securities Laws. I would also like to remind you that the company's actual results could differ materially from the anticipated results in these forward-looking statements. Please see today's press release under the caption forward-looking statements for the discussion of risks that may affect our results. Also, we may make reference to non-GAAP measures, such as adjusted EBITDA. For a reconciliation of those measures, please see our website, as well as the various press releases that we issued. And lastly, we're also broadcasting this conference call at fullhouseresorts.com, where you can find today's earnings release as well as all of our SEC filings. And with that said, you ready, Dan?

Yes. First quarter, it seems like a long time ago now. I mean just addressing where we were in the first quarter, Silver Slipper was doing quite well. Northern Nevada is doing okay, Rising Star, and all of Colorado were doing better than we had in the second half of last year and trending positively. And then everything shut down in the middle of March. So the quarter is obviously very distorted by all of that. And I think the question now is getting stuff reopened. It's almost like having a development company, where you've got a handful of employees and you're getting ready to open five casinos and put a lot of people back to work. I guess very important at the end of March, we had $24 million of cash and equivalents. Now a good chunk of that is normally used in operations and most of the rest came by stopping construction on the parking garage that we have underway in Colorado and that is being used as kind of a cushion. In the first month that we were closed, it should have been from mid-March to mid-April. We'd probably burn through about $5 million. A lot of that is severance, as we've reduced the payroll and our burn rate after that period is about $3 million a month, of which about $1 million is debt service on our debt. And most of the rest is actually stuff like real estate taxes and utility costs and so on. Payroll is about 20% of the $3 million. We've gotten payroll down pretty small at this point. We did just receive a $5.6 million loan under the CARES Act. It's a two-year loan at 1% interest, that has incentives in it for us to hire back employees, and we'll be hopeful at getting Colorado and Indiana up and running. Those are the two properties we have that have less than 500 employees and then a very specific provision that was in that CARES Act that allows subsidiaries like that to not look at the total parent in terms of number of employees. Silver Slipper has more than 500 employees, but those two have fewer hotels associated with them. And so, we qualified. And frankly, there's all this language about possible forgiveness. Those rules aren't really spread out yet, exactly how it works. It's possible that some of that loan would qualify for forgiveness, depending on what our payroll is over the next eight weeks, which in turn depends on when we're actually able to open. We have brought quite a few employees back to work already, trying to put them to work to get ready to open at those properties. So in terms of actual openings, the first one to open, we think, is going to be the Silver Slipper and that may be next week. The State Gaming Commission is still in advance of Memorial Day weekend, so that's coming up. I'm not sure exactly which day. Some of the stuff has been a little strange. Like in Nevada they suddenly said, we could open restaurants, but not casinos, but we have a restaurant in Fallon. And we have like 36 hours' notice, we're like, we don't really think we can get food that fast. But we're now looking at getting that open now. It's just a coffee shop. We won't make a lot of money, but it might make a little money and generate some customer goodwill and get a handful of our employees back to work. But that also will make it easier when we open our casino because we're not trying to open both the restaurant and casino on the same day. So that's coming in Fallon. At Tahoe the Hyatt, which our casino was in is now same. We don't anticipate opening until early June. It's possible we could open the casino before the Hyatt but that gets possibly a little complicated. But I think we're in that timeframe sometime between now and early June, we open in Tahoe. In Colorado as I indicated – as the governors indicated, we do not expect the casinos to open in May. A lot of people interpreting that as being early June but it might actually be mid-June it's hard to say. And then in Indiana, they specifically did say June 14, should be the date that we count on. So in the next few weeks we think we'll be opening all of our operations. And frankly that has us pretty busy trying to figure out exactly how to do it. We've done the marketing plans in both Colorado and at Rising Sun, which is a lot of work. Where we have the CARES Act loans, we've got employees back to polish and buff the place and fix it up and get ready. Don't preserve or suffer, we're doing some of that as well getting ready for next week. We're installing like plexiglass panels between some slot machines that can slide in and out. So if you want to be separated from the person next to you, you can pull that panel out. And we're hoping that that will allow us on some of the popular banks to keep all the machines going instead of having to turn off every other machine. It's not clear yet. That varies from state to state on what the different rules are going to be. We're trying to figure out how to make table games the buyers safer. And so a lot of those rules we're trying to work out with the different gaming regulators and internal. But where people and so the first question is when do we open? Second question is under what rules? And we're still trying to figure that out. And I guess the third is will the customers really show up? We've heard anecdotally that there's about a half a dozen tribal casinos that have opened in different places where they are allowed to do so. And so far they all seem to be doing pretty well. And I think Golden Gaming at their earnings call indicated that they had pubs up in Montana that had slot machines in it some sort of a route operation. And they've opened and seemed to be back to pre-pandemic business levels pretty quickly. So there's not a lot of data out there but with data there is the themes indicate that business will recover pretty quickly. My guess is some of that is pent-up demand and then maybe a few weeks later, the reality of the 15% unemployment rate might start to sink in. But there's a lot of different moving pieces in this. Like a lot of our customers are retired. If you retired you can't really be laid off and you still got a $1200 stimulus check. So we have some of that going on as well. So now we are planning to open but we're carefully. In most cases we will not open all the restaurants. We will not open all the table games and we're going to try to make sure that we have more customers than employees if you will. So we're trying to open kind of on the aluminum side and we can always build from there because we just want to be cautious just in case customers don't show up. So we hope they do but we're planning for a more conservative scenario. Meanwhile the mobile sports wagering is coming along. All three of our partners in Colorado have been licensed. They're awaiting approval of their apps. Smarkets has indicated they expect to be open this month actually in the next 10 days. And the one in Churchill, we think we'll be up and going sometime this summer but we don't control or know exactly when that is. Professional sports does seem to be trying to find ways to come back. And of course, that will help the sports betting. Now I think people want to get up and running with these sports skins anyway because we want to get market share, even get people signed up on your stuff. So I don't think anyone is dragging their feet waiting for professional sports. But there's a lot of work that our partners have to do to get their apps approved by the different regulatory agencies and get licensed themselves. And but they are licensed now in Colorado. And Churchill is, as it mentions in the release, it's been up and running in Indiana, and the other two are still seeking approval in Indiana and that's probably not very far off either, when all six are up and running, and we think that's prior to the end of the third quarter and maybe even at the end of the second quarter. Well, when all sites are up and running our minimum guarantees are about $7 million a year or exactly $7 million a year, and there's no expenses. There were very few expenses related to that. So that's almost all income, and there's no maintenance CapEx or anything. So it's a pretty substantial thing for our company and it's coming on stream shortly. What else is there?

I wanted to add that we are fortunate to have a solid group of lenders. In April, we amended our indenture to remove the debt-to-EBITDA requirement for the first quarter. This lender group approached us in mid-March, shortly after closures, with a proposal to amend nearly a year's worth of covenants. At that time, it was premature to determine how those should be structured since we were unsure about our reopening timeline. Now that we have some potential reopening dates in mind, we will move forward in finalizing those future covenants.

We should mention we do anticipate that we will need covenant relief on the June quarter, which is why the 10-Q we filed in mid-August and we just decided to leave that to be dealt with in August with the lenders kind of on a handshake, because by then we'll have stuff open, and we'll know more that the sports betting will be in a better position to figure out what the covenant should be going forward from there. But at the moment, we would covenant at the end of June that we think is pretty unlikely that we're going to make.

We haven't positive tested it exactly.

Technically, we haven't conducted any tests yet. Waukegan is still a possibility, where we were one of three bidders to go through the city's process. The State Gaming Commission plans to make a selection soon. Before we paused operations, we were in talks with three different parties to partner on this and plan to finance it on a project basis. Right now, everyone seems preoccupied with opening their own casinos. However, once we're operational and things settle down, we will pick up those discussions again. Waukegan represents a solid opportunity for the selected party by the Gaming Commission. We believe our proposal is strong, and we will see how it unfolds. It’s challenging to envision launching something new when existing operations are not running. Nonetheless, these opportunities are rare, so we submitted a proposal, cleared the first hurdle, and remain in contention. That's basically it. I'm open to any questions. Under the circumstances, I think we're managing well and looking forward to reopening.

Thank you.

While we're waiting for your questions, go ahead.

Go ahead, sir.

I was just going to mention that while we wait for questions, I recently read a detailed shareholder letter that accompanied a proxy, which replaces the old annual reports. In it, I noted that regional gaming markets tend to recover more quickly than places like Las Vegas or other destination markets, as seen after events like 9/11 and the 2008 recession. We even revisited the data, and it holds true. We're happy to share that information with anyone interested. Following 9/11, when air travel was disrupted and people were hesitant to fly, regional gaming rebounded faster than destinations requiring air travel, and very few people fly to our casino. I believe we will see a similar trend again. During the recession, regional gaming performed better since it offers a more affordable entertainment option. For instance, it’s not expensive to drive from Cincinnati to Rising Star or from Colorado Springs to Cripple Creek. Therefore, we are optimistic about our performance. This doesn’t mean we expect a 20% increase; it simply indicates we believe we will perform better than places like Las Vegas or Atlantic City. However, we are facing a situation we haven't encountered before, so it's uncertain. Any questions?

We'll go to our first question from David Bain of ROTH Capital.

Great. Thank you.

Hey, David.

Hey, guys. Yeah, I was just going to ask first on the impact or the impact from COVID, has that caused you to relook and maybe analyze the entire cost structure in a way that you believe could impact or not impact longer-term revenue generation and maybe allow for stronger flow-through in the portfolio?

We have evaluated the situation carefully, recalling our experience at Pinnacle when we opened L'Auberge in Lake Charles. About five months after opening, Hurricane Rita forced us to close for approximately five to six weeks. During the first five months, we generated significant revenue but had limited income. While closed, we took the time to reassess our operations. Once we reopened, the property became quite profitable and has maintained that success since then. Although it might have matured into profitability regardless, the hurricane provided an opportunity for a thorough reevaluation. Currently, we are analyzing various aspects of our operations. For instance, we will not be operating table games around the clock in several markets and will not be keeping all restaurants open as before. Due to the new regulations regarding table games, we will implement higher minimum bets to ensure profitability, which will lead to operating fewer tables. We are also optimizing our slot machine operations. The frequent player program at Rising Sun was outdated, and we have completely revamped it. With improved data from the Konami system, we can identify our most valuable customers better. This allows us to tailor the rewards for them while reducing giveaways for less valuable customers. The old system had been cost-inefficient for some customers. This opportunity to rethink and innovate has also led us to bring our casino hosts back to work remotely, allowing them to connect with customers and explain the new program. This new approach benefits our top customers. We now have the time and resources to communicate effectively. I believe we can reopen with smarter and more efficient operations and we are reevaluating every aspect of the company, even down to simplifying the menu at the local coffee shop. We're considering whether to operate the Mexican restaurant at Bronco Billy's continuously or only during peak demand periods once we confirm its necessity. Overall, we are focused on finding smarter ways to operate.

Okay, great. I understand that it's a very localized market, which I agree should recover more quickly than other areas and is location dependent. Do you foresee a more promotional environment when you reopen? It seems like you've already begun some pre-marketing strategies during this period. Or do you think that once you reopen, everyone will be aware of the casinos in town and many will just want to return to gaming activities?

No. In Rising Star and Bronco Billy's, it might actually be less promotional because we've realized that for certain customer groups, we were giving out more comps than they deserved. We analyzed one category at Rising Star, and while I don’t remember the exact numbers, there was a customer who could potentially generate $5,000 a year in gaming revenue based on their play. If they utilized all the perks we offered, it would also cost us $5,000 a year, which means that customer wasn't profitable. We decided to adjust our approach to retain the customer while ensuring they become profitable. Some customers were clearly taking advantage of the system, carefully managing their play to benefit from free buffets, hotels, and other perks. Therefore, we are going to be less promotional. Conversely, we will focus on our most profitable customers. For instance, we now have a five-tier rewards program at Rising Sun. Previously, a sweepstake prize might be $100 for a low-tier customer, which would seem substantial, but for a high-tier customer, it would be minor. Under the new system, a two-star customer could win $200, a three-star customer $300, and a five-star customer $700. The prize size correlates with the tier level. VIP customers will see better rewards, and we are willing to invest in high-tier customers who generate substantial expected wins. We are being more strategic about our rewards to ensure we’re supporting customers who are profitable rather than just giving away free services to those who do not contribute to our bottom line. As for the return of player development hosts, this is somewhat unique to those two markets. The paycheck protection program aims to encourage businesses to retain employees, so rather than let them be unemployed without healthcare, it incentivizes us to keep them on payroll. We might qualify for forgiveness under this plan, although many rules remain unclear. Under this program, we can reach out to our development staff and ask them to return to work with healthcare provisions covered. In some cases, we are bringing back bartenders to help with painting, which allows us to put them back on payroll, and the program incentivizes this approach. We are well-suited for this program and using it as intended to bring people back to work. In Rising Star, we are the largest employer and taxpayer in Rising Sun, Indiana, typically employing around 400 people. We dwindled to about 20 employees and are now aiming to increase that to around 100. When we reopen, which we expect to be in mid-June, we aim to return to 400 employees. The program begins counting from the first eight weeks post-loan funding, which we received last Friday. So, if we can start rehiring now, it's subsidized. We’re also bringing back casino hosts to check in with customers and provide small essentials. While this may or may not increase our promotional activities, it feels like an ideal approach. Everyone understands how difficult it is to reopen, and even for our smaller operations, transitioning from just a few management staff to a full workforce involves a significant effort. Companies like Wynn and Las Vegas Sands continued paying their teams to avoid the costs of recruiting and training thousands of employees. Although our operations are smaller, it still requires considerable effort to reopen smoothly.

So net-net now I think we're going to be down in our markets for what it's worth Dave.

Right.

So it will be marketing opening. Yes.

In summary, there's a sense of caution regarding the next steps. From the reports about tribal casinos, there have been instances where people lined up eagerly to enter. For example, a travel casino in Idaho that has been operating for 20 years only had half of its slot machines active upon reopening. They restricted the number of entrants and still achieved the highest handle in their history on that reopening day. While I'm not predicting that we will achieve the same success, it is certainly an encouraging data point to consider.

Right on. And I'm just going to go over one question, if that's okay. I know you discussed sports wagering in the prepared remarks. And I was kind of hoping you could also touch on the iGaming opportunity. I mean obviously there's a few more political hurdles for approval. But seems to be a quicker way at least to us for state governments to build their coffers, quicker than building a new casino and some other things any thoughts on iGaming for Full House?

Yes, thank you for bringing that up. It's not only about iGaming; some states are also looking at casino gaming and sports betting, particularly places like Virginia and Georgia, due to financial pressures that encourage them to consider this because it generates significant tax revenue. In New Jersey, iGaming is becoming a substantial market, even larger than mobile sports betting. iGaming allows players to enjoy games like slot machines on their iPads, catering to various individuals, including those in nursing homes or simply people living far from Atlantic City. Notably, in New Jersey, only operators affiliated with a physical casino can engage in these businesses, a trend seen in other parts of the country too. The brick-and-mortar casinos in Atlantic City have seen modest revenue growth over the past several years, amounting to around $2.5 billion annually. During the same timeframe, iGaming has grown into a $0.5 billion business, while mobile sports betting has reached $0.25 billion. These new ventures have not negatively impacted traditional casinos so far, and it seems that iGaming could outpace mobile sports betting in terms of growth. Although iGaming is not currently permitted in Indiana, Colorado, or Mississippi, where we operate, I believe it could be legalized in the near future, especially as states recognize the additional tax revenues from allowing it alongside existing brick-and-mortar casinos and mobile sports betting. We opted to partner with experienced operators for sports betting because there are fewer independent statistical events, like the Super Bowl, which can lead to imbalanced betting. For instance, if the Broncos were playing the Patriots in the Super Bowl, many would bet on the Broncos, leading to a significant risk. We consider ourselves part of the gaming industry, not gamblers, so we avoid that risk in mobile sports betting. We do face some risk in our Mississippi sportsbook, where we encountered a $300,000 loss during an event, highlighting the potential volatility of statewide mobile gaming platforms. Hence, we prefer to leave that aspect to specialized operators who can manage risks across multiple locations. However, with iGaming, we face no such issues, as players engaging with slot machines online have numerous independent events with predictable outcomes, aligning with our standard business model. We might explore licensing or acquiring the necessary technology and expertise, but we'll continue to partner with others. That said, we believe iGaming could become a significant and positive venture in the future, particularly as states face increasing financial pressures.

Yes. Our agreements with our three or six partners in both states regarding sports betting do not prevent us from offering an online casino. We can always pursue an online casino with any of those partners. Initially, when we began discussing sports betting, they were all interested in a casino as well, so we have full flexibility in that area. If any of them decide to move forward with an online casino, you would see an increase in our guarantees.

Okay. Fair enough. Okay awesome. Thanks, Dan and Lewis. Excited for everything to be open before Q3.

Yeah. So we'll divert there.

And we'll go to our next question from Chad Beynon from Macquarie.

Hi. Afternoon, Dan, Lewis. Thanks for taking my question.

Hey, Chad.

Some of your competitors have helped us with not only the cash burn, but some breakeven on EBITDA levels. I think across the board most of your competitors have talked about, if you got back to 25% to 40% of normalized revenues that would kind of get you to a breakeven EBITDA point. But understanding that your margins are starting from a lower point than theirs is that still kind of how you're thinking about a breakeven point, or I guess maybe just asking a question. I mean, have you done the work in terms of what you need to see from a demand standpoint to get to EBITDA breakeven across your portfolio? Thanks.

We have indeed done that calculation. The specific EBITDA figure could vary depending on interpretation. Each of our casinos carries significant fixed costs such as utilities, which amount to $40,000 in Colorado and $110,000 in Silver Slipper. Additionally, there are considerable property insurance costs and fixed gaming taxes based on the number of gaming machines. To achieve breakeven EBITDA, we likely need our revenues to reach around 50% to 60% of what they were in 2019. This isn't merely a margin issue; we still incur those fixed costs regardless of operations. Therefore, we need a revenue level that can help cover utility costs, which would likely be around 25%. Even functioning at 35% of last year's revenues would contribute toward these costs, but it wouldn't cover EBITDA before debt service. That said, I would be surprised if we do not achieve at least 50% to 60% of last year’s revenues. There isn’t any new competition, and most of our customers are either retired or still working. I feel a bit frustrated because I believe our customers appreciate that our casinos can provide a safe environment, even during the pandemic. They can access the building easily, and we take precautions like temperature checks. Our customers typically arrive individually rather than in groups, avoiding crowded transport options. While finding a slot machine allows for social distancing, our craps tables do pose some challenges, although craps is a minor segment of our business. Many people recognize they aren't at risk when simply driving to our locations to enjoy their entertainment. However, it's concerning that reopening guidelines group us with sectors where social distancing is more difficult. I maintain faith that when we are permitted to open, our customers will return. To directly address your question, our breakeven revenue point before we begin generating income for debt service is approximately 50% to 60% of our 2019 revenue figures.

Okay. Thanks. No, that's perfect. Thanks.

And by the way I think that's true of virtually any regional casino. I'd be astounded if there was anybody at a breakeven point that was 25% of the revenues last year. I think they're probably saying...

The casino by itself is not at a breakeven point that was 25% of the revenues last year.

Yes, if you're saying to be open and cover incremental employees would be 25%. But you got a lot of costs that you've got to play with whether the casino is open or closed.

Yes.

Right. Yes, that definitely makes sense. During your time at Full House, you've adopted both offensive and defensive strategies, explored other businesses, and considered acquiring various properties. You've also mentioned that other companies have expressed interest in you in past calls. Given the equity impairment issues we've seen recently and the positioning of your stock compared to others, what do you believe is the best approach for shareholders moving forward? Has your perspective on the strategy or the best way to create value changed at all? Or are there additional steps you are now considering in light of the current market conditions to enhance shareholder value?

The pandemic significantly altered our situation and did so very rapidly. At that point, our stock was at $3.50 a share, and we were trying to develop Waukegan while enhancing our operations. We had two properties, including a small Christmas Casino in Colorado, which generated a 7% increase in revenue, but it wasn't enough to cover the rising costs, leading us to decide to close it. When excluding that, the results from Colorado were nearly flat. Rising Sun faced various challenges in the latter half of last year, resulting in a disciplined second half, while the Silver Slipper had its best year ever, marking its importance to us last year. We aim to enhance our performance by avoiding prior mistakes at Rising Star and focusing on increasing its profitability, along with similar efforts in Cripple Creek. We began construction on a parking garage as part of an expansion at Cripple Creek, but then the situation turned urgent, and everything shut down suddenly. The uncertainty around how long it would last and how operations would resume created an immediate focus on survival. We recognized that we would likely breach our debt covenants, which could allow lenders to push us into bankruptcy. Thankfully, we maintained strong relationships with our lenders and opened communication early, as we also had fiduciary duties to them. We kept them in the loop about our efforts to protect their interests, and we spoke with them several times a week, which I believe they appreciated. Evidence of this is their approval of covenants for March. Now, we're starting to see progress as we approach reopening. I anticipate that we will soon generate cash flow again for our lenders, especially with the rollout of sports betting apps. Later this year, we hope to return to operational levels similar to the fourth quarter of last year, or even better, with the potential for a strong third quarter. Ideally, by this time next year, a vaccine may be available, allowing us to stabilize operations. Importantly, most of our gaming involves slot machines, but I'm considering how to ensure safety for activities like blackjack. We’ve implemented protective measures like plexiglass barriers around blackjack tables to separate players from each other and the dealer. However, challenges remain with managing cards and chips effectively. I've consulted with a cousin who is a neurologist about the need for two dealers—one with clean hands to handle chips, and another with contaminated hands to collect them. Contaminated chips would need thorough cleaning before being reused, making profitability difficult at standard blackjack tables. Scientific Games has developed a table with iPads that eliminates the need for chips, allowing players to insert money like at a slot machine while still enjoying the experience of a dealer. This innovative approach has suddenly gained relevance. Meanwhile, we're still a long way from considering acquisitions. We recently evaluated a closed casino that is no longer for sale, and I am unsure of when it will reopen or under what guidelines, complicating potential proposals for acquisition. For now, our focus remains on successfully reopening our existing establishments before contemplating future opportunities.

Yes, we're fortunate, Chad. If you consider our growth pipeline, 2021 should be a strong year compared to recent years, thanks to our sports betting agreements. I sometimes overlook this, but the great thing about these agreements is that they come with a minimum guarantee of $7 million, with virtually no associated expenses. This means we have a guaranteed $7 million in EBITDA each year. As we look ahead, this significantly reduces downside variability. We also believe we can enhance our existing operations further. All of this positions us well for the future once the sports betting agreements go live. We previously discussed refinancing our debt in line with these agreements, and while that's still an option, we face some challenges due to the pandemic. Therefore, in the future, we can reassess our growth and other factors. The overall outlook remains positive.

Last year, we had an EBITDA of over $15 million, which was disappointing for us. However, if we look at the numbers closely, the Christmas Casino generated just over $2 million, and Rising Star contributed a significant portion as well. Excluding those, we might have been closer to $18 million or $19 million for the year. Our aim is to get our normal business back to around $20 million annually, plus the revenue from sports betting, which could bring us to $27 million. With $108 million in debt, we are currently leveraged four times, and there is potential to refinance that debt at a lower interest rate. Our immediate goal is to achieve this within a year, which would put us in a strong position and allow us to explore additional opportunities. However, we need to focus on stabilizing our current operations before we can expand further.

Opening the door. Get those doors open really.

That's correct. Thanks guys. I really appreciate it. Best of luck.

Thanks Chad. We’ve probably have time for one last question here.

We'll go to a question from Steven Branstetter of ABL Investment.

Good afternoon. I wanted to clarify about online casino games and online poker. Would you be looking into options for those, such as skins? If the states approve it, how do you envision moving forward with that?

There are two states that I know of that have approved this – New Jersey had it for a while, and Pennsylvania has just approved it. It needs to be associated with a brick-and-mortar casino or racetracks in New Jersey. It would likely be similar to sports betting, where online sports betting in Indiana must be affiliated with a brick-and-mortar casino. Our casino is the smallest in the state, located in the southeast part, but you could be in a Chicago suburb and place bets online, and if it's with one of our partners, we would receive a percentage of the revenue from that bet. For online wagering, this might be directly through our website, but the necessary legislation hasn't passed yet. I'm not sure if we would have three skins per license for mobile sports betting, or just one skin per license like in Colorado, where we have three licenses. That legislation isn't available yet, but there are discussions happening within the legislature that we are aware of. I believe it is likely to happen, but it’s not imminent and may still take a year or two.

Okay. Great. And I hope you have a great opening at the casinos coming up and good luck in the future. Thank you guys.

Okay. Thanks Steve.

And I would now like to turn the call back to Dan Lee for any additional or closing remarks.

Okay. Now I think we're done. We're here working hard and those who are kind of used to rambling around this office on their own. But gradually, we're getting some of the other people back to work. Nevada is kind of gradually opening and hopefully this continues to go smoothly. So I hope everybody is staying healthy and hopefully there's better days ahead. Thanks.

And again that does conclude the call. We would like to thank everyone for your participation. You may now disconnect.