Keith Smith : I think if you look at unrated play here in the Las Vegas markets, the Locals market or the Downtown markets, we continue to see growth in unrated play. And if you exclude the South, we continue to see growth in kind of the other parts of our Midwest region. The South is down for the reasons we’ve talked about, frankly, over the last couple of calls.
Shaun Kelley : Okay. But no real change in pattern there even on the unrated side?
Keith Smith : No, not at all.
Operator: Our next question comes from David Katz with Jefferies.
David Katz : Josh, you commented earlier about roughly $5 million last year and $5 million to $6 million for Pala. Could we maybe get a bit more specific about what’s in that 5 million or 6 million? Are there some extra costs? I’m trying to get a sense for where that could go and what the earnings power might be so that we could venture our own forecast as we get out a little further?
Josh Hirsberg : Yes, David. I think that the reason we’ve tried to focus people on what they have done historically and kind of think of that as what they’ll probably do this year is just because we look at that as a business that is being aligned and being formulated within the Boyd infrastructure now. So this is kind of a formative year for them, where they will invest in their existing business in terms of human capital as well as technology to enable them to kind of execute on the business they were growing at some Boyd in the business that we are — that we have acquired them for to help them grow longer term. So I think it’s — right now, at least, we would view it as premature to kind of expect growth until we’ve made those investments and get into the new year next year or sometime.
Keith Smith : Yes, David, and this is not a zero-sum game. So as we take over the platforms in New Jersey and Pennsylvania, hopefully, during the month of May, we’ll stop receiving the fees we’re receiving from FanDuel. And so simply to look at the growth in the Boyd Interactive business without some offsets from other fees you’d be overestimating or over forecasting the results. Overall, we’ve provided some level of guidance, which we generally don’t do is provide guidance, and that’s probably about as far as we’re going to go.
David Katz : Fair enough. And if I can just ask one other qualitative follow-up about it. It may be too early to tell, but the degree to which you’re seeing some crossover cannibalization one way or the other from land-based to digital. Is there anything that’s discussable there?
Keith Smith : No. I would just say that it’s been our experience thus far as we’ve ventured into the online space, whether it be in the sports betting space or the online space that we haven’t seen any cannibalization. We firmly believe that the 2 businesses are complementary and together that it makes for a much stronger product overall.
Operator: Our next question comes from Dan Politzer with Wells Fargo.
Daniel Politzer : So first, on the locals segment. I think that revenues were up about 6% year-over-year. In the press release, you called out double-digit growth in nongaming. So I want to check, is it — can we presume that gaming revenues were up there as well? And as far as it relates to margin, to the extent that non-gaming is a bigger part of the mix for this business right now and maybe in the next couple of quarters, how should we kind of think about the margin structure there given maybe the mix changes that are going on?
Keith Smith : So I think it is fair to assume the gaming revenue did grow in the locals market during the quarter. We called out nongaming because we saw significant upside or uptick in the business, both on the hotel side and the F&B side. I commented a little bit earlier about the growth in convention business during the first quarter. That helped drive both meeting and convention business at The Orleans where we have a bit of space as well as room rates throughout the Las Vegas portfolio. Look, it’s still not a significant portion of the locals business. Our gaming revenue still is what drives our results here in Las Vegas. But in a quarter like this, it was up significantly, which is why we called it out. I don’t think there’s a significant margin shift as a result of the growth in that business. So I wouldn’t adjust your model for that.
Josh Hirsberg : No, I don’t think it’s significant enough of a contributor versus the I don’t think — Dan, just 1 other comment. I don’t think it’s significant relative to the gaming revenues we generate, but also we just improved the overall margins in those segments as well as we sequentially go through our business also. So we don’t expect it to dilute our margins.
Daniel Politzer : Got it. And then for my follow-up, if Flutter is exploring a secondary listing in the U.S. It seems like, obviously, they are the clear market leader. How do you think about the time frame or ways to maybe unlock the 5% stake that you have in FanDuel and would the listing possibly be a catalyst to get there?
Keith Smith : Look, I think we view our 5% ownership stake in FanDuel is a very strategic ownership stake. It’s been a great partnership over the years. Obviously, it’s created a very profitable online business for us. They’re great partners, and it’s great to have parted up with the market leader. How and when we might monetize some of that or any of that TBD haven’t really going to venture down that path. We’re just focused on helping FanDuel to the extent we can continue to be a market leader and that’s about it.
Operator: Our next question is from Brandt Montour with Barclays.
Brandt Montour : Wondering if you’d be willing to give us your thoughts about the setup for Las Vegas citywide and convention calendar for the 2Q and 3Q. And if you look out and sort of see the activity and sort of think that can grow handily off of last year or if there’s going to be any sort of pockets within that timeframe where there’s actually less activity, how do you think about that?
Keith Smith : Yes. It’s a good question. We’re probably not the best suited to talk in detail about the convention business. We do have some space, as I said, at dealer lean and some limited space on other properties, but the convention business has rebounded once again, the numbers in January and February and March of this year grew significantly as each month went by. I think we had over 700,000 attendees in the month of March. And the calendar, I do know is strong. The exact number of groups and where there may be a pocket of weakness I couldn’t articulate sitting here today. But the calendar is strong and convention business is continuing to grow, I think is a great sign for the overall city and a great sign for our portfolio.
Brandt Montour : That’s super helpful. And then my second question is just on Sky River and the Managed & Other segment. Just when you think about that property and what it did in the fourth quarter and the first quarter, should we consider that sort of fully ramped here? And then is — are you expecting some seasonality in that property throughout the year?
Keith Smith : Well, I think the best way I could answer it is that the business has been remarkably stable since we opened in August. We haven’t seen many peaks or valleys, and so you could consider it fully ramped, and we gave some indication of what we thought the full year management fee might be, that $65 million to $70 million. So it should be a kind of an indication. We think it’s a pretty stable business. It has proven to be in the first 8 months that we’ve been open. We haven’t been through a full year, so I don’t think we fully understand seasonality of that business, but we haven’t seen any true seasonality in the 8 months it’s been open.
Operator: Our next question is from Edward Engel with ROTH.
Edward Engel : Was there any notable improvement from the 65 plus or retiree segment since the start of the year? Or was performance from that demographic generally in line with the rest of the core business?
