Brandt Montour: Okay. I give it a shot. And then over at Sky River, obviously, great results there so far, and thanks for the updated guidance. The expansion of that, could you maybe give us a sense of timing and scope what we can sort of think about for that?
Keith Smith: Look, in terms of scope, once again, expanding casino, hotel, meeting convention space, probably a few additional restaurants is the general scope, it’s not to the point where the tribe has announced. We’re not going to on their behalf, kind of the exact number of slots will be adding or tables or anything else at this point. Timing, we’re waiting for final regulatory approval. There’s a number of regulatory approvals, including from the NIGC. And so we’re awaiting those, once we get all of those approvals, which we certainly hope is in the very near term, I think the tribe has ridden for a groundbreaking, but we have to wait for all the final approvals before we can go any further.
Brandt Montour: Great. Thanks for the additional color.
David Strow: Our next question comes from Ben Chaiken of Mizuho. Ben, please go ahead.
Ben Chaiken: Hey, how is it going? Just one very quick clarification in Downtown. The comment about the last 30 days kind of improving. Was that a reference to the airfare and Hawaiian visitation? Or would that also – did that also encompass the kind of like broader Fremont visitation demand as well?
Keith Smith: It was more specific to the Hawaiian business, which we have obviously very, very good visibility into, we don’t have great visibility on a weekly basis to overall accounts Downtown. But so it really was specific to the Hawaii traffic.
Ben Chaiken: Understood. And then on – for Treasury Chest, any color on how you’re thinking about that opening from both a demand standpoint and timing. Is this the same customer you expect to return or someone else? And then should we expect any disruption as that development transitions over the next couple of months?
Keith Smith: So I think the way to think about it is this is a significantly enhanced facility moving from a 3-story riverboat on water to the dry side of the levy and land-based and much more convenient parking and much many more food and beverage amenities and just an overall better environment. So we expect a good uplift on the overall EBITDA [ph] from that property, both revenue and EBITDAR. We expect to get a good return on our investment there. It is – yes, the existing customer. And yes, it is a new customer, we’re confident that we can grow the market there and obviously build that business. That’s why we did it. We spent a lot of time studying this. Overall, the casino floor will not be larger than it is today, but it will be more efficient because it’s not spread over three floors.
It’s all on one floor. So it’s not like we’re going to have three times as many slots. As a matter of fact, we’ll have a similar number of slots. They’ll just be more efficient because it’s all on one floor, same with table games. But it will be much more attractive assets, much more inviting asset, and we’re confident that it will draw in significantly more customers. And in terms of disruption, they’ll be minor. We’ll have to likely and this will be based on requirements of the Louisiana regulatory authorities and state police. We’ll likely have to shut for a few days while we transition some items. But outside of maybe being shut for a couple of days, midweek, I would not anticipate any disruption.
Ben Chaiken: Thanks. I appreciate it.
David Strow: Our next question comes from Jordan Bender of Citizen JMP. Jordan, please go ahead.
Jordan Bender: Great. Good afternoon. I want to touch on the cadence of your online EBITDA. So backing out the onetime item in the prior year, I think EBITDA was up about $3 million or so in the quarter. And your guidance kind of implies for the remainder of the year of a flattish outlook. I guess it might be a call on the growth of FanDuel. But can you maybe unpack how you’re thinking about the outlook for that segment for the rest of the year?
Keith Smith: Yes. I think that we’ve been pretty – well, since Q4, we’ve been pretty consistent that we kind of expect this range of 60% to 65%. And we’re – obviously, we have a – we know some of the onetime items that were in there in our numbers last year from some of the skins we sold and things of that nature. And so there’s actually growth in the business if we can continue to hit in the $60 million to $65 million range. I guess there’s a potential we do better. Obviously, this is very seasonal. We’re out of the best quarter of the year, and we’ll give another look toward the end of the year when football season starts back up. So everything between now and then is going to be more modest, we expect. So we’ll just have to – I think we’ll know more as we get to the fourth quarter, if it’s going to be better or not.
But from where we sit today and factoring in some of the onetime items that occurred last year and building a little bit of growth, that’s kind of where it plays out. So that’s the best we can do right now, at least our view.
Jordan Bender: Understood. Thanks. And then within the Midwest and South segment, I guess, more in the South, is there any change to that lower tier customer either positive or negative from what we saw in the back half of last year?
Keith Smith: Really, I would say that in the late part of 2022 is when we saw the South get softer than the rest of the region. I would say as we’ve moved through the region has started to more perform all similarly in line, and that’s what’s happening in Q4 of last year and in Q1 this year, all of the customer trends are kind of headed in the same direction, whether you’re talking about regardless of the region of the Midwest and South or the customer side core or retail.
Jordan Bender: Great. Thank you.
Keith Smith: Sure. Thank you.
David Strow: Next question comes from Joe Stauff of SIG. Joe, please go ahead.
Joe Stauff: Thanks. Hi, Keith. Hi, Josh. Just one more back on Las Vegas Locals. Just curious to see if the – whether it be the new competition or even the growth in the market, especially over the past couple of years and the outlook, has that at all changed the way that you think about the required level of capital reinvestment. And I know you’re not going to reinvestment specifically say you’re not going to compete on a promotional level, but more on any larger capital projects you think you need in your portfolio, whether it be in response to competition and/or for the longer term?
Keith Smith: Yes. We think of the capital program that we have going on in terms of upgrading many of our food and beverage amenities and upgrading our hotel rooms as a form of maintenance, look, it’s a very highly competitive business, whether it’s here in Las Vegas or it’s across the country. We operate in local markets, frankly, everywhere we operate outside of Las Vegas. So we need to continually refresh those. Customers want to see new and different food and beverage offerings on a frequent basis. And so these really are not defensive. They’re just kind of required to – we think, to maintain our level of business to maintain our focus on our core customers, ensure our core customers continue to come back and visit us. And so it’s not in response to anything in particular.
Some of the work that we have going on at the Sun Coast, that property was opened in 2000 and therefore, is now 24 years old. And every 24 years, you have to refresh things. And so that’s what we’re in the process of doing.
Joe Stauff: Thanks very much.
David Strow: Our final question comes from John DeCree of CBRE. John, please go ahead.
John DeCree: Thanks, Josh and Keith. Make it quick. You may have touched on it already, but not sure if I missed it. I know a lot of talk about promotional environment and locals, but if you had any color or commentary on the Midwest and South segment, maybe broadly competitive promotional environment. And then if there’s any specific areas where you see any different or change in behavior on the competitive or promotional front would be helpful.
Keith Smith: John, as I just reflect on your question quickly. No real significant changes in any of our Midwest and South operating markets from a promotional environment, nobody is all of a sudden doing anything crazy in the last quarter, we’re stepping out and being ultra-aggressive stepping back for a moment and thinking. But no, nothing to report. It’s all fairly stable. Once again, as we’ve talked over the quarters, some of our competitors got aggressive several years ago, and they’ve stayed aggressive. Others have remained more disciplined like us, and they’ve remained more disciplined. There’s really no material changes in any of our markets outside of Nevada from a promotional spend or aggressiveness of the promotional environment standpoint.
John DeCree: Great. All it from me. Thank you.
Keith Smith: Thanks, John.
David Strow: This concludes our question-and-answer session. I’d now like to turn the call over to Josh for concluding remarks.
Josh Hirsberg: Thanks, David. Thanks to everyone for joining the call today. If you have any follow-up questions, feel free to reach out to the company and we’ll make ourselves available. Thank you again. Have a good rest of your day.
David Strow: Thanks, Josh. This concludes today’s call. You may now disconnect.
