You might see a slightly lower handle per user. And I think our parlay mix, when we get our parlay offering because we’re seeing our parlay mix grow month after month after month. We’re trending a lot closer to mid- to — sort of mid- to high-20s as opposed to where we were even in Q1. And so that’s highly encouraging because we know our parlay offering is not where it needs to be yet. And I think that you’re going to see us probably over-index on parlays when we have a better offering available. So that’s the way I think things will play out, but it’s why you’re seeing that 4.4 in Q1 to 8.5 in April. There was noise in Q1, but that seven to eight is probably a safe place to model between now and September, and then it should tick a little bit higher after September with all the new additions and integrations and enhancements that we covered.
Brandt Montour: That’s helpful. And then a follow-up on iGaming. When we look at your content slate, obviously, you don’t have your own app, standalone app. But when I look at your content slate, it seems like you obviously are under indexing versus peers in terms of number of third-party games. And — so I’m just curious why the decision hadn’t been made or still hasn’t been made to add third-party games, which obviously aren’t as high margin as in-house games, but those are EBITDA dollars that you could be getting. It’s probably easier said than done to just flip all those switches on, but I’m curious if you feel like there’s a strategic reason to wait until you have the stand-alone app to get some of those games?
Jay Snowden: I mean I’ll take a stab at the beginning and then Todd can jump in. No, we’re not strategically not placing content inside of the Hollywood app. We’ve definitely been adding new content rapidly over the course of the last 6 months. And so I think you’ll continue to see that happen until we get to a point of parity. There’s no strategic reason to withhold content versus the competitors. Todd?
Todd George: Yes, Jay is exactly right, Brandt. And you’ll see in the upcoming months, even more integration, I think the last two or three, we’ve really started to ramp that. And again, as we mentioned, we’re seeing record results for iCasino and that’s a big driver of it as well.
Brandt Montour: Great, thanks everyone.
Operator: Thank you. We’ll take our next question from Chad Beynon with Macquarie. Your line is open.
Chad Beynon: Good morning. Thanks for taking my question. I wanted to ask about the land base, the retail margins. So in the first quarter, margins were down basically 140 basis points year-over-year. Based on the updated guidance, it looks like Q2 through Q4 implies 180 basis point year-over-year decline, so actually getting worse. But you mentioned that March accelerated in April was — showed the stable trends as well. So are there additional costs? Or is this just conservatism? Could you just kind of help us think about that year-over-year margin decline?
Todd George: Yes, sure. So again, a lot of this is labor and marketing. Those are the two big numbers. And typically, with seasonality, your highest margin month is always February, March close #2. So with those behind us, you do see some seasonality with revenue declines, which would lead to slight margin erosion. But just giving ourselves some room in there with the pressure on labor, the pressure on marketing dollars, but nothing really major. All within control and giving ourselves some room as we move forward.
Jay Snowden: Yes. I mean the only thing that really knew that happens later in the year that hasn’t happened yet is just some new supply in Nebraska, which will impact our Council Bluffs property, both Ohio as well as the new Caesars Harrah’s project. So that would probably be maybe what would impact it a little bit more on a go-forward versus Q1.
Chad Beynon: Okay. Thank you. And then there’s been some stories and some headlines around college prop bets and maybe some other changes just in terms of what would be offered to customers. Could you help us quantify that? Or just maybe think about some potential changes in terms of menu options going forward?
Jay Snowden: Yes. Chad, look, the college prop bet topic is interesting. There’s a number of states that already prohibit that from happening from any of those wagers being allowed. So it’s a very small percentage of handles for college games and for college football. And then it’s even smaller, obviously, on the base of total wagers and total handle. So I would view it as largely a nonissue in that I think people who are looking to bet player pops for college are probably going to continue to make wagers. They may just make wagers on game outcomes or NFL props as opposed to college player props. So I wouldn’t overly read into that one. Again, we have experience of some states already prohibiting this and our volumes in those states on college football overall versus the states that allow it are really not materially different as a percentage of total wagers in those states.
Chad Beynon: Thank you very much.
Operator: Thank you. We’ll take our next question from David Katz with Jefferies. Your line is open.
David Katz: Thanks for taking my questions. Can you just talk about the concentric circles today within the customer bases of ESPN BET and your land-based business? And presumption is that over time, those concentric circles will rightly overlap between those two will kind of grow closer? But just give us a sense of where today is and what the future looks like, please?
Jay Snowden: Go ahead, Todd.
Todd George: Yes. Thanks. This is a great question and something that we look at and basically the circles we kind of draw a say, in 25-mile increments. So looking at our database and the ESPN database that has joined us online, if you start thinking about 25 , 50 and even go out 100, 200, we have basically doubled the addressable database through our ESPN partnership. So as we start to go forward, what we’ve been able to do in a very short amount of time. And again, we haven’t even been live for the ESPN for six months yet. We’ve been able to drive significant visitation from that ESPN online database into our properties. And I think the latest experience we had with the draft in Detroit, just saw a lot of excitement around the entire city of Detroit and a very well-executed event.
But also showing excitement around the ESPN brand and being associated with our Greektown property there. So more to come on that. But we saw something similar with the Super Bowl events at our M property, and then done some smaller tests with this database in our Pennsylvania properties, especially areas where we have online sports betting, online casino offerings and then retail properties. It just provides a tremendous opportunity with a really low cost of acquisition for that database.
Jay Snowden: We are certainly in the very, very, very early innings, but encouraged by the early test that we’ve been running. We ran a couple in Pennsylvania and seen really good monetization from digital-only customers when they visit land based. So as Todd said, lots of opportunity very early on. I think it will be a big part of our story as we move forward.
David Katz: Understood. And as my follow-up, if I may. Just with respect to the Interactive side, having gone through the process of same-game parlays, which I understand you’re working hard on. Can you talk about live betting and in play, which seems to be a next chapter that sports betting operators are after this year?
Jay Snowden: Yes, I mean that’s an area — and I mentioned it in my prepared remarks, David, that we’re also working to enhance our offering and market breadth and overall functionality. I think we have a good offering today, but we have an opportunity to make it a lot better for this upcoming football season, where it matters the most. So I would say stay tuned on that. We’ll have more to share on live like we will with parlay and same game parlay and player prop as we get between now and September. And then Investor Day at G2E, I think we’ll have a lot to share with you on all of this as we sit there at that moment. But importantly, as we look over the next several quarters after that.
David Katz: Understood. Thank you all.
Jay Snowden: And Shelby, maybe we’ll take one more question.
Operator: All right. And we will take our next question from Ben Chaiken with Mizuho. Your line is open.
Benjamin Chaiken: Hey, just one quick one from me. In Interactive, I think there’s been a few references to improving the product, refreshed home screen, enhanced product offerings. I would think 1 of the largest differentiators of your product in theory would be accessed to the ESPN data and analysis, which should help, in theory, make more informed wagers or at a minimum, feel more comfortable with their decisions. Player statistics, match-up statistics, recent trends. Will that ever be at your fingertips fully integrated with the betting app? Or do you — or do you intend to keep those kind of separate?
Jay Snowden: Yes. I guess, Ben, the way I would answer that. I can’t answer it from ESPN’s perspective, but where I can that we have alignment is what I referenced in my prepared remarks, and we talked a little bit about in our slides, which is on the account linking. And account linking is so important because if you already have an existing account with ESPN and you use ESPN’s media app or mobile web and you prioritize your favorite teams and your favorite players for stories and scores and the like, obviously, we can deliver more personalized betting options for you when we have that information. And so that’s really powerful. We’re working on that now. We’ll have account linking done at some point throughout the football season.
We’re shooting for as early in the football season as possible. But once you do the account linking, that’s when you can get really sophisticated on personalized offers, within the Fantasy app, within the ESPN media app. It’s where, obviously, there’s opportunities down the road with direct-to-consumer streaming. And we know that it’s you watching the game. We know your favorite team and there could be an offer maybe within game from your television set. There’s a lot of really interesting things that we can do. And obviously, we would have a lot of data on those folks that have linked their accounts between us and ESPN. So that’s, I guess, the best way for us to get at it here over the course of the next year and beyond. I think beyond account linking, not really prepared to speak to it today, but I think that presents a huge opportunity for us.
Benjamin Chaiken: Got it. Just to be totally clear, I think I wasn’t — when I’m a paying player, I mean actually the athletes themselves, so athlete statistics, team statistics, recent trends within matches. I’m saying all the things that you might find on ESPN, will that be at your fingertips within the betting app? Just to be totally clear on the question, not necessarily the better, necessarily.
Jay Snowden: Yes. That’s a separate topic, Ben. We probably need to spend some time going through that with ESPN because there’s league rights and player associations and unions and there’s all sorts of things that would play a factor in that. So not to say the answer is no or yes. It’s just to say I don’t think we’re there yet. We would need to do more research on that. It’s something that we’ve talked about with ESPN. It’s just not on the road map in the next 12 months. Thanks, Ben.
Operator: Thank you. The question-and-answer session has now concluded. I will now turn the program back over to Jay Snowden for any closing remarks.
Jay Snowden: Thanks, everyone, for joining us. I’m very excited about where we’re headed, and look forward to catching up with all of you in three months in August. Have a good one.
Operator: That concludes today’s teleconference. Thank you for your participation. You may now disconnect.
