Stephen Grambling: Yes.
Jay Snowden: Yes. I mean there’s one time in there that Felicia covered on the media side, as we closed out our ownership of Barstool Sports from July to August 8. And then beyond that, it’s really 2 things. One, we literally spent no money on marketing because we’re switching brands on November 14. So it doesn’t make sense to spend money on the brand that you were using previously. And so — but you should assume in there that we had significant ramp on the payroll side of things because we’re getting ready for a launch, and we expect to be at a certain level of scale and volume that we have not seen before. So that number incorporates all — so it’s sort of like you’ve got the downside of preparing for the launch, but you don’t have any of the upside of the revenues that come with the launch. That’s what really drove the 3Q. I wouldn’t use the 3Q number for any purposes of modeling out the future.
Operator: Our next question comes from David Katz with Jefferies.
David Katz: I appreciate all the detail. If I can just ask with respect to the Digital, is there any sort of crossover benefit that you could point to potentially with the land-based business? Do you have any sort of insight or data that can support that? And I’ll put my follow-up out there upfront, which is we’ve seen other operators as they go on the journey of digital, making tuck-ins to enhance product or their tech stack in some way? Should we be anticipating there would be any of those?
Jay Snowden: David, I’ll tackle the second one first, and then I’ll ask Todd to tackle the first part of your question. Well, let me answer the tuck-in question this way, which is we don’t feel like we’re missing anything today. We’ve made our investments, certainly significant ones, to get to a point where — we’ve got a very strong brand to lead with in Canada, that has proven out to be a very successful investment. Of course, the technology, that we acquired as part of the Score acquisition. We’ve now fully migrated to the U.S., and we’re ready to go with ESPN BET on our own proprietary tech stack. And so are there little things that you could think about investing in or owning to make your product better, faster, offer more markets and features — perhaps, but we don’t — as we sit here today, we certainly don’t feel at launch, like we’re missing anything.
And we’ve got to go make an acquisition, large or small, to take the app to the next level. It’s really about, from our perspective, on the product side is continuing. We’ve been so focused on migration. I think we’ve got a lot of ideas on the product road map on how to enhance features and markets, for example. And a lot of the effort over the course of the next 12, 18 months is going to be on going deeper and deeper on integrations with ESPN throughout ESPN BET, to make it as seamless and frictionless as we all envision and accomplish a lot of the things that we’ve already done in Ontario. We know how to do it. We’ve got the template and we’ll be executing on that here in the U.S. as well. But I don’t anticipate certainly not in the near term, you’ll be hearing from us on acquisitions.
Again, things can change, but we feel like we’ve got — we’re in a really strong position as we sit here today. Todd, I’ll let you answer the first question.
Todd George: Thanks, Jay. And David, great question. We refer to this as kind of our omnichannel approach. And — for the last several years, Jay, myself, Jennifer Weissman, from marketing have kind of talked about this. And really, you can see this dynamic for us, not only here but on a property basis, we have multiple properties in the same market. And we can see the value of that consumer, when they play with us across multiple properties. Take that example and then just apply it, somebody that joins us through online channels and then visits a property plays up at a significant multiple. And we have goals as a leadership team, around making sure that we’re introducing our other offerings to these consumers. Whether they find us through online channels or through a property because the multiples that we’re seeing.
And I think in the future, we’ll have more data around this and be able to talk in more detail but it’s very encouraging to see how much more valuable they are when they play 1, 2, 3 different channels. So if they play at property, if they bet with us through online sports betting, and then especially in those states that have online casino offerings, we’re really unlocking some value there.
Operator: Our next question comes from Jason Tichen with Canaccord Genuity.
Jason Tilchen: First, in terms of the since the migration in early July, understanding that it’s tough to compare apples-to-apples to prior to that because of the level of marketing investment. But just within the existing sort of customer base, have you seen a similar uplift in hold rates or par lane mix in the U.S. relative to what you’ve observed in Ontario?
Jay Snowden: It’s been similar. We actually have had — we’re coming off of a very strong hold month in October, both in Ontario, as well as in the U.S. It’s still early days. I mean, obviously, we were continuing to make a number of enhancements and updates to the app in the U.S. between full migration in July. Until you got to the start of football season and from the football season, so when we go live with ESPN BET in November. So I think we’ll be much more comfortable sharing stats and KPIs with you around some of the questions you asked post ESPN, that launch when we’ve got more marketing activities and more promotions going. And we now have a featured bet on our home page, which is fantastic in that we can start to drive behavior and merchandise differently, than we were in the past around some of the integrated betting options with ESPN and the personalities there and Parlay, same game Parley, as we can do that dynamically throughout a given day or weekend.
So the product continues to get better and better. And I think we’ll wait on some of those KPIs until we launch with ESPN.
Jason Tilchen: Great. That’s helpful. And just one quick follow-up. In the press release, you called out some of the positive impact at your land-based properties from the presence of the retail sports books. I’m curious, has there been any determination surrounding the potential to use the ESPN branding around those? And what are the plans as you transition away from the Barstool brand, here in the next few weeks?
Todd George: Yes, great question. So we’re almost completely de-themed removing the Barstool theme. They’re sitting there as a Sportsbook now and really honoring kind of the local markets that we operate in. We’re working with ESPN. ESPN has sent their representatives to several of our properties. And to date, the feedback has been great. So we’ll talk about where we can take this brand at our retail locations and find something that works for both of us.
Operator: Our next question comes from Ryan Sigdahl with Craig-Hallum Capital.
Ryan Sigdahl: I was having a hard time keeping up with the new guidance. So could you just clarify exactly what you’re guiding to? I thought I heard sales and then you talked EBITDA last. And the last — I don’t believe you updated in Q2. And the last IC is Q1, which included bar stool for the full year. So I guess can you specify sales versus EBITDA versus margin? And then specifically, what metric we should be thinking plus or minus 1% relative to?
