So, I think, arguably from a housing perspective, it’s — we’re undersupplied from actually the actual demand that is in need of housing.
Dan Politzer: Got it. And then, just the Native American…
Lorenzo Fertitta: Although housing prices are down from where they were, they were really what I would consider to be an unsustainable peak. And so, what you’ve had as you guys talked about with increases in interest rates and things like that, you’ve just had a bit of a slowdown, but you still have a lot of people that have significant equity in their homes right now. It’s not like I think in 2008, we were like 74% of the homes were underwater in equity. This is not what we’re seeing right now. We’re seeing a healthy slowdown or reduction from what I think was unsustainable.
Frank Fertitta: And people now valuing the loan as an asset, which allows them to have kind of more discretionary spend, which is not a bad thing.
Dan Politzer: Right. Makes sense. And just for my follow-up, on the Native American fees, I think in the quarter, there’s around $500 million of EBITDA. I mean since closed, I think it was in the — or the management contract ended in the first quarter, I think this was the biggest kind of line item that hit. I mean, what exactly was that? And should we be anticipating anything like that in 2023 as it relates to North Fork?
Frank Fertitta: No, that was a one-time settlement of an arbitration case and we do not expect that EBITDA to return in 2023.
Dan Politzer: Got it. Thank you.
Operator: The next question comes from Chad Beynon with Macquarie. Please go ahead.
Chad Beynon: Good afternoon. Thanks for taking my question. Wanted to ask about the promotional environment, I guess, in the local region and then also for the out-of-towners. And if you’ve seen anything exorbitant from, I guess, your legacy competitors or, I guess, the newest competitor that’s currently running the Palms? Thanks.
Scott Kreeger: Hi, Chad. It’s Scott. Happy to report that marketing in the Valley remains rational and stable. So, it is very consistent with what we’ve reported in the past and it remains so.
Chad Beynon: Great, thanks. And then, one, I guess, nuance question. I think in the past, we had thought that there were some local customers that would maybe drive an hour, hour and a half for a more value option. And we’ve seen some of those markets actually lose market share. I don’t know if you have more value customers that historically left Clark County and kind of gone out to Laughlin. But do you have a sense just looking at your database if you are getting just higher frequency and more kind of allegiance to your product versus what you may have seen in the past?
Frank Fertitta: Our business has always been location, location, location, convenience, value and service. So, while there may be some people that are looking to go get a value weekend down in Laughlin, I don’t believe that that’s our core customer. I mean, our customers typically live within a three to a five-mile radius of our properties and they visit multiple times a week. And again, it’s based on the quality of the facilities we have, the convenience of the facilities, the amenities, the team members, the service, recognition of the customer. So, I don’t think we really see Laughlin as a competitor of ours.
