MGM’s Big Bets: Bill Hornbuckle on Las Vegas, Japan, and Digital Expansion의 전체 녹취록

college, thought I'd spend a couple years here and go off into the hotel business and just never left. 00:02:25.840 --> 00:02:27.599 I got somewhat lucky in the early days. 00:02:27.759 --> 00:02:31.120 But back in those days, the mob was literally still here. 00:02:31.280 --> 00:02:33.039 It was the late 70s, early 80s. 00:02:33.120 --> 00:02:42.080 And although they were transcending out, and folks like Steve Wynn and others were taking play, meeting some of those characters, and they were characters, was something I'll always remember. 00:02:42.319 --> 00:02:51.520 Modern day, in my current job, signing up originally Lady Gaga for a hundred million dollar contract, standing on stage with her hugging me, was like, okay, is this a real moment? 00:02:51.680 --> 00:02:52.560 Is this happening? 00:02:52.800 --> 00:02:53.680 What was that like? 00:02:53.919 --> 00:02:54.479 It was fun. 00:02:54.560 --> 00:02:55.280 It was exciting. 00:02:55.599 --> 00:03:01.599 She's a great human being, as casual and as cool as you would hope and think she could be or should be. 00:03:01.759 --> 00:03:05.759 And it was one of those moments that were like, you know, you pinch yourself and go, wow, this is great. 00:03:05.840 --> 00:03:06.879 This is a good day. 00:03:07.039 --> 00:03:08.400 Not every day's been a good day. 00:03:08.479 --> 00:03:11.599 You know, the day we opened Allegiant Stadium, that was a big push. 00:03:11.759 --> 00:03:15.840 The day the Golden Knights celebrated their first Stanley Cup, a huge push. 00:03:16.000 --> 00:03:19.120 So the whole sports evolution here has been pretty incredible. 00:03:19.360 --> 00:03:21.199 I bet you had good seats to the Super Bowl. 00:03:21.360 --> 00:03:22.319 Yeah, it was pretty good. 00:03:23.039 --> 00:03:25.439 We're hosting Formula One this weekend. 00:03:25.599 --> 00:03:32.560 The generation of that whole thing into what it's become for the city, I think ultimately, and the sport itself has been great. 00:03:32.719 --> 00:03:34.319 Getting to meet those guys, getting to meet. 00:03:34.560 --> 00:03:35.919 I'm a car guy by nature. 00:03:36.000 --> 00:03:43.199 And so going into McLaren's home place outside of London, meeting Zach and spectacular stuff, just fun stuff. 00:03:43.360 --> 00:03:47.360 And so I presumably think I have one of the better jobs in America, one of the more fun. 00:03:47.599 --> 00:03:48.879 Again, there's pressures on it. 00:03:48.960 --> 00:03:53.360 You've got tens of thousands of employees who demand and need certain things. 00:03:53.439 --> 00:03:57.919 And so not every day is, but the vast majority of it, people say, What business are you in? 00:03:58.000 --> 00:04:03.439 I say I'm in the entertainment business in the context of we're here to entertain folks and make it a great time for all. 00:04:03.759 --> 00:04:16.160 Speaking of the entertainment business, I mean, you really are in a service business and you have a variety of customers ranging from like super VIPs who are

gambling millions of dollars to people at the low-stakes blackjack table. 00:04:16.399 --> 00:04:17.920 What does it take to get to that? 00:04:18.000 --> 00:04:22.639 I've always, just for my own curiosity, wanted to know super VIP level, what is it like? 00:04:22.800 --> 00:04:24.240 What kind of perks do you get? 00:04:24.399 --> 00:04:26.959 How is it different than the average experience? 00:04:27.360 --> 00:04:32.480 I think something Vegas has always been good at and continues to be great at is personalized one-on-one attention. 00:04:32.560 --> 00:04:35.920 And so we have a hosting crew in our company of almost 500 people. 00:04:36.079 --> 00:04:38.879 And if I include Macau, that number almost doubles. 00:04:39.040 --> 00:04:48.480 And their day job is to host customers, know everything about them, know their birthday, their children's names, what they like to do, how they like to do it, and frankly, hold their hand. 00:04:48.639 --> 00:04:56.319 Get them here as often as ultimately we potentially can, hold their hand, make sure they stay loyal to the company and give them just a great time. 00:04:56.480 --> 00:05:08.800 And so, I mean, you all know this is not folklore, but we fly them around in G650s, they get to stay in places called the Mansion, they get to meet backstage Lady Gaga from time to time and others, Bruno Mars, et cetera. 00:05:09.040 --> 00:05:11.920 And so it's interesting, though, what perks their interest. 00:05:12.399 --> 00:05:15.839 Past Monday night, we hosted the Dallas Cowboys, the Raiders. 00:05:16.079 --> 00:05:19.040 We had three very big customers in our box. 00:05:19.120 --> 00:05:20.720 And Tom Brady was next door. 00:05:20.800 --> 00:05:22.560 And all they want to do is meet Tom Brady. 00:05:22.800 --> 00:05:24.879 So we had to try to make that happen. 00:05:24.959 --> 00:05:30.800 And so what motivates individuals is always interesting, particularly around our industry, usually fun. 00:05:31.040 --> 00:05:37.680 And I think we as a company, but frankly, we as an industry do the high-end, probably better name than anybody else in the world. 00:05:38.000 --> 00:05:39.199 No, absolutely. 00:05:39.360 --> 00:05:46.480 And one of the stories behind MGM or the growth story is digital through MGM rewards, BetMGM, et cetera. 00:05:46.720 --> 00:05:51.519 How do you have that personal touch across both physical and digital? 00:05:51.920 --> 00:05:52.879 It's difficult. 00:05:52.959 --> 00:05:56.319 I mean, because the digital business obviously touches millions and millions of customers. 00:05:56.480 --> 00:05:59.680 We've now grown this thing from 18 to this coming year. 00:05:59.759 --> 00:06:02.000 We'll do over 3 billion in top line revenue. 00:06:02.079 --> 00:06:04.879 So it's becoming a very significant piece of the company. 00:06:05.040 --> 00:06:11.920 We do it through our BetMGM partnership domestically, as well as our own and operated businesses in Europe and now in Brazil. 00:06:12.160 --> 00:06:18.720 But the idea of AMI channel, where you could touch us both at home and here, is meaningful to folks. 00:06:18.959 --> 00:06:26.480 About 15% of our database folks touch both products and get recognized and rewarded for touching both products. 00:06:26.720 --> 00:06:29.920 And so it's for us a relatively unique proposition. 00:06:30.000 --> 00:06:35.199 Obviously, DraftKings, FanDuel, others are major competitors, but they don't own brick and mortar. 00:06:35.279 --> 00:06:47.600 And so the opportunity, whether it's in Michigan to bring somebody into the casino there or here in Las Vegas and join together and recognize their spend, both online as well as brick and mortar, is a unique position. 00:06:47.680 --> 00:06:52.480 And frankly, given the tools and the assets we have, we can do it probably better than most. 00:06:52.639 --> 00:06:55.519 We've invited for this weekend, Formula One's a great example. 00:06:55.680 --> 00:06:59.360 150 of our guests out there will be bet MGM guests. 00:06:59.439 --> 00:07:03.279 And so they'll be digital who earn their way to this experience through digital. 00:07:03.600 --> 00:07:04.240 What does that mean? 00:07:04.319 --> 00:07:05.279 How do they earn their way? 00:07:05.360 --> 00:07:09.839 Is it the amount of money they bet, or is it how often they go on or combination thereof? 00:07:10.160 --> 00:07:11.199 It's theoretical. 00:07:11.279 --> 00:07:16.639 It's the amount of money that theoretically they put in play, which earns them certain perks along the way. 00:07:16.800 --> 00:07:31.439 And just like brick and mortar, we have high rollers who are domestic online, whether it's iGaming Casino in the five or six states that we're in, or our sports betting itself, and they quote, earn their way through our rewards programs into various things that they can do. 00:07:31.600 --> 00:07:34.160 We host with the Super Bowls here, we hosted folks for it. 00:07:34.319 --> 00:07:36.000 We've got the Final Four coming next year. 00:07:36.079 --> 00:07:37.279 We've got a lot of attention around that. 00:07:37.439 --> 00:07:38.480 People want to come for that. 00:07:38.639 --> 00:07:42.000 We have the college football thing in 27, the championship game. 00:07:42.160 --> 00:07:48.720 And so people focus on certain things they want to do and quote, earn their way to those things. 00:07:48.959 --> 00:07:57.439 Through BedMGM and the rewards program, like how much information do you actually know about someone and how do you utilize that to your advantage? 00:07:57.839 --> 00:07:59.439 Go back to what we do here. 00:07:59.680 --> 00:08:01.120 It is personal relationships. 00:08:01.199 --> 00:08:06.399 So our BetMGM team also has hosts who get to know and understand their customers and what they want. 00:08:06.560 --> 00:08:10.480 Obviously, in a digital environment, their behavior you can follow intimately. 00:08:10.639 --> 00:08:12.720 I mean, very closely, you can follow behavior. 00:08:12.879 -->

00:08:16.720 Not as much as easy here in brick and mortar, but clearly in digital. 00:08:16.879 --> 00:08:26.160 But what we don't know is a lot about them, but ultimately we do outreach to them and go back to the with your children's birthday or somebody in Detroit who's a football fan, well, what a surprise. 00:08:26.240 --> 00:08:27.439 We have a box at the Lions. 00:08:27.920 --> 00:08:32.159 And so being able to say to them, hey, next Sunday, you want to come down to a game. 00:08:32.240 --> 00:08:36.320 We'd love to take you and your son who enjoys the Lions to a football game. 00:08:36.480 --> 00:08:39.440 That's a point of differentiation that others can do. 00:08:39.679 --> 00:08:51.759 But the combination of what we have here, particularly in Las Vegas and some of our regional properties, National Harbor, et cetera, and the assets we have exposure to make it a fairly compelling and unique proposition. 00:08:52.080 --> 00:09:01.039 Those regional properties, obviously, you have the Las Vegas hotels, which are the biggest part of your gambling business, but you also have the regional properties spread across the country. 00:09:01.200 --> 00:09:02.639 Are they core to your business? 00:09:02.799 --> 00:09:05.279 Do you need them to operate well? 00:09:05.600 --> 00:09:07.440 Yeah, I mean, they're a big part of our business. 00:09:07.600 --> 00:09:10.879 The word core might be a push, but we have eight of them. 00:09:10.960 --> 00:09:12.720 We've sold one, so we'll have seven. 00:09:12.879 --> 00:09:18.879 They earn us about a billion dollars a year in an enterprise that does about even about four and a half billion when it's all said and done. 00:09:19.039 --> 00:09:21.519 So they're a sizable piece of our bottom line. 00:09:21.679 --> 00:09:22.480 They're unique. 00:09:22.639 --> 00:09:33.679 Five of them are leading market takers in each market that they're in, Borgata in Atlantic City, National Harbor in Maryland, MGM in Detroit by way of example, are market leaders in their own respects. 00:09:34.000 --> 00:09:40.639 And the ability for people to go in there, enjoy that experience, and ultimately get rewarded to come to Vegas is a common thing. 00:09:40.879 --> 00:09:45.360 And so we share a common database that all feeds into MGM Rewards. 00:09:45.440 --> 00:09:47.120 And then those customers can do as they like. 00:09:47.279 --> 00:09:53.519 And we've now positioned an airplane by way of example in for our high end in Borgata in New Jersey. 00:09:53.679 --> 00:09:55.840 But we can take customers up and down the coast. 00:09:56.000 --> 00:09:58.879 We take them to DC, we take them to Mississippi. 00:09:59.039 --> 00:10:01.200 They want to go to the bow for a certain experience. 00:10:01.279 --> 00:10:05.120 And so most of them, not all of them, are big enterprises under themselves as well. 00:10:05.519 --> 00:10:14.080 I mean, I guess what I was trying to get at is if you got rid of the regional casinos, would that impact, and you got

a good price for them? 00:10:14.240 --> 00:10:18.639 Would that impact your Las Vegas business or your core business in general? 00:10:19.200 --> 00:10:21.200 To a degree, but not significant. 00:10:21.360 --> 00:10:22.720 No, it would impact our digital business. 00:10:23.279 --> 00:10:35.600 This is now becoming a fairly intricate web between digital, and I'll use Detroit as the example, Michigan, our Detroit property, Las Vegas, where both iGaming and sports betting are allowed. 00:10:35.840 --> 00:10:40.960 There's a pretty direct connectivity between those customers and all of that activity case. 00:10:41.120 --> 00:10:54.399 And one that's growing in meaning that people, one of the reasons they stay and play on BetMGM on a digital device is that they get access to whether it's local events and local things they want to do, or once or twice a year to come out for something special here. 00:10:54.559 --> 00:10:57.039 And so, yeah, we like our portfolio. 00:10:57.120 --> 00:10:59.200 There's a couple of assets that aren't market leading. 00:10:59.360 --> 00:11:02.960 We've got to figure out the consternation in New York, ultimately, what to do there. 00:11:03.200 --> 00:11:12.480 But you know, when it comes to New Jersey, Michigan, Maryland, Mississippi, we love what we have there and what they represent onto themselves. 00:11:12.720 --> 00:11:14.399 So is it core? 00:11:14.559 --> 00:11:17.840 No, Las Vegas is still core, but it's an important piece of our pie. 00:11:18.559 --> 00:11:26.799 Before we get back to the conversation, I want to take a quick moment to tell you about something we're really proud of at Boyer Research. 00:11:26.960 --> 00:11:30.960 We're getting ready to release the Forgotten 40 2026. 00:11:31.679 --> 00:11:40.320 Our flagship annual report featuring 40 of our most compelling catalyst-driven stock ideas for the year ahead. 00:11:40.480 --> 00:11:43.279 These aren't necessarily the cheapest names we follow. 00:11:43.440 --> 00:11:52.159 They're the ones we believe have the greatest potential for capital appreciation based on catalysts, our team of analysts have identified. 00:11:52.399 --> 00:11:57.919 Every company has been thoroughly analyzed in a full-length FOIA research report. 00:11:58.159 --> 00:12:05.279 The same in-depth research trusted by some of the world's leading institutional investors, hedge funds, and family offices. 00:12:05.440 --> 00:12:16.720 Those who pre-order will receive a substantial discount in our latest FOIA research issue, which includes four full-length reports spanning more than 45 pages. 00:12:16.960 --> 00:12:21.759 Learn more at BoyerResearch.com slash 2026. 00:12:22.159 --> 00:12:24.399 Now, let's get back to the show. 00:12:24.720 --> 00:12:26.960 You had mentioned iGaming in Michigan. 00:12:27.120 --> 00:12:33.279 For those who don't know, and this is a big growth driver for NGM and something I'm personally really excited about. 00:12:33.440 --> 00:12:34.720 What is iGaming? 00:12:34.960 --> 00:12:36.559 It's digital casino gaming. 00:12:36.720 --> 00:12:40.000 You can go online, play slots, you can do live dealer. 00:12:40.159 --> 00:12:45.360 So what that simply means is you can click on a link that has a live dealer that will deal to you. 00:12:45.519 --> 00:12:47.840 We have a live dealing studio here in Las Vegas. 00:12:48.000 --> 00:12:51.279 We have one in Michigan, we have one in New Jersey that services. 00:12:51.440 --> 00:12:58.159 So like 15% of our players who play table games online do it through a live dealer, which is fascinating unto itself. 00:12:58.399 --> 00:13:01.039 And so that's a great experience for those who enjoy that. 00:13:01.120 --> 00:13:06.240 And the pace of the game, they consider it more real, they consider it more trustworthy in some way, shape, or form. 00:13:06.399 --> 00:13:09.519 God knows why, because it all should, it is trustworthy, but they do. 00:13:09.600 --> 00:13:12.559 And so it's a unique proposition that people enjoy. 00:13:12.720 --> 00:13:17.039 There are jackpot links that ultimately tie to brick and mortar casinos as well. 00:13:17.200 --> 00:13:22.879 And so the idea of linking jackpots across the totality of our products is fun and interesting for people. 00:13:23.039 --> 00:13:30.879 And so it's all of the gaming activity that you would expect in a casino, the types of games, the types of slot machines, you can play online. 00:13:31.360 --> 00:13:35.039 So essentially, it's a casino without the cost of building a casino. 00:13:35.360 --> 00:13:36.000 Oh, yeah. 00:13:36.559 --> 00:13:38.559 So the margins must be insane. 00:13:39.120 --> 00:13:42.720 Well, it's a very aggressive competitive space. 00:13:42.960 --> 00:13:47.279 And so look, we think ultimately the margins settle in the mid-20s in this business. 00:13:47.440 --> 00:13:55.600 But as long as there's a DraftKing, a fan duel, pick your favorite fanatics, your favorite marketplay, I think you'll see margins within the mid-20s. 00:13:55.840 --> 00:14:09.840 But acquiring customers, the cost of acquiring customers, the length that you need to keep them involved of time before they become profitable, you know, it's not unlikely for us to put a$500 stake on a customer to say, make your first bet and we'll give you$500. 00:14:10.320 --> 00:14:15.600 And so then the time it takes to earn that back in then some is months sometimes. 00:14:16.000 --> 00:14:22.159 And that's where the strategy of also having a brick and mortar gives you an advantage over the DraftKings of the world. 00:14:22.480 --> 00:14:26.240 So how many states in the US have eye gaming now? 00:14:26.799 --> 00:14:27.279 Six. 00:14:27.519 --> 00:14:31.600 There's three that are really meaningful Michigan, New Jersey, and Pennsylvania. 00:14:31.840 --> 00:14:35.840 And those six states interestingly drive over 60% of our top line revenue. 00:14:36.000 --> 00:14:38.559 So we have sports betting in, I'm gonna give you a bad number here.

00:14:38.639 --> 00:14:43.279 I think it's 28 or 29, but we have sports betting in a significant like four X. 00:14:43.919 --> 00:15:02.960 But the eye gaming activity is big for the industry, it's big for us, and particularly in those states, where gaming and the ability to tie in two of the three for us brick and mortar to get to digital, because we've had a database for a considerable period of time in brick and mortar, to be able to leverage into that from a marketing perspective has been meaningful. 00:15:03.440 --> 00:15:09.200 So why only six states where sports gambling has 28, 29, or however many states it is? 00:15:09.600 --> 00:15:12.320 It's all about legislation and about making it permissible. 00:15:12.480 --> 00:15:17.440 So regulators, state legislators, governors all have a view. 00:15:17.679 --> 00:15:19.679 Most of the states we're in are blue. 00:15:19.840 --> 00:15:25.440 It emanates from having casinos on the ground for jobs and it migrates itself from there. 00:15:25.600 --> 00:15:26.879 Many are considering it. 00:15:27.039 --> 00:15:29.039 Obviously, it's a great form of tax revenue. 00:15:29.279 --> 00:15:33.840 The challenge we face is there's black market sites all over, anyways, today. 00:15:34.000 --> 00:15:43.600 And so if I'm in any one of those states that doesn't have it, I can simply go to a black market site, not pay tax, and not to the benefit of the industry or the state for that matter. 00:15:43.759 --> 00:15:46.879 So we continue to push the agenda, but as of today, we have six. 00:15:47.279 --> 00:15:52.000 But as the recent scandals show you, I mean, branding is very important. 00:15:52.080 --> 00:15:58.080 I mean, I can't imagine why someone would want to go to a black market site where it's not regulated, they could cheat you. 00:15:58.159 --> 00:15:59.919 I mean, isn't that a big differentiator? 00:16:00.240 --> 00:16:00.639 It is. 00:16:00.799 --> 00:16:04.159 That's why we've been able to grow an industry that's well beyond the cottage industry. 00:16:04.240 --> 00:16:05.759 I mean, we're gonna push three billion. 00:16:05.919 --> 00:16:08.559 Some of our competitors are gonna push four and five billion this year. 00:16:08.720 --> 00:16:14.879 So, you know, it's grown to a I think next year we're pushing a$15 billion industry because of that very notion. 00:16:15.360 --> 00:16:19.360 And five years from now, how many states, if you had to guess, would have eye gaming? 00:16:19.600 --> 00:16:21.440 I would hope to think we could double it by now. 00:16:21.600 --> 00:16:23.120 Would be a realistic goal. 00:16:23.360 --> 00:16:27.360 There are big states like Texas that just simply doesn't want gaming today. 00:16:27.519 --> 00:16:31.039 We have ongoing dialogue around sports betting and brick and mortar casinos. 00:16:31.200 --> 00:16:38.559 There are other states like California and Florida, which are influenced by tribes and tribal gaming, and so that gets very complicated very quickly. 00:16:38.799

--> 00:16:45.039 There are other states, Ohio, Illinois, New York, which I think at some point will, but time to tell. 00:16:45.440 --> 00:16:52.879 So we're talking about the US business, but how big of an opportunity globally is EI gaming? 00:16:53.440 --> 00:16:53.840 Big. 00:16:54.000 --> 00:16:57.759 We are now it's a more mature market in most countries. 00:16:58.000 --> 00:16:59.360 We're in 11 markets. 00:16:59.440 --> 00:17:01.200 We've just added Brazil this year. 00:17:01.360 --> 00:17:09.599 We have BetMGM now, the actual brand itself, which we control and own in UK, Sweden, and one other place. 00:17:09.680 --> 00:17:11.039 I want to say Netherlands. 00:17:11.200 --> 00:17:12.640 And we're expanding on that brand. 00:17:12.799 --> 00:17:14.559 We bought something called Leo Vegas. 00:17:14.720 --> 00:17:17.599 We bought our own technology platform, our back end. 00:17:17.680 --> 00:17:20.559 We bought something called typical, our own sports betting platform. 00:17:20.799 --> 00:17:23.920 And so we've established ourselves now as an operative. 00:17:24.079 --> 00:17:28.000 That business will generate close to a billion, top line as well this year. 00:17:28.160 --> 00:17:29.200 And to us, it's new. 00:17:29.279 --> 00:17:32.799 I mean, we're in our third year of this, so it's an evolving, growing business. 00:17:33.039 --> 00:17:36.799 Its core, this company called Leo Vegas that we bought back four years ago. 00:17:36.960 --> 00:17:41.440 We got it in play three years ago, has been really dominant in the Nordics. 00:17:41.519 --> 00:17:42.880 And so we like our position there. 00:17:42.960 --> 00:17:51.359 We have 38% market share in many of those places, and we're trying to spread that out on the back of obviously MGM's brand, on the back of now our knowledge. 00:17:51.599 --> 00:17:55.440 And we're not yet at a point with that business where we can tie it to Las Vegas. 00:17:55.599 --> 00:17:58.319 I mean, yeah, every once in a while somebody will do the on me channel. 00:17:58.400 --> 00:17:59.440 It'd be nice and interesting. 00:17:59.599 --> 00:18:04.559 But on to itself, and almost all of them, are sports medicame and iGaming combined. 00:18:04.720 --> 00:18:07.680 And so we have this unit that's continuing to grow. 00:18:07.839 --> 00:18:10.000 We think Brazil is the big market to go. 00:18:10.160 --> 00:18:12.960 We see it as a seven or eight billion dollar marketplace. 00:18:13.200 --> 00:18:19.519 If we can get high single-digit share, we've got a$300 million earning business bottom line there. 00:18:19.599 --> 00:18:20.880 And so we're excited about that. 00:18:21.279 --> 00:18:26.799 Do you one day envision the international eye gaming to be bigger than the US eye gaming? 00:18:27.359 --> 00:18:29.519 In totality, yes, it could and should be. 00:18:29.680 --> 00:18:30.000 Yeah. 00:18:30.559 --> 00:18:35.920 I know this may be many years in the future, but this is such a high margin business. 00:18:36.240 --> 00:18:43.039

Could the iGaming one day surpass in importance the actual physical gaming aspect of the business? 00:18:43.519 --> 00:18:46.079 I guess at some point, but there's a long way to go for that. 00:18:46.240 --> 00:18:49.920 We've taken this business, the Ben MGM Core business domestically. 00:18:50.160 --> 00:18:52.720 We were underwater 200 million last year. 00:18:52.880 --> 00:18:55.279 We're going to push$200 million in profit this year. 00:18:55.359 --> 00:18:58.960 So we've done over a$400 million swing in the course of a year. 00:18:59.200 --> 00:19:03.839 And so it's hit its critical point and then, and we're going to continue to grow from here. 00:19:04.000 --> 00:19:11.279 That's a long way away, though, from the combination, because don't forget we have a Macau business that throws off a billion plus a year in cash as well in EBITDA. 00:19:11.519 --> 00:19:12.880 Not in cash in EBITDA. 00:19:13.039 --> 00:19:14.880 So there's some room to grow there. 00:19:15.119 --> 00:19:20.720 But we have said and we believe our BetMGM business is going to hit the half a billion dollar mark over the next couple of years. 00:19:21.119 --> 00:19:28.720 You had just mentioned the Macau business, and it's obviously a great business, but it's also in a place that there's a lot of regulatory uncertainty. 00:19:28.960 --> 00:19:29.839 How do you manage that? 00:19:29.920 --> 00:19:32.160 And how do you think investors should think about that? 00:19:32.480 --> 00:19:35.119 I don't know if I would use the word uncertainty. 00:19:35.279 --> 00:19:41.759 Actually, with this new relicensure, when we have seven years to go and then they have a three-year extension if the government chooses to take it. 00:19:42.000 --> 00:19:48.000 There is, in terms of regulations themselves and policy, there's a lot of clarity. 00:19:48.240 --> 00:20:05.359 In terms of how to invest, in order for all of us to get relicensed, we all had to contribute to the notion that we would spend, in our case, a billion one on capital and a billion one-ish on opex for non-gaming activity that would drive tourism and leisure activity into the market. 00:20:05.680 --> 00:20:10.000 We're about a third into that spend, and we're about a third into our license tenure. 00:20:18.240 --> 00:20:21.759 That people will gamble while they're here, but that's not the primary reason they come. 00:20:22.000 --> 00:20:23.680 They come for all this other activity. 00:20:23.839 --> 00:20:25.440 That's the notional proposition. 00:20:25.519 --> 00:20:28.240 We've got a long way to go, all of us there as operatives. 00:20:28.480 --> 00:20:31.680 But that's the part that's a little less clear how to get there. 00:20:31.920 --> 00:20:36.319 Everything else there was pretty straightforward as a regulator, as a marketplace. 00:20:36.640 --> 00:20:43.599 Frankly, we feel good about where the Chinese government has landed in terms of Macau's existence and its going forward. 00:20:43.839 --> 00:20:48.799 And so good signal, good signs on that, which are obviously very important in the long run. 00:20:49.039 --> 00:20:54.400 How to get this money spent and make it productive is really the challenge, I think, over the next couple of years. 00:20:54.720 --> 00:20:57.279 Just moving on to something that's very topical. 00:20:57.440 --> 00:20:58.160 It's been in the news. 00:20:58.240 --> 00:21:05.759 You know, we've seen headline grabbing, integrity issues from the MBA scandal, game manipulation, prop bets scandals. 00:21:06.000 --> 00:21:10.240 How should the industry think about where to draw the line on these betting types? 00:21:10.640 --> 00:21:14.319 The majority of all of that information came from us, the operatives. 00:21:14.480 --> 00:21:25.839 Because we are so dialed in, because we understand the odds, because we understand the activity, we can see betting activity, we can hunt out quickly fraud, suspicious activity, et cetera. 00:21:25.920 --> 00:21:33.759 And so we all often now have become the policemen of the activity and therefore notifying the league of, hey, we might want to look at something here. 00:21:34.000 --> 00:21:35.680 That's the first comment I would make. 00:21:36.000 --> 00:21:37.200 Can you take us through that? 00:21:37.359 --> 00:21:41.119 Like, how do you figure out that there's suspicious activity? 00:21:41.359 --> 00:21:41.839 What do you do? 00:21:41.920 --> 00:21:42.480 What's the call? 00:21:42.880 --> 00:21:43.839 It depends on the activity. 00:21:44.000 --> 00:21:46.000 Look, there's anomalies, an activity case. 00:21:46.160 --> 00:21:55.519 In our Ben MGM place, we have 50 odd data analysts who look at betting data all the time, every day, basically the odds makers themselves. 00:21:55.759 --> 00:22:02.480 And when something doesn't line up the way we had thought it would predict, sometimes We dig into it because, well, what happened here? 00:22:02.559 --> 00:22:04.160 Why weren't we right about this? 00:22:04.400 --> 00:22:11.759 And through that activity case, which goes on every day, all day, we find things from time to time that you go, hmm, this is suspect. 00:22:12.079 --> 00:22:15.119 And we report them because it's not in our interest to have it happen. 00:22:15.200 --> 00:22:17.440 Because by the way, we're the ones we're taking advantage of. 00:22:17.680 --> 00:22:18.720 You're taking risk. 00:22:18.880 --> 00:22:20.799 Yeah, at the end of the day, we're the ones with the risk. 00:22:21.039 --> 00:22:22.640 And so we're very good at that. 00:22:22.799 --> 00:22:29.920 And so we'll call it out quietly, but we'll call the league or we'll call somebody and say, hey, by the way, you might want to take a look at this. 00:22:30.000 --> 00:22:32.079 And then they go off and do what they do. 00:22:32.240 --> 00:22:34.559 And so to that extent, it's been an advantage. 00:22:34.720 --> 00:22:39.839 I think where we all need to be cautious and we all need to have a righteous eye is play and play. 00:22:39.920 -->

00:22:51.039 I'm betting on the next activity case, whether it's a pitch, a strike, ball, antenna, whatever the next play is, that's suspect, and more so than the broader outcome of a game, potentially. 00:22:51.200 --> 00:22:53.519 And so we just have to be diligent about it. 00:22:53.759 --> 00:23:08.880 I will tell you this there's been enough black market activity over decades that I'm sure all of that existed and continues to exist, that I think we've become an interesting policeman in some of that because it's in our interest to make sure it doesn't happen. 00:23:09.039 --> 00:23:13.599 And so the other side of that coin is obviously some of it gets called out publicly because it has to. 00:23:14.000 --> 00:23:18.960 Would you support the industry stepping back from some of the more like exotic prop bets? 00:23:19.119 --> 00:23:21.119 Or is it more of a case-by-case basis? 00:23:21.200 --> 00:23:22.319 Like what do you do going forward? 00:23:22.559 --> 00:23:24.160 I think it's a case-by-case basis. 00:23:24.319 --> 00:23:27.680 I think the engagement those prop bets bring are compelling. 00:23:27.839 --> 00:23:29.200 I think they're compelling for the sport. 00:23:29.279 --> 00:23:30.880 I think they're compelling for fan engagement. 00:23:30.960 --> 00:23:33.519 I think they're compelling for media, for television time. 00:23:33.759 --> 00:23:37.839 When a football game's 32 to 10 and then there's four minutes left, who cares? 00:23:38.079 --> 00:23:41.119 Well, if you care about who makes the next field goal, you care. 00:23:41.279 --> 00:23:43.039 And so you stay engaged and so on. 00:23:43.279 --> 00:23:48.160 I think there's a way to effectively monitor and effectively police it and continue with it. 00:23:48.640 --> 00:23:57.599 Just on the human side, you know, when you see someone who's making$22,$23 million a year risk everything for a few hundred grand, like does that just make you step back? 00:23:57.680 --> 00:23:59.759 Or like how do you think about that? 00:24:00.079 --> 00:24:01.200 It makes you step back. 00:24:01.359 --> 00:24:07.920 But you have to recognize it's always existed, it will probably continue to exist, and you've got to just be diligent about it. 00:24:08.079 --> 00:24:10.240 It is amazing to me, to your point. 00:24:10.400 --> 00:24:14.400 But you know, like any criminal, I mean, look at go back to Ivan Bosby. 00:24:14.559 --> 00:24:15.519 I mean, what was he thinking about? 00:24:15.839 --> 00:24:16.880 Yeah, Martha Stewart. 00:24:17.440 --> 00:24:17.759 Yeah, exactly. 00:24:17.920 --> 00:24:20.400 Yeah, I mean, there's a better example on hello. 00:24:22.079 --> 00:24:34.000 One of your, I don't want to say competition, but perceived competition are the prediction markets like polymarket, and they have much lower fees because they match users instead of taking risk. 00:24:34.319 --> 00:24:37.279 Are they a competitive threat or are they in a different category? 00:24:37.359 --> 00:24:38.960 How do you deal

with that going forward? 00:24:39.279 --> 00:24:47.119 Well, what we've been told very specifically by several states, Nevada of No, that it's off limits for us because we have followed it. 00:24:47.279 --> 00:24:48.880 We followed the marketplace. 00:24:49.119 --> 00:24:51.759 We understand what it's been in UK for decades, by the way. 00:24:51.839 --> 00:24:53.279 It's not a new thing. 00:24:53.519 --> 00:24:55.839 It takes a single digit percentage of the market. 00:24:55.920 --> 00:25:03.200 So while a threat, not a, I don't think a massive one, I think the propositions generally, now they'll get better, have been weak. 00:25:03.359 --> 00:25:07.279 I'm not so sure they don't make some of their own markets when you say they're just pitting one against the other. 00:25:07.440 --> 00:25:09.839 I'm a little dubious of that, but one day at a time. 00:25:10.079 --> 00:25:14.480 But they're getting closer and closer to having a product that looks and feels exactly like ours. 00:25:14.640 --> 00:25:16.319 No doubt about it, it's betting. 00:25:16.400 --> 00:25:19.519 It doesn't have the regulatory controls, it doesn't have the age controls. 00:25:19.680 --> 00:25:22.240 So an 18-year-old in Utah can bet. 00:25:22.400 --> 00:25:23.119 I'm sorry. 00:25:23.359 --> 00:25:29.519 Utah doesn't want it, and a miner shouldn't be allowed to, but not under, but an 18-year-old shouldn't be allowed to bet full stop. 00:25:30.079 --> 00:25:39.119 And so we're obviously very anti, not from a competitive perspective, but we just we think it ought to be regulated by the states, as all of gaming is. 00:25:39.279 --> 00:25:47.279 And the notion that it could hide behind this federal regulatory environment called financial trades markets is just not appropriate. 00:25:47.440 --> 00:25:51.279 And so we are opposed and we'll continue to fight it wherever we can. 00:25:51.680 --> 00:25:54.799 One of the big growth areas and I referenced before is Japan. 00:25:54.880 --> 00:25:58.960 And you have a really exciting project there and development that's underselling. 00:25:59.039 --> 00:26:01.599 And I think it's a$10 billion spend. 00:26:01.759 --> 00:26:05.759 Can you just tell us a little bit about it, the opportunity, what you're gonna be doing? 00:26:06.000 --> 00:26:07.039 We've been on this journey. 00:26:07.119 --> 00:26:09.759 You'll find this staggering because sometimes this is how long these things take. 00:26:10.000 --> 00:26:12.319 We saw our first Diet member in 2009. 00:26:12.640 --> 00:26:15.039 Just to stop you, that's their equivalent of their Congress. 00:26:15.359 --> 00:26:15.680 Exactly. 00:26:15.759 --> 00:26:18.880 So this was going to be a federally regulated deal, which it ultimately became. 00:26:19.039 --> 00:26:23.359 The Abe administration got enamored with opening up the country for tourism. 00:26:23.519 --> 00:26:26.079 At the time, in 2013, there was only 13 million visitors. 00:26:26.319 --> 00:26:32.079 If you think about Japan, it was staggeringly low compared to other really cool places to go in the world. 00:26:32.240 --> 00:26:34.160 Eventually, legislation gets passed. 00:26:34.319 --> 00:26:35.599 The bill's extensive, though. 00:26:35.680 --> 00:26:37.680 Our project is 12 billion, not 10. 00:26:38.079 --> 00:26:42.480 But we picked Osaka because we thought they had the political will to want to get it done. 00:26:42.559 --> 00:26:49.759 And we picked a partner called ORGS because we thought they had the risk profile to want to get something like this done and the background and the backbone. 00:26:49.920 --> 00:26:50.559 And they did. 00:26:50.640 --> 00:26:53.920 And so we ended up though with the only license in all of Japan. 00:26:54.079 --> 00:27:01.839 So if you think about it in the context of Singapore, which has two licenses, six million people, 20 million visitors. 00:27:02.160 --> 00:27:06.319 Singapore this year, SANS is going to make probably$2.5 billion of cash flow. 00:27:06.559 --> 00:27:07.200 Bottom line. 00:27:07.359 --> 00:27:09.200 We have 120 odd million people. 00:27:09.279 --> 00:27:13.039 We're the only licensee in any time for the foreseeable future. 00:27:13.200 --> 00:27:16.160 We've started construction, we'll be open in 2030. 00:27:16.319 --> 00:27:22.559 We see it as our version of Marina Bay SANS, and then some, given the market scale and size. 00:27:22.799 --> 00:27:26.559 It's an hour and a half closer to Beijing and Shanghai than Macau. 00:27:26.640 --> 00:27:33.839 So there's a, I think, over time, forgetting geopolitical issues that may or may not emerge, that there's a huge opportunity there with China, China visitation. 00:27:34.000 --> 00:27:36.720 China's visitation is up over 30 million now already. 00:27:36.799 --> 00:27:38.799 So that unto itself has been a positive. 00:27:38.960 --> 00:27:44.960 It sits on a place called Yumashima in Osaka, immediately adjacent to where the World Expo site was. 00:27:45.200 --> 00:27:48.480 Every day in the last week, there was a quarter of a million visitors that went to World Expo. 00:27:48.880 --> 00:27:53.440 So the infrastructure has been put in play to accommodate this kind of tourism and traffic in this zone. 00:27:53.599 --> 00:28:01.039 It sits at the base of Kansai region, which is what the place Kyoto and some of the amazing places are in Japan for visitation. 00:28:01.279 --> 00:28:04.400 It will be one of the world's largest, if not the casino. 00:28:04.559 --> 00:28:06.400 We'll have over 6,500 slots. 00:28:06.480 --> 00:28:08.640 We'll have over 750 table games. 00:28:08.799 --> 00:28:10.960 And so we're very excited by it, actually. 00:28:11.119 --> 00:28:11.920 It's a journey. 00:28:12.000 --> 00:28:13.680 It's 2030 before we open. 00:28:13.839 --> 00:28:18.400 But I think the upside potential and the fact that we're going to be the only one for a considerable period of time. 00:28:18.640 --> 00:28:27.279 And think about the profile of consumer and customers, the Pachinko

business in Japan itself has been a$30 odd billion dollar business. 00:28:27.440 --> 00:28:34.960 And I would argue that the product offering that that exists today in that space, we're just going to simply re-establish a whole new thing. 00:28:35.359 --> 00:28:42.480 So if you took something like the Bellagio, I could be off by a little bit, but 70% of the revenue is non-gaming or so. 00:28:42.640 --> 00:28:48.400 Is Japan going to be a similar type of situation or is it going to be more of a gaming-centric place? 00:28:48.720 --> 00:28:52.559 I think it'll be more gaming-centric than here, because it's the only one. 00:28:52.720 --> 00:28:54.559 We are limited in room keys for today. 00:28:54.640 --> 00:28:56.319 We're going to have 2,800 keys. 00:28:56.480 --> 00:28:58.480 There's two hotels we're building there. 00:28:58.640 --> 00:29:02.880 And so we're somewhat limited in that context, but over time that will change as well. 00:29:03.039 --> 00:29:06.480 So I think it'll be more gaming-centric just because of its scale than non. 00:29:06.880 --> 00:29:09.039 But the goal is international tourism. 00:29:09.200 --> 00:29:13.200 The goal is to serve as a gateway to folks to enter Japan and go from there. 00:29:13.519 --> 00:29:14.640 Just give you a simple example. 00:29:14.720 --> 00:29:16.400 We're building a tourism center there. 00:29:16.559 --> 00:29:19.599 It's about 45 to 50,000 odds square feet. 00:29:19.759 --> 00:29:25.119 And it's to serve as a gateway to educate people on the rest of Japan and how to travel and where to go. 00:29:25.279 --> 00:29:32.079 So object being, they come in, they go, they get into this trip tourism center, they learn about other places that they can go and visit. 00:29:32.400 --> 00:29:39.359 I mean, the opportunity sounds exciting, especially being the only one in the market, but you saw Sans and when they stepped back from pursuing the license. 00:29:39.440 --> 00:29:41.920 You know, what did you see that they didn't? 00:29:42.240 --> 00:29:47.759 Well, one, we saw Osaka versus Yokohama or Tokyo, which ultimately politically never got there. 00:29:48.079 --> 00:29:49.920 Sands was pushing Osaka. 00:29:50.400 --> 00:29:53.440 We decided to have a Japanese partner at scale. 00:29:53.599 --> 00:30:02.319 And so the way our partnership works is we're 40 odd percent, they're 45%, and we have a consortium of other Japanese partners who make up the difference. 00:30:02.480 --> 00:30:06.000 Think Panasonic, think high-end Japanese partners. 00:30:06.240 --> 00:30:09.119 We each have a small piece of this thing as part of a consortium. 00:30:09.279 --> 00:30:13.200 So we said to ourselves, this is a Japanese enterprise. 00:30:13.519 --> 00:30:16.079 Sands wanted to do it principally for themselves. 00:30:16.319 --> 00:30:17.200 Fair again. 00:30:17.359 --> 00:30:22.880 The winning combination though became we were right about both location and that combination of partners. 00:30:23.039 --> 00:30:24.240 And so we

won the bid. 00:30:24.319 --> 00:30:25.200 It's the bottom line. 00:30:25.440 --> 00:30:26.480 Look, it's not easy. 00:30:26.559 --> 00:30:27.599 The tax is 30%. 00:30:28.079 --> 00:30:34.559 Building anything in Japan, particularly on an island, we've got 3,500 pylons that go up to 70 meters. 00:30:34.799 --> 00:30:38.640 This is not a simple feat by any stretch, but we're all in. 00:30:38.799 --> 00:30:39.839 I was there last week. 00:30:40.079 --> 00:30:41.839 The site's literally coming out of the ground. 00:30:42.000 --> 00:30:45.119 You can begin to see the shape of the foundation, which is fascinating. 00:30:45.440 --> 00:30:50.480 After literally 15, 16 years of this is compelling as help force. 00:30:50.960 --> 00:30:54.240 I mean, you talked about them that they walked away. 00:30:54.319 --> 00:30:57.920 One of the things that you recently walked away from was New York. 00:30:58.319 --> 00:31:00.880 You were going to have a casino in Yonkers. 00:31:01.039 --> 00:31:02.720 You decided to walk away from it. 00:31:03.039 --> 00:31:04.880 What was the thinking behind it? 00:31:05.200 --> 00:31:11.359 So in 2018, we purchased the Empire Casino at Yonkers Raceway, is where it is and what it is. 00:31:11.440 --> 00:31:16.400 It's a 97-acre parcel right off the freeway, has a racino, so it's all slots. 00:31:16.559 --> 00:31:18.480 We operate on behalf of the state. 00:31:18.640 --> 00:31:24.880 And so, as you know, the proposition was and is ultimately adding table games and making it a full-fledged casino. 00:31:24.960 --> 00:31:27.119 So we would own the machines, we pay a tax. 00:31:27.519 --> 00:31:38.799 The first proposition for us were the taxes were high because we had to match and guarantee that particularly the education fund would not go down, which is where the vast majority of our current tax structure goes. 00:31:38.880 --> 00:31:40.640 It's$300 odd million dollars. 00:31:41.039 --> 00:31:44.400 We also needed to keep the horsemen alive and keep the track going. 00:31:44.480 --> 00:31:47.039 That's a$60 odd million dollar proposition. 00:31:47.119 --> 00:31:51.599 And under the new regime, we had to give money to, which was fine, the city of Yonkers. 00:31:51.920 --> 00:31:55.359 So the underwrite bill on this thing was to begin with$400 million. 00:31:56.000 --> 00:32:03.119 Yonkers, while compelling in many respects, because we saw it as a large-scale regional casino, we didn't necessarily see it as a destination resort. 00:32:03.279 --> 00:32:04.240 Think Port Gotham. 00:32:04.400 --> 00:32:05.039 We saw it at large. 00:32:05.759 --> 00:32:12.880 But the closer the competition got to us, I mean, I was rooting for sands out in Nashville, you know, gone out to Nassau County. 00:32:13.119 --> 00:32:15.680 Anything downtown Manhattan was fine. 00:32:15.920 --> 00:32:25.200 But the way it ended up was you've got valleys, and more notably, you've got the city field proposition for$8 billion, kind of in our backyard. 00:32:25.440 -->

00:32:29.279 And so the competitive landscape was changing, didn't love it, but okay. 00:32:29.519 --> 00:32:33.839 The final straw, though, was they changed the length of the license. 00:32:34.000 --> 00:32:37.759 Within weeks, we had already made our submission of what we were to build. 00:32:37.920 --> 00:32:43.440 They changed the length of the license to if you didn't spend$5 billion or more, you could only get a 15-year license. 00:32:43.680 --> 00:32:45.039 That was news to us. 00:32:45.200 --> 00:32:52.559 And so it put us on edge about well, what else will happen between tax, any and all things. 00:32:52.799 --> 00:32:56.400 And so we decided to be prudent stewards of the Capitol. 00:32:56.480 --> 00:32:58.640 It was$2.2 billion today. 00:32:58.799 --> 00:33:02.720 So that means who knows where this would have ended up, but call it 2.2. 00:33:03.279 --> 00:33:08.400 We saw a massive concern around the taxes, you know, the underright to begin with. 00:33:08.559 --> 00:33:14.240 We saw competitive concern and that they were closer to us than we wanted them to be originally and we had hoped for. 00:33:14.400 --> 00:33:22.160 And then we saw a changing regulatory body that at the last minute said, Well, I'm going to change the basis of how we're thinking about your license. 00:33:22.400 --> 00:33:24.720 And we wanted to save the money for other things. 00:33:24.880 --> 00:33:27.279 And so we're still in business, to be clear. 00:33:27.440 --> 00:33:28.720 We still run this racino. 00:33:28.880 --> 00:33:30.319 It's still productive for us. 00:33:30.480 --> 00:33:33.680 We're not going to have any competition for three or four years at the minimum. 00:33:33.920 --> 00:33:37.200 Aqueduct will do something, I'm sure, in the interim with tables. 00:33:37.359 --> 00:33:40.160 But that being said, I think we're in pretty good stead. 00:33:40.480 --> 00:33:43.200 Is New York just a difficult place to do business? 00:33:43.519 --> 00:33:45.599 They weren't making this piece easy. 00:33:45.759 --> 00:33:46.559 I would say that. 00:33:46.720 --> 00:33:51.200 It was an elongated process that needed to be clear and more succinct. 00:33:51.279 --> 00:33:52.480 And I'll just leave it at that. 00:33:52.559 --> 00:33:53.680 We're doing business there now. 00:33:53.759 --> 00:33:55.839 We've enjoyed our relationship with the city of Yonkers. 00:33:56.000 --> 00:33:58.079 They were great, but it wasn't easy. 00:33:58.480 --> 00:33:59.200 Understood. 00:33:59.359 --> 00:34:03.200 We're big fans of IAC and Barry Diller in 2020. 00:34:03.359 --> 00:34:04.480 They made a good bet on you. 00:34:04.559 --> 00:34:07.440 They plowed a bunch of money into IAC stock. 00:34:07.519 --> 00:34:09.760 I think they own roughly 20% of the company. 00:34:10.079 --> 00:34:13.440 What did they see in MGM that the market didn't? 00:34:14.159 --> 00:34:15.920 Well, look, it was just coming out of COVID. 00:34:16.079 --> 00:34:20.480 So the value equation alone was spectacular for

them, and they paced it right and timed it right. 00:34:20.559 --> 00:34:23.519 So there was just the very principle of we were depressed. 00:34:23.599 --> 00:34:31.920 I think a stock was trading at like seven or eight dollars when I think they started considering this thing, which was obscenely low given the obvious because these assets weren't going anywhere. 00:34:32.239 --> 00:34:34.719 And for reference, it's about 32 in change now. 00:34:34.880 --> 00:34:35.440 Yeah, exactly. 00:34:35.599 --> 00:34:37.360 So they made a couple of bites at the Apple. 00:34:37.440 --> 00:34:41.039 We've bought back since almost 42% of the company. 00:34:41.199 --> 00:34:44.880 So their share has grown up to 24% at this point of the game. 00:34:45.199 --> 00:34:51.280 They saw a burgeoning digital opportunity that they thought was very real, and they've been right about that so far. 00:34:51.440 --> 00:34:55.760 It's taken longer than we'd all like, but it has taken and it is moving and it's productive. 00:34:55.840 --> 00:34:57.519 And so they saw that opportunity. 00:34:57.679 --> 00:35:01.039 And then Barry of Notes always had a vision and interest in Las Vegas. 00:35:01.119 --> 00:35:03.920 He's been a follower of Las Vegas for a considerable period of time. 00:35:04.079 --> 00:35:05.360 He's extremely creative. 00:35:05.440 --> 00:35:07.679 He's a visionary guy in many respects. 00:35:07.840 --> 00:35:12.719 And so he likes the idea of how can I impress and impact my thinking on Las Vegas? 00:35:12.880 --> 00:35:18.800 And so for me, on our board, he's been a great visionary in terms of where we are and where ultimately we'd like to go. 00:35:18.960 --> 00:35:20.000 And so time to tell. 00:35:20.320 --> 00:35:23.760 What type of things has he suggested that you run with? 00:35:24.159 --> 00:35:25.840 Mostly around the entertainment platform. 00:35:26.000 --> 00:35:31.199 I'm not going to tell you what they are yet, but mostly around the entertainment platform of what to do. 00:35:31.360 --> 00:35:37.199 You know, we've seen the sphere here in Las Vegas just take off in terms of something that's productive and selling tickets. 00:35:37.360 --> 00:35:39.679 It's been a great experience for the overall community. 00:35:39.840 --> 00:35:58.079 So it's encumbered upon us as the entertainment leader in the community to recreate some things here that we're working on aggressively in both our showrooms and outside of our showrooms that help add to the notion and the experience of entertainment and live entertainment, which continues to be on fire here in Las Vegas. 00:35:58.239 --> 00:36:00.480 And so programming is essential. 00:36:00.639 --> 00:36:03.760 You know, not a week goes by now that we don't have something of real interest. 00:36:03.840 --> 00:36:05.199 This week happens to be Formula One. 00:36:05.280 --> 00:36:07.679 You know, I mean it goes on and on and on, which is good. 00:36:07.760 --> 00:36:09.440 So very active in all of that. 00:36:09.760 --> 00:36:13.519 In terms of helping you with digital, what type of stuff have they suggested or done? 00:36:13.840 --> 00:36:15.360 Particularly through Joey Levin. 00:36:15.920 --> 00:36:18.079 Had been their CEO for a considerable period of time. 00:36:18.239 --> 00:36:21.039 Joey's been active on the board with BetMGM. 00:36:21.199 --> 00:36:29.920 He's an observer who has been active in trying to help us think about database, how to do REACH, how to do marketing, how to think about it, where to spend money. 00:36:30.079 --> 00:36:32.719 And so they've been very active in that whole cycle. 00:36:32.960 --> 00:36:40.559 They've been active in the MA that we got ourselves into this business on our own in Europe and in Brazil and very supportive of that activity. 00:36:40.719 --> 00:36:47.599 I brought one of their guys into the company, a guy named Gary Fritz, who's now my chief commercial officer, who also oversees those digital assets. 00:36:47.760 --> 00:36:52.159 And so getting ourselves established in that business has been at their stewardship. 00:36:52.320 --> 00:36:53.920 And so we're excited by that. 00:36:54.239 --> 00:36:55.760 Bill, this was fantastic. 00:36:55.920 --> 00:36:57.840 Thanks again for taking the time. 00:36:58.000 --> 00:37:07.920 We covered a ton of ground today from MGM to evolution and how you're thinking about capital allocation to what's happening in Japan and the digital side of the business. 00:37:08.159 --> 00:37:13.679 Thanks for being so open and giving us a look at how you're thinking about the next chapter for MGM. 00:37:13.920 --> 00:37:16.719 Thanks for joining us, and thanks to everyone for listening. 00:37:16.800 --> 00:37:19.440 We'll see you next time on the World According to Boyer. 00:37:19.760 --> 00:37:21.199 I hope you enjoyed the show. 00:37:21.440 --> 00:37:25.280 To be sure, you never miss another World According to Boyer episode. 00:37:25.440 --> 00:37:28.639 Please follow us on Twitter at BoyerValue. 00:37:28.800 --> 00:37:30.000 Until next time.