Question-and-Answer Session
Operator
Absolutely sir; ladies and gentlemen, we’ll now proceed to the question and answer session (Operator Instructions). Our first question comes from the line of David Katz from Oppenheimer. Please proceed sir; your line is open.
David Katz- Oppenheimer
Good morning. A couple of issues; I think looking at Missouri and I guess Riverside we’d love some insight as to how to gauge the loss limit and how that plays out. If we look at sort of the first few months we see a little bit of upside revenue wise. There’s incremental tax associated against that. How should we be thinking about that let’s say the next four quarters?
Timothy Wilmott
David, what we’ve seen in Riverside with the removal of the $500 loss limit has been mostly visible on table games volumes. We’ve seen about a 25% to 30% increase in table games drop in the first quarter and that’s really driving the revenue growth. We’ve seen some slight growth in slots but it’s been mostly table games. When you net out the revenue growth on top of the 1% increase in tax rate I think our EBITDA margins quarter over quarter were essentially flat. Obviously we had greater EBITDA this year in Riverside than last year but it’s mostly due to table games volume increases.
David Katz- Oppenheimer
So I guess that’s exactly my point is, is there an inflexion point where it becomes a net positive EBITDA for that property?
Timothy Wilmott
Well I think it has been accretive to overall EBITDA. The margins are essentially flat but we’ve seen a revenue growth of almost 8% to 9% in that business for the first quarter so it is accretive to EBITDA based on our first quarter full quarter of operating without the loss limits.
David Katz- Oppenheimer
Tim, are you able to gauge whether or not it’s driving incremental slot play?
Timothy Wilmott
It doesn’t seem to be incremental slot play. It does seem to be slightly better quality slot play because of the limit being removed. But again, by far the greatest and noticeable difference is in the table games.
David Katz- Oppenheimer
Then I just wanted to ask about Illinois. There are obviously a lot of moving parts in that market with the Horseshoe boat that’s open and now the Joliet property going out for a period of time. How should we think about Aurora for the next quarter or so? Are you seeing that you are able to capture any of those customers that were Joliet customers and sort of keep them in the family so to speak?
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