Red Rock Resorts, Inc.

Previous wording

A significant portion of our business is dependent upon customers who live and/or work in the Las Vegas metropolitan area. In March 2025, the unemployment rate in the Las Vegas metropolitan area was 5.6% as compared to 5.1% in March 2024. Statewide, the unemployment rate for March 2025 was 5.7% as compared to 5.1% in March 2024. In March 2025, the median price of an existing single-family home in Las Vegas according to the Las Vegas Realtors® was $485,000, up 4.3% from $465,000 in March 2024. Given the ongoing economic uncertainty driven by inflation, heightened interest rates, increased geo-political and regional uncertainty and conflicts, and the current administration’s approach to regulation and oversight, it is difficult to predict whether the trends in unemployment or housing prices in the Las Vegas area will continue.

Current wording

A significant portion of our business is dependent upon customers who live and/or work in the Las Vegas metropolitan area. In June 2025, the unemployment rate in the Las Vegas metropolitan area was 5.8% as compared to 6.2% in June 2024. Statewide, the unemployment rate for June 2025 was 5.4% as compared to 5.2% in June 2024. In June 2025, the median price of an existing single-family home in Las Vegas according to the Las Vegas Realtors® was $485,000, up 2.1% from $475,000 in June 2024. Given the ongoing economic uncertainty driven by inflation, heightened interest rates, increased geo-political and regional uncertainty and conflicts, and the current administration’s approach to regulation and oversight, it is difficult to predict whether the trends in unemployment or housing prices in the Las Vegas area will continue.

Previous wording

We view each of our Las Vegas casino properties as an individual operating segment. We aggregate all of our Las Vegas operating segments into one reportable segment because all of our Las Vegas properties offer similar products, cater to the same customer base, have the same regulatory and tax structure, share the same marketing programs, are directed by a centralized management structure and have similar economic characteristics. We also aggregate our Native American management arrangements into one reportable segment. There was no Native American operations in the current or prior year periods. The results of operations for our Las Vegas operations are discussed in the remaining sections below.

Current wording

We view each of our Las Vegas casino properties as an individual operating segment. We aggregate all of our Las Vegas operating segments into one reportable segment because all of our Las Vegas properties offer similar products, cater to the same customer base, have the same regulatory and tax structure, share the same marketing programs, are directed by a centralized management structure and have similar economic characteristics. We also aggregate our Native American arrangements into one reportable segment. The results of operations for our Native American segment are discussed in the sections entitled “Development Fees” and “Gain on Native American Development” below. The results for our Las Vegas operations are discussed in the remaining sections below.

Previous wording

Operating Income. For the three months ended March 31, 2025, our operating income was $154.4 million compared to $155.5 million for the prior year period. Additional information about factors impacting our operating income is included below.

Current wording

Operating Income. For the three and six months ended June 30, 2025, our operating income was $168.0 million and $322.4 million, respectively. For the three and six months ended June 30, 2024, our operating income was $140.2 million and $295.8 million, respectively. Additional information about factors impacting our operating income is included below.

Previous wording

Casino. Casino revenues increased by 5.2% for the three months ended March 31, 2025 as compared to the prior year period. For the three months ended March 31, 2025 as compared to the prior year period, our table games drop and slot handle increased by 4.2% and 2.0%, respectively, while our race and sports write was consistent. For the three months ended March 31, 2025 our table games hold increased 1.5%, while our slot hold and race and sports hold were both consistent, all as compared to the prior year period. Casino expenses increased by 5.2% for the three months ended March 31, 2025 as compared to the prior year period, commensurate with the increased casino volume and included higher gaming taxes and employee-related costs.

Current wording

Casino. Casino revenues increased by 7.9% and 6.5% for the three and six months ended June 30, 2025, respectively, as compared to the same periods in the prior year. For the three months ended June 30, 2025 as compared to the prior year period, our slot handle increased by 5.8%, our race and sports write was consistent and our table games drop decreased by 5.4%. For the six months ended June 30, 2025 as compared to the prior year period, our slot handle increased by 3.9%, while our table games drop and race and sports write were both consistent. For the three months ended June 30, 2025 our table games hold increased 3.9%, while our slot hold and race and sports hold were both consistent, all as compared to the prior year period. In addition, for the six months ended June 30, 2025 our table games hold increased 2.6%, while our slot hold and race and sports hold were consistent, all as compared to the prior year period. Casino expenses for the three and six months ended June 30, 2025 as compared to the prior year periods, increased by 6.8% and 6.0%, respectively, due to higher gaming taxes and employee-related costs.

Previous wording

Food and Beverage. Food and beverage includes revenue and expenses from our restaurants, bars and catering. For the three months ended March 31, 2025, food and beverage revenue decreased by 4.3% as compared to the same period in the prior year primarily due to a decrease in catering business. For the three months ended March 31, 2025, the number of restaurant guests served increased by 4.5% while the average guest check decreased by 2.9% as compared to the prior year period. Food and beverage expenses for three months ended March 31, 2025 were in line with the prior year period.

Current wording

Food and Beverage. Food and beverage includes revenues and expenses from our restaurants, bars and catering. For the three months ended June 30, 2025, food and beverage revenues increased by 2.9%, as compared to the prior year period due to an increase in catering events. For the six months ended June 30, 2025, food and beverage revenues were consistent, as compared to the prior year period. For the three and six months ended June 30, 2025, the number of restaurant guests served increased by 6.5% and 5.5%, respectively, while the average guest check decreased by 5.9% and 4.5%, respectively, all as compared to the prior year periods. Food and beverage expenses increased slightly for three and six months ended June 30, 2025, as compared to the prior year periods.

Previous wording

Room. For the three months ended March 31, 2025, room revenues decreased by 5.1% as compared to the prior year period. Room expenses for the three months ended March 31, 2025 were in line with the prior year period.

Current wording

Room. For the three months ended June 30, 2025 room revenues increased by 2.1%, as compared to the prior year period. For the six months ended June 30, 2025 room revenues decreased 1.6%, as compared to the prior year period. Room expenses for the three and six months ended June 30, 2025 were in line with the prior year periods.

Previous wording

Other. Other primarily represents revenues from tenant leases, retail outlets, bowling, spas, and entertainment, and their corresponding expenses. Other revenues and other expenses decreased slightly for the three months ended March 31, 2025 as compared to the prior year period.

Current wording

Other. Other primarily represents revenues from tenant leases, retail outlets, bowling, spas, and entertainment, and their corresponding expenses. For the three months ended June 30, 2025, other revenues increased by 4.0%, as compared to the prior year period, primarily driven by entertainment revenue and other ancillary revenues. For the six months ended June 30, 2025, other revenues were consistent when compared to the prior year period. For the three and six months ended June 30, 2025, other expenses increased by 9.8% and 4.9%, respectively as compared to the prior year periods, primarily due to entertainer fees.

Previous wording

Selling, General and Administrative (“SG&A”). For the three months ended March 31, 2025, SG&A expenses and SG&A as a percentage of net revenues were both in line with the prior year period. Management continues to focus on operational discipline and opportunities for improved efficiency.

Current wording

Selling, General and Administrative (“SG&A”). For the three and six months ended June 30, 2025, SG&A expenses were in line with the prior year periods. As a percentage of net revenue, SG&A expenses for the three and six months ended June 30, 2025 decreased slightly as compared to the prior year periods. Management continues to focus on operational discipline and opportunities for improved efficiency.

Previous wording

Depreciation and Amortization. For the three months ended March 31, 2025, depreciation and amortization expense increased by 7.7% as compared the prior year period due to new assets placed in service.

Current wording

Depreciation and Amortization. For the three and six months ended June 30, 2025, depreciation and amortization expense increased by 2.8% and 5.2%, respectively, as compared the prior year periods, primarily due to new assets placed in service.

Previous wording

Write-downs and Other, net. For the three months ended March 31, 2025, write-downs and other, net totaled $4.1 million, comprising development and preopening and other non-routine expenses. For the three months ended March 31, 2024, write-downs and other, net totaled $2.1 million, primarily comprising development and preopening expenses and business innovation development expenses.

Current wording

Write-downs and Other, net. For the three and six months ended June 30, 2025, write-downs and other, net totaled $4.0 million and $8.1 million, respectively, primarily comprising development and other non-routine expenses. For the three and six months ended June 30, 2024, write-downs and other, net totaled $2.2 million and $4.3 million, respectively, primarily comprising development and preopening expenses and business innovation development expenses.

Previous wording

Interest Expense, net. Interest expense, net decreased to $51.1 million for the three months ended March 31, 2025, as compared to $57.2 million, for the same period in 2024. The decrease in interest expense was primarily due to a decrease in borrowings for the current year period. Additional information about our long-term debt is included in Note 5 to the Condensed Consolidated Financial Statements.

Current wording

Interest Expense, net. Interest expense, net decreased to $50.6 million and $101.7 million for the three and six months ended June 30, 2025, respectively, as compared to $57.4 million and $114.6 million, respectively, for the same periods in 2024. The decrease in interest expense was due to a decrease in interest rates and borrowings for the current year period. Additional information about our long-term debt is included in Note 5 to the Condensed Consolidated Financial Statements.

Previous wording

Change in Fair Value of Derivative Instruments. For the three months ended March 31, 2025, we recognized net losses of $5.2 million in change in the fair value of our interest rate collars. The losses were primarily due to downward movements in the forward interest rate curve.

Current wording

Change in Fair Value of Derivative Instruments. For the three and six months ended June 30, 2025, we recognized net losses of $2.3 million and $7.5 million, respectively in change in the fair value of our interest rate collars. For the three months ended June 30, 2024, we recognized net losses of $1.9 million in change in the fair value of our interest rate collars, which we entered into in April 2024. The losses were primarily due to downward movements in the forward interest rate curve.

Previous wording

Provision for Income Tax. For the three months ended March 31, 2025, we recognized a provision for income tax of $12.8 million. Station Holdco is treated as a partnership for income tax reporting purposes and Station Holdco’s members are liable for federal, state and local income taxes based on their share of Station Holdco’s taxable income. We are not liable for income tax on the noncontrolling interests’ share of Station Holdco’s taxable income or benefit from a taxable loss, and therefore our effective tax rate of 13.0% for the three months ended March 31, 2025 was less than the statutory rate. We recognized income tax expense of $6.3 million for the three months ended March 31, 2024.

Current wording

Provision for Income Tax. For the three and six months ended June 30, 2025, we recognized a provision for income tax of $15.9 million and $28.7 million, respectively. Station Holdco is treated as a partnership for income tax reporting purposes and Station Holdco’s members are liable for federal, state and local income taxes based on their share of Station Holdco’s taxable income. We are not liable for income tax on the noncontrolling interests’ share of Station Holdco’s taxable income or benefit from a taxable loss, and therefore our effective tax rate of 12.8% and 12.9% for the three and six months ended June 30, 2025, respectively, was less than the statutory rate. We recognized income tax expense of $11.8 million and $18.1 million for the three and six months ended June 30, 2024, respectively.

Previous wording

Net Income Attributable to Noncontrolling Interests. Net income attributable to noncontrolling interests for the three months ended March 31, 2025 and 2024 represented the portion of net income attributable to the ownership interest in Station Holdco not held by us.

Current wording

Net Income Attributable to Noncontrolling Interests. Net income attributable to noncontrolling interests for the three and six months ended June 30, 2025 and 2024 represented the portion of net income attributable to the ownership interest in Station Holdco not held by us.

Previous wording

Adjusted EBITDA for the three months ended March 31, 2025 and 2024 for our two reportable segments and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands). The Las Vegas operations segment includes all of our Las Vegas casino properties and the Native American management segment includes our Native American management arrangements. There was no Native American operations in the current or prior year periods.

Current wording

Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 for our two reportable segments and a reconciliation of net income to Adjusted EBITDA are presented below (amounts in thousands). The Las Vegas operations segment includes all of our Las Vegas casino properties and the Native American segment includes our Native American arrangements.

Previous wording

Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations. Adjusted EBITDA for the three months ended March 31, 2025 and 2024 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments and provision for income tax.

Current wording

Adjusted EBITDA is a non-GAAP measure that is presented solely as a supplemental disclosure. We believe that Adjusted EBITDA is a widely used measure of operating performance in our industry and is a principal basis for valuation of gaming companies. We believe that in addition to net income, Adjusted EBITDA is a useful financial performance measurement for assessing our operating performance because it provides information about the performance of our ongoing core operations. Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024 includes net income plus depreciation and amortization, share-based compensation, write-downs and other, net (including gains and losses on asset disposals, preopening and development, business innovation and technology enhancements, contract termination and non-routine items), interest expense, net, loss on extinguishment/modification of debt, change in fair value of derivative instruments, gain on Native American development and provision for income tax.

Previous wording

At March 31, 2025, the difference between the balance sheet for Station LLC and its consolidated subsidiaries and the balance sheet for the Holding Company is that the Holding Company had cash of $5.6 million, $56.4 million of deferred tax assets, net, and a $52.3 million note receivable from Station LLC, which are solely assets of the Holding Company, and liabilities that are solely the Holding Company’s, consisting of a $19.1 million liability under the TRA, of which $1.0 million is expected to be paid in the next twelve months, $14.1 million in income tax payable and $3.5 million of other liabilities. The Holding Company’s $52.3 million intercompany note receivable from Station LLC is eliminated in consolidation. At December 31, 2024, the Holding Company had cash of $4.2 million, $56.4 million of deferred tax assets, net, and a $53.9 million note receivable from Station LLC, which are solely assets of the Holding Company, and liabilities that are solely the Holding Company’s, consisting of a $20.4 million liability under the TRA, of which $1.4 million was current, $1.3 million in income tax payable and $4.2 million of other liabilities.

Current wording

At June 30, 2025, the difference between the balance sheet for Station LLC and its consolidated subsidiaries and the balance sheet for the Holding Company is that the Holding Company had cash of $1.8 million, $56.5 million of deferred tax assets, net, and a $48.9 million note receivable from Station LLC, which are solely assets of the Holding Company, and liabilities that are solely the Holding Company’s, consisting of a $19.1 million liability under the TRA, of which $1.0 million is expected to be paid in the next twelve months, $9.7 million in income tax payable and $4.6 million of other liabilities. The Holding Company’s $48.9 million intercompany note receivable from Station LLC is eliminated in consolidation. At December 31, 2024, the Holding Company had cash of $4.2 million, $56.4 million of deferred tax assets, net, and a $53.9 million note receivable from Station LLC, which are solely assets of the Holding Company, and liabilities that are solely the Holding Company’s, consisting of a $20.4 million liability under the TRA, of which $1.4 million was current, $1.3 million in income tax payable and $4.2 million of other liabilities.

Previous wording

For the three months ended March 31, 2025 and 2024, the difference between the statement of income for Station LLC and its consolidated subsidiaries and that of the Holding Company is primarily due to the provision for income taxes, resulting in net losses of $12.1 million and $5.8 million, respectively, for the Holding Company.

Current wording

The Holding Company recognized net losses of $13.6 million and $25.6 million for the three and six months ended June 30, 2025, respectively, and $11.3 million and $17.1 million for the three and six months ended June 30, 2024, respectively, primarily due to the provision for income taxes.

Previous wording

At March 31, 2025, we had $150.6 million in cash and cash equivalents. Station LLC maintains its borrowing availability under its Revolving Credit Facility, subject to continued compliance with the terms of the credit facility. At March 31, 2025, Station LLC’s borrowing availability under the Revolving Credit Facility was $907.5 million, which was net of $145.0 million in outstanding borrowings and $47.5 million in outstanding letters of credit and similar obligations.

Current wording

At June 30, 2025, we had $145.2 million in cash and cash equivalents. Station LLC maintains its borrowing availability under its Revolving Credit Facility, subject to continued compliance with the terms of the credit facility. At June 30, 2025, Station LLC’s borrowing availability under the Revolving Credit Facility was $897.4 million, which was net of $155.0 million in outstanding borrowings and $47.6 million in outstanding letters of credit and similar obligations.

Previous wording

Our primary capital requirements for the near term are expected to be related to the operation and maintenance of our properties, debt service payments, dividends and distributions. Our anticipated uses of cash for the remainder of 2025 include (i) approximately $307 million to $357 million for capital expenditures, (ii) required principal and interest payments on Station LLC’s indebtedness totaling $48.7 million and $150.2 million, respectively, (iii) dividends to our Class A common stockholders, including approximately $60.1 million to be paid in May 2025 and approximately $15.0 million to be paid in June 2025, and (iv) distributions to noncontrolling interest holders of Station Holdco, including approximately $46.0 million to be paid in May 2025, approximately $11.5 million to be paid in June 2025 and including “tax distributions” that may be made quarterly when required and in amounts that may vary from quarter to quarter. Other payment obligations include salaries, wages and employee benefits, service contracts, property taxes, insurance and other obligations.

Current wording

Our primary capital requirements for the near term are expected to be related to the operation and maintenance of our properties, debt service payments, dividends and distributions. Our anticipated uses of cash for the remainder of 2025 include (i) approximately $180 million to $230 million for capital expenditures, (ii) required principal and interest payments on Station LLC’s indebtedness totaling $44.3 million and $100.5 million, respectively, (iii) dividends to our Class A common stockholders, including approximately $14.9 million to be paid in September 2025, and (iv) distributions to noncontrolling interest holders of Station Holdco, including approximately $11.5 million to be paid in September 2025 and including “tax distributions” that may be made quarterly when required and in amounts that may vary from quarter to quarter. Other payment obligations include salaries, wages and employee benefits, service contracts, property taxes, insurance and other obligations.

Previous wording

On April 4, 2025, we received a partial repayment of $110.5 million on our advances and related accrued interest for the North Fork Project. The repayment was funded from the initial drawdown of term loans under the Mono’s $750 million credit facility for the project, which we assisted the tribe in obtaining pursuant to the Development Agreement. Repayment of the remaining amounts due on the advances are expected come from the proceeds of the North Fork Project’s financing, from cash flows from the North Fork Project’s operations, or from a combination of both.

Current wording

In April 2025, we received a partial repayment of $110.5 million on our advances and related accrued interest for the North Fork Project. The repayment was funded from the initial drawdown of term loans under the Mono’s $750 million credit facility for the project, which we assisted the tribe in obtaining pursuant to the Development Agreement. Repayment of the remaining amounts due on the advances are expected come from the proceeds of the North Fork Project’s financing, from cash flows from the North Fork Project’s operations, or from a combination of both. In connection with the completion of the

Previous wording

On May 2, 2024, our board of directors extended the expiration date of the equity repurchase program to December 31, 2025. Our board of directors has authorized $600.0 million for repurchases of Class A common stock under our equity repurchase program. We are not obligated to repurchase any shares under the program. Subject to applicable laws and the provisions of any agreements restricting our ability to do so, repurchases may be made at our discretion from time to time through open market purchases, negotiated transactions or tender offers, depending on market conditions and other factors. We made no repurchases of Class A common stock during the three months ended March 31, 2025 under the program. At March 31, 2025, we had $309.0 million of remaining repurchases authorized under the program. From time to time, we may also seek to repurchase our outstanding indebtedness. Any such purchases may be funded by existing cash balances or the incurrence of debt, including borrowings under our credit facility. The amount and timing of any repurchases will be based on business and market conditions, capital availability, compliance with debt covenants and other considerations.

Current wording

On May 2, 2024, our board of directors extended the expiration date of the equity repurchase program to December 31, 2025. Our board of directors has authorized $600.0 million for repurchases of Class A common stock under our equity repurchase program. We are not obligated to repurchase any shares under the program. Subject to applicable laws and the provisions of any agreements restricting our ability to do so, repurchases may be made at our discretion from time to time through open market purchases, negotiated transactions or tender offers, depending on market conditions and other factors. During the six months ended June 30, 2025, we repurchased 671,677 shares of our Class A common stock in open market transactions at a weighted-average price of $45.94 per share. At June 30, 2025, we had $278.1 million of remaining repurchases authorized under the program. From time to time, we may also seek to repurchase our outstanding indebtedness. Any such purchases may be funded by existing cash balances or the incurrence of debt, including borrowings under our credit facility. The amount and timing of any repurchases will be based on business and market conditions, capital availability, compliance with debt covenants and other considerations.

Previous wording

For the three months ended March 31, 2025, net cash provided by operating activities was $126.2 million as compared to $126.5 million for the prior year period. Cash flows from operating activities for the three months ended March 31, 2025 and 2024 included $63.2 million and $50.4 million in interest payments, respectively, as well as normal fluctuations in working capital. Information about our operating activities is presented within Results of Operations above.

Current wording

For the six months ended June 30, 2025, net cash provided by operating activities was $284.7 million as compared to $269.0 million for the prior year period. Cash flows from operating activities for the six months ended June 30, 2025 and 2024 included $101.9 million and $90.7 million in interest payments, respectively. In addition, our operating cash flows for the six months ended June 30, 2025 increased as compared to the prior year period due to changes in working capital accounts. Information about our operating activities is presented within Results of Operations above.

Previous wording

For the three months ended March 31, 2025 and 2024, cash paid for capital expenditures totaled $68.2 million and $98.1 million, respectively. Capital expenditures for the three months ended March 31, 2025 and 2024 were primarily related to various renovation and expansion projects. Cash paid for Native American development costs related to the North Fork Project totaled $24.2 million and $1.1 million for three months ended March 31, 2025 and 2024, respectively.

Current wording

For the six months ended June 30, 2025 and 2024, cash paid for capital expenditures totaled $146.4 million and $176.7 million, respectively. Capital expenditures for the six months ended June 30, 2025 and 2024 were primarily related to various renovation and expansion projects. Cash paid for Native American development costs related to the North Fork Project totaled

Previous wording

During the three months ended March 31, 2025, we paid $16.0 million in dividends to Class A common stockholders and $11.5 million in cash distributions to the noncontrolling interest holders of Station Holdco. We also paid $4.4 million related to tax withholding on share-based compensation. In addition we reduced our outstanding indebtedness by $13.9 million.

Current wording

During the six months ended June 30, 2025, we paid $90.5 million in dividends to Class A common stockholders and $94.9 million in cash distributions to the noncontrolling interest holders of Station Holdco. We also paid $5.2 million related to tax withholding on share-based compensation. In addition we reduced our outstanding indebtedness by $7.9 million.

Previous wording

During the three months ended March 31, 2024, Station LLC entered into an amended and restated credit agreement pursuant to which it repaid all loans outstanding under the existing credit agreement, borrowed $1,570.0 million under the new Term B Facility and borrowed $200.0 million under the new Revolving Credit Facility. Station LLC also issued $500.0 million in principal amount of 6.625% Senior Notes due 2032 and paid $21.5 million in debt issuance costs. In addition, we paid $74.1 million in dividends to Class A common stockholders and $57.5 million in cash distributions to noncontrolling interest holders of Station Holdco. We also paid $10.9 million related to tax withholding on share-based compensation.

Current wording

During the six months ended June 30, 2024, Station LLC entered into an amended and restated credit agreement pursuant to which it repaid all loans outstanding under the existing credit agreement, borrowed $1,570.0 million under the new Term B Facility and borrowed $200.0 million under the new Revolving Credit Facility. Station LLC also issued $500.0 million in principal amount of 6.625% Senior Notes due 2032 and paid $23.4 million in debt issuance costs. In addition, we paid $88.9 million in dividends to Class A common stockholders and $79.9 million in cash distributions to noncontrolling interest holders of Station Holdco. We also paid $11.2 million related to tax withholding on share-based compensation.

Previous wording

At March 31, 2025, we had no variable interests in unconsolidated entities that provide off-balance sheet financing, liquidity, market risk or credit risk support, or that engage in leasing, hedging or research and development arrangements with us, nor did we have retained or contingent interests in assets transferred to an unconsolidated entity. At March 31, 2025, we had outstanding letters of credit and similar obligations totaling $47.5 million.

Current wording

At June 30, 2025, we had no variable interests in unconsolidated entities that provide off-balance sheet financing, liquidity, market risk or credit risk support, or that engage in leasing, hedging or research and development arrangements with us, nor did we have retained or contingent interests in assets transferred to an unconsolidated entity. At June 30, 2025, we had outstanding letters of credit and similar obligations totaling $47.6 million.

Previous wording

The gaming industry represents a significant source of tax revenue, particularly to the State of Nevada and its counties and municipalities. From time to time, various state and federal legislators and officials have proposed changes in tax law, or in the administration of such law, affecting the gaming industry. The Nevada legislature meets every two years for 120 days and when special sessions are called by the Governor. The current legislative session began on February 3, 2025. There are currently no specific legislative proposals to increase taxes on gaming revenue, but there are no assurances that an increase in taxes on gaming or other revenue will not be proposed and passed by the Nevada legislature in the future.

Current wording

The gaming industry represents a significant source of tax revenue, particularly to the State of Nevada and its counties and municipalities. From time to time, various state and federal legislators and officials have proposed changes in tax law, or in the administration of such law, affecting the gaming industry. The Nevada legislature meets every two years for 120 days and when special sessions are called by the Governor. The most recent legislative session ended on June 3, 2025. There were no specific legislative proposals to increase taxes on gaming revenue in the most recent session, but there are no assurances that an increase in taxes on gaming or other revenue will not be proposed and passed by the Nevada legislature in the future.

Previous wording

A description of our indebtedness is included in Note 8 to the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 and Note 5 to the Condensed Consolidated Financial Statements. There were no material changes to the terms of our indebtedness during the three months ended March 31, 2025.

Current wording

A description of our indebtedness is included in Note 8 to the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 and Note 5 to the Condensed Consolidated Financial Statements. There were no material changes to the terms of our indebtedness during the six months ended June 30, 2025.

Previous wording

A description of our critical accounting policies and estimates is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the three months ended March 31, 2025.

Current wording

A description of our critical accounting policies and estimates is included in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the six months ended June 30, 2025.