Growth StrategiesI've been taking a look at this business recently and since 2012 the management has been doing an admiral job in improving the equity for shareholders. In looking at the broader industry in Washington, it appears the Indian Tribes are the 800lb gorilla. The move in the industry years back to house banking opened up the opportunity for card rooms to increase revenue and provide some tax dollars to the state. But card rooms are limited in terms of revenue growth. They have maximum wagers as well as limits on the numbers of tables per venue. I can see some potential revenue growth from the transition of poker rooms to a card room as TNA has done. But this will only provide modest revenue expansion and with 100% conversion now, future revenue growth can not be expected from this.
The Indian bands operating casinos dominate the states total gambling revenues. They appear to have strong democratic support and are significant campaign contributors. So, the opportunity to introduce slots, roulette etc... while not out of the question, looks to be a low probability event.
That at leaves acquisitions or start ups. Any comments on the most likely path?
The business is a good business generating nice cash flow now. What is the most likely use of that cash?