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Note 6 - Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Commitments and Contingencies Disclosure [Text Block] | NOTE 6. COMMITMENTS AND CONTINGENCIES Acquisition On November 1, 2022, the Company completed its previously announced acquisition of Pala Interactive, LLC ("Pala Interactive") and its subsidiaries, including its Canadian subsidiary Pala Canada Interactive Inc. ("Pala Canada"), for total net cash consideration of $170.1 million. Pala Interactive is an innovative online gaming technology company that provides proprietary solutions on both a business-to-business ("B2B") and business-to-consumer ("B2C") basis in regulated markets across the United States and Canada. We financed the transaction with borrowings under our Revolving Credit Facility. Wilton Rancheria Agreements The Company has a development agreement and a management agreement with Wilton Rancheria. The development agreement obligated us to fund certain pre-development costs, which were estimated to be approximately $1 million to $2 million annually, to assist Wilton Rancheria in its development and oversight of the gaming facility construction. During the nine months ended September 30, 2022, we funded pre-development costs of approximately $0.7 million. The pre-development costs funded by us will be repaid under the terms of a note receivable with Wilton Rancheria and are subject to restrictions under Wilton Rancheria’s third-party credit agreement that provided funding for the construction project. Separately, the management agreement provides for us to manage the gaming facility upon opening and receive a monthly management fee for our services based on monthly performance of the gaming facility. The gaming facility construction was substantially complete this quarter and the Sky River Casino opened on August 15, 2022. The monthly management fee for our management services is recorded in other revenue on the condensed consolidated statement of operations. Commitments As of September 30, 2022, other than the acquisition of Pala Interactive as well as the opening of Sky River Casino and the related impact on agreements with Wilton Rancheria as discussed above, there have been no material changes to our commitments described under Note 8, Commitments and Contingencies, in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 28, 2022. Contingencies Legal Matters We are parties to various legal proceedings arising in the ordinary course of business. We believe that all pending claims, if adversely decided, would not have a material adverse effect on our business, financial position, results of operations or cash flows. Hurricane Laura Insurance Recovery On August 27, 2020, Hurricane Laura made landfall in Vinton, Louisiana, which caused the closure of our Delta Downs property for approximately three weeks. The Company maintains insurance, subject to certain deductibles, that covers business interruption, including lost profits. As the Company deemed it probable that insurance recoveries would exceed any loss incurred, the Company accounted for the proceeds in excess of the loss incurred as a gain contingency in the period received in accordance with authoritative accounting guidance. During the three months ended September 30, 2022, we settled our business interruption and lost profits claim with our insurance carriers and received payments totaling $13.2 million. After consideration of expenses incurred related to the claim, included in other operating items, net for the three and nine months ended September 30, 2022 is a $12.6 million gain representing business interruption insurance for lost profits from the closure of Delta Downs in 2020 due to Hurricane Laura.

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