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Note 4 - Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Intangible Assets Disclosure [Text Block] | NOTE 4. INTANGIBLE ASSETS Intangible assets consist of the following:
|  | December 31, 2024 |
|  | Weighted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Useful Life |  |  | Gross |  |  |  |  |  |  | Accumulated |  |  | Effect of Foreign |  |  |  |  |
|  | Remaining |  |  | Carrying |  |  | Accumulated |  |  | Impairment |  |  | Currency |  |  | Intangible |
(In thousands) |  | (in years) |  |  | Value |  |  | Amortization |  |  | Losses |  |  | Exchange |  |  | Assets, Net |
Amortizing intangibles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  |  | 2.1 |  |  | $ | 7,225 |  |  | $ | (4,145 | ) |  | $ | — |  |  | $ | — |  |  | $ | 3,080 |
Host agreements |  |  | 8.4 |  |  |  | 58,000 |  |  |  | (25,456 | ) |  |  | — |  |  |  | — |  |  |  | 32,544 |
Development agreement |  |  | 4.6 |  |  |  | 21,373 |  |  |  | (7,251 | ) |  |  | — |  |  |  | — |  |  |  | 14,122 |
Developed technology |  |  | 7.3 |  |  |  | 43,435 |  |  |  | (9,045 | ) |  |  | — |  |  |  | (418 | ) |  |  | 33,972 |
B2B relationships |  |  | 5.0 |  |  |  | 28,000 |  |  |  | (8,481 | ) |  |  | — |  |  |  | (80 | ) |  |  | 19,439 |
B2C relationships |  |  | 9.8 |  |  |  | 13,000 |  |  |  | (2,347 | ) |  |  | — |  |  |  | — |  |  |  | 10,653 |
Marketing agreement |  |  | 19.7 |  |  |  | 4,500 |  |  |  | (75 | ) |  |  | — |  |  |  | — |  |  |  | 4,425 |
|  |  |  |  |  |  | 175,533 |  |  |  | (56,800 | ) |  |  | — |  |  |  | (498 | ) |  |  | 118,235 |
Indefinite lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  | Indefinite |  |  |  | 199,900 |  |  |  | — |  |  |  | (32,275 | ) |  |  | — |  |  |  | 167,625 |
Gaming license rights |  |  | Indefinite |  |  |  | 1,393,081 |  |  |  | (33,960 | ) |  |  | (253,974 | ) |  |  | — |  |  |  | 1,105,147 |
|  |  |  |  |  |  | 1,592,981 |  |  |  | (33,960 | ) |  |  | (286,249 | ) |  |  | — |  |  |  | 1,272,772 |
Balances, December 31, 2024 |  |  |  |  |  | $ | 1,768,514 |  |  | $ | (90,760 | ) |  | $ | (286,249 | ) |  | $ | (498 | ) |  | $ | 1,391,007 |
|  | December 31, 2023 |
|  | Weighted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Useful Life |  |  | Gross |  |  |  |  |  |  | Accumulated |  |  | Effect of Foreign |  |  |  |  |
|  | Remaining |  |  | Carrying |  |  | Accumulated |  |  | Impairment |  |  | Currency |  |  | Intangible |
(In thousands) |  | (in years) |  |  | Value |  |  | Amortization |  |  | Losses |  |  | Exchange |  |  | Assets, Net |
Amortizing intangibles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  |  | 0.1 |  |  | $ | 35,050 |  |  | $ | (35,010 | ) |  | $ | — |  |  | $ | — |  |  | $ | 40 |
Host agreements |  |  | 9.4 |  |  |  | 58,000 |  |  |  | (21,589 | ) |  |  | — |  |  |  | — |  |  |  | 36,411 |
Development agreement |  |  | 5.6 |  |  |  | 21,373 |  |  |  | (4,198 | ) |  |  | — |  |  |  | — |  |  |  | 17,175 |
Developed technology |  |  | 8.5 |  |  |  | 39,981 |  |  |  | (4,482 | ) |  |  | — |  |  |  | 225 |  |  |  | 35,724 |
B2B relationships |  |  | 6.0 |  |  |  | 28,000 |  |  |  | (4,566 | ) |  |  | — |  |  |  | 52 |  |  |  | 23,486 |
B2C relationships |  |  | 10.8 |  |  |  | 13,000 |  |  |  | (1,264 | ) |  |  | — |  |  |  | — |  |  |  | 11,736 |
|  |  |  |  |  |  | 195,404 |  |  |  | (71,109 | ) |  |  | — |  |  |  | 277 |  |  |  | 124,572 |
Indefinite lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  | Indefinite |  |  |  | 199,900 |  |  |  | — |  |  |  | (32,275 | ) |  |  | — |  |  |  | 167,625 |
Gaming license rights |  |  | Indefinite |  |  |  | 1,378,081 |  |  |  | (33,960 | ) |  |  | (243,474 | ) |  |  | — |  |  |  | 1,100,647 |
|  |  |  |  |  |  | 1,577,981 |  |  |  | (33,960 | ) |  |  | (275,749 | ) |  |  | — |  |  |  | 1,268,272 |
Balances, December 31, 2023 |  |  |  |  |  | $ | 1,773,385 |  |  | $ | (105,069 | ) |  | $ | (275,749 | ) |  | $ | 277 |  |  | $ | 1,392,844 |
Amortizing Intangible Assets Customer Relationships Customer relationships represent the value of repeat business associated with our customer loyalty programs. The value of customer relationships is determined using a multi-period excess earnings method, which is a specific discounted cash flow model. The value is determined at an amount equal to the present value of the incremental after-tax cash flows attributable only to these customers, discounted to present value at a risk-adjusted rate of return. With respect to the application of this methodology, we used the following significant projections of future cash flows, assumptions and estimates: revenue of our rated customers, based on expected level of play; promotional allowances provided to these existing customers; attrition rate related to these customers; operating expenses; general and administrative expenses; trademark expense; discount rate; and the present value of tax benefit. Host Agreements Host agreements represent the value associated with the host establishment relationships of our distributed gaming operator. The value of host agreements is determined using a multi-period excess earnings method, which is a specific discounted cash flow model. The value is determined at an amount equal to the present value of the incremental after-tax cash flows attributable only to these establishments, discounted to present value at a risk-adjusted rate of return. Development Agreement Development agreement is an acquired contract with Wilton Rancheria under which the Company developed the Sky River Casino on the Wilton Rancheria's land. Amortization of this asset began on August 15, 2022, upon the opening of Sky River Casino. Developed Technology Developed technology represents the value associated with our online gaming platform. The value is determined using the relief from royalty method, which presumes that without ownership of such technology, we would have to make a stream of payments to a technology owner in return for the right to use their technology. By virtue of this asset, we avoid any such payments and record the related intangible value of our ownership of the technology. We used the following significant projections of future cash flows, assumptions and estimates to determine value under the relief from royalty method: revenue from online gaming activities; royalty rate; tax expense; obsolescence rate; discount rate; and present value of tax benefit. B2B Relationships and B2C Relationships B2B relationships and B2C relationships represent the value of our customer relationships, including those under contractual arrangements, associated with our online gaming operations. The value of B2B and B2C relationships are determined using a multi-period excess earnings method, which is a specific discounted cash flow model. The value is determined at an amount equal to the present value of the incremental after-tax cash flows attributable only to those customer relationships, discounted to present value at a risk-adjusted rate of return. With respect to the application of this methodology, we used the following significant projections of cash flows, assumptions and estimates: revenue of those customers, based on expected level of play and the specific contractual arrangement; promotional allowances and attrition rate related to these relationships; operating expenses; general and administrative expenses; contributory asset charge; discount rate; and the present value of tax benefit. Marketing Agreement Marketing agreement is an acquired contract for which the Company, while utilizing the Resorts World and Mohegan Sun brands, receives marketing and promotional services at Resorts Casino in Atlantic City, New Jersey. The value is determined at an amount equal to the present value of the projected marketing expense after-tax savings that would be expected to be incurred absent such marketing agreement providing such advertising. Indefinite Lived Intangible Assets Trademarks Trademarks are based on the value of our brands, which reflect the level of service and quality we provide and from which we generate repeat business. Trademarks are valued using the relief from royalty method, which presumes that without ownership of such trademark, we would have to make a stream of payments to a brand or franchise owner in return for the right to use their name. By virtue of this asset, we avoid any such payments and record the related intangible value of our ownership of the trade name. We used the following significant projections of future cash flows, assumptions and estimates to determine value under the relief from royalty method: revenue from gaming, food & beverage, hotel and other revenue-producing activities; royalty rate; tax expense; terminal growth rate; discount rate; and the present value of tax benefit. Gaming License Rights Gaming license rights represent the value of the license to conduct gaming in certain jurisdictions, which is subject to highly extensive regulatory oversight, and a limitation on the number of licenses available for issuance therein. In the majority of cases, the value of our gaming licenses is determined using a multi-period excess earnings method, which is a specific discounted cash flow model. The value is determined at an amount equal to the present value of the incremental after-tax cash flows attributable only to future gaming revenue, discounted to present value at a risk-adjusted rate of return. With respect to the application of this methodology, we used the following significant projections of future cash flows, assumptions and estimates: gaming revenues; gaming operating expenses; general and administrative expenses; tax expense; terminal value; and discount rate. In two instances, we determine the value of our gaming licenses by applying a cost approach. Our primary consideration in the application of this methodology is the initial statutory fee associated with acquiring a gaming license in the jurisdiction. Activity for the Years Ended December 31, 2024, 2023 and 2022 The following table sets forth the changes in these intangible assets:
(In thousands) |  | Customer Relationships |  |  | Host Agreements |  |  | Development Agreement |  |  | Developed Technology |  |  | B2B Relationships |  |  | B2C Relationships |  |  | Marketing Agreement |  |  | Trademarks |  |  | Gaming License Rights |  |  | Intangible Assets, Net |
Balance, January 1, 2022 |  | $ | 4,302 |  |  | $ | 44,144 |  |  | $ | 21,373 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 176,800 |  |  | $ | 1,121,801 |  |  | $ | 1,368,420 |
Additions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36,445 |  |  |  | 28,000 |  |  |  | 13,000 |  |  |  | — |  |  |  | — |  |  |  | 146 |  |  |  | 77,591 |
Impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (9,175 | ) |  |  | — |  |  |  | (9,175 | )
Amortization |  |  | (3,322 | ) |  |  | (3,866 | ) |  |  | (1,145 | ) |  |  | (600 | ) |  |  | (652 | ) |  |  | (181 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (9,766 | )
Effect of foreign currency exchange |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 53 |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 65 |
Balance, December 31, 2022 |  |  | 980 |  |  |  | 40,278 |  |  |  | 20,228 |  |  |  | 35,898 |  |  |  | 27,360 |  |  |  | 12,819 |  |  |  | — |  |  |  | 167,625 |  |  |  | 1,121,947 |  |  |  | 1,427,135 |
Additions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,536 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,536 |
Impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (21,300 | ) |  |  | (21,300 | )
Amortization |  |  | (940 | ) |  |  | (3,867 | ) |  |  | (3,053 | ) |  |  | (3,882 | ) |  |  | (3,914 | ) |  |  | (1,083 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (16,739 | )
Effect of foreign currency exchange |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 172 |  |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 212 |
Balance, December 31, 2023 |  |  | 40 |  |  |  | 36,411 |  |  |  | 17,175 |  |  |  | 35,724 |  |  |  | 23,486 |  |  |  | 11,736 |  |  |  | — |  |  |  | 167,625 |  |  |  | 1,100,647 |  |  |  | 1,392,844 |
Additions |  |  | 3,300 |  |  |  | — |  |  |  | — |  |  |  | 3,454 |  |  |  | — |  |  |  | — |  |  |  | 4,500 |  |  |  | — |  |  |  | 15,000 |  |  |  | 26,254 |
Impairments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,500 | ) |  |  | (10,500 | )
Amortization |  |  | (260 | ) |  |  | (3,867 | ) |  |  | (3,053 | ) |  |  | (4,563 | ) |  |  | (3,915 | ) |  |  | (1,083 | ) |  |  | (75 | ) |  |  | — |  |  |  | — |  |  |  | (16,816 | )
Effect of foreign currency exchange |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (643 | ) |  |  | (132 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (775 | )
Balance, December 31, 2024 |  | $ | 3,080 |  |  | $ | 32,544 |  |  | $ | 14,122 |  |  | $ | 33,972 |  |  | $ | 19,439 |  |  | $ | 10,653 |  |  | $ | 4,425 |  |  | $ | 167,625 |  |  | $ | 1,105,147 |  |  | $ | 1,391,007 |
Future Amortization Customer relationships are being amortized on an accelerated basis over a weighted average original useful life of five years. Host agreements are being amortized on a straight-line basis over an original life of 15 years. The development agreement is being amortized on a straight-line basis over an original life of seven years. Developed technology is being amortized on a straight-line basis over an original life of 10 years. B2B relationships are being amortized on a straight-line basis over an original life of 7 years and 10 years. B2C relationships are being amortized on a straight-line basis over an original life of 12 years. The marketing agreement is being amortized on a straight-line basis over an original life of 20 years. Future amortization is as follows:
(In thousands) |  | Customer Relationships |  |  | Host Agreements |  |  | Development Agreement |  |  | Developed Technology |  |  | B2B Relationships |  |  | B2C Relationships |  |  | Marketing Agreement |  |  | Total |
For the year ending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2025 |  | $ | 660 |  |  | $ | 3,867 |  |  | $ | 3,053 |  |  | $ | 4,883 |  |  | $ | 3,833 |  |  | $ | 1,083 |  |  | $ | 225 |  |  | $ | 17,604 |
2026 |  |  | 660 |  |  |  | 3,867 |  |  |  | 3,053 |  |  |  | 4,908 |  |  |  | 3,914 |  |  |  | 1,083 |  |  |  | 225 |  |  |  | 17,710 |
2027 |  |  | 660 |  |  |  | 3,867 |  |  |  | 3,053 |  |  |  | 4,906 |  |  |  | 3,914 |  |  |  | 1,083 |  |  |  | 225 |  |  |  | 17,708 |
2028 |  |  | 660 |  |  |  | 3,867 |  |  |  | 3,053 |  |  |  | 4,661 |  |  |  | 3,914 |  |  |  | 1,083 |  |  |  | 225 |  |  |  | 17,463 |
2029 |  |  | 440 |  |  |  | 3,867 |  |  |  | 1,910 |  |  |  | 4,414 |  |  |  | 3,296 |  |  |  | 1,083 |  |  |  | 225 |  |  |  | 15,235 |
Thereafter |  |  | — |  |  |  | 13,209 |  |  |  | — |  |  |  | 10,200 |  |  |  | 568 |  |  |  | 5,238 |  |  |  | 3,300 |  |  |  | 32,515 |
Total future amortization |  | $ | 3,080 |  |  | $ | 32,544 |  |  | $ | 14,122 |  |  | $ | 33,972 |  |  | $ | 19,439 |  |  | $ | 10,653 |  |  | $ | 4,425 |  |  | $ | 118,235 |
Trademarks and gaming license rights are not subject to amortization, as we have determined that they have an indefinite useful life; however, these assets are subject to an annual impairment test each year and between annual test dates in certain circumstances. Impairments As a result of our first quarter 2024 impairment review, the Company recorded an impairment charge of $10.5 million for a gaming license right related to our Midwest & South segment. As a result of our annual 2023 impairment test and our fourth quarter 2023 impairment review, the Company recorded an impairment charge of $21.3 million for gaming license rights related to our Midwest & South segment. As a result of our third quarter 2022 impairment review, the Company recorded an impairment charge of $5.6 million for a trademark related to a property in our Midwest & South segment. As a result of our annual 2022 impairment test and our fourth quarter 2022 impairment review, the Company recorded additional impairment charges of $3.6 million for trademarks related to our Midwest & South segment.

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