The Company has operating and finance leases for offices, taverns, land, vehicles, slot machines, and equipment. In addition, slot placement contracts in the form of space lease agreements at chain stores are accounted for as operating leases. Under chain store space lease agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. The leases, excluding land, have remaining lease terms of 1 year to 28 years, some of which include options to extend the leases for an additional 5 to 15 years. Some equipment leases and space lease agreements include options to terminate the lease with 60 days’ to 1 year’s notice. The Company leases slot machines from gaming equipment manufacturers under short-term agreements. Most of the slot machine leases have variable rent structures, with amounts determined based on the performance of those machines. Certain others are short-term in nature, with fixed payment amounts. The Company has an operating ground lease with the Maryland Department of Natural Resources for approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated. The Company leases approximately 20 acres of land in Laughlin, Nevada for the Laughlin Event Center and four parcels of land in Pahrump, Nevada on which the Gold Town Casino is located.

The Company leases approximately 4.5 acres of undeveloped land in Carson City. Upon the adoption of Topic 842, the Company wrote off the associated ROU asset for this land lease of $9 million to its beginning balance of retained earnings as of January 1, 2019. The Company is also lessee for nine taverns and locations subject to space lease agreements that it does not plan to develop, operate, or sub-lease. The Company wrote off the associated ROU asset for these eleven leases of $3 million to its beginning balance of retained earnings as of January 1, 2019.

The Company leases one of its tavern locations and its office headquarters building from a related party. See Note 12, Related Party Transactions, for more detail.

The current and long-term obligations under finance leases are included in “current portion of long-term debt, net and finance leases” and “long-term debt, net and finance leases”, respectively. The majority of the finance leases relate to vehicles used within the Company’s Distributed Gaming business and equipment for the Company’s casinos.

		Three Months Ended		Six Months Ended
(In thousands)	Classification	June 30, 2019		June 30, 2019
Operating lease cost
Operating lease cost	Operating and SG&A expenses	$	11,416	$	23,056
Variable lease cost	Operating and SG&A expenses		4,468		8,654
Short-term lease cost	Operating and SG&A expenses		1,112		2,161
Total operating lease cost		$	16,996	$	33,871

Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	505	$	999
Interest on lease liabilities	Interest expense, net		100		198
Total finance lease cost		$	605	$	1,197

	Six Months Ended
(In thousands)	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23,255
Operating cash flows from finance leases		198
Financing cash flows from finance leases		829

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	36,117
Finance leases		849

(In thousands, except lease term and discount rate)	June 30, 2019
Operating leases
Operating lease right-of-use assets, gross	$	175,898
Accumulated amortization		17,813
Operating lease right-of-use assets, net	$	158,085

Current portion of operating leases	$	29,351
Noncurrent operating leases		143,426
Total operating lease liabilities	$	172,777

Finance leases
Property and equipment, gross	$	13,290
Accumulated depreciation		(2,785	)
Property and equipment, net	$	10,505

Current portion of finance leases, net	$	1,763
Noncurrent finance leases, net		5,323
Total finance lease liabilities	$	7,086

Weighted Average Remaining Lease Term
Operating leases	11.2 years
Finance leases	22.4 years

Weighted Average Discount Rate
Operating leases		6.3	%
Finance leases		5.8	%

	Operating			Finance
(In thousands)	Leases			Leases			Total
Remaining 2019	$	23,164		$	1,146		$	24,310
2020		30,778			1,954			32,732
2021		29,443			1,460			30,903
2022		22,906			589			23,495
2023		17,469			553			18,022
Thereafter		117,243			7,339			124,582
Total lease payments		241,003			13,041			254,044
Less: interest		(68,226	)		(5,955	)		(74,181	)
Present value of lease liabilities	$	172,777		$	7,086		$	179,863

As of June 30, 2019, the Company does not have any leases that have not yet commenced but that create significant rights and obligations.

	Three Months Ended		Six Months Ended
(In thousands)	June 30, 2019		June 30, 2019
Minimum rental income	$	1,973	$	3,798
Contingent rental income		384		585
Total rental income	$	2,357	$	4,383

(In thousands)	Operating Leases
Remaining 2019	$	2,635
2020		4,211
2021		3,272
2022		2,433
2023		1,763
Thereafter		2,546
Total future minimum rentals	$	16,860

For the three months ended June 30, 2018, operating lease rental expense, calculated on a straight-line basis, was $10.0 million, $0.4 million and $3.8 million for space lease agreements, related party leases and other operating leases, respectively. For the six months ended June 30, 2018, operating lease rental expense, calculated on a straight-line basis, was $19.4 million, $0.8 million, and $7.4 million for space lease agreements, related party leases and other operating leases, respectively. The Company recorded rental revenue of $1.9 million and $3.6 million for the three and six months ended June 30, 2018, respectively.