Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The Company tests goodwill and indefinite-lived intangible assets for impairment annually during the fourth quarter of each year, and whenever events or circumstances indicate that it is more likely than not that the carrying value of a reporting unit exceeds its fair value. Finite-lived intangible assets are evaluated for potential impairment whenever there is an indicator that the carrying value of an asset group may not be recoverable. Based on the results of its interim impairment assessments conducted during the three months ended March 31, 2022 and 2021, the Company concluded that there was no impairment of the Company’s goodwill and intangible assets.

The following table summarizes goodwill activity by reportable segment:


(In thousands)	Nevada Casino Resorts		Nevada Locals Casinos		Maryland Casino Resort		Distributed Gaming		Total Goodwill
Balance, December 31, 2021 and March 31, 2022	$	22,105	$	38,187	$	—	$	98,104	$	158,396

Intangible assets, net, consisted of the following:


	March 31, 2022
(In thousands)	Useful Life (Years)	Gross Carrying Value		Cumulative Amortization		Cumulative Impairment		Intangible Assets, Net
Indefinite-lived intangible assets
Trade names	Indefinite	$	53,690	$	—	$	(6,890)	$	46,800
		53,690		—		(6,890)		46,800
Amortizing intangible assets
Customer relationships	4-16	81,105		(37,346)		—		43,759
Player relationships	2-14	42,990		(39,973)		—		3,017
Non-compete agreements	2-5	9,840		(8,543)		—		1,297
Gaming license (1)	15	2,100		(1,245)		—		855
In-place lease value	4	1,170		(1,170)		—		—
Leasehold interest	4	570		(570)		—		—
Other	4-25	1,814		(1,373)		—		441
		139,589		(90,220)		—		49,369
Balance, March 31, 2022		$	193,279	$	(90,220)	$	(6,890)	$	96,169

(1)Relates to Rocky Gap.


	December 31, 2021
(In thousands)	Useful Life (Years)	Gross Carrying Value		Cumulative Amortization		Cumulative Impairment		Intangible Assets, Net
Indefinite-lived intangible assets
Trade names	Indefinite	$	53,690	$	—	$	(6,890)	$	46,800
		53,690		—		(6,890)		46,800
Amortizing intangible assets
Customer relationships	4-16	81,105		(35,879)		—		45,226
Player relationships	2-14	42,990		(39,812)		—		3,178
Non-compete agreements	2-5	9,840		(8,349)		—		1,491
Gaming license (1)	15	2,100		(1,210)		—		890
In-place lease value	4	1,170		(1,155)		—		15
Leasehold interest	4	570		(570)		—		—
Other	4-25	1,814		(1,356)		—		458
		139,589		(88,331)		—		51,258
Balance, December 31, 2021		$	193,279	$	(88,331)	$	(6,890)	$	98,058

(1)Relates to Rocky Gap.

Total amortization expense related to intangible assets was $1.9 million and $2.2 million for the three months ended March 31, 2022 and 2021, respectively.

To the extent the Company becomes aware of new facts and circumstances that would result in a triggering event, the Company will revise its cash flow projections accordingly, as its estimates of future cash flows are highly dependent upon certain assumptions, including, but not limited to, the nature, timing, and extent of elimination or change of the restrictions on the Company’s operations and the extent and timing of the economic recovery globally, nationally, and specifically within the gaming industry. If such assumptions are not accurate, the Company may be required to record impairment charges in future periods, whether in connection with its regular review procedures, or earlier, if an indicator of an impairment is present prior to such evaluation.