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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets 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. Refer to “Note 2 — Summary of Significant Accounting Policies” for further information on the Company’s accounting policies related to its goodwill and intangible assets. Mandatory shut-down of the Company’s properties commencing in March 2020 that lasted for a majority of the second quarter of 2020 resulted in a deterioration in the performance of the Company’s casino properties in particular, which required the Company to revise its cash flow projections to reflect the then-current economic environment, including the uncertainty surrounding the nature, timing, and extent of elimination of or change to the restrictions on the Company’s operations. As a result, the Company conducted an interim qualitative and quantitative assessment of its goodwill and intangible assets for potential impairment in each quarter of 2020 and performed its annual quantitative test of goodwill and indefinite-lived intangible assets for potential impairment during the fourth quarter of 2020. The analyses performed by the Company throughout 2020 resulted in non-cash impairment charges recorded to the Company’s Nevada Casino Resorts goodwill and indefinite-lived trade names in the amount of $27.1 million and $6.9 million, respectively. Management determined that there were no new indicators of impairment for the years ended December 31, 2022 and 2021, and the Company concluded that there was no impairment of the Company’s goodwill and intangible assets as of December 31, 2022 and 2021. The estimated fair value of goodwill during the interim periods in 2021 and for the annual quantitative test in both 2021 and 2022 was determined using an income valuation approach utilizing discounted cash flow models. The annual quantitative test in 2020 was conducted using a combination of an income valuation approach utilizing discounted cash flow models and a market valuation approach. The market valuation approach considers comparable market data based on multiples of revenue or earnings before interest, taxes, depreciation and amortization. The income valuation approach conducted in 2020 utilized the following Level 3 inputs: discount rate of 12.0% - 13.5%; long-term revenue growth rate of 2.0% - 3.0%. The income valuation approach conducted in 2021 and 2022 utilized a discount rate of 13% and 13.5%, respectively, and long-term revenue growth rate of 2.5% in both periods. The estimated fair value of indefinite-lived intangible assets in 2020, 2021 and 2022 was determined using the income approach by applying the relief from royalty methodology using Level 3 inputs. For 2020, the Company applied a royalty rate of 0.75% to 2.0%, a discount rate of 12.0% to 13.5% and long-term revenue growth rate of 2.0% to 3.0%. For 2021, the Company utilized a royalty rate of 1.0% to 2.0%, a discount rate of 13.0% and a long-term revenue growth rate of 2.5%. For 2022, the Company utilized a royalty rate of 1.0% to 2.0%, a discount rate of 13.5% and a long-term revenue growth rate of 2.5%. The following table summarizes goodwill balances by reportable segment:
(In thousands) | Nevada Casino Resorts |  | Nevada Locals Casinos |  | Maryland Casino Resort |  | Nevada Taverns |  | Distributed Gaming |  | Total Goodwill
Balance, December 31, 2021 and 2022 | $ | 22,105 |  |  | $ | 38,187 |  |  | $ | — |  |  | $ | 20,459 |  |  | $ | 77,645 |  |  | $ | 158,396 |
Intangible assets, net, consisted of the following:
|  | At December 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 |  |  | (41,743) |  |  | — |  |  | 39,362 |
Player relationships |  | 2-14 |  | 42,990 |  |  | (40,455) |  |  | — |  |  | 2,535 |
Non-compete agreements |  | 2-5 |  | 9,840 |  |  | (9,114) |  |  | — |  |  | 726 |
In-place lease value |  | 4 |  | 1,170 |  |  | (1,170) |  |  | — |  |  | — |
Leasehold interest |  | 4 |  | 570 |  |  | (570) |  |  | — |  |  | — |
Other |  | 4-25 |  | 1,366 |  |  | (1,237) |  |  | — |  |  | 129 |
|  |  |  | 137,041 |  |  | (94,289) |  |  | — |  |  | 42,752 |
Balance, December 31, 2022 |  |  |  | $ | 190,731 |  |  | $ | (94,289) |  |  | $ | (6,890) |  |  | $ | 89,552 |
|  | At 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 $7.4 million, $8.1 million, and $21.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. Estimated future amortization expense related to intangible assets is as follows:
(In thousands) |  | 2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | Thereafter |  | Total (1)
Estimated amortization expense |  | $ | 7,209 |  |  | $ | 6,313 |  |  | $ | 5,974 |  |  | $ | 5,869 |  |  | $ | 5,737 |  |  | $ | 11,650 |  |  | $ | 42,752 |
(1) The Company did not have intangible assets that were not placed in service as of December 31, 2022.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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