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Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company conducts its business through five reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, Nevada Taverns, and Distributed Gaming.
The Nevada Casino Resorts segment is comprised of destination casino resort properties offering a variety of food and beverage outlets, entertainment venues and other amenities. The casino resort properties in this segment cater primarily to a regional drive-in customer base seeking a value-oriented vacation experience, with guests typically traveling from Southern California or Arizona. The Company’s casino resort properties in Nevada have a significantly larger number of hotel rooms compared to the other casino properties in its portfolio. While hotel stays at these casino resorts are typically longer, the overall frequency of visitation from guests is lower when compared to the Nevada Locals Casinos.
The Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius. The Company’s locals casino properties typically experience a higher frequency of customer visits compared to its casino resort properties in Nevada and Maryland, with many of the customers visiting the Company’s Nevada Locals Casinos on a weekly basis. The casino properties within this reportable segment have no or a limited number of hotel rooms and offer fewer food and beverage outlets or other amenities, with revenues primarily generated from slot machine play.
The Maryland Casino Resort segment is comprised of the Rocky Gap casino resort, which is geographically disparate from the Company’s Nevada properties, operates in a separate regulatory jurisdiction and has only a limited number of hotel rooms compared to the Nevada Casino Resorts. Rocky Gap caters to a regional drive-in customer base traveling from mid-Atlantic areas (Maryland, Virginia, Washington DC, Pennsylvania, West Virginia) and offers a full range of amenities, including various food and beverage outlets, signature golf course, spa and pool. As discussed in “Note 1 — Nature of Business,” on August 24, 2022, the Company entered into definitive agreements to sell Rocky Gap. The Rocky Gap Transactions are required
by their terms to close concurrently and the Company expects the Rocky Gap Transactions to close during the second quarter of 2023, subject to the satisfaction or waiver of customary regulatory approvals and closing conditions.
The Nevada Taverns segment is comprised of branded tavern locations, where the Company controls the food and beverage operations as well as the slot machines located within the tavern. The Company’s branded taverns offer a casual, upscale environment catering to local patrons offering superior food, craft beer and other alcoholic beverages, and are typically limited to 15 slot machines.
The Distributed Gaming segment is comprised of the operation of slot machines and amusement devices in over 1,000 third party non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores, across Nevada and Montana with a limited number of slot machines in each location. Distributed Gaming operations cater to local residents with high frequency visitation to these locations. The Company places its slot machines and amusement devices in locations where it believes they will receive maximum customer traffic.
The Corporate and Other segment includes the Company’s cash and cash equivalents, miscellaneous receivables and corporate overhead. Costs recorded in the Corporate and Other segment have not been allocated to the Company’s reportable segments because these costs are not easily allocable and to do so would not be practical.
The Company presents Adjusted EBITDA in its segment disclosures because it is the primary metric used by the Company’s chief operating decision makers in measuring both the Company’s past and future expectations of performance. Further, the Company’s annual performance plan used to determine compensation of its executive officers and employees is tied to the Adjusted EBITDA metric. Adjusted EBITDA represents each segment’s earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of goodwill and intangible assets, severance expenses, preopening and related expenses, gain or loss on disposal of assets, share-based compensation expenses, non-cash lease expense, and other non-cash charges that are deemed to be not indicative of the Company’s core operating results, calculated before corporate overhead (which is not allocated to each reportable segment).
Due to the Company’s use of Adjusted EBITDA as its measure of profit for its reportable segments, the Company includes a reconciliation of the total of the Company’s consolidated Adjusted EBITDA to the Company’s consolidated net income (loss) determined in accordance with GAAP. The Company also discloses Adjusted EBITDA at the reportable segment level, as set forth in the table below:
Year Ended December 31,
(In thousands)202220212020
Revenues
Nevada Casino Resorts
Gaming$175,014 $179,793 $114,571 
Food and beverage89,424 83,092 55,588 
Rooms104,375 94,952 61,070 
Other (1)
38,137 31,875 19,414 
Nevada Casino Resorts revenues$406,950 $389,712 $250,643 
Nevada Locals Casinos
Gaming$114,388 $120,537 $82,522 
Food and beverage25,219 24,036 18,406 
Rooms10,162 7,626 5,598 
Other (1)
7,745 7,656 6,505 
Nevada Locals Casinos revenues$157,514 $159,855 $113,031 
Maryland Casino Resort
Gaming$59,553 $60,797 $40,505 
Food and beverage8,440 7,932 4,669 
Rooms7,787 7,224 4,743 
Other2,230 2,202 1,719 
Maryland Casino Resort revenues$78,010 $78,155 $51,636 
Nevada Taverns
Gaming$53,619 $53,909 $28,128 
Food and beverage51,564 52,002 33,047 
Other (1)
4,782 4,259 2,866 
Nevada Taverns revenues$109,965 $110,170 $64,041 
Distributed Gaming
Gaming$358,332 $351,274 $211,027 
Food and beverage716 753 371 
Other (1)
6,424 5,387 2,817 
Distributed Gaming revenues$365,472 $357,414 $214,215 
Corporate and other3,808 1,237 589 
Total Revenues$1,121,719 $1,096,543 $694,155 
(1) Includes lease revenue accounted for under ASC 842 for the arrangements in which the Company is a lessor. Refer to “Note 2 — Summary of Significant Accounting Policies” and “Note 12 — Leases” for details.
Year Ended December 31,
(In thousands)202220212020
Adjusted EBITDA
Nevada Casino Resorts$135,104 $149,077 $57,462 
Nevada Locals Casinos75,848 80,005 45,610 
Maryland Casino Resort25,383 26,697 15,094 
Nevada Taverns37,610 39,762 10,086 
Distributed Gaming44,021 47,514 16,866 
Corporate and other(50,886)(51,337)(34,861)
Total Adjusted EBITDA267,080 291,718 110,257 
Adjustments
Other non-operating income— 60,000 — 
Depreciation and amortization(100,123)(106,692)(124,430)
Non-cash lease expense(165)(762)(1,344)
Share-based compensation(13,433)(14,401)(9,637)
Loss on disposal of assets(934)(1,260)(803)
Loss on debt extinguishment and modification(1,590)(975)— 
Preopening and related expenses (1)
(161)(246)(533)
Severance expenses(378)(228)(3,710)
Impairment of goodwill and intangible assets— — (33,964)
Other, net(3,939)(2,089)(3,275)
Interest expense, net(63,490)(62,853)(69,110)
Change in fair value of derivative— — (1)
Income tax provision(521)(436)(61)
Net income (loss)$82,346 $161,776 $(136,611)
(1) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded tavern and casino locations as well as food and beverage and other venues within the casino locations.
Assets
The Company’s assets by segment consisted of the following amounts:
(In thousands)Nevada Casino ResortsNevada Locals CasinosMaryland Casino ResortNevada TavernsDistributed GamingCorporate and OtherConsolidated
Balance at December 31, 2022$784,242 $164,580 $39,562 $145,065 $258,260 $116,961 $1,508,670 
Balance at December 31, 2021$811,016 $165,362 $41,403 $149,296 $262,046 $186,441 $1,615,564 
Capital Expenditures
The Company’s capital expenditures by segment consisted of the following amounts:
(In thousands)
Nevada Casino Resorts (1)
Nevada Locals Casinos (2)
Maryland Casino Resort (3)
Nevada Taverns (4)
Distributed Gaming (5)
Corporate and Other (6)
Consolidated
For the year ended December 31, 2022$26,347 $4,035 $1,878 $2,712 $9,146 $7,301 $51,419 
For the year ended December 31, 2021$7,859 $2,813 $1,447 $1,573 $9,912 $5,655 $29,259 
For the year ended December 31, 2020$23,649 $911 $2,531 $1,750 $5,136 $2,525 $36,502 
(1)Capital expenditures in the Nevada Casino Resorts segment exclude non-cash purchases of property and equipment of $5.0 million, $0.6 million, and $1.1 million as of December 31, 2022, 2021, and 2020, respectively.
(2)Capital expenditures in the Nevada Locals Casinos segment exclude non-cash purchases of property and equipment of $0.1 million and $0.2 million as of December 31, 2022 and 2021, respectively.
(3)Capital expenditures in the Maryland Casino Resort segment exclude non-cash purchases of property and equipment of $0.5 million as of December 31, 2020.
(4)Capital expenditures in the Nevada Taverns segment exclude non-cash purchases of property and equipment of $0.2 million, $0.3 million, and $0.1 million as of December 31, 2022, 2021 and 2020, respectively.
(5)Capital expenditures in the Distributed Gaming segment exclude non-cash purchases of property and equipment of $0.3 million and $2.4 million as of December 31, 2021 and 2020, respectively.
(6)Capital expenditures for Corporate and Other exclude non-cash purchases of property and equipment of $0.1 million and $0.5 million as of December 31, 2022 and 2021, respectively.