Assets Held for Sale

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for SaleThe Company classifies assets as held for sale when a sale is probable, is expected to be completed within one year, and the asset group meets all of the accounting criteria to be classified as held for sale.

As discussed in “Note 1 — Nature of Business and Basis of Presentation,” on July 25, 2023, the Company sold Rocky Gap. The definitive agreements for the Rocky Gap sale were entered into in August 2022 and, as a result, the assets related to the Rocky Gap property were classified as held for sale as of September 30, 2022 and the Company ceased recording depreciation and amortization of the long-lived assets included in the sale from the date of execution of the definitive agreements. Operations of Rocky Gap have historically been presented in the Company’s Maryland Casino Resort reportable segment. The Company incurred $0.3 million in transactions costs since the announcement of the sale, which were recorded in selling, general and administrative expenses during the fourth quarter of 2022 and for the six months ended June 30, 2023. In July 2023, the Company incurred an additional $8.0 million in transaction costs, $1.9 million of which were paid upon closing. Refer to “Note 13 — Subsequent Events” for further information.

As discussed in “Note 1 — Nature of Business and Basis of Presentation,” on March 3, 2023, the Company entered into definitive agreements to sell its Distributed Gaming Operations. The Distributed Gaming Transactions are expected to close during the fourth quarter of 2023, subject to satisfaction or waiver of customary regulatory approvals and closing conditions. As a result, the assets related to the Distributed Gaming Operations were classified as held for sale as of March 31, 2023 and the Company ceased recording depreciation and amortization of the long-lived assets included in the sale from the date of execution of the definitive agreements. Distributed Gaming Operations have historically been presented in the Company’s Distributed Gaming reportable segment.

The carrying amounts of the assets and liabilities held for sale in the Rocky Gap Transactions and Distributed Gaming Transactions consisted of the following:


	June 30, 2023
(In thousands)	Maryland Casino Resort		Distributed Gaming		Total
ASSETS
Current assets
Cash and cash equivalents	$	6,297	$	38,398	$	44,695
Accounts receivables, net	2,027		3,053		5,080
Prepaid expenses	605		1,795		2,400
Inventories	760		—		760
Other	60		2,442		2,502
Total current assets held for sale	9,749		45,688		55,437
Property and equipment, net	24,441		33,868		58,309
Operating lease right-of-use assets, net	5,980		46,326		52,306
Goodwill	—		77,645		77,645
Intangible assets, net	1,064		38,506		39,570
Other assets	2		6,541		6,543
Total assets held for sale	$	41,236	$	248,574	$	289,810
LIABILITIES
Current liabilities
Current portion of long-term debt and finance leases	$	105	$	2,433	$	2,538
Current portion of operating leases	436		24,203		24,639
Accounts payable	1,585		3,630		5,215
Accrued payroll and related	923		1,370		2,293
Other accrued liabilities	2,631		4,758		7,389
Total current liabilities related to assets held for sale	5,680		36,394		42,074
Non-current finance leases	153		—		153
Non-current operating leases	5,206		22,433		27,639
Other long-term obligations	—		66		66
Total liabilities related to assets held for sale	$	11,039	$	58,893	$	69,932

Revenues and pretax income generated by the assets held for sale were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2023		2022		2023		2022
Maryland Casino Resort
Revenues	$	19,605	$	20,546	$	37,733	$	38,438
Pretax income	5,693		6,049		10,810		10,537
Distributed Gaming
Revenues	$	89,084	$	93,225	$	179,485	$	183,993
Pretax income	9,400		8,191		16,943		16,555