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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2023
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. The estimated fair value of goodwill for the years ended December 31, 2023 and 2022 was determined using an income valuation approach utilizing discounted cash flow models. The income valuation approach conducted in 2023 utilized the following Level 3 inputs: discount rate of 14.0%-14.5% and long-term revenue growth rate of 3.0%. The income valuation approach conducted in 2022 utilized a discount rate of 13.5% and long-term revenue growth rate of 2.5%. The estimated fair value of indefinite-lived intangible assets for the years ended December 31, 2023 and 2022 was determined using an income approach by applying the relief from royalty methodology using Level 3 inputs. The Company utilized a royalty rate of 1.0% to 2.0% in both periods and the same discount rate and long-term revenue growth rate as the rates applied to valuation of goodwill. The results of the analyses conducted for the years ended December 31, 2023 and 2022 indicated no impairment of the Company’s goodwill and intangible assets as of December 31, 2023 and 2022. The following table summarizes goodwill balances by reportable segment:
(In thousands) |  | Nevada Casino Resorts |  | Nevada Locals Casinos |  | Nevada Taverns |  | Distributed Gaming |  | Total Goodwill
Balance, January 1, 2022 and December 31, 2022 |  | $ | 22,105 |  |  | $ | 38,187 |  |  | $ | 20,459 |  |  | $ | 77,645 |  |  | $ | 158,396 |
Goodwill acquired during the year (1) |  | — |  |  | — |  |  | 3,574 |  |  | — |  |  | 3,574 |
Goodwill related to assets held for sale (2) |  | — |  |  | — |  |  | — |  |  | (69,452) |  |  | (69,452) |
Goodwill related to the sale of a business (3) |  | — |  |  | — |  |  | — |  |  | (8,193) |  |  | (8,193) |
Balance, December 31, 2023 |  | $ | 22,105 |  |  | $ | 38,187 |  |  | $ | 24,033 |  |  | $ | — |  |  | $ | 84,325 |
(1) Related to the acquisition of Lucky’s taverns discussed in “Note 1 — Nature of Business and Basis of Presentation.” (2) Related to the distributed gaming operations in Nevada that continued to be classified as assets held for sale as of December 31, 2023 and sold following the Company’s fiscal year end. Refer to “Note 3 — Divestitures and Assets Held for Sale” for further information. (3) Related to the distributed gaming operations in Montana sold in September 2023. Refer to “Note 3 — Divestitures and Assets Held for Sale” for further information. Intangible assets, net, consisted of the following:
|  | December 31, 2023
(In thousands) |  | Useful Life (Years) |  | Gross Carrying Value |  | Cumulative Amortization |  | Cumulative Impairment |  | Intangible Assets, Net
Indefinite-lived intangible assets |  |  |  |  |  |  |  |  |  |
Trade names |  | Indefinite |  | $ | 54,790 |  |  | $ | — |  |  | $ | (6,890) |  |  | $ | 47,900 |
|  |  |  | 54,790 |  |  | — |  |  | (6,890) |  |  | 47,900 |
Amortizing intangible assets |  |  |  |  |  |  |  |  |  |
Player relationships |  | 2-14 |  | 43,916 |  |  | (41,050) |  |  | — |  |  | 2,866 |
Non-compete agreements |  | 2-5 |  | 5,747 |  |  | (2,578) |  |  | — |  |  | 3,169 |
|  |  |  | 49,663 |  |  | (43,628) |  |  | — |  |  | 6,035 |
Balance, December 31, 2023 |  |  |  | $ | 104,453 |  |  | $ | (43,628) |  |  | $ | (6,890) |  |  | $ | 53,935 |
|  | 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 |
Total amortization expense related to intangible assets was $2.4 million, $7.4 million, and $8.1 million for the years ended December 31, 2023, 2022, and 2021, respectively. Estimated future amortization expense related to intangible assets is as follows:
(In thousands) |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | Thereafter |  | Total (1)
Estimated amortization expense |  | $ | 1,863 |  |  | $ | 1,863 |  |  | $ | 1,671 |  |  | $ | 265 |  |  | $ | 236 |  |  | $ | 137 |  |  | $ | 6,035 |
(1) The Company did not have intangible assets that were not placed in service as of December 31, 2023.

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