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Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information As of December 31, 2023, the Company conducted its business through four reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, 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 of these properties. The Company’s locals casino properties typically experience a higher frequency of customer visits compared to its casino resort properties, 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 Nevada Taverns segment is comprised of branded tavern locations, where the Company historically controlled the food and beverage operations. In connection with the sale of the distributed gaming operations in Nevada, the slot machines located within each tavern are operated by an affiliate of J&J Gaming on financial terms substantially consistent with the Company’s past practices. 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. Prior to its sale, the Distributed Gaming segment was comprised of the operation of slot machines and amusement devices in 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. As discussed in “Note 1 — Nature of Business and Basis of Presentation” and “Note 3 — Divestitures and Assets Held for Sale,” on September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana and on January 10, 2024, the Company completed the sale of its distributed gaming operations in Nevada. As discussed in “Note 1 — Nature of Business and Basis of Presentation” and “Note 3 — Divestitures and Assets Held for Sale,” on July 25, 2023, the Company completed the sale of Rocky Gap. Prior to its sale, the operations of Rocky Gap were presented in the Company’s Maryland Casino Resort reportable segment. 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 assets, severance expenses, preopening and related expenses, gain or loss on disposal of assets and businesses, 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 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) |  | 2023 |  | 2022 |  | 2021
Revenues |  |  |  |  |  |
Nevada Casino Resorts |  |  |  |  |  |
Gaming |  | $ | 160,371 |  |  | $ | 175,014 |  |  | $ | 179,793 |
Food and beverage |  | 98,748 |  |  | 89,424 |  |  | 83,092 |
Rooms |  | 109,996 |  |  | 104,375 |  |  | 94,952 |
Other (1) |  | 43,943 |  |  | 38,137 |  |  | 31,875 |
Nevada Casino Resorts revenues |  | $ | 413,058 |  |  | $ | 406,950 |  |  | $ | 389,712 |
Nevada Locals Casinos |  |  |  |  |  |
Gaming |  | $ | 112,772 |  |  | $ | 114,388 |  |  | $ | 120,537 |
Food and beverage |  | 26,372 |  |  | 25,219 |  |  | 24,036 |
Rooms |  | 10,331 |  |  | 10,162 |  |  | 7,626 |
Other (1) |  | 7,960 |  |  | 7,745 |  |  | 7,656 |
Nevada Locals Casinos revenues |  | $ | 157,435 |  |  | $ | 157,514 |  |  | $ | 159,855 |
Maryland Casino Resort (2) |  |  |  |  |  |
Gaming |  | $ | 33,159 |  |  | $ | 59,553 |  |  | $ | 60,797 |
Food and beverage |  | 4,881 |  |  | 8,440 |  |  | 7,932 |
Rooms |  | 4,322 |  |  | 7,787 |  |  | 7,224 |
Other |  | 1,094 |  |  | 2,230 |  |  | 2,202 |
Maryland Casino Resort revenues |  | $ | 43,456 |  |  | $ | 78,010 |  |  | $ | 78,155 |
Nevada Taverns |  |  |  |  |  |
Gaming |  | $ | 52,817 |  |  | $ | 53,619 |  |  | $ | 53,909 |
Food and beverage |  | 51,642 |  |  | 51,564 |  |  | 52,002 |
Other (1) |  | 4,756 |  |  | 4,782 |  |  | 4,259 |
Nevada Taverns revenues |  | $ | 109,215 |  |  | $ | 109,965 |  |  | $ | 110,170 |
Distributed Gaming (3) |  |  |  |  |  |
Gaming |  | $ | 315,182 |  |  | $ | 358,332 |  |  | $ | 351,274 |
Food and beverage |  | 765 |  |  | 716 |  |  | 753 |
Other (1) |  | 4,733 |  |  | 6,424 |  |  | 5,387 |
Distributed Gaming revenues |  | $ | 320,680 |  |  | $ | 365,472 |  |  | $ | 357,414 |
Corporate and other |  | 9,305 |  |  | 3,808 |  |  | 1,237 |
Total Revenues |  | $ | 1,053,149 |  |  | $ | 1,121,719 |  |  | $ | 1,096,543 |
(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. (2) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023. (3) Comprised of distributed gaming operations in Nevada and Montana. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana and on January 10, 2024, the Company completed the sale of its distributed gaming operations in Nevada. Refer to “Note 3 — Divestitures and Assets Held for Sale” and “Note 16 —Subsequent Events” for additional information.
|  | Year Ended December 31,
(In thousands) |  | 2023 |  | 2022 |  | 2021
Adjusted EBITDA |  |  |  |  |  |
Nevada Casino Resorts |  | $ | 120,256 |  |  | $ | 135,104 |  |  | $ | 149,077 |
Nevada Locals Casinos |  | 73,846 |  |  | 75,848 |  |  | 80,005 |
Maryland Casino Resort (1) |  | 12,652 |  |  | 25,383 |  |  | 26,697 |
Nevada Taverns |  | 32,682 |  |  | 37,610 |  |  | 39,762 |
Distributed Gaming (2) |  | 34,545 |  |  | 44,021 |  |  | 47,514 |
Corporate and other |  | (51,459) |  |  | (50,886) |  |  | (51,337) |
Total Adjusted EBITDA |  | 222,522 |  |  | 267,080 |  |  | 291,718 |
Adjustments |  |  |  |  |  |
Other non-operating income |  | — |  |  | — |  |  | 60,000 |
Depreciation and amortization |  | (88,933) |  |  | (100,123) |  |  | (106,692) |
Non-cash lease expense |  | 15 |  |  | (165) |  |  | (762) |
Share-based compensation |  | (13,476) |  |  | (13,433) |  |  | (14,401) |
Gain (loss) on disposal of assets |  | 228 |  |  | (934) |  |  | (1,260) |
Gain on sale of businesses |  | 303,179 |  |  | — |  |  | — |
Loss on debt extinguishment and modification |  | (1,734) |  |  | (1,590) |  |  | (975) |
Preopening and related expenses (3) |  | (760) |  |  | (161) |  |  | (246) |
Severance expenses |  | (149) |  |  | (378) |  |  | (228) |
Impairment of assets |  | (12,072) |  |  | — |  |  | — |
Other, net |  | (11,342) |  |  | (3,939) |  |  | (2,089) |
Interest expense, net |  | (65,515) |  |  | (63,490) |  |  | (62,853) |
Income tax provision |  | (76,207) |  |  | (521) |  |  | (436) |
Net income |  | $ | 255,756 |  |  | $ | 82,346 |  |  | $ | 161,776 |
(1) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023. (2) Comprised of distributed gaming operations in Nevada and Montana. On September 13, 2023, the Company completed the sale of its distributed gaming operations in Montana and on January 10, 2024, the Company completed the sale of its distributed gaming operations in Nevada. Refer to “Note 3 — Divestitures and Assets Held for Sale” and “Note 16 — Subsequent Events” for additional information. (3) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded taverns and 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 Resorts |  | Nevada Locals Casinos |  | Maryland Casino Resort |  | Nevada Taverns |  | Distributed Gaming |  | Corporate and Other |  | Consolidated
Balance at December 31, 2023 | $ | 758,622 |  |  | $ | 160,059 |  |  | $ | — |  |  | $ | 148,250 |  |  | $ | 204,271 |  |  | $ | 181,081 |  |  | $ | 1,452,283 |
Balance at December 31, 2022 | $ | 784,242 |  |  | $ | 164,580 |  |  | $ | 39,562 |  |  | $ | 145,065 |  |  | $ | 258,260 |  |  | $ | 116,961 |  |  | $ | 1,508,670 |
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 |  | Nevada Taverns (3) |  | Distributed Gaming (4) |  | Corporate and Other (5) |  | Consolidated
For the year ended December 31, 2023 |  | $ | 60,441 |  |  | $ | 5,691 |  |  | $ | 435 |  |  | $ | 3,369 |  |  | $ | 9,537 |  |  | $ | 6,404 |  |  | $ | 85,877 |
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 |
(1)Capital expenditures in the Nevada Casino Resorts segment exclude non-cash purchases of property and equipment of $1.0 million, $5.0 million, and $0.6 million as of December 31, 2023, 2022, and 2021, 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 Nevada Taverns segment exclude non-cash purchases of property and equipment of $0.7 million, $0.2 million, and $0.3 million as of December 31, 2023, 2022 and 2021, respectively. (4)Capital expenditures in the Distributed Gaming segment exclude non-cash purchases of property and equipment of $0.2 million and $0.3 million as of December 31, 2023 and 2021, respectively. (5)Capital expenditures for Corporate and Other exclude non-cash purchases of property and equipment of $0.3 million, $0.1 million and $0.5 million as of December 31, 2023, 2022 and 2021, respectively.

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