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Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
As of March 31, 2024, the Company conducted its business through three reportable segments: Nevada Casino Resorts, Nevada Locals Casinos and Nevada Taverns.
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 that 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 the sale of the Company’s distributed gaming operations in Nevada, the Company owned and operated the slot machines located within each tavern. Following the sale, slot machines at the Company’s branded tavern locations are owned and operated by the independent third party that acquired the distributed gaming operations from the Company.
As discussed in “Note 1 — Nature of Business and Basis of Presentation,” the Company completed the sales of Rocky Gap and its distributed gaming operations in Montana and Nevada on July 25, 2023, September 13, 2023 and January 10, 2024, respectively. Prior to its sale, the operations of Rocky Gap were presented in the Company’s Maryland Casino Resort reportable segment. Prior to their sale, the results of the distributed gaming operations in Montana were combined with the results of the distributed gaming operations in Nevada and presented in the Company’s Distributed Gaming 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:
Three Months Ended March 31,
(In thousands)20242023
Revenues
Nevada Casino Resorts
Gaming$40,289 $42,293 
Food and beverage24,263 24,231 
Rooms26,949 26,210 
Other9,511 7,442 
Nevada Casino Resorts revenues$101,012 $100,176 
Nevada Locals Casinos
Gaming$27,820 $29,649 
Food and beverage6,653 6,691 
Rooms2,451 2,822 
Other2,067 2,076 
Nevada Locals Casinos revenues$38,991 $41,238 
Maryland Casino Resort (1)
Gaming$— $14,514 
Food and beverage— 1,866 
Rooms— 1,545 
Other— 203 
Maryland Casino Resort revenues$— $18,128 
Nevada Taverns
Gaming$12,859 $13,025 
Food and beverage12,728 13,305 
Other2,220 1,263 
Nevada Taverns revenue$27,807 $27,593 
Distributed Gaming (2)
Gaming$5,981 $88,606 
Food and beverage17 178 
Other21 1,617 
Distributed Gaming revenues$6,019 $90,401 
Corporate and other218 515 
Total revenues$174,047 $278,051 
(1) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023.
(2) Comprised of distributed gaming operations in Montana (for the three months ended March 31, 2023 only) and Nevada, which were sold on September 13, 2023 and January 10, 2024, respectively.
Three Months Ended March 31,
(In thousands)20242023
Adjusted EBITDA
Nevada Casino Resorts$26,891 $31,711 
Nevada Locals Casinos17,536 20,160 
Maryland Casino Resort (1)
— 5,128 
Nevada Taverns7,561 8,538 
Distributed Gaming (2)
484 9,784 
Corporate and other(11,480)(13,154)
Total Adjusted EBITDA40,992 62,167 
Adjustments
Depreciation and amortization(22,120)(23,508)
Non-cash lease expense85 (33)
Share-based compensation(3,269)(3,893)
(Loss) gain on disposal of assets(14)86 
Gain on sale of business69,736 — 
Preopening and related expenses (3)
(139)(384)
Other, net(5,129)(1,785)
Interest expense, net(10,686)(18,236)
Income tax provision(27,493)(2,784)
Net Income$41,963 $11,630 
(1) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023.
(2) Comprised of distributed gaming operations in Montana (for the three months ended March 31, 2023 only) and Nevada, which were sold on September 13, 2023 and January 10, 2024, respectively.
(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 reportable segment consisted of the following amounts:
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada TavernsDistributed GamingCorporate and OtherConsolidated
Balance at March 31, 2024$755,685 $161,253 $146,598 $— $438,395 $1,501,931 
Balance at December 31, 2023$758,622 $160,059 $148,250 $204,271 $181,081 $1,452,283