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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
As of June 30, 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 depreciation and amortization, non-cash lease expense, share-based compensation expense, gain or loss on disposal of assets and business, loss on debt extinguishment and modification, preopening and related expenses, transaction costs, interest and other non-operating income (expense), income taxes, 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 June 30,Six Months Ended June 30,
(In thousands)2024202320242023
Revenues
Nevada Casino Resorts
Gaming$38,313 $38,625 $78,602 $80,918 
Food and beverage23,951 24,473 48,214 48,704 
Rooms28,878 26,353 55,827 52,563 
Other9,951 13,111 19,462 20,553 
Nevada Casino Resorts revenues$101,093 $102,562 $202,105 $202,738 
Nevada Locals Casinos
Gaming$26,211 $28,796 $54,031 $58,445 
Food and beverage6,922 6,564 13,575 13,255 
Rooms2,544 2,416 4,995 5,238 
Other2,189 2,053 4,256 4,129 
Nevada Locals Casinos revenues$37,866 $39,829 $76,857 $81,067 
Nevada Taverns
Gaming$13,723 $13,187 $26,582 $26,212 
Food and beverage12,24012,96224,96826,267
Other2,1891,1704,4092,433
Nevada Taverns revenues$28,152 $27,319 $55,959 $54,912 
Distributed Gaming (1)
Gaming$— $87,326 $5,981 $175,932 
Food and beverage— 187 17 365 
Other— 1,571 21 3,188 
Distributed Gaming revenues$— $89,084 $6,019 $179,485 
Maryland Casino Resort (2)
Gaming$— $14,421 $— $28,935 
Food and beverage— 2,348 — 4,214 
Rooms— 2,149 — 3,694 
Other— 687 — 890 
Maryland Casino Resort revenues$— $19,605 $— $37,733 
Corporate and other223 8,282 441 8,797 
Total revenues$167,334 $286,681 $341,381 $564,732 
(1) Comprised of distributed gaming operations in Montana (for the three and six months ended June 30, 2023 only) and Nevada, which were sold on September 13, 2023 and January 10, 2024, respectively.
(2) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023.
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2024202320242023
Adjusted EBITDA
Nevada Casino Resorts$27,392 $28,044 $54,283 $59,755 
Nevada Locals Casinos16,928 19,471 34,464 39,631 
Nevada Taverns7,791 8,450 15,352 16,988 
Distributed Gaming (1)
— 9,950 484 19,734 
Maryland Casino Resort (2)
— 5,898 — 11,026 
Corporate and other(10,919)(13,403)(22,399)(26,557)
Total Adjusted EBITDA41,192 58,410 82,184 120,577 
Adjustments
Depreciation and amortization(22,616)(21,454)(44,736)(44,962)
Non-cash lease benefit (expense)148 9 233 (24)
Share-based compensation(2,450)(3,288)(5,719)(7,181)
Gain (loss) on disposal of assets— 34 (14)120 
(Loss) gain on sale of business(792)— 68,944 — 
Loss on debt extinguishment and modification(4,446)(405)(4,446)(405)
Preopening and related expenses (3)
(4)(141)(143)(525)
Transaction costs(337)(170)(2,275)(277)
Other, net(1,606)2,338 (4,797)660 
Interest expense, net(8,610)(18,803)(19,296)(37,039)
Income tax benefit (provision)144 (4,248)(27,349)(7,032)
Net income$623 $12,282 $42,586 $23,912 
(1) Comprised of distributed gaming operations in Montana (for the three and six months ended June 30, 2023 only) and Nevada, which were sold on September 13, 2023 and January 10, 2024, respectively.
(2) Comprised of the operations of Rocky Gap, which was sold July 25, 2023.
(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 June 30, 2024$736,170 $161,237 $158,986 $— $124,828 $1,181,221 
Balance at December 31, 2023$758,622 $160,059 $148,250 $204,271 $181,081 $1,452,283