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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
As of September 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 certain unallocated corporate overhead costs not easily allocable to reportable segments as 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 maker 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, interest, 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 September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Revenues
Nevada Casino Resorts
Gaming$38,619 $40,289 $117,221 $121,207 
Food and beverage23,242 24,782 71,456 73,486 
Rooms26,968 28,394 82,795 80,957 
Other10,718 12,059 30,180 32,612 
Nevada Casino Resorts revenues$99,547 $105,524 $301,652 $308,262 
Nevada Locals Casinos
Gaming$25,241 $27,254 $79,272 $85,699 
Food and beverage6,376 6,482 19,951 19,737 
Rooms1,970 2,395 6,965 7,633 
Other1,818 1,770 6,074 5,899 
Nevada Locals Casinos revenues$35,405 $37,901 $112,262 $118,968 
Nevada Taverns
Gaming$11,824 $12,985 $38,406 $39,197 
Food and beverage12,23112,38737,19938,654
Other1,9871,1686,3963,601
Nevada Taverns revenues$26,042 $26,540 $82,001 $81,452 
Distributed Gaming
Gaming$— $80,425 $5,981 $256,357 
Food and beverage— 189 17 554 
Other— 1,258 21 4,446 
Distributed Gaming revenues$— $81,872 $6,019 $261,357 
Maryland Casino Resort
Gaming$— $4,224 $— $33,159 
Food and beverage— 667 — 4,881 
Rooms— 628 — 4,322 
Other— 204 — 1,094 
Maryland Casino Resort revenues$— $5,723 $— $43,456 
Corporate and Other239 166 680 8,963 
Total revenues$161,233 $257,726 $502,614 $822,458 
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2024202320242023
Adjusted EBITDA
Nevada Casino Resorts$24,614 $30,837 $78,897 $90,592 
Nevada Locals Casinos14,274 16,878 48,738 56,509 
Nevada Taverns5,317 7,519 20,669 24,507 
Distributed Gaming — 8,441 484 28,175 
Maryland Casino Resort — 1,626 — 12,652 
Corporate and Other(10,191)(12,116)(32,590)(38,673)
Total Adjusted EBITDA34,014 53,185 116,198 173,762 
Adjustments
Depreciation and amortization(22,626)(22,213)(67,362)(67,175)
Non-cash lease benefit (expense)65 10 298 (14)
Share-based compensation(2,969)(3,444)(8,688)(10,625)
Gain on disposal of assets256 5 242 125 
Gain on sale of business— 305,829 68,944 305,829 
Loss on debt extinguishment and modification— — (4,446)(405)
Preopening and related expenses (1)
(234)(50)(377)(575)
Other, net(1,778)(9,613)(8,850)(9,230)
Interest expense, net(7,959)(15,306)(27,255)(52,345)
Income tax benefit (provision)6,398 (67,187)(20,951)(74,219)
Net income$5,167 $241,216 $47,753 $265,128 
(1) 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 September 30, 2024$726,962 $158,781 $155,695 $— $60,146 $1,101,584 
Balance at December 31, 2023$758,622 $160,059 $148,250 $204,271 $181,081 $1,452,283