XML 27 R17.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s management views each of its casino properties located in Las Vegas, the casino properties located in Laughlin and Pahrump and its branded taverns as an operating segment. Operating segments are aggregated based on their similar economic characteristics, types of customers, types of services and products provided, and their management and reporting
structure. The Company has aggregated its operating segments into 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. Accordingly, the Company typically receives a large percentage of the gaming revenue from the tavern slot machines in exchange for allowing the independent third party to place the slot machines in the taverns.
As discussed in “Note 1 — Nature of Business and Basis of Presentation” and “Note 2 — Divestitures” the Company completed the sale of its distributed gaming operations in Nevada on January 10, 2024 for cash consideration of $213.5 million plus working capital and other adjustments and net of cash transferred at closing. Prior to the sale, the results of the Company’s distributed gaming operations in Nevada were presented in the Company’s Distributed Gaming reportable segment.
The Corporate and Other category 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 (“CODM”) in measuring both the Company’s past and future expectations of performance and it is the metric that the Company’s annual performance plan used to determine compensation of its executive officers and employees is tied to. Adjusted EBITDA represents each segment’s earnings before depreciation and amortization, non-cash lease benefit or expense, share-based compensation expense, gain or loss on disposal of assets and businesses, loss on debt extinguishment and modification, preopening and related expenses, impairment of assets, interest, income taxes, and other non-cash charges and non-recurring expenses that are deemed to be not indicative of the Company’s core operating results.
The function of the CODM is currently performed by the Company’s Chief Executive Officer and Chairman of the Company’s Board of Directors. The CODM assesses performance of each reportable segment and decides how to allocate resources based on the monthly review of the budget-to-actual and current period versus prior year comparable period Adjusted EBITDA results.
The Company’s revenues, significant expenses and Adjusted EBITDA by reportable segment and reconciliation of the total of the Company’s consolidated Adjusted EBITDA to the Company’s consolidated net income determined in accordance with GAAP are presented in the table below:
Three Months Ended September 30, 2025
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada TavernsTotal Reportable SegmentsCorporate and OtherConsolidated
Revenues
Gaming$38,221 $25,881 $12,976 $77,078 $— $77,078 
Food and beverage21,843 6,149 11,631 39,623 — 39,623 
Rooms23,533 1,861 — 25,394 — 25,394 
Other (1)
9,423 1,898 1,126 12,447 276 12,723 
Total revenues93,020 35,789 25,733 154,542 276 154,818 
Segment (expenses) income
Payroll and related(37,107)(9,499)(7,063)(53,669)— (53,669)
Operating expenses(29,649)(9,481)(9,735)(48,865)— (48,865)
Cost of sales(5,578)(2,058)(3,533)(11,169)— (11,169)
Other segment items (2) (3)
777 188 (111)854 (11,488)(10,634)
Adjusted EBITDA$21,463 $14,939 $5,291 $41,693 $(11,212)$30,481 
Adjustments
Depreciation and amortization(22,868)
Non-cash lease benefit86 
Share-based compensation(2,059)
Loss on disposal of assets(1,901)
Preopening and related expenses(210)
System implementation costs (4)
(208)
Other, net(2,439)
Interest expense, net(7,941)
Loss before income tax benefit(7,059)
Income tax benefit2,401 
Net loss$(4,658)
(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” in the Company’s Annual Report for the year ended December 31, 2024 previously filed with the SEC.
(2)Other segment items for each reportable segment included the following items:
•Nevada Casino Resorts — expenses included depreciation and amortization, non-cash lease benefit, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Locals Casinos — expenses included depreciation and amortization, non-cash lease expense, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Taverns — expenses included depreciation and amortization, non-cash lease benefit, preopening expenses, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
(3)Other segment items for the Corporate and Other category included payroll and related, operating expenses, depreciation and amortization, share-based compensation, preopening expenses, interest expense, system implementation costs and other non-cash charges that are deemed to be not indicative of the Company’s core operating results.
(4)System implementation costs represent expenses related to the implementation of new enterprise resource planning, finance, payroll and human capital management software.
Nine Months Ended September 30, 2025
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada TavernsTotal Reportable SegmentsCorporate and OtherConsolidated
Revenues
Gaming$115,173 $80,799 $40,097 $236,069 $— $236,069 
Food and beverage67,547 19,467 35,961 122,975 — 122,975 
Rooms75,325 6,662 — 81,987 — 81,987 
Other (1)
27,392 6,603 3,400 37,395 855 38,250 
Total revenues285,437 113,531 79,458 478,426 855 479,281 
Segment (expenses) income
Payroll and related(113,702)(28,550)(21,447)(163,699)— (163,699)
Operating expenses(84,512)(28,294)(28,436)(141,242)— (141,242)
Cost of sales(16,961)(6,376)(10,914)(34,251)— (34,251)
Other segment items (2) (3)
1,940 555 (145)2,350 (35,938)(33,588)
Adjusted EBITDA$72,202 $50,866 $18,516 $141,584 $(35,083)$106,501 
Adjustments
Depreciation and amortization(67,812)
Non-cash lease benefit291 
Share-based compensation(7,335)
Loss on disposal of assets(1,953)
Preopening and related expenses(430)
System implementation costs (4)
(486)
Other, net(4,909)
Interest expense, net(23,167)
Income before income tax benefit700 
Income tax benefit1,773 
Net income$2,473 
(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” in the Company’s Annual Report for the year ended December 31, 2024 previously filed with the SEC.
(2)Other segment items for each reportable segment included the following items:
•Nevada Casino Resorts — expenses included depreciation and amortization, non-cash lease expense, share-based compensation, preopening expenses, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Locals Casinos — expenses included depreciation and amortization, non-cash lease expense, share-based compensation, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Taverns — expenses included depreciation and amortization, non-cash lease benefit, preopening expenses, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
(3)Other segment items for the Corporate and Other category included payroll and related, operating expenses, depreciation and amortization, non-cash lease benefit, share-based compensation, preopening expenses, system implementation costs, interest expense, and other non-cash charges that are deemed to be not indicative of the Company’s core operating results.
(4)System implementation costs represent expenses related to the implementation of new enterprise resource planning, finance, payroll and human capital management software.
Three Months Ended September 30, 2024
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada TavernsTotal Reportable SegmentsCorporate and OtherConsolidated
Revenues
Gaming$38,619 $25,241 $11,824 $75,684 $— $75,684 
Food and beverage23,242 6,376 12,231 41,849 — 41,849 
Rooms26,968 1,970 — 28,938 — 28,938 
Other (1)
10,718 1,818 1,987 14,523 239 14,762 
Total revenues99,547 35,405 26,042 160,994 239 161,233 
Segment (expenses) income
Payroll and related(38,805)(9,440)(6,959)(55,204)— (55,204)
Operating expenses(31,570)(9,966)(9,972)(51,508)— (51,508)
Cost of sales(5,464)(2,101)(3,723)(11,288)— (11,288)
Other segment items (2) (3)
906 376 (71)1,211 (10,430)(9,219)
Adjusted EBITDA$24,614 $14,274 $5,317 $44,205 $(10,191)$34,014 
Adjustments
Depreciation and amortization(22,626)
Non-cash lease benefit65 
Share-based compensation(2,969)
Gain on disposal of assets256 
Preopening and related expenses(234)
Other, net(1,778)
Interest expense, net(7,959)
Loss before income tax benefit(1,231)
Income tax benefit6,398 
Net income$5,167 
(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” in the Company’s Annual Report for the year ended December 31, 2024 previously filed with the SEC.
(2)Other segment items for each reportable segment included the following items:
•Nevada Casino Resorts — expenses included depreciation and amortization, non-cash lease expense, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Locals Casinos — expenses included depreciation and amortization, non-cash lease expense, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Taverns — expenses included depreciation and amortization, non-cash lease benefit, preopening expenses, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
(3)Other segment items for the Corporate and Other category included payroll and related, operating expenses, depreciation and amortization, non-cash lease expense, share-based compensation, interest expense, and other non-cash charges that are deemed to be not indicative of the Company’s core operating results.
Nine Months Ended September 30, 2024
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada Taverns
Distributed Gaming (1)
Total Reportable SegmentsCorporate and OtherConsolidated
Revenues
Gaming$117,221 $79,272 $38,406 $5,981 $240,880 $— $240,880 
Food and beverage71,456 19,951 37,199 17 128,623 — 128,623 
Rooms82,795 6,965 — — 89,760 — 89,760 
Other (2)
30,180 6,074 6,396 21 42,671 680 43,351 
Total revenues301,652 112,262 82,001 6,019 501,934 680 502,614 
Segment (expenses) income
Payroll and related(117,591)(28,536)(20,622)— (166,749)— (166,749)
Operating expenses(92,306)(29,419)(29,211)— (150,936)— (150,936)
Cost of sales(16,512)(6,470)(11,218)— (34,200)— (34,200)
Other segment items (3) (4) (5)
3,654 901 (281)(5,535)(1,261)(33,270)(34,531)
Adjusted EBITDA$78,897 $48,738 $20,669 $484 $148,788 $(32,590)$116,198 
Adjustments
Depreciation and amortization(67,362)
Non-cash lease benefit298 
Share-based compensation(8,688)
Gain on disposal of assets242 
Gain on sale of business68,944 
Loss on debt extinguishment and modification(4,446)
Preopening and related expenses(377)
Other, net(8,850)
Interest expense, net(27,255)
Income before income tax provision68,704 
Income tax provision(20,951)
Net income$47,753 
(1)Relates to the Company’s distributed gaming operations in Nevada sold on January 10, 2024.
(2)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” in the Company’s Annual Report for the year ended December 31, 2024 previously filed with the SEC.
(3)Other segment items for each reportable segment included the following items:
•Nevada Casino Resorts — expenses included depreciation and amortization, non-cash lease benefit, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Locals Casinos — expenses included depreciation and amortization, non-cash lease expense, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
•Nevada Taverns — expenses included depreciation and amortization, non-cash lease benefit, preopening expenses, interest expense, and other non-cash charges that are deemed to be not indicative of the segment’s core operating results.
(4)Other segment items for the Distributed Gaming reportable segment divested in 2024 for the period of January 1, 2024 - January 10, 2024 included payroll and related, operating expenses, cost of sales and interest expense.
(5)Other segment items for the Corporate and Other category included payroll and related, operating expenses, depreciation and amortization, non-cash lease expense, share-based compensation, gain on sale of business, loss on debt extinguishment and modification, interest expense, and other non-cash charges that are deemed to be not indicative of the Company’s core operating results.
Assets
The Company’s assets by reportable segment consisted of the following amounts:
(In thousands)Nevada Casino ResortsNevada Locals CasinosNevada TavernsTotal Reportable SegmentsCorporate and OtherConsolidated
Balance at September 30, 2025$674,886 $156,017 $143,974 $974,877 $61,166 $1,036,043 
Balance at December 31, 2024$714,907 $158,864 $151,633 $1,025,404 $54,502 $1,079,906 
Capital Expenditures
The Company’s capital expenditures by reportable segment consisted of the following amounts:
(In thousands)
Nevada Casino Resorts (1)
Nevada Locals Casinos (2)
Nevada Taverns (3)
Distributed Gaming
Total Reportable Segments
Corporate and Other (4)
Consolidated
Nine Months Ended September 30, 2025$18,674 $6,396 $4,606 $— $29,676 $3,212 $32,888 
Nine Months Ended September 30, 2024$24,515 $8,796 $4,297 $240 $37,848 $3,848 $41,696 
(1)Capital expenditures in the Nevada Casino Resorts segment excluded non-cash purchases of property and equipment of $1.7 million and $0.7 million as of September 30, 2025 and 2024, respectively.
(2)Capital expenditures in the Nevada Locals Casinos segment excluded non-cash purchases of property and equipment of $1.9 million and $0.8 million as of September 30, 2025 and 2024, respectively.
(3)Capital expenditures in the Nevada Taverns segment excluded non-cash purchases of property and equipment of $0.3 million and $0.4 million as of September 30, 2025 and 2024, respectively.
(4)Capital expenditures for the Corporate and Other category excluded non-cash purchases of property and equipment of $0.7 million and $0.4 million as of September 30, 2025 and 2024, respectively.