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REVENUE RECOGNITION | 12 Months Ended
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Dec. 31, 2020
Revenue from Contract with Customer [Abstract] |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company accounts for revenue earned from contracts with customers under ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”). The Company generates revenue from five principal sources: gaming services, hotel, racing, food and beverage and other. Gaming revenue includes the share of VLT revenue for Twin River Casino Hotel and Tiverton Casino Hotel, in each case, as determined by each property’s respective VLT contracts with the State of Rhode Island. Twin River Casino Hotel is entitled to a 28.85% share of VLT revenue on the initial 3,002 units and a 26.00% share on VLT revenue generated from units in excess of 3,002 units. Tiverton Casino Hotel is, and Newport Grand was, entitled to receive a percentage of VLT revenue that is equivalent to the percentage received by Twin River Casino Hotel. Gaming revenue also includes Twin River Casino Hotel’s and Tiverton Casino Hotel’s share of table games revenue. Twin River Casino Hotel and Tiverton Casino Hotel each were entitled to an 83.5% share of table games revenue generated as of December 31, 2020 and 2019. Revenue is recognized when the wager is complete, which is when the customer has received the benefits of the Company’s gaming services and the Company has a present right to payment. The Company records revenue from its Rhode Island operations on a net basis which is the percentage share of VLT revenue received as the Company acts as an agent in operating the gaming services on behalf of the State of Rhode Island. Gaming revenue also includes Dover Downs’ share of revenue as determined under the Delaware State Lottery Code from the date of its acquisition. Dover Downs is authorized to conduct video lottery, sports wagering, table game and internet gaming operations as one of three “Licensed Agents” under the Delaware State Lottery Code. Licensing, administration and control of gaming operations in Delaware is under the Delaware State Lottery Office and Delaware’s Department of Safety and Homeland Security, Division of Gaming Enforcement. As of December 31, 2020 and 2019, Dover Downs was entitled to an approximate 42% share of VLT revenue and 80% share of table games revenue. Revenue is recognized when the wager is complete, which is when the customer has received the benefits of the Company’s gaming services and the Company has a present right to payment. The Company records revenue from its Delaware operations on a net basis, which is the percentage share of the VLT and table games revenue received, as the Company acts as an agent in operating the gaming services on behalf of the State of Delaware. Gaming revenue also includes the casino revenue of Hard Rock Biloxi, the Black Hawk Casinos, Casino KC and Casino Vicksburg, beginning July 1, 2020, Bally’s Atlantic City, beginning November 18, 2020, and Shreveport, beginning December 23, 2020, which is the aggregate net difference between gaming wins and losses, with liabilities recognized for funds deposited by customers before gaming play occurs, for chips outstanding and “ticket-in, ticket-out” coupons in the customers’ possession, and for accruals related to the anticipated payout of progressive jackpots. Progressive slot machines, which contain base jackpots that increase at a progressive rate based on the number of credits played, are charged to revenue as the amount of the progressive jackpots increase. Gaming services contracts have two performance obligations for those customers earning incentives under the Company’s player loyalty programs and a single performance obligation for customers who do not participate in the programs. The Company applies a practical expedient by accounting for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the effects on the consolidated financial statements of applying the revenue recognition guidance to the portfolio to not differ materially from that which would result if applying the guidance to an individual wagering contract. For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with incentives earned under loyalty programs, the Company allocates an amount to the loyalty program contract liability based on the stand-alone selling price of the incentive earned for a hotel room stay, food and beverage or other amenity. The estimated standalone selling price of hotel rooms is determined based on observable prices. The standalone selling price of food and beverage, and other miscellaneous goods and services is determined based upon the actual retail prices charged to customers for those items. The performance obligations for the incentives earned under the loyalty programs are deferred and recognized as revenue when the customer redeems the incentive. The allocated revenue for gaming wagers is recognized when the wagers occur as all such wagers settle immediately. The estimated retail value related to goods and services provided to guests without charge or upon redemption under the Company’s player loyalty programs included in departmental revenues, and therefore reducing gaming revenues, are as follows for the years ended December 31, 2020, 2019 and 2018:
| Years Ended December 31,
(in thousands) | 2020 |  | 2019 |  | 2018
Hotel | $ | 15,099 |  |  | $ | 19,939 |  |  | $ | 11,697 |
Food and beverage | 18,548 |  |  | 31,569 |  |  | 23,051 |
Other | 3,031 |  |  | 7,594 |  |  | 5,772 |
| $ | 36,678 |  |  | $ | 59,102 |  |  | $ | 40,520 |
During 2020, the Company has entered into several multi-year agreements with third-party operators for online sports betting and iGaming market access in the states of Colorado and New Jersey, from which the Company has received or expects to receive one-time, up front market access fees in cash or equity securities (specific to one operator agreement) and certain other fees in cash generally based on a percentage of the gross gaming revenue generated by the operator, with certain annual minimum guarantees due to the Company. The one-time market access fees received have been recorded as deferred revenue and will be recognized as revenue ratably over the respective contract terms, beginning with the commencement of operations of each respective agreement. During the second quarter of 2020, operations related to certain agreements in the state of Colorado commenced, resulting in the recognition of $2.0 million of gaming revenue for the year ended December 31, 2020. Deferred revenue associated with third-party operators for online sports betting and iGaming market access was $2.0 million as of December 31, 2020. Racing revenue includes Twin River Casino Hotel’s, Tiverton Casino Hotel’s (upon its opening on September 1, 2018), Newport Grand’s (until its closing on August 28, 2018), Mile High USA’s and Dover Downs’ share of wagering from live racing and the import of simulcast signals. Racing revenue is recognized when the wager is complete based on an established take-out percentage. The Company functions as an agent to the pari-mutuel pool. Therefore, fees and obligations related to the Company’s share of purse funding, simulcasting fees, tote fees, pari-mutuel taxes, and other fees directly related to the Company’s racing operations are reported on a net basis and included as a deduction to racing revenue. Hotel revenue is recognized at the time of occupancy, which is when the customer obtains control through occupancy of the room. Advance deposits for hotel rooms are recorded as liabilities until revenue recognition criteria are met. Food and beverage revenue are recognized at the time the goods are sold from Company-operated outlets. All other revenues are recognized at the time the goods are sold or the service is provided. Sales tax and other taxes collected on behalf of governmental authorities are accounted for on a net basis and are not included in revenue or operating expenses. The following table provides a disaggregation of total revenue by segment (in thousands):
Years Ended December 31, | Rhode Island |  | Mid-Atlantic |  | Southeast |  | West |  |  |  | Other |  | Total
2020 |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 110,292 |  |  | $ | 50,904 |  |  | $ | 86,851 |  |  | $ | 43,611 |  |  |  |  | $ | — |  |  | $ | 291,658 |
Racing | 811 |  |  | 872 |  |  | — |  |  | — |  |  |  |  | 4,729 |  |  | 6,412 |
Hotel | 1,225 |  |  | 9,321 |  |  | 14,196 |  |  | — |  |  |  |  | — |  |  | 24,742 |
Food and beverage | 9,573 |  |  | 9,538 |  |  | 10,262 |  |  | 2,719 |  |  |  |  | 40 |  |  | 32,132 |
Other | 10,127 |  |  | 3,041 |  |  | 3,523 |  |  | 1,002 |  |  |  |  | 155 |  |  | 17,848 |
Total revenue | $ | 132,028 |  |  | $ | 73,676 |  |  | $ | 114,832 |  |  | $ | 47,332 |  |  |  |  | $ | 4,924 |  |  | $ | 372,792 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 239,836 |  |  | $ | 43,865 |  |  | $ | 84,247 |  |  | n/a |  |  |  | $ | — |  |  | $ | 367,948 |
Racing | 3,536 |  |  | 931 |  |  | — |  |  | n/a |  |  |  | 8,647 |  |  | 13,114 |
Hotel | 6,675 |  |  | 12,228 |  |  | 20,085 |  |  | n/a |  |  |  | — |  |  | 38,988 |
Food and beverage | 33,124 |  |  | 19,799 |  |  | 16,886 |  |  | n/a |  |  |  | 95 |  |  | 69,904 |
Other | 23,135 |  |  | 3,983 |  |  | 6,214 |  |  | n/a |  |  |  | 291 |  |  | 33,623 |
Total revenue | $ | 306,306 |  |  | $ | 80,806 |  |  | $ | 127,432 |  |  | n/a |  |  |  | $ | 9,033 |  |  | $ | 523,577 |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Gaming | $ | 246,126 |  |  | n/a |  | $ | 81,614 |  |  | n/a |  |  |  | $ | — |  |  | $ | 327,740 |
Racing | 3,796 |  |  | n/a |  | — |  |  | n/a |  |  |  | 9,362 |  |  | 13,158 |
Hotel | 1,361 |  |  | n/a |  | 19,978 |  |  | n/a |  |  |  | — |  |  | 21,339 |
Food and beverage | 29,922 |  |  | n/a |  | 18,342 |  |  | n/a |  |  |  | 116 |  |  | 48,380 |
Other | 21,447 |  |  | n/a |  | 5,203 |  |  | n/a |  |  |  | 270 |  |  | 26,920 |
Total revenue | $ | 302,652 |  |  | n/a |  | $ | 125,137 |  |  | n/a |  |  |  | $ | 9,748 |  |  | $ | 437,537 |
Revenue included in operations from Dover Downs from the date of its acquisition, March 28, 2019, through December 31, 2020, and Bally’s Atlantic City from the date of its acquisition, November 18, 2020, through December 31, 2020, is reported in the “Mid-Atlantic” segment. Revenue included in operations from the Black Hawk Casinos, from the date of their acquisition, January 23, 2020, through December 31, 2020, and Casino KC from the date of its acquisition, July 1, 2020, through December 31, 2020, is reported in the “West” segment. Revenue included in operations of Casino Vicksburg, from the date of its acquisition, July 1, 2020, through December 31, 2020, and Shreveport from the date of its acquisition, December 23, 2020, through December 31, 2020, is reported in the “Southeast” segment. Refer to Note 5 “Acquisitions” for further information. The Company’s receivables related to contracts with customers are primarily comprised of marker balances and other amounts due from gaming activities, amounts due for hotel stays, and amounts due from tracks and off track betting (“OTB”) locations. The Company’s receivables related to contracts with customers were $12.0 million and $16.0 million as of December 31, 2020 and December 31, 2019, respectively. The Company has the following liabilities related to contracts with customers: liabilities for loyalty programs, deposits made in advance for goods and services yet to be provided, unpaid wagers, and deferred revenue associated with third-party operators for online sports betting and iGaming market access. Loyalty program incentives earned by customers are typically redeemed within one year from when they are earned and expire if a customer’s account is inactive for more than twelve months; therefore, the majority of these incentives outstanding at the end of a period will either be redeemed or expire within the next twelve months. The Company’s contract liabilities related to loyalty programs were $15.5 million, and $12.4 million as of December 31, 2020 and December 31, 2019, respectively, and are included in “Accrued liabilities” in the consolidated balance sheets. The Company recognized $5.5 million, $10.0 million and $8.2 million of revenue related to loyalty program redemptions for the years ended December 31, 2020, 2019 and 2018, respectively. Deferred revenue associated with third-party operators for online sports betting and iGaming market access was $2.0 million as of December 31, 2020, the short and long-term portions of which are included in “Accrued liabilities” and “Other long-term liabilities” in the consolidated balance sheets, respectively. Advance deposits are typically for future banquet events and to reserve hotel rooms. These deposits are usually received weeks or months in advance of the event or hotel stay. The Company’s contract liabilities related to deposits from customers were $1.0 million and $1.4 million as of December 31, 2020 and 2019, respectively, and are included in "”Accrued liabilities” in the consolidated balance sheets. Unpaid wagers include unpaid pari-mutuel tickets and unpaid sports bet tickets. Unpaid pari-mutuel tickets not claimed within twelve months by the customer who earned them are escheated to the state. The Company’s contract liabilities related to unpaid tickets were $0.9 million and $1.1 million as of December 31, 2020 and 2019, respectively, and are included in “Accrued liabilities” in the consolidated balance sheets.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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