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Goodwill And Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill And Intangible Assets [Abstract] |
Goodwill And Intangible Assets | 5. GOODWILL AND INTANGIBLE ASSETS (AS RESTATED) Goodwill Goodwill represents the future economic benefits of a business combination to the extent that the purchase price exceeds the fair value of the net identified tangible and intangible assets acquired and liabilities assumed. The Company determines the estimated fair value of the net identified tangible and intangible assets acquired and liabilities assumed after review and consideration of relevant information including discounted cash flows, quoted market prices, and estimates made by management. The Company tests goodwill for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary. Testing compares the estimated fair values of the reporting units to the reporting units’ carrying values. The reportable segments with goodwill balances as of December 31, 2024 included the United States, Canada and Poland. For the quantitative goodwill impairment test, the current fair value of each reporting unit with goodwill balances is estimated using a combination of (i) the income approach using the discounted cash flow method for projected revenue, EBITDAR and working capital, (ii) the market approach observing the price at which comparable companies or shares of comparable companies are bought or sold, and (iii) fair value measurements using either quoted market price or an estimate of fair value using a present value technique. The cost approach, estimating the cost of reproduction or replacement of an asset, was considered but not used because it does not adequately capture an operating company’s intangible value. If the carrying value of a reporting unit exceeds its estimated fair value, the Company will recognize an impairment for the amount by which the carrying value exceeds the reporting unit’s fair value. The impairment analysis requires management to make estimates about future operating results, valuation multiples and discount rates and assumptions based on historical data and consideration of future market conditions. Changes in the assumptions can materially affect these estimates. Given the uncertainty inherent in any projection, actual results may differ from the estimates and assumptions used, or conditions may change, which could result in additional impairment charges in the future. Such impairments could be material. The Company determined that goodwill related to the Nugget was impaired. On July 30, 2024, the Company announced that it was replacing the management team at the Nugget. During the annual forecast process that began mid-fourth quarter 2024, the new management team revised the future operating results assumptions due to revised future performance expectations for the Nugget based on estimated future market conditions and analysis of the property’s sustained decrease in performance since its acquisition. The Company recorded $43.7 million to impairment – goodwill in its consolidated statement of (loss) earnings for the year ended December 31, 2024 related to the impairment of the Nugget’s goodwill. As discussed in the Explanatory Note, the Company concluded that its previously issued consolidated financial statements for the year ended December 31, 2024 should be restated to reflect the correction of the calculation of the carrying value of invested capital used in the valuation of its Rocky Gap reporting unit. During the annual forecast process that began mid-fourth quarter 2024, the management team at Rocky Gap revised the future operating results assumptions due to delays in the execution of the planned player engagement strategy. As a result of the updated forecast and the corrected calculation of the carrying value of invested capital calculation, goodwill related to Rocky Gap was concluded to be impaired during the fourth quarter of the year ended December 31, 2024. The Company recorded $26.5 million to impairment – goodwill in its consolidated statement of (loss) earnings for the year ended December 31, 2024 related to the impairment of Rocky Gap’s goodwill. Changes in the carrying value of goodwill related to the United States, Canada and Poland segments are as follows:
Amounts in thousands |  | United States As Restated |  | Canada |  | Poland |  | Total As Restated
Gross carrying value January 1, 2023 |  | $ | 19,786 |  | $ | 7,142 |  | $ | 5,816 |  | $ | 32,744
Acquisitions |  |  | 70,189 |  |  | — |  |  | — |  |  | 70,189
Currency translation |  |  | — |  |  | 91 |  |  | 720 |  |  | 811
Gross carrying value December 31, 2023 |  |  | 89,975 |  |  | 7,233 |  |  | 6,536 |  |  | 103,744
Currency translation |  |  | — |  |  | (301) |  |  | (310) |  |  | (611)
Gross carrying value December 31, 2024 |  |  | 89,975 |  |  | 6,932 |  |  | 6,226 |  |  | 103,133
Accumulated impairment losses January 1, 2023 |  |  | (19,786) |  |  | (3,375) |  |  | — |  |  | (23,161)
Accumulated impairment losses December 31, 2023 |  |  | (19,786) |  |  | (3,375) |  |  | — |  |  | (23,161)
Impairments |  |  | (70,189) |  |  | — |  |  | — |  |  | (70,189)
Accumulated impairment losses December 31, 2024 |  |  | (89,975) |  |  | (3,375) |  |  | — |  |  | (93,350)
Net carrying value at December 31, 2023 |  | $ | 70,189 |  | $ | 3,858 |  | $ | 6,536 |  | $ | 80,583
Net carrying value at December 31, 2024 |  | $ | — |  | $ | 3,557 |  | $ | 6,226 |  | $ | 9,783
Intangible Assets The Company tests its indefinite-lived intangible assets as of October 1 each year, or more frequently as circumstances indicate it is necessary. The fair value is determined primarily using the multi-period excess earnings methodology (“MPEEM”) and the relief from royalty method under the income approach. Intangible assets at December 31, 2024 and 2023 consisted of the following:
|  |  | December 31, |  |  | December 31,
Amounts in thousands |  | 2024 |  | 2023
Finite-lived |  |  |  |  |  |
Casino licenses |  | $ | 3,055 |  | $ | 2,499
Less: accumulated amortization |  |  | (844) |  |  | (1,417)
|  |  | 2,211 |  |  | 1,082
Trademarks |  |  | 16,718 |  |  | 16,718
Less: accumulated amortization |  |  | (3,508) |  |  | (1,843)
|  |  | 13,210 |  |  | 14,875
Player's club lists |  |  | 59,253 |  |  | 59,253
Less: accumulated amortization |  |  | (21,048) |  |  | (14,272)
|  |  | 38,205 |  |  | 44,981
Total finite-lived intangible assets, net |  |  | 53,626 |  |  | 60,938
Indefinite-lived |  |  |  |  |  |
Casino licenses |  |  | 29,698 |  |  | 30,604
Trademarks |  |  | 1,592 |  |  | 1,665
Total indefinite-lived intangible assets |  |  | 31,290 |  |  | 32,269
Total intangible assets, net |  | $ | 84,916 |  | $ | 93,207
Trademarks The Company currently owns five trademarks: Century Casinos, Mountaineer, the Nugget, Rocky Gap and Casinos Poland. The trademarks are reported as intangible assets on the Company’s consolidated balance sheets. ‎ Trademarks: Finite-Lived The Company has determined that each of the Mountaineer, the Nugget and Rocky Gap trademarks, all reported in the United States segment, have a useful life of ten years after considering, among other things, the expected use of the asset, the expected useful life of other related assets or asset groups, any legal, regulatory, or contractual provisions that may limit the useful life, the effects of obsolescence, demand and other economic factors, and the maintenance expenditures required to promote and support the trademark. As such, the trademarks will be amortized over their useful lives. Costs incurred to renew trademarks that are finite-lived are expensed over the renewal period to general and administrative expenses on the Company’s consolidated statements of (loss) earnings. Changes in the carrying amount of the United States trademarks are as follows:
Amounts in thousands |  |  | Balance at January 1, 2024 |  |  | Acquisitions |  |  | Amortization |  |  | Balance at December 31, 2024
United States |  | $ | 14,875 |  | $ | — |  | $ | (1,665) |  | $ | 13,210
Amounts in thousands |  |  | Balance at January 1, 2023 |  |  | Acquisitions |  |  | Amortization |  |  | Balance at December 31, 2023
United States |  | $ | 1,638 |  | $ | 14,350 |  | $ | (1,113) |  | $ | 14,875
As of December 31, 2024, estimated amortization expense for the United States trademarks over the next five years was as follows:
Amounts in thousands |  |  |
2025 |  | $ | 1,665
2026 |  |  | 1,665
2027 |  |  | 1,665
2028 |  |  | 1,665
2029 |  |  | 1,645
Thereafter |  |  | 4,905
|  | $ | 13,210
Trademark amortization expense was $1.7 million, $1.1 million and $0.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. The weighted-average amortization period of the United States trademarks is 7.3 years. Trademarks: Indefinite-Lived The Company has determined the Casinos Poland trademark, reported in the Poland segment, and the Century Casinos trademark, reported in the Corporate and Other segment, have indefinite useful lives and therefore the Company does not amortize these trademarks. Costs incurred to renew trademarks that are indefinite-lived are expensed over the renewal period as general and administrative expenses on the Company’s consolidated statement of (loss) earnings. Changes in the carrying amount of the indefinite-lived trademarks are as follows:
Amounts in thousands |  |  | Balance at January 1, 2024 |  |  | Currency translation |  |  | Balance at December 31, 2024
Poland |  | $ | 1,557 |  | $ | (73) |  | $ | 1,484
Corporate and Other |  |  | 108 |  |  | — |  |  | 108
|  | $ | 1,665 |  | $ | (73) |  | $ | 1,592
Amounts in thousands |  |  | Balance at January 1, 2023 |  |  | Currency translation |  |  | Balance at December 31, 2023
Poland |  | $ | 1,386 |  | $ | 171 |  | $ | 1,557
Corporate and Other |  |  | 108 |  |  | — |  |  | 108
|  | $ | 1,494 |  | $ | 171 |  | $ | 1,665
‎ Casino Licenses: Finite-Lived As of December 31, 2024, Casinos Poland had six casino licenses, each with an original term of six years, which are reported as finite-lived intangible assets and are amortized over their respective useful lives. Changes in the carrying amount of the Casinos Poland licenses are as follows:
Amounts in thousands |  |  | Balance at January 1, 2024 |  |  | New Casino License |  |  | Amortization |  |  | Currency translation |  |  | Balance at December 31, 2024
Poland |  | $ | 1,082 |  | $ | 1,760 |  | $ | (556) |  | $ | (75) |  | $ | 2,211
Amounts in thousands |  |  | Balance at January 1, 2023 |  |  | New Casino License |  |  | Amortization |  |  | Currency translation |  |  | Balance at December 31, 2023
Poland |  | $ | 909 |  | $ | 537 |  | $ | (444) |  | $ | 80 |  | $ | 1,082
As of December 31, 2024, estimated amortization expense for the CPL casino licenses over the next five years was as follows:
Amounts in thousands |  |  |
2025 |  | $ | 472
2026 |  |  | 447
2027 |  |  | 447
2028 |  |  | 409
2029 |  |  | 372
Thereafter |  |  | 64
|  | $ | 2,211
These estimates do not reflect the impact of future foreign exchange rate changes or the continuation of the licenses following their expiration. Casino license amortization expense was $0.5 million, $0.4 million and $0.5 million for the years ended December 31, 2024, 2023 and 2022, respectively. The weighted average period before the next license expiration is 4.1 years. In Poland, casino gaming licenses are granted for a term of six years and are not renewable. Before a gaming license expires for a particular city, there is a public notification of an available license and any gaming company can apply for the license for that city. Although the Company applies for the new license prior to the expiration of the current license, there is no guarantee a new license will be awarded prior to the expiration of the current license or at all. In 2024, the Company applied for licenses at two locations at which it previously operated, and the licenses were not awarded to the Company. Casino Licenses: Indefinite-Lived The Company has determined that the casino licenses held in the United States segment from the Missouri Gaming Commission, the West Virginia Lottery Commission and the Nevada Gaming Commission (held by Smooth Bourbon) and those held in the Canada segment from the AGLC and the HRA are indefinite-lived. Costs incurred to renew licenses that are indefinite-lived are expensed over the renewal period to general and administrative expenses on the Company’s consolidated statements of (loss) earnings. Changes in the carrying amount of the licenses are as follows:
Amounts in thousands |  |  | Balance at ‎January 1, 2024 |  |  | Consolidation of Smooth Bourbon |  |  | Currency translation |  |  | Balance at ‎December 31, 2024
United States |  | $ | 18,962 |  | $ | — |  | $ | — |  | $ | 18,962
Canada |  |  | 11,642 |  |  | — |  |  | (906) |  |  | 10,736
|  | $ | 30,604 |  | $ | — |  | $ | (906) |  | $ | 29,698
Amounts in thousands |  |  | Balance at ‎January 1, 2023 |  |  | Consolidation of Smooth Bourbon |  |  | Currency translation |  |  | Balance at ‎December 31, 2023
United States |  | $ | 17,962 |  | $ | 1,000 |  | $ | — |  | $ | 18,962
Canada |  |  | 11,369 |  |  | — |  |  | 273 |  |  | 11,642
|  | $ | 29,331 |  | $ | 1,000 |  | $ | 273 |  | $ | 30,604
‎ Player’s Club Lists The Company has determined that the player’s club lists, reported in the United States segment, have a useful life of seven to 10 years based on estimated revenue attrition among the player’s club members as estimated by management over each property’s historical operations. As such, the player’s club lists are amortized over their useful lives. Changes in the carrying amount of the player’s club lists are as follows:
Amounts in thousands |  |  | Balance at January 1, 2024 |  |  | Acquisitions |  |  | Amortization |  |  | Balance at December 31, 2024
United States |  | $ | 44,981 |  | $ | — |  | $ | (6,776) |  | $ | 38,205
Amounts in thousands |  |  | Balance at January 1, 2023 |  |  | Acquisitions |  |  | Amortization |  |  | Balance at December 31, 2023
United States |  | $ | 11,399 |  | $ | 38,880 |  | $ | (5,298) |  | $ | 44,981
As of December 31, 2024, estimated amortization expense for the player’s club lists over the next five years was as follows:
Amounts in thousands |  |  |
2025 |  | $ | 6,798
2026 |  |  | 6,556
2027 |  |  | 3,888
2028 |  |  | 3,888
2029 |  |  | 3,888
Thereafter |  |  | 13,187
|  | $ | 38,205
Player’s club amortization expense was $6.8 million, $5.3 million and $2.9 million for the years ended December 31, 2024, 2023 and 2022, respectively. The weighted-average amortization period for the player’s club lists is 4.5 years.

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