Annual report [Section 13 and 15(d), not S-K Item 405]

GOODWILL AND OTHER INTANGIBLES

v3.25.0.1
GOODWILL AND OTHER INTANGIBLES
12 Months Ended
Dec. 31, 2024
GOODWILL AND OTHER INTANGIBLES  
GOODWILL AND OTHER INTANGIBLES

5. GOODWILL AND OTHER INTANGIBLES

Goodwill:

The following table sets forth changes in the carrying value of goodwill by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

​

​

​

​

​

​

​

Contracted

​

​

​

​

​

​

​

​

​

​

​

Sports

​

​

​

​

​

Midwest & South

​

West

​

Wagering

​

Total Goodwill, Net

Balance, January 1, 2023

​

$

14,671

​

$

6,615

​

$

—

​

$

21,286

Account activity

​

​

—

​

​

—

​

​

—

​

​

—

Balance, December 31, 2023

​

​

14,671

​

​

6,615

​

​

—

​

​

21,286

Goodwill related to assets held for sale(1)

​

​

—

​

​

(1,809)

​

​

—

​

​

(1,809)

Balance, December 31, 2024

​

$

14,671

​

$

4,806

​

$

—

​

$

19,477

__________

(1) Related to assets held for sale at Stockman’s (see Note 3 for details).

​

Other Intangible Assets:

The following tables set forth changes in the carrying value of intangible assets other than goodwill:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

​

December 31, 2024

​

    

Weighted Useful

    

Gross

    

​

​

    

​

​

    

Other

​

​

Life Remaining

​

Carrying

​

​

​

Accumulated

​

Intangible

​

​

(in years)

​

Value

​

Additions

​

Amortization

​

Assets, Net

Land Lease and Water Rights

 

33.3

​

$

1,420

​

$

—

​

$

(381)

​

$

1,039

Development Agreement

​

4.3

​

​

275

​

​

—

​

​

(38)

​

​

237

Gaming Licenses

​

10.0

​

​

555

​

​

—

​

​

(26)

​

​

529

Gaming Licenses

 

Indefinite

​

 

72,443

​

 

19,961

​

 

—

​

 

92,404

Trade Names

 

Indefinite

​

 

1,800

​

 

—

​

 

—

​

 

1,800

Trademarks

 

Indefinite

​

 

124

​

 

—

​

 

—

​

 

124

​

​

​

​

$

76,617

​

$

19,961

​

$

(445)

​

$

96,133

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(In thousands)

​

December 31, 2023

​

    

Weighted Useful

    

Gross

    

​

​

    

​

​

    

Other

​

​

Life Remaining

​

Carrying

​

​

​

Accumulated

​

Intangible

​

​

(in years)

​

Value

​

Additions

​

Amortization

​

Assets, Net

Land Lease and Water Rights

 

34.3

​

$

1,420

 

$

—

 

$

(346)

 

$

1,074

Development Agreement

​

5.0

​

​

—

​

​

275

​

​

—

​

​

275

Gaming Licenses

 

Indefinite

 

​

7,843

 

​

65,155

 

​

—

 

​

72,998

Trade Names

 

Indefinite

 

​

1,800

 

​

—

 

​

—

 

​

1,800

Trademarks

 

Indefinite

 

​

121

 

​

3

 

​

—

 

​

124

​

​

​

​

$

11,184

​

$

65,433

​

$

(346)

​

$

76,271

​

There were no impairments to goodwill or other intangible assets during 2023 and 2024.

Land Lease Acquisition Costs and Water Rights. Upon its acquisition by the Company in 2012, Silver Slipper recognized intangible assets related to its lease agreement with Cure Land Company, LLC (see Note 8). The lease was valued at $970,000 and represents the excess fair value of the land over the estimated net present value of the land lease payments, and the water rights value of $450,000 represents the fair value of the water rights based upon market rates in Hancock County, Mississippi.

Development Agreement. Chamonix recognized an intangible asset related to its payment of $275,000 in 2023 under a 5-year agreement with a third party to design, develop, construct, and operate its high-end steakhouse under certain exclusivity provisions. Amortization began upon the commencement of operations in April 2024.

Gaming Licenses. Gaming licenses primarily represent the value of the license to conduct gaming in certain jurisdictions, which are subject to highly extensive regulatory oversight and, in some cases, a limitation on the number of licenses available for issuance. The values of gaming licenses were primarily estimated using a multi-period excess earning method of the income approach, which examines the economic returns contributed by the identified tangible and intangible assets of a company, and then isolates the excess return, which is attributable to the asset being valued, based on cash flows attributable to the gaming license.

During 2023, a gaming license payment of $50.3 million was required to open American Place. Starting on December 31, 2023, additional accruals were made to the estimated cost of such acquisition, reflecting the contingent component of an additional one-time gaming license fee in Illinois (see Note 10).

Trade Names. Trade names represent the value of the Bronco Billy’s casino name, which has existed for approximately 33 years and provides brand recognition. The value was estimated using a relief-from-royalty method of the income approach based upon comparable trade name royalty agreements.

Current and Future Amortization. Intangible asset amortization expense was approximately $99,000 and $31,000 for the years ended December 31, 2024 and 2023, respectively.

​

Future amortization expense for intangible assets is as follows:

​

​

​

​

(In thousands)

​

​

​

​

​

​

​

For Years ending December 31, 

    

Amortization Expense

2025

​

$

139

2026

​

 

139

2027

​

 

139

2028

​

 

139

2029

​

 

101

Thereafter

​

 

1,148

​

​

$

1,805

​