| SEGMENT REPORTING |
12. SEGMENT REPORTING
The Company manages its reporting segments based on geographic regions within the United States and type of income. The Company’s management views the regions where each of its casino resorts are located as reportable segments, in addition to its contracted sports wagering segment. Reportable segments are aggregated based on geography, economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. Therefore, the Company has determined three reportable segments as follows: Midwest & South, West, and Contracted Sports Wagering (see Note 1).
The Company’s chief operating decision maker (“CODM”) is the chief executive officer.
The Company’s CODM assesses the performance of each segment by using Adjusted Segment EBITDA as the measure of segment profitability. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment.
The Company’s CODM uses Adjusted Segment EBITDA for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances and period-over-period fluctuations when making decisions about the allocation of operating and capital resources to each segment, as well as a basis for determining certain incentive compensation.
The following tables present the Company’s segment information:
|
|
|
|
|
|
|
(In thousands) |
|
December 31, |
|
|
2025 |
|
2024 |
Total Assets |
|
|
|
|
|
|
Midwest & South |
|
$ |
285,831 |
|
$ |
293,466 |
West |
|
|
339,720 |
|
|
360,057 |
Contracted Sports Wagering |
|
|
168 |
|
|
68 |
Corporate and Other |
|
|
24,090 |
|
|
19,743 |
|
|
$ |
649,809 |
|
$ |
673,334 |
|
|
|
|
|
|
|
(In thousands) |
|
December 31, |
|
|
2025 |
|
2024 |
Property and Equipment, net |
|
|
|
|
|
|
Midwest & South |
|
$ |
110,566 |
|
$ |
131,083 |
West |
|
|
301,734 |
|
|
315,426 |
Contracted Sports Wagering |
|
|
— |
|
|
— |
Corporate and Other |
|
|
156 |
|
|
165 |
|
|
$ |
412,456 |
|
$ |
446,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Year Ended December 31, 2025 |
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Midwest & South |
|
West |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
183,834 |
|
$ |
46,426 |
|
$ |
— |
|
$ |
230,260 |
Food and beverage |
|
|
32,647 |
|
|
6,655 |
|
|
— |
|
|
39,302 |
Hotel |
|
|
7,054 |
|
|
8,969 |
|
|
— |
|
|
16,023 |
Other operations,
including contracted sports wagering |
|
|
7,929 |
|
|
1,595 |
|
|
7,267 |
|
|
16,791 |
Total consolidated revenues |
|
|
231,464 |
|
|
63,645 |
|
|
7,267 |
|
|
302,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related costs |
|
|
61,489 |
|
|
24,415 |
|
|
— |
|
|
85,904 |
Cost of sales |
|
|
16,944 |
|
|
3,257 |
|
|
— |
|
|
20,201 |
Gaming taxes and other(1) |
|
|
42,326 |
|
|
6,095 |
|
|
47 |
|
|
48,468 |
Other segment items(2) |
|
|
61,589 |
|
|
32,307 |
|
|
264 |
|
|
94,160 |
Total segment expenses |
|
|
182,348 |
|
|
66,074 |
|
|
311 |
|
|
248,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
|
49,116 |
|
|
(2,429) |
|
|
6,956 |
|
|
53,643 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(42,609) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
(5,512) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
(310) |
Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
|
(32) |
Loss on sale of Stockman’s, net |
|
|
|
|
|
|
|
|
|
|
|
(320) |
Stock-based compensation, net |
|
|
|
|
|
|
|
|
|
|
|
(1,736) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
3,124 |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
(42,741) |
Other |
|
|
|
|
|
|
|
|
|
|
|
(50) |
|
|
|
|
|
|
|
|
|
|
|
|
(42,791) |
Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
|
(39,667) |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
530 |
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(40,197) |
__________
| (1) |
Excludes real estate and property taxes. |
| (2) |
For each reportable segment, the “Other segment items” category includes: |
|
● |
Midwest & South and West ─ Advertising and marketing, rent expense, insurance, and other miscellaneous costs.
|
|
● |
Contracted Sports Wagering ─ Credit loss expense net of recoveries, as well as certain overhead expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Year Ended December 31, 2024 |
|
|
|
|
|
|
Contracted |
|
|
|
|
|
|
|
|
Sports |
|
|
|
|
Midwest & South |
|
West |
|
Wagering |
|
Total |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Casino |
|
$ |
169,107 |
|
$ |
47,773 |
|
$ |
— |
|
$ |
216,880 |
Food and beverage |
|
|
34,410 |
|
|
7,461 |
|
|
— |
|
|
41,871 |
Hotel |
|
|
8,260 |
|
|
7,449 |
|
|
— |
|
|
15,709 |
Other operations,
including contracted sports wagering |
|
|
7,849 |
|
|
965 |
|
|
8,791 |
|
|
17,605 |
Total consolidated revenues |
|
|
219,626 |
|
|
63,648 |
|
|
8,791 |
|
|
292,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related costs |
|
|
57,822 |
|
|
25,010 |
|
|
— |
|
|
82,832 |
Cost of sales |
|
|
18,403 |
|
|
4,278 |
|
|
— |
|
|
22,681 |
Gaming taxes and other(1) |
|
|
37,810 |
|
|
6,090 |
|
|
57 |
|
|
43,957 |
Other segment items(2) |
|
|
59,854 |
|
|
29,572 |
|
|
(769) |
|
|
88,657 |
Total segment expenses |
|
|
173,889 |
|
|
64,950 |
|
|
(712) |
|
|
238,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment EBITDA |
|
|
45,737 |
|
|
(1,302) |
|
|
9,503 |
|
|
53,938 |
Other operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
(42,101) |
Corporate expenses |
|
|
|
|
|
|
|
|
|
|
|
(5,290) |
Project development costs |
|
|
|
|
|
|
|
|
|
|
|
(368) |
Preopening costs |
|
|
|
|
|
|
|
|
|
|
|
(2,464) |
Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
|
(18) |
Gain on sale of Stockman’s |
|
|
|
|
|
|
|
|
|
|
|
1,926 |
Stock-based compensation |
|
|
|
|
|
|
|
|
|
|
|
(2,873) |
Operating income |
|
|
|
|
|
|
|
|
|
|
|
2,750 |
Other expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
(43,201) |
Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
|
(40,451) |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
221 |
Net loss |
|
|
|
|
|
|
|
|
|
|
$ |
(40,672) |
__________
| (1) |
Excludes real estate and property taxes. |
| (2) |
For each reportable segment, the “Other segment items” category includes: |
|
● |
Midwest & South and West ─ Advertising and marketing, rent expense, insurance, and other miscellaneous costs.
|
|
● |
Contracted Sports Wagering ─ Credit loss expense net of recoveries, as well as certain overhead expenses.
|
|