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What changed in CENTURY CASINOS INC /CO/'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of CENTURY CASINOS INC /CO/'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+390 added−440 removedSource: 10-K (2025-03-13) vs 10-K (2024-03-14)

Top changes in CENTURY CASINOS INC /CO/'s 2024 10-K

390 paragraphs added · 440 removed · 287 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

58 edited+13 added−45 removed23 unchanged
Biggest changeCaruthersville also has a food and beverage venue, 27 space RV park and 1,343 surface parking spaces neighboring the casino. We are currently building a new land-based casino with a small hotel near the pavilion site. See “Business Developments – Caruthersville Land-Based Casino and Hotel” below. Century Casino Cape Girardeau – Cape Girardeau, Missouri (“CCG” or “Cape Girardeau”).
Biggest changeCCV and our neighboring hotel, The Farmstead, are located in southeast Missouri along the Mississippi River approximately 95 miles north of Memphis, Tennessee. In November 2024, we opened a new land-based casino and hotel. CCV also has a food and beverage venue, 27-space RV park and 1,343 surface parking spaces neighboring the casino.
In 2022, we acquired 50% of Smooth Bourbon LLC (“Smooth Bourbon”), which leases the land and building for the Nugget Casino Resort (“Nugget”) in Reno-Sparks, Nevada. In 2023, we acquired the operations of the Nugget and Rocky Gap Casino, Resort & Golf (“Rocky Gap”) in Flintstone, Maryland.
In 2022, we acquired 50% of Smooth Bourbon LLC (“Smooth Bourbon”), which leases the land and building for the Nugget Casino Resort (the “Nugget”) in Reno-Sparks, Nevada. In 2023, we acquired the operations of the Nugget and Rocky Gap Casino, Resort & Golf (“Rocky Gap”) in Flintstone, Maryland.
In addition to the casino and hotel, the facility has five food and beverage venues, an 18-hole golf course, a 5,000 square foot events center, several meeting spaces, a spa, several outdoor activities and approximately 750 surface parking spaces neighboring the casino. Midwest – Century Casino Caruthersville – Caruthersville, Missouri (“CCV” or “Caruthersville”).
In addition to the casino and hotel, the facility has five food and beverage venues, an 18-hole golf course, a 5,000 square foot events center, several meeting spaces, a spa, several outdoor activities and approximately 750 surface parking spaces neighboring the casino. Midwest – Century Casino & Hotel – Caruthersville – Caruthersville, Missouri (“CCV” or “Caruthersville”).
Nugget is located in Reno-Sparks, Nevada on Interstate 80 approximately three miles from the Reno-Tahoe International Airport. In addition to the casino and hotel, the full-service resort includes 110,000 square feet of convention space, an 8,555 seat outdoor amphitheater, seven food and beverage venues, a 5-story 1,200 space parking garage and 1,272 additional parking spaces.
The Nugget is located in Reno-Sparks, Nevada on Interstate 80 approximately three miles from the Reno-Tahoe International Airport. In addition to the casino and hotel, the full-service resort includes 110,000 square feet of convention space, an 8,555 seat outdoor amphitheater, seven food and beverage venues, a 5-story 1,200 space parking garage and 1,272 additional parking spaces.
At all of our United States properties, winter weather conditions may have an adverse impact on daily business levels. 8 Canada – Canada generally attracts a steady influx of customers throughout the calendar year. However, both Century Downs and Century Mile attract additional customers during the summer months of the racing season as Alberta residents partake in more outdoor activities.
At all of our United States properties, winter weather conditions may have an adverse impact on daily business levels. Canada – Canada generally attracts a steady influx of customers throughout the calendar year. However, both Century Downs and Century Mile attract additional customers during the summer months of the racing season as Alberta residents partake in more outdoor activities.
Century Casino St. Albert – Edmonton, Alberta, Canada (“CSA” or “St. Albert”). CSA is located in St. Albert, Alberta northwest of Edmonton. In addition to the casino, the facility has an off-track betting parlor, a restaurant, a bar, a lounge, a banquet facility and 585 surface parking spaces.
Century Casino St. Albert – St. Albert, Alberta, Canada (“CSA” or “St. Albert”). CSA is located in St. Albert, Alberta northwest of Edmonton. In addition to the casino, the facility has an off-track betting parlor, a restaurant, a bar, a sports bar and lounge, a banquet facility and 585 surface parking spaces.
In addition to the casino and hotel, the facility has an off-track betting parlor, a 10,700 square foot showroom that can seat approximately 500 customers, a 3,000 square foot showroom that can seat approximately 200 customers where we host Yuk Yuks Comedy Club comedic performances, two restaurants, a sports bar and lounge and two additional bars, 600 surface parking spaces and a complimentary underground heated parking garage with 300 additional s paces.
In addition to the casino and hotel, the facility has an off-track betting parlor, a 10,700 square foot showroom that can seat approximately 500 customers, a 3,000 square foot showroom that can seat approximately 200 customers where we host Yuk Yuks Comedy Club comedic performances, a restaurant, a sports bar and lounge and two additional bars, 600 surface parking spaces and a complimentary underground heated parking garage with 300 additional s paces.
CMR operates the majority of the Alberta pari-mutuel network and is the exclusive operator for its home market area covering Edmonton, Calgary and their respective surrounding areas. In addition to permitting customers to place wagers at off-track betting locations, the network offers advance deposit wagering for online wagering. Poland There are 51 casino licenses available throughout Poland.
CMR operates the majority of the Alberta pari-mutuel network and is the exclusive operator for its home market area covering Edmonton, Calgary and their respective surrounding areas. In addition to permitting customers to place wagers at off-track betting locations, the network offers advance deposit wagering for online wagering. Poland There are 52 casino licenses available throughout Poland.
Poland Casinos Poland – Poland (“CPL” or “Casinos Poland”). CPL has been in operation since 1989 and currently has eight casino licenses throughout Poland. Our subsidiary CRM owns 66.6% of Casinos Poland and we consolidate CPL as a majority-owned subsidiary for which we have a controlling financial interest.
Poland Casinos Poland – Poland (“CPL” or “Casinos Poland”). CPL has been in operation since 1989 and currently has six casino licenses throughout Poland. Our subsidiary CRM owns 66.6% of Casinos Poland, and we consolidate CPL as a majority-owned subsidiary for which we have a controlling financial interest.
Our main marketing activities for these properties focus on casino branding, promoting the racetracks, the player’s club program and promotions made through various marketing channels. Our casinos in Alberta participate in the Winner’s Edge, an Alberta-wide casino loyalty program implemented by the AGLC.
Our main marketing activities for these properties focus on casino branding, promoting the racetracks, the players’ club program and promotions made through various marketing channels. Our casinos in Alberta participate in the Winner’s Edge, an Alberta-wide casino loyalty program implemented by the AGLC.
In addition to the casino and hotel, the facility has two bars, a restaurant and 271 surface parking spaces neighboring the casino. Sports betting is available through two mobile sports betting apps. West – Nugget Casino Resort – Reno-Sparks, Nevada (“NUG” or “Nugget”) .
In addition to the casino and hotel, the facility has two bars, a restaurant and 271 surface parking spaces neighboring the casino. Sports betting is available through a mobile sports betting app. West – Nugget Casino Resort – Reno-Sparks, Nevada (“NUG” or “Nugget”) .
None of the information posted to our website is incorporated by reference into this report.
None of the information posted to our website is incorporated by reference into this report. ‎ 8
Our management is confident that through working with charitable and non-profit organizations we are able to make a positive difference to the lives of people living in the communities in which we have operations. Our initiatives include donation boxes on the casino floors, volunteer events, fundraising drives, event sponsorships and charity events.
Our management is confident that through working with charitable and non-profit organizations we are able to make a positive difference to the lives of people living in the communities in which we operate. Our initiatives include donation boxes on the casino floors, volunteer events, fundraising drives, event sponsorships and charity events.
The Polish government issues casino licenses in Poland by district, and there are additional casinos in each district in which CPL operates. For example, five other casinos in the Warsaw district compete with our three casinos operating in Warsaw. The Polish Minister of Finance does not disclose individual casino data.
The Polish government issues casino licenses in Poland by district, and there are additional casinos in each district in which CPL operates. For example, six other casinos in the Warsaw district compete with our two casinos operating in Warsaw. The Polish Minister of Finance does not disclose individual casino data.
Players who sign up for the program can earn points that can be redeemed for free play, take part in monthly contests and receive discounts on food in casino restaurants. Our casinos offer Winner’s Edge in addition to our own loyalty program.
Players who sign up for the program can earn points that can be redeemed for free play, take part in monthly contests and receive discounts on food in any participating casino restaurant. Our casinos offer 6 Winner’s Edge in addition to our own loyalty program.
While our two properties share a small portion of our customer database, we do not believe that our properties compete against one another for customers in any material way. The closest competitor to Cape Girardeau is located approximately 56 miles away in southern Illinois. This new competitor opened in August 2023.
While our two properties share a small portion of our customer database, we do not believe that our properties compete against one another for customers in any material way. The closest competitor to Cape Girardeau is located approximately 56 miles away in southern Illinois. The majority of Caruthersville’s customers reside in Tennessee.
Rocky Gap attracts customers from southwest Pennsylvania including Pittsburgh, Maryland including Baltimore, eastern West Virginia, and northern Virginia. Midwest – Cape Girardeau and Caruthersville have competitors in Missouri, Arkansas and Illinois. The distance between our Cape Girardeau and Caruthersville properties is 85 miles.
The property also operates the only Jack Nicklaus Signature Golf Course in Maryland. Rocky Gap attracts customers from southwest Pennsylvania including Pittsburgh, Maryland including Baltimore, eastern West Virginia, and northern Virginia. Midwest – Cape Girardeau and Caruthersville have competitors in Missouri, Arkansas and Illinois. The distance between our Cape Girardeau and Caruthersville properties is 85 miles.
Local building, parking and fire codes and similar regulations also could impact our operations and any proposed development of our properties. We also deal with significant amounts of cash in our operations and are subject to various reporting and anti-money laundering laws and regulations.
The loss or suspension of a liquor license could significantly impair our operations. Local building, parking and fire codes and similar regulations also could impact our operations and any proposed development of our properties. We also deal with significant amounts of cash in our operations and are subject to various reporting and anti-money laundering laws and regulations.
Any violations of anti-money laundering laws or regulations by any of our properties could have an adverse effect on our business. Employees and Human Capital Employees – As of December 31, 2023, we had approximately 3,243 full-time employees and 910 part-time employees . During busier months, a casino may supplement its permanent staff with seasonal employees.
Any violations of anti-money laundering laws or regulations by any of our properties could have an adverse effect on our business. Employees and Human Capital Employees – As of December 31, 2024, we had 3,181 full-time employees and 886 part-time employees . During busier months, our casinos may supplement permanent staff with seasonal employees.
All visitors to our properties are offered the opportunity to join our players’ club . We maintain a proprietary database that consists primarily of slot machine customers that allows us to create effective targeted marketing and promotional programs, point incentives, cash and merchandise giveaways, coupons, downloadable promotional credits, preferred parking, food, lodging, game tournaments and other special events.
We maintain a proprietary database that consists primarily of slot machine customers that allows us to create effective targeted marketing and promotional programs, point incentives, cash and merchandise giveaways, coupons, downloadable promotional credits, preferred parking, food, lodging, game tournaments and other special events.
We have partnered with two sports betting operators and two iGaming partners in West Virginia. Rocky Gap has five competitors within 80 miles; four in Pennsylvania and one in West Virginia. Rocky Gap is the only AAA 4-Diamond Award® casino resort in western Maryland and operates the only Jack Nicklaus Signature Golf Course in the state of Maryland.
We have partnered with two sports betting operators and two iGaming partners in West Virginia. Rocky Gap has five competitors within 80 miles, four in Pennsylvania and one in West Virginia. Rocky Gap is the longest running AAA 4-Diamond Award® designee in the state and the only awarded casino resort in western Maryland.
Sports betting is available in the casino’s sports book. Canada Century Casino & Hotel – Edmonton, Alberta, Canada (“CRA” or “Edmonton”). CRA is located in Edmonton, Alberta.
Sports betting is available in the casino’s sports book with a sports bar and television viewing area. Canada Century Casino & Hotel – Edmonton, Alberta, Canada (“CRA” or “Edmonton”). CRA is located in Edmonton, Alberta.
Our subsidiary Century Resorts Management GmbH (“CRM”) owns 75% of United Horsemen of Alberta Inc. dba Century Downs Racetrack and Casino, which in turn owns and operates a REC and horse racetrack.
CDR is located in Calgary, Alberta, seven miles from the Calgary International Airport. Our subsidiary Century Resorts Management GmbH (“CRM”) owns 75% of United Horsemen of Alberta Inc. dba Century Downs Racetrack and Casino, which in turn owns and operates a REC and horse racetrack.
We have not experienced a negative impact to our results of operations in Canada from online gaming; however, increased competition from online gaming could occur and adversely affect our results of operations in Alberta in the future.
The website competes primarily with unregulated online gaming websites that are currently available to Alberta residents. We have not experienced a negative impact to our results of operations in Canada from online gaming; however, increased competition from online gaming could occur and adversely affect our results of operations in Alberta in the future.
As a company, we strive to be community leaders and to add value through our products, services, social responsibility and sharing of our financial and human resources to achieve a positive impact on our employees, their families and our fellow citizens.
As a company, we strive to be community leaders and to add value through our products, services, social responsibility and sharing of our financial and human resources to achieve a positive impact on our employees, their families and our fellow citizens. We have committed to supporting our local communities, including through contributions among several charitable and non-profit organizations.
Those who qualify for VIP status receive additional benefits compared to regular club membership, such as invitations to exclusive VIP events. United States East – Mountaineer has four competitors within 50 miles, two in Pennsylvania, one in West Virginia and one in Ohio. Sports betting in Ohio also impacts Mountaineer.
Those who qualify for VIP status receive 5 additional benefits compared to regular club membership, such as increased free play, promotional table game chips, food and beverage and hotel offerings and invitations to exclusive VIP events. United States East – Mountaineer has four competitors within 50 miles, two in Pennsylvania, one in West Virginia and one in Ohio.
CMR operates the majority of the Alberta pari-mutuel network under which CMR provides pari-mutuel content and live video to 25 off-track 4 betting parlors throughout Alberta and has agreements with over 90 racetracks world-wide to broadcast races through the off-track betting network. Through August 2021, we operated the southern Alberta pari-mutuel off-track betting network through Century Bets! Inc.
CMR operates the majority of the Alberta pari-mutuel network under which CMR provides pari-mutuel content and live video to 25 off-track 4 betting parlors throughout Alberta and has agreements with over 90 racetracks world-wide to broadcast races through the off-track betting network. Century Downs Racetrack and Casino – Calgary, Alberta, Canada (“CDR” or “Century Downs”).
As an international casino entertainment company, we cater to different markets with different customer expectations. In order to meet these expectations, we strive to build a workforce that is as diversified as our customers.
We are aware that much of our success is based on our employees’ combined talents, skills and ideas. As an international casino entertainment company, we cater to different markets with different customer expectations. In order to meet these expectations, we strive to build a workforce that is as diversified as our customers.
Approximately 252 employees at our CPL casinos in Poland, 42 employees at Mountaineer and 217 employees at Rocky Gap belong to trade unions. The trade unions in Poland do not currently have any collective bargaining agreements with CPL, but changes in pay of union employees at CPL require approval of the unions.
The trade unions in Poland do not currently have any collective bargaining agreements with CPL, but changes in pay of union employees and certain other actions taken by CPL require approval of the unions. The trade unions at Mountaineer and Rocky Gap have collective bargaining agreements with each casino.
Along with the capital needs of potential projects or acquisitions, there are various other risks which, if they materialize, could affect our ability to complete a proposed project or acquisition or could eliminate its feasibility altogether. For more information on these and other risks related to our business, see Item 1A, “Risk Factors” below .
Additional Projects We continue to explore additional potential gaming projects and acquisition opportunities. Along with the capital needs of potential projects or acquisitions, there are various other risks which, if they materialize, could affect our ability to complete a proposed project or acquisition or could eliminate its feasibility altogether.
Cripple Creek and Central City are located in historic mining towns each about an hour from a major metropolitan city. CRC has 11 competitors located within a half mile of the casino. CTL has 21 competitors within a mile of the casino, including competitors in Black Hawk that have larger hotels, upscale dining, performance centers and spa facilities.
Cripple Creek and Central City are located in historic mining towns each about an hour from a major metropolitan city and are highly competitive casino markets. CRC has 11 competitors located within a half mile of the casino.
We seek to provide upward and lateral movement to employees at all locations. In Missouri, for example, we have an Upward Mobility Program to provide front-line employees with information on how they can develop their leadership skills and be prepared to step into a leadership role.
In Missouri, for example, we have an Upward Mobility Program to provide front-line employees with information on how they can develop their leadership skills and be prepared to step into a leadership role. This program makes training and educational opportunities available to enhance qualification and permit progress into other career fields through mentorships.
As of December 31, 2023, 49% of our workforce and 41% of our leadership roles were held by women. 9 Focusing on employee development and creating a positive work environment is one of our main priorities. We have training and development programs to provide our employees with the opportunity to succeed and thrive at our company.
Focusing on employee development and creating a positive work environment is one of our main priorities. We have training and development programs to provide our employees with the opportunity to succeed and thrive at our company. We seek to provide upward and lateral movement to employees at all locations.
However, the coverage of, and attendant compliance costs associated with, such laws, regulations and ordinances may result in future additional costs to our operations. Rules and regulations regarding the service of alcoholic beverages are strict. The loss or suspension of a liquor license could significantly impair our operations.
We have not made, and do not anticipate making, material expenditures with respect to these laws, regulations and ordinances. However, the coverage of, and attendant compliance costs associated with, such laws, regulations and ordinances may result in future additional costs to our operations. Rules and regulations regarding the service of alcoholic beverages are strict.
Canada Our casinos in the Edmonton market have five competitors. Our casinos within the Edmonton market are within 30 miles of each other; however, we do not believe that our properties compete against one another for customers.
Our casinos within the Edmonton market are within 30 miles of each other; however, we do not believe that our properties compete against one another for customers. CRA is one of two casinos in the city of Edmonton that have both a hotel and showrooms and the only casino in the market to offer a heated and complimentary parking garage.
On February 28, 2023, the AGLC approved a temporary increase from 15% of slot machines net sales retained by casinos to 17% effective from April 1, 2023 through March 31, 2025. The increase in the slot machine net sales percentage had a positive impact on net operating revenue and results of operations at our Canadian properties.
In February 2023, the AGLC approved a temporary increase from 15% of slot machines net sales retained by casinos to 17% effective from April 1, 2023 through March 31, 2025. In December 2024, the temporary increase was extended through March 31, 2026.
Beginning in April 2024, Alberta casinos will be sharing in an AGLC Winner’s Edge Marketing Fund based on Winner’s Edge player card usage. In October 2020, t he AGLC launched an online gaming website, “Play Alberta” offering online slot and table games.
Beginning in April 2024, Alberta casinos share in an AGLC Winner’s Edge Marketing Fund based on Winner’s Edge player card usage. The AGLC operates an online gaming website, “Play Alberta,” offering online slot and table games as well as online sports wagering, including single event sports wagering.
The facility also has on-site pari-mutuel wagering, a sports book, five dining venues, a bar and 5,248 surface parking spaces neighboring the casino. Sports betting and online gaming (“iGaming”) are also available through mobile apps. Rocky Gap Casino, Resort & Golf – Flintstone, Maryland (“ROK” or “Rocky Gap”) . Rocky Gap is located in Rocky Gap State Park.
In addition to the casino and hotel, MTR has a golf course and a racetrack that holds live thoroughbred races from April to December. The facility also has on-site pari-mutuel wagering, a sports book, five dining venues, a bar and 5,248 surface parking spaces neighboring the casino. Sports betting and online gaming (“iGaming”) are also available through mobile apps.
CTL is located at the end of the Central City Parkway, an eight mile four-lane highway that connects I-70, the main east/west interstate highway in Colorado, to Central City. In addition to the casino and hotel, the facility has a bar, two restaurants and a 500 -space on-site covered parking garage.
Central City is located approximately 35 miles west of Denver. CTL is located at the end of the Central City Parkway, an eight mile four-lane highway that connects I-70, the main east/west interstate highway in Colorado, to Central City.
We seek to compete through promotion of our players’ clubs, enhancement of social networking initiatives and other marketing efforts. In addition to our players’ clubs, we also have various cash and prize promotions. Our marketing focuses on competition and other facts and circumstances of each market area in which we operate.
In addition to our players’ clubs, we also have various cash, free play, gift and prize promotions. Our marketing focuses on competition and other facts and circumstances of each market area in which we operate. All visitors to our properties are offered the opportunity to join our players’ club .
We believe that our expansion projects at both Missouri locations will allow us to continue to compete for individuals or groups that desire a multi-day visit to Cape Girardeau or Caruthersville.
The closest competitor to Caruthersville is located in Arkansas and is 90 miles away. We believe that our expansion projects at both Missouri locations that were completed in 2024 allow us to continue to compete for individuals or groups that desire a multi-day visit to Cape Girardeau or Caruthersville. Sports betting is expected to begin in Missouri in late 2025.
Sports betting is available through a mobile sports betting app. Century Casino & Hotel – Cripple Creek, Colorado (“CRC” or “Cripple Creek”). The town of Cripple Creek is located approximately 45 miles southwest of Colorado Springs, the second largest city in the state of Colorado.
In addition to the casino and hotel, the facility has a bar, two restaurants and a 500 -space on-site covered parking garage. Century Casino & Hotel – Cripple Creek, Colorado (“CRC” or “Cripple Creek”). The town of Cripple Creek is located approximately 45 miles southwest of Colorado Springs, the second largest city in the state of Colorado.
Such laws and regulations apply in all jurisdictions in which we may do business. Management believes that we are in compliance with all applicable gaming and non-gaming regulations. A detailed description of the regulations to which we are subject is contained in Exhibit 99.1 to this report, which is incorporated herein by reference.
Such laws and regulations apply in all jurisdictions in which we may do business. Management believes that we are in compliance with all applicable gaming and non-gaming regulations.
We market the casino through its amenities such as its high-end steak house and popular oyster bar. The property has over 1,300 hotel rooms for casino guests as well as convention customers. In addition, the property has an outdoor arena that holds concerts, an annual Rib Cook-Off and other events, such as Hot August Nights.
The property has over 1,300 hotel rooms for casino guests as well as convention customers and an 8,500 seat outdoor event center that holds concerts, an annual The Best in the West Nugget Rib Cook-Off and other events, such as Hot August Nights. Canada Our casinos in the Edmonton market have five competitors.
Due to extensive industry experience, the team’s diversity of experience gives us the ability to tailor our gaming-based entertainment developments and operations to the unique needs and circumstances of each specific location. We are aware that much of our success is based on our employees’ combined talents, skills and ideas.
Human Capital – Our company is led by two gaming industry professionals with a combined industry experience of more than 75 years. Due to extensive industry experience, the team’s diversity of experience gives us the ability to tailor our gaming-based entertainment developments and operations to the unique needs and circumstances of each specific location.
Cape Girardeau Hotel We are building a 69 room hotel at our Cape Girardeau location called The Riverview. The Riverview is planned as a six-story building with 68,000 square feet that will be adjacent to and connected with the existing casino building. Construction on this project began in September 2022 and is expected to be completed in April 2024.
The Riverview is a six-story building with 68,000 square feet that is adjacent to and connected with the existing casino building. Construction on this project began in September 2022 and was completed in March 2024. The project cost approximately $30.5 million. We financed the project with cash on hand.
Mountaineer is located on the Ohio River at the northern tip of West Virginia’s northwestern panhandle approximately 30 miles from Pittsburgh International Airport and a one hour drive from downtown Pittsburgh. In addition to the casino and hotel, Mountaineer has a golf course and a racetrack that holds live thoroughbred races from April to December.
“Properties”. 3 United States East – Mountaineer Casino, Resort & Races – New Cumberland, West Virginia (“MTR” or “Mountaineer”). MTR is located on the Ohio River at the northern tip of West Virginia’s northwestern panhandle approximately 30 miles from Pittsburgh International Airport and a one hour drive from downtown Pittsburgh.
In January 2023, the management and funding agreements were mutually terminated because the project was not going forward. Marketing and Competition We face intense competition from other casinos within the jurisdictions in which we operate. Many of our competitors are larger and have substantially greater name recognition and financial and marketing resources than we do.
Marketing and Competition We face intense competition from other casinos within the jurisdictions in which we operate. Many of our competitors are larger and have substantially greater name recognition and financial and marketing resources than we do. We seek to compete through promotion of our players’ clubs, enhancement of social networking initiatives and other targeted marketing efforts.
We aggregate all operating segments into three reportable segments based on the geographical locations in which our casinos operate: United States, Canada and Poland. We have additional business activities including certain other corporate and management operations that we report as Corporate and Other.
Operations We view each region in which we operate as a separate operating segment and each casino or other operation within those markets as a reporting unit. We aggregate all operating segments into three reportable segments based on the geographical locations in which our casinos operate: United States, Canada and Poland.
See Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Poland” for more information about the casinos operated by CPL. Corporate and Other Cruise Ship.
See Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Poland” for more information about the casinos operated by CPL. 2024 Business Developments Caruthersville Land-Based Casino and Hotel The new land-based casino with a 38 room hotel in Caruthersville, Missouri opened on November 1, 2024.
We are funding this project through financing provided by VICI PropCo. Following completion, VICI PropCo will own the real estate improvements associated with the Caruthersville project, which will become part of the Master Lease. See Part I, Item 2. “Properties – Master Lease” for a discussion of the Master Lease as amended to date.
VICI PropCo owns the real estate improvements associated with the Caruthersville project, which became part of the Master Lease. See Part I, Item 2. “Properties – Master Lease” for a discussion of the Master Lease as amended to date. Cape Girardeau Hotel We opened the 69 room hotel at our Cape Girardeau location called The Riverview on April 4, 2024.
Other Regulations We are subject to certain foreign, federal, state, provincial and local safety and health, employment and environmental laws, regulations and ordinances that apply to our non-gaming operations. We have not made, and do not anticipate making, material expenditures with respect to these laws, regulations and ordinances.
A detailed description of the regulations to which we are subject is contained in Exhibit 99.1 to this report, which is incorporated herein by reference. 7 Other Regulations We are subject to certain foreign, federal, state, provincial and local safety and health, employment and environmental laws, regulations and ordinances that apply to our non-gaming operations.
Cape Girardeau is located along the Mississippi River three and a half miles from Interstate 55 in southeast Missouri, approximately 120 miles south of St. Louis, Missouri. In addition to the casino, the facility has two dining venues, a conference and entertainment center and 1,058 surface parking spaces neighboring the casino.
See “2024 Business Developments – Caruthersville Land-Based Casino and Hotel” below. Century Casino & Hotel – Cape Girardeau – Cape Girardeau, Missouri (“CCG” or “Cape Girardeau”). CCG is located along the Mississippi River three and a half miles from Interstate 55 in southeast Missouri, approximately 120 miles south of St. Louis, Missouri.
CRA and CSA each have a competitor approximately five miles away, and CMR’s closest competitor is located approximately 17 miles away. CDR is located in the Calgary market and has seven competitors (two of which have a combination of hotel and casino).
Approvals are needed before the project begins, and we anticipate construction could take approximately one year if the project is approved. CDR is located in the Calgary market and has seven competitors (two of which have a combination of hotel and casino).
In January 2022, the Alberta Gaming, Liquor and Cannabis Commission (“AGLC”) removed its moratorium on approving additional gaming facilities. Additional gaming facilities under consideration will be subject to market analysis done by the AGLC and, if approved by the AGLC, could increase competition with our properties.
Consideration for additional gaming facilities will be subject to market analysis done by the Alberta Gaming, Liquor and Cannabis Commission (“AGLC”). An increase in competitors in our markets could lead to a decrease in visitors at our casinos and have a negative impact on our results of operations in Canada.
The general characteristics of our properties, including machine and table counts and the number of hotel rooms at our casinos, are provided in Part I, Item 2. “Properties”. 3 United States East – Mountaineer Casino, Resort & Races – New Cumberland, West Virginia (“MTR” or “Mountaineer”).
We have additional business activities including certain other corporate and management operations that we report as Corporate and Other. The general characteristics of our properties, including machine and table counts and the number of hotel rooms at our casinos, are provided in Part I, Item 2.
Unique to this property is its horse racetrack, and it is one of two casinos in the market with an off-track betting parlor. A casino recently relocated approximately eight miles from CDR, and the increased competition has had a negative impact on financial results at this location.
It is the only property in the market with a horse racetrack, and it is one of two casinos in the market with an off-track betting parlor. CDR’s closest competitor is located approximately eight miles away. Additional gaming facilities are allowed in the markets in which we operate.
Caruthersville Land-Based Casino and Hotel We are building a new land-based casino with a 38 room hotel in Caruthersville adjacent to and connected with the existing casino pavilion building. We estimate the project will cost $51.9 million. Construction started in December 2022 with completion expected in the fourth quarter of 2024.
The new casino is adjacent to and connected with a pavilion building that we utilized as a casino from October 2022 to October 2024. The project cost approximately $51.9 million and was funded through financing provided by VICI PropCo in conjunction with the Master Lease.
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See “Business Developments – Nugget Casino Resort” and “– Rocky Gap Casino Resort” below. Operations We view each region in which we operate as a separate operating segment and each casino or other operation within those markets as a reporting unit.
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Rocky Gap Casino, Resort & Golf – Flintstone, Maryland (“ROK” or “Rocky Gap”) . ROK is located in Rocky Gap State Park.
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Caruthersville and our neighboring hotel, The Farmstead, are located in southeast Missouri along the Mississippi River approximately 95 miles north of Memphis, Tennessee. In December 2022, we relocated the casino from a riverboat into a 40,000 square foot land-based pavilion following record low water levels in the Mississippi River that made access to the riverboat difficult.
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We opened a hotel called The Riverview at this location in April 2024. In addition to the casino and hotel, the facility has two dining venues, a conference and entertainment center and 1,058 surface parking spaces neighboring the casino. See “2024 Business Developments – Cape Girardeau Hotel” below. Century Casino & Hotel – Central City, Colorado (“CTL” or “Central City”).
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We are currently building a hotel connected to the casino. See “Business Developments – Cape Girardeau Hotel” below. Century Casino & Hotel – Central City, Colorado (“CTL” or “Central City”). Central City is located approximately 35 miles west of Denver.
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For more information on these and other risks related to our business, see Item 1A, “Risk Factors” below . Terminated Projects Circa Sports and Tipico During 2024, two of our sports betting partners in Colorado requested early termination of their agreements, and we agreed to cancel the agreements.
Removed
(“CBS” or “Century Bets”). In September 2021, we transferred these contracts to Century Mile. Century Downs Racetrack and Casino – Calgary, Alberta, Canada (“CDR” or “Century Downs”). CDR is located in Calgary, Alberta, seven miles from the Calgary International Airport.
Added
Circa Sports (“Circa”) obtained a new partnership in Colorado, and the Circa agreement was terminated in May 2024. As part of the Circa termination agreement, we received a payment of $1.1 million that included sports betting revenue owed from January 2024 to May 2024 and a breakage fee of $0.7 million. Tipico Group Ltd.
Removed
We decreased our operation of ship-based casinos on cruise ships over the past few years, and mutually agreed with cruise lines with which we had concession agreements not to extend certain agreements at their termination dates. Our final concession agreements to operate ship-based casinos ended in the second quarter of 2023. We no longer operate onboard ship-based casinos.
Added
(“Tipico”) exited the U.S. market, and the Tipico agreement was terminated in July 2024. As part of the Tipico termination agreement, we received a payment of $1.6 million that included sports betting revenue owed from November 2023 to June 2024 and a breakage fee of $1.0 million.
Removed
Business Developments Nugget Casino Resort in Reno-Sparks, Nevada In February 2022, we entered into a definitive agreement with Marnell Gaming, LLC (“Marnell”), pursuant to which we agreed to purchase from Marnell (i) 50% of the membership interests in Smooth Bourbon, LLC (“Smooth Bourbon”), and (ii) 100% of the membership interests in Nugget.
Added
The breakage fees were recorded as other revenue on our consolidated statement of (loss) earnings resulting in $1.7 million in other revenue for the year ended December 31, 2024. Prior to the termination of the agreements, revenue from these agreements was $1.8 million per year in our United States segment.
Removed
Nugget owns and operates the Nugget Casino Resort in Reno-Sparks, Nevada, and Smooth Bourbon owns the real property on which the casino is located. We purchased 50% of the membership interests in Smooth Bourbon for approximately $95.0 million at the first closing on April 1, 2022 (the “First Closing”).
Added
We plan to partner with sports betting operators to conduct sports betting at our Missouri facilities or through online apps. A proposal to build a casino near Lake of the Ozarks was added to the Missouri ballot in 2024 but did not pass.
Removed
We purchased 100% of the membership interests in Nugget (the “Nugget Acquisition”) for approximately $104.7 million (subject to certain adjustments) at the second closing (the “Second Closing”) on April 3, 2023. In August 2023, we paid from cash on hand an additional $0.8 million related to working capital adjustments.
Added
CTL has 20 competitors within a mile of the casino, including competitors in Black Hawk that have larger hotels, upscale dining, performance centers and spa facilities. There are competitors in each city that offer covered parking and more hotel rooms than our casinos.
Removed
Following the Second Closing, we own the Nugget Casino Resort and 50% of the membership interests in Smooth Bourbon. We also have a five-year option through April 1, 2027 to acquire the remaining 50% of the membership interests in Smooth Bourbon for $105.0 million plus 2% per annum.
Added
In addition, some of our competitors may offer larger betting limits or certain games not offered by us. We have partnered with a sports betting operator that conducts sports wagering under one of the three Colorado master licenses for sports wagering held by our Colorado subsidiaries. See “Terminated Projects” above for more information about our Colorado sports betting agreements.
Removed
At the First Closing, Smooth Bourbon entered into a lease with Nugget for an annual rent of $15.0 million plus an annual escalator. Rocky Gap Casino Resort in Flintstone, Maryland In August 2022, we entered into a definitive agreement with Golden Entertainment, Inc.
Added
West – The Nugget is located in the Reno-Sparks area of Nevada. There are more than 20 casinos in the Reno-Sparks market. We market the casino through concerts, events and amenities such as its high-end steak house and popular oyster bar.
Removed
(“Golden”), Lakes Maryland Development LLC, a subsidiary of Golden, and VICI PropCo, pursuant to which we agreed to acquire the operations of Rocky Gap.
Added
CMR is the only casino in the market with a horse racetrack. CRA and CSA each have a competitor approximately five miles away, and CMR’s closest competitor is located approximately 17 miles away. A competitor is requesting to relocate its casino from west Edmonton to south Edmonton, approximately 11 miles from our Century Mile property.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn addition to gaming regulations, we are also subject to various federal, state, provincial, local and foreign laws and regulations affecting businesses in general. These laws and regulations include, but are not limited to, restrictions and conditions concerning alcoholic beverages, environmental matters, smoking, employees, currency transactions, taxation, zoning and building codes, and marketing and advertising.
Biggest changeThese laws and regulations include, but are not limited to, restrictions and conditions concerning alcoholic beverages, environmental matters, smoking, employees, currency transactions, taxation, zoning and building codes, and marketing and advertising. Rules and regulations regarding the service of alcoholic beverages are strict. The loss or suspension of a liquor license could significantly impair our operations.
Changes in discretionary consumer spending or consumer preferences could be driven by factors such as an unstable job market, perceived or actual disposable consumer income and wealth, increased cost of travel, outbreaks of contagious diseases or fears or war and acts of terrorism or other acts of violence.
Changes in discretionary consumer spending or consumer preferences could be driven by factors such as an unstable job market, perceived or actual disposable consumer income and wealth, increased cost of travel, outbreaks of contagious diseases or fears of war and acts of terrorism or other acts of violence.
The significance of the above financial obligations could: limit our ability to satisfy our obligations; limit our ability to obtain additional indebtedness or financing to fund working capital requirements, capital expenditures, debt service, acquisitions, general corporate or other obligations; limit our ability to use operating cash flow in other areas of our business because we must dedicate a significant portion of these funds to make principal and/or interest payments on our outstanding debt; expose us to interest rate risk due to the variable interest rate on borrowings under our credit agreements; place us at a competitive disadvantage compared to competitors that have less debt; subject us to restrictive covenants that, among other things, limit our ability to pay dividends and distributions, make acquisitions and dispositions, borrow additional funds, and make capital expenditures and other investments; cause our failure to comply with financial and restrictive covenants contained in our current or future indebtedness, which could cause a default under such indebtedness and which, if not cured or waived, could have a material adverse effect on us; increase our vulnerability to general adverse economic and industry changes; limit our flexibility in planning for, or reacting to, changes in our businesses, changing market conditions, changes in our industry and economic downturns; and affect our ability to renew gaming and other licenses necessary to conduct our business.
The significance of the above financial obligations could: limit our ability to satisfy our other obligations; limit our ability to obtain additional indebtedness or financing to fund working capital requirements, capital expenditures, debt service, acquisitions, general corporate or other obligations; limit our ability to use operating cash flow in other areas of our business because we must dedicate a significant portion of these funds to make principal and/or interest payments on our outstanding debt; expose us to interest rate risk due to the variable interest rate on borrowings under our credit agreements; place us at a competitive disadvantage compared to competitors that have less debt; subject us to restrictive covenants that, among other things, limit our ability to pay dividends and distributions, make acquisitions and dispositions, borrow additional funds, and make capital expenditures and other investments; cause our failure to comply with financial and restrictive covenants contained in our current or future indebtedness, which could cause a default under such indebtedness and which, if not cured or waived, could have a material adverse effect on us; increase our vulnerability to general adverse economic and industry changes; limit our flexibility in planning for, or reacting to, changes in our businesses, changing market conditions, changes in our industry and economic downturns; and affect our ability to renew gaming and other licenses necessary to conduct our business.
If we were to default on any one or more of the leases or if we are unable to secure renewal terms for these locations, the lessors could terminate the affected leases and we could lose possession of the any improvements on the buildings.
If we were to default on any one or more of the leases or if we are unable to secure renewal terms for these locations, the lessors could terminate the affected leases and we could lose possession of any improvements on the buildings.
A majority of the casino floor at the Nugget Casino is located beneath Interstate 80 (“I-80”) in Sparks, Nevada. NDOT has discussed the possibility of expanding I-80, which would require us to rebuild the Nugget Casino on existing land owned by Smooth Bourbon and leased to Nugget.
A majority of the casino floor at the Nugget Casino is located beneath Interstate 80 (“I-80”) in Sparks, Nevada. NDOT has discussed the possibility of expanding I-80, which would require us to rebuild the Nugget Casino on existing land owned by Smooth Bourbon and leased to the Nugget.
Risks associated with international operations include: fluctuations in foreign currency exchange rates; changes in laws and policies that govern our foreign operations; possible failure to comply with anti-bribery laws such as the US Foreign Corrupt Practices Act (“FCPA”) and similar anti-bribery laws in other jurisdictions; difficulty in establishing staffing and managing non-United States operations; different labor regulations; changes in environmental, health and safety laws; potentially negative consequences from changes in or interpretations of tax laws; political instability and actual or anticipated military or political conflicts; economic instability and inflation, recession or interest rate fluctuations; uncertainties regarding judicial systems and procedures; different time zones; and culture, management and language differences.
Risks associated with international operations include: fluctuations in foreign currency exchange rates; changes in laws and policies that govern our foreign operations; possible failure to comply with anti-bribery laws such as the US Foreign Corrupt Practices Act (“FCPA”) and similar anti-bribery laws in other jurisdictions; difficulty in establishing staffing and managing non-United States operations; different labor regulations; changes in environmental, health and safety laws; potentially negative consequences from changes in or interpretations of tax laws; 14 political instability and actual or anticipated military or political conflicts; economic instability and inflation, recession or interest rate fluctuations; uncertainties regarding judicial systems and procedures; different time zones; and culture, management and language differences.
These factors include, but are not limited to: changes to income tax rates, to tax laws or the interpretation of such tax laws (including additional proposals for fundamental international tax reform 18 globally); the jurisdictions in which our profits are determined to be earned and taxed; changes in the valuation of our deferred tax assets and liabilities; adjustments to estimated taxes upon finalization of various tax returns; adjustments to our interpretation of transfer pricing standards; treatment or characterization of intercompany transactions; changes in available tax credits, grants and other incentives; changes in stock-based compensation expense; changes in U.S. generally accepted accounting principles; and expiration or the inability to renew tax rulings or tax holiday incentives.
These factors include, but are not limited to: changes to income tax rates, tax laws or the interpretation of such tax laws (including additional proposals for fundamental international tax reform globally); the jurisdictions in which our profits are determined to be earned and taxed; changes in the valuation of our deferred tax assets and liabilities; adjustments to estimated taxes upon finalization of various tax returns; adjustments to our interpretation of transfer pricing standards; treatment or characterization of intercompany transactions; changes in available tax credits, grants and other incentives; changes in stock-based compensation expense; changes in U.S. generally accepted accounting principles; and expiration or the inability to renew tax rulings or tax holiday incentives.
We have adjusted, and if required we plan to continue to adjust, 19 operating hours for food and beverage outlets, and hotel and convention spaces where we are impacted by staffing challenges. We have employees in Poland who belong to trade unions that have the right to approve changes in pay for union employees at CPL.
We have adjusted, and if required we plan to continue to adjust, operating hours for food and beverage outlets, and hotel and convention spaces where we are impacted by staffing challenges. We have employees in Poland who belong to trade unions that have the right to approve changes in pay for union employees at CPL.
Various federal, state and foreign legislative or regulatory bodies may enact or adopt new or additional laws and regulations concerning privacy, data retention, data transfer, and data protection. Compliance with applicable 15 privacy regulations may increase our operating costs or adversely impact our ability to market our products, properties and services to our guests.
Various federal, state and foreign legislative or regulatory bodies may enact or adopt new or additional laws and regulations concerning privacy, data retention, data transfer, and data protection. Compliance with applicable privacy regulations may increase our operating costs or adversely impact our ability to market our products, properties and services to our guests.
Regulations adopted by the Financial Crimes Enforcement Network require us to report currency transactions at our US locations in excess of $10,000 occurring within a gaming day, including 17 identification of the patron by name and social security number.
Regulations adopted by the Financial Crimes Enforcement Network require us to report currency transactions at our US locations in excess of $10,000 occurring within a gaming day, including identification of the patron by name and social security number.
In addition, negative economic conditions could intensify the efforts of federal, state, provincial and local governments to raise revenue through increases in gaming taxes or introduction of additional gaming opportunities, which could adversely affect our results of operations and cash flows.
In addition, negative economic conditions 16 could intensify the efforts of federal, state, provincial and local governments to raise revenue through increases in gaming taxes or introduction of additional gaming opportunities, which could adversely affect our results of operations and cash flows.
Decreases in the value of these currencies in relation to the value of the US dollar have decreased the operating profit from our foreign operations when translated into US dollars, which has adversely affected our consolidated results 20 of operations, and such decreases may occur in the future.
Decreases in the value of these currencies in relation to the value of the US dollar have decreased the operating profit from our foreign operations when translated into US dollars, which has adversely affected our consolidated results of operations, and such decreases may occur in the future.
If we are unable to make these improvements due to capital constraints or other factors, our facilities may be less attractive to our visitors than those of our competitors, which could have a negative impact on our business.
If we are unable to make these improvements due to capital constraints 9 or other factors, our facilities may be less attractive to our visitors than those of our competitors, which could have a negative impact on our business.
If our assumptions change and it is determined that we will be able to realize tax benefits related to these foreign deferred tax assets, we will realize a reduction in income tax expense in the year such valuation allowances are reversed.
If our assumptions change and it is determined that we will be able to realize tax benefits related to these deferred tax assets, we will realize a reduction in income tax expense in the year such valuation allowances are reversed.
Our ability to retain key personnel is affected by the competitiveness of our compensation packages and the other terms and conditions of employment, our continued ability to compete effectively against other gaming companies and our growth prospects.
Our ability to retain key personnel is affected by the competitiveness of our compensation packages and the other terms and conditions 17 of employment, our continued ability to compete effectively against other gaming companies and our growth prospects.
Difficult economic conditions and recessionary periods may have an adverse impact on our business and our financial condition. Negative economic conditions, coupled with high volatility and uncertainty as to the future economic landscape, have at times had a negative effect on consumers’ discretionary income and consumer confidence, and similar impacts can be expected should such conditions recur.
Difficult economic conditions and recessionary periods may have an adverse impact on our business and our financial condition. Negative economic conditions, coupled with high volatility and uncertainty as to the future economic landscape, have at times had a negative effect on consumers’ discretionary income and consumer confidence, and similar impacts can be expected if such conditions recur.
We could incur special charges relating to the closing of such facilities, including lease termination costs, impairment charges and other charges that would reduce our net income and could have a material adverse effect on our business, financial condition and results of operations. Our casinos in Poland are located within leased building spaces.
We could incur special charges relating to the closing of such facilities, including lease termination costs, impairment charges and other charges that would reduce our net earnings and could have a material adverse effect on our business, financial condition and results of operations. Our casinos in Poland are located within leased building spaces.
A decrease in discretionary spending due to decreases in consumer confidence in the economy or us, or a continued economic slowdown or deterioration in the economy, could adversely affect the frequency with which customers choose to visit our properties and the amount that our customers spend when they visit.
A decrease in discretionary spending due to decreases in consumer confidence in the economy or us, or a continued economic slowdown, recession or other deterioration in the economy, could adversely affect the frequency with which customers choose to visit our properties and the amount that our customers spend when they visit.
Cybersecurity attacks have become increasingly common, and we have experienced immaterial business disruption, monetary loss and data loss as a result of phishing, business email compromise and other types of attacks on our or our third party service provider’s systems. In addition, the rapid evolution and increased adoption of new technologies, such as artificial intelligence, may intensify our cybersecurity risks.
Cybersecurity attacks have become increasingly common, and we have experienced immaterial business disruption, monetary loss and data loss as a result of phishing, business email compromise and other types of attacks on our or our third-party service provider’s systems. In addition, the rapid evolution and increased adoption of new technologies, such as AI, may intensify our cybersecurity risks.
If we default on one or more leases or if we are unable to secure renewals of those leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected casino. We lease the real estate assets for our casinos in Missouri, West Virginia, Maryland and Canada under a “triple-net” Master Lease.
If we default on one or more leases or if we are unable to secure renewals of those leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected leased property. We lease the real estate assets for our casinos in Missouri, West Virginia, Maryland and Canada under a “triple-net” Master Lease.
We may not be successful in the defense or prosecution of our current or future legal proceedings, which could result in settlements or damages that could significantly impact our business, financial condition and results of operations. We may be required in the future to record impairment losses related to assets we currently carry on our balance sheet.
We may not be successful in the defense or prosecution of our current or future legal proceedings, which could result in settlements or damages that could significantly impact our business, financial condition and results of operations. 18 We have recorded and may be required in the future to record impairment losses related to assets we currently carry on our balance sheet.
This could adversely effect on our business, financial condition and results of operations as we would then be unable to operate the affected facilities. We may not be fully compensated to relocate the Nugget Casino and may be required to seek additional funding if the Nevada Department of Transportation (“NDOT”) project moves forward.
This could adversely affect our business, financial condition and results of operations as we would then be unable to operate the affected facilities. We may not be fully compensated to relocate the Nugget Casino and may be required to seek additional funding if the Nevada Department of Transportation (“NDOT”) project moves forward.
We are subject to risks related to corporate social responsibility, environmental, social and governance (“ESG”) matters and our business reputation and may negatively affect our business and operations. Many factors influence our reputation and the value of our brand, including the perceptions held by our customers, business partners, other key stakeholders and the communities in which we do business.
We are subject to risks related to corporate social responsibility and sustainability matters and our business reputation, which may negatively affect our business and operations. Many factors influence our reputation and the value of our brand, including the perceptions held by our customers, business partners, other key stakeholders and the communities in which we do business.
Business Environment and Competition Risks We are particularly sensitive to general economic conditions, downturns or recessions as well as other issues affecting discretionary consumer spending, including geopolitical tensions, pandemics or other public health emergencies, any of which may have an adverse impact on our business, financial condition or results of operations.
Business Environment and Competition Risks We are particularly sensitive to general economic conditions, market conditions in the jurisdictions in which we operate, downturns or recessions as well as other issues affecting discretionary consumer spending, including geopolitical tensions, pandemics or other public health emergencies, any of which may have an adverse impact on our business, financial condition or results of operations.
We are highly dependent on the services of Erwin Haitzmann and Peter Hoetzinger, our founders and Co-Chief Executive Officers, and other members of our senior management team. The employment agreements with Erwin Haitzmann and Peter Hoetzinger provide that, under some circumstances , the departure of one executive could allow the other to leave for cause.
We are highly dependent on the services of Erwin Haitzmann and Peter Hoetzinger, our founders and Co-Chief Executive Officers, and other members of our senior management team. The agreements through which we retain Erwin Haitzmann and Peter Hoetzinger provide that, under some circumstances , the departure of one executive could allow the other to leave for cause.
We could be required to make rent payments under the Master Lease and scheduled debt payments if closures of our properties, similar to those that occurred in 2020, occur in the future.
We generally would still be required to make rent payments under the Master Lease and scheduled debt payments if closures of our properties, similar to those that occurred in 2020, occur in the future.
Due to these variables, we may not be able to fully insure such losses, or fully collect, if at all, on claims resulting from severe weather conditions. The lack of sufficient insurance for these types of acts could expose us to heavy losses if any damages occur, directly or indirectly, that could have a significant adverse impact on our operations.
Due to these variables, we may not be able to fully insure such losses, or fully collect, if at all, on casualty loss claims. The lack of sufficient insurance for these types of acts could expose us to heavy losses if any damages occur, directly or indirectly, that could have a significant adverse impact on our operations.
Extreme weather conditions, potentially exacerbated by climate change, may cause property damage or interrupt business, which could harm our business and results of operations. High winds, flooding, blizzards and sub-zero temperatures, such as those experienced in 14 Colorado, Missouri and Alberta from time to time, can limit access to our properties.
Extreme weather conditions, potentially exacerbated by climate change, may cause property damage or interrupt business, which could harm our business and results of operations. High winds, flooding, blizzards and sub-zero temperatures, such as those experienced by our North American operations from time to time, can limit access to our properties.
In addition, we lease the real estate assets of the majority of our North American casinos under a Master Lease with VICI PropCo The long-term financing obligation to VICI PropCo subsidiaries was $658.0 million as of December 31, 2023. Our scheduled 2024 rent payments under the Master Lease, including a Consumer Price Index (“CPI”) increase, are approximately $52.2 million.
In addition, we lease the real estate assets of the majority of our North American casinos under a Master Lease with VICI PropCo. The long-term financing obligation to VICI PropCo subsidiaries was $701.0 million as of December 31, 2024. Our scheduled 2025 rent payments under the Master Lease, including a Consumer Price Index (“CPI”) increase, are approximately $58.4 million.
Our ability to attract and retain employees may cause us to reduce casino operating hours or close certain amenities at our properties which could negatively impact guest loyalty and operating results.
Our ability to attract and retain employees has caused and may in the future cause us to reduce casino operating hours or close certain amenities at our properties which could negatively impact guest loyalty and operating results.
This business model also increases our costs. 16 We are dependent upon technology services and electrical power to operate our business, and if we experience damage or service interruptions, we may have to cease some or all of our operations, resulting in a decrease in revenue.
This business model also increases our costs. We are dependent upon technology services and electrical power to operate our business, and if we experience damage or service interruptions, we may have to cease some or all of our operations, resulting in a decrease in revenue. Our gaming operations rely heavily on technology services and an uninterrupted supply of electrical power.
There can be no assurance that we will be successful in receiving licenses to operate our new or existing casinos in Poland or that we will receive them prior to the expiration of the current license, as was the case with Bielsko-Biala, Katowice and Wroclaw. Delays in licensing in Poland could cause us to close casinos temporarily.
There can be no assurance that we will be successful in receiving licenses to operate our new or existing casinos in Poland or that we will receive them prior to the expiration of the current license, as was the case with Bielsko-Biala and Katowice.
We renew our insurance policies on an annual basis. The cost of coverage may become so high that we may need to further reduce our policy limits, agree to certain exclusions from our coverage, or self-insure.
We renew our insurance policies on an annual basis. In recent years, the cost of maintaining this coverage has increased. The cost of coverage may become so high that we may need to further reduce our policy limits, agree to certain exclusions from our coverage, or self-insure.
As of December 31, 2023, our outstanding debt was approximately $346.8 million. The majority of our long-term debt outstanding as of December 31, 2023 is variable rate debt. Each one percentage point change associated with the variable rate debt would result in an estimated $3.5 million change to our annual cash interest expenses.
As of December 31, 2024, our outstanding debt was approximately $339.6 million. The majority of our long-term debt outstanding as of December 31, 2024 is variable rate debt. Each one percentage point change associated with the variable rate debt would result in an estimated $3.4 million change to our annual cash interest expenses.
The extent of the effects of the disease outbreaks on our business and the casino industry at large is highly uncertain and will ultimately depend on future developments, including, but not limited to, future recurrences of outbreaks, the availability and effectiveness of vaccines, and the length of time it takes for normal economic and operating conditions to resume, if at all.
The extent of the effects of the disease outbreaks on our business and the casino industry at large could be material, but is highly uncertain and would ultimately depend on future developments, including, but not limited to, the virulence and severity of any outbreak, the availability and effectiveness of vaccines, and the length of time it takes for normal economic and operating conditions to resume, if at all.
Additionally, the agreements governing our existing debt restrict sale of assets and limit the use of the proceeds from any disposition and our Master Lease limits our ability to dispose of leased properties; as a result, we may not be allowed, 13 under these documents, to dispose of certain of our properties and use proceeds from such dispositions to satisfy all current debt service obligations.
Additionally, the agreements governing our existing debt restrict sale of assets and limit the use of the proceeds from any disposition and our Master Lease limits our ability to dispose of leased properties; as a result, we may not be allowed, under these documents, to dispose of certain of our properties and use proceeds from such dispositions to satisfy all current debt service obligations. ‎ 11 We may be unable to obtain the capital necessary to fund our operations or potential acquisitions.
Like all gaming operators in the jurisdictions in which we operate or plan to operate, we must periodically apply to renew our gaming licenses or registrations and in North America we must have the suitability of certain of our directors, officers and employees approved. We are scheduled for renewals for our casino license at Mountaineer in 2024.
Like all gaming operators in the jurisdictions in which we operate or plan to operate, we must periodically apply to renew our gaming licenses or registrations and in North America we must have the suitability of certain of our directors, officers and employees approved.
We may be unable to obtain the capital necessary to fund our operations or potential acquisitions. Our industry is capital intensive, and we rely heavily on the ability of our casinos to generate operating cash flow to repay debt financing, fund maintenance capital expenditures and provide excess cash for future development.
Our industry is capital intensive, and we rely heavily on the ability of our casinos to generate operating cash flow to repay debt financing, fund maintenance capital expenditures and provide excess cash for future development.
If a union seeks to organize any of our employees, we could experience disruption in our business and incur significant costs, both of which could have a material adverse effect on our results of operation and financial condition.
From time to time, we have experienced attempts to unionize certain of our non-union employees. If a union seeks to organize any of our employees, we could experience disruption in our business and incur significant costs, both of which could have a material adverse effect on our results of operations and financial condition.
From time to time, we may attempt to sell these identified properties and assets. There can be no assurance, however, that we will be able to complete dispositions on profitable, commercially reasonable terms or at all. Credit and Liquidity Risks Our obligations under our indebtedness and our Master Lease are significant.
There can be no assurance, however, that we will be able to complete dispositions on profitable, commercially reasonable terms or at all. 10 Credit and Liquidity Risks Our obligations under our indebtedness and our Master Lease are significant.
If we are unable to recognize and respond to such developments, or if our existing practices and procedures are not adequate to meet new regulatory requirements, we may miss corporate opportunities, become subject to regulatory scrutiny or third-party claims, or incur costs to revise operations to meet new standards.
If we are unable to recognize and respond to such developments, or if our existing practices and procedures are not adequate to meet changing regulatory requirements, market standards or investor expectations, some of which may be conflicting, we may miss corporate opportunities, become subject to regulatory scrutiny, litigation or third-party claims, or incur costs to revise operations to meet new or revised standards.
Because management believes it is more likely than not that the benefit from certain deferred tax assets will not be realized, a valuation allowance of $11.4 million in foreign jurisdictions has been provided in recognition of these risks.
Because management believes it is more likely than not that the benefit from certain deferred tax assets will not be realized, valuation allowances of $49.3 million in the US and $11.0 million in foreign jurisdictions have been provided in recognition of these risks.
In addition, our ability to attract and retain competent management and employees for any new location is critical to our success. One or more of these risks may result in any new gaming opportunity not being successful.
In addition, our ability to attract and retain competent management and employees for any new location is critical to our success. One or more of these risks may result in any new gaming opportunity not being successful. If we are not able to successfully commence operations at these properties, our results of operations may be adversely affected.
While we have a significant amount of cash currently on hand, we may not be able to obtain funding when we need it on favorable terms or at all.
While we believe we have an adequate amount of cash on hand for our current plans, we may not be able to obtain funding when we need it on favorable terms or at all.
Events such as terrorist and war activities in the countries in which we are located and other acts of violence, such as the mass shooting that occurred at a Las Vegas casino, could have a negative impact on travel and leisure expenditures, including gaming, lodging and tourism, especially if these events occur in a region in which we operate.
Extreme weather conditions may also interrupt the operations of critical suppliers, and may result in reduced availability or increased price volatility of certain critical supplies. 12 Events such as terrorist and war activities in the countries in which we are located and other acts of violence, such as the 2017 mass shooting that occurred at a Las Vegas casino, could have a negative impact on travel and leisure expenditures, including gaming, lodging and tourism, especially if these events occur in a region in which we operate.
The actual or perceived weakness in the economy could also lead to decreased spending by our customers. Both customer visits and customer spending at our casinos are key drivers of our revenue and profitability, and reductions in either could materially adversely affect our business, financial condition and results of operations.
Both customer visits and customer spending at our casinos are key drivers of our revenue and profitability, and reductions in either could materially adversely affect our business, financial condition and results of operations.
A loss of electrical power or a failure of the technology services needed to run the computers would make us unable to run all or parts of our gaming operations.
Our security system and all of our slot machines are controlled by computers and reliant on electrical power to operate. A loss of electrical power or a failure of the technology services needed to run the computers would make us unable to run all or parts of our gaming operations.
We face significant competition, and if we are not able to compete successfully, our results of operations will be harmed. We face intense competition from other casinos in jurisdictions in which we operate and from casinos in neighboring jurisdictions. Many of our competitors are larger and have substantially greater name recognition and financial and marketing resources than we do.
We face intense competition from other casinos in jurisdictions in which we operate and from casinos in neighboring jurisdictions. Many of our competitors are larger and have substantially greater name recognition and financial and marketing resources than we do. We seek to compete through promotion of our players’ clubs and other marketing efforts.
If we are not able to successfully commence operations at these properties, our results of operations may be adversely affected. 12 In addition, we periodically review our business to identify properties or other assets that we believe no longer complement our business, are in markets that may not benefit us or could be sold at significant premiums.
In addition, we periodically review our business to identify properties or other assets that we believe no longer complement our business, are in markets that may not benefit us or could be sold at significant premiums. From time to time, we may attempt to sell these identified properties and assets.
Any violations of anti-money laundering laws or regulations by any of our properties could have an adverse effect on our financial condition, results of operations or cash flows.
We also deal with significant amounts of cash in our operations and are subject to various reporting and anti-money laundering regulations. Any violations of anti-money laundering laws or regulations by any of our properties could have an adverse effect on our financial condition, results of operations or cash flows.
In the United States, there are employees at our West Virginia and Maryland casinos who belong to unions and have collective bargaining agreements with the casinos. A lengthy strike or other work stoppage at our casino properties with unions could have an adverse effect on our business and results of operations.
A lengthy strike or other work stoppage at our casino properties with unions could have an adverse effect on our business and results of operations. Our other employees in the US and Canada and in our Corporate and Other segment are not covered by collective bargaining agreements.
A detailed description of the regulations to which we are subject, including the timing of license renewals for our properties, is contained in Exhibit 99.1 to this report, which is incorporated herein by reference. Failure to obtain license renewals would have an adverse effect on us.
Delays in licensing in Poland have caused and in the future could cause us to close casinos temporarily. A detailed description of the regulations to which we are subject, including the timing of license renewals for our properties, is contained in Exhibit 99.1 to this report, which is incorporated herein by reference.
We are particularly vulnerable to competition in our markets due to the large number of competitors in those markets. New or expanded operations by other entities in any of the markets in which we operate will increase competition for our gaming operations and could have a material adverse impact on us.
New or expanded operations by other entities in any of the markets in which we operate will increase competition for our gaming operations and could have a material adverse impact on us. For example, a competitor is requesting to relocate its casino from west Edmonton to south Edmonton, approximately 11 miles from our Century Mile property.
These marketing efforts may not be successful, which could hurt our competitive position. 10 The markets in which we operate generally rely on a local customer base as well as tourists during peak seasons. The number of casinos in some of our markets may exceed demand, which could make it difficult for us to sustain profitability.
For example, for CRA, we emphasize the casino’s showroom, complimentary heated parking, players’ club program, and superior service. These marketing efforts may not be successful, which could hurt our competitive position. The markets in which we operate generally rely on a local customer base as well as tourists during peak seasons.
Our reputation and business may be harmed by interruptions or cybersecurity breaches of our information systems, and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers', our business partners' or our own information or other breaches of our information security.
The rapid evolution of AI, including potential government regulation of AI, may require significant resources to develop, test and maintain our business, offerings, services, and features to help us implement AI ethically in order to minimize unintended, harmful impact. ‎ 13 Our reputation and business may be harmed by interruptions or cybersecurity breaches of our information systems, and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers', our business partners' or our own information or other breaches of our information security.
In October 2023, we closed the casinos in Katowice and Bielsko-Biala, Poland and in November 2023, we closed the casino in Wroclaw, Poland due to the expiration of the gaming licenses as we awaited the licensing decision from the Polish Minister of Finance.
During 2024, the Poland casinos in Katowice, Bielsko-Biala, Krakow and at the LIM Center in Warsaw were temporarily closed due to delays in licensing decisions by the Polish Minister of Finance. The Katowice and Bielsko-Biala casino licenses were awarded in the first quarter of 2024 and both casinos reopened.
Removed
We seek to compete through promotion of our players’ clubs and other marketing efforts. For example, for CRA, we emphasize the casino’s showroom, complimentary heated parking, players’ club program, and superior service.
Added
The actual or perceived weakness in the economy could also lead to decreased spending by our customers. The new presidential administration recently has imposed new and increased tariffs on foreign goods, and foreign countries in turn have imposed tariffs on the US, which could increase costs for consumers.
Removed
For example, there are new casinos and expansions of existing casinos that could increase competition for our Central City and Cripple Creek properties. In January 2022, the AGLC removed the moratorium on gaming facilities. Consideration for additional gaming facilities will be based on a market analysis done by the AGLC.
Added
The actual or perceived impact of tariffs on consumer spending and inflation or an economic downturn or recession could lead to fewer customer visits and decreased discretionary spending by our customers. We face significant competition, and if we are not able to compete successfully, our results of operations will be harmed.
Removed
We anticipate the AGLC may award gaming facility licenses in underserved rural areas outside of the urban Calgary and Edmonton markets in which we are located, but any additional competition could adversely impact our results of operations in Alberta.
Added
The number of casinos in some of our markets may exceed demand, which could make it difficult for us to sustain profitability. We are particularly vulnerable to competition in our markets due to the large number of competitors in those markets.
Removed
Any such expansion of legalized gaming could adversely impact our properties. There have been several bills filed in Missouri to legalize sports betting in the state by gaming licensees and for daily fantasy sports licensees to conduct sports wagering including on mobile devices as long as such devices are located within the state.
Added
The Reno-Sparks market is very competitive, and we compete with other hotel casinos in the market for conventions and hotel group bookings. If we are unable to successfully attract group bookings at the Nugget, our results of operations in Nevada could be adversely impacted.
Removed
There have also been several bills filed in Missouri to allow the state lottery to operate video gaming terminals . Similar bills introduced in the past have not passed the state legislature.
Added
Any such expansion of legalized gaming could adversely impact our properties. In November 2024, Missouri voters passed Amendment 2 legalizing sports betting in Missouri. The Missouri Gaming Commission (“MGC”) is working through regulations and anticipates sports betting to begin in Missouri in late 2025.
Removed
In addition to these legislative efforts, a coalition of six major sports teams and two online sports wagering companies have launched an initiative petition campaign to put sports wagering on the 2024 ballot. If the petition drive is successful, voters across the state would then determine whether to amend the state constitution to allow sports wagering.
Added
We plan to partner with sports betting operators to conduct sports betting at our Missouri facilities or through online apps, which if unsuccessful could have an adverse impact on our results of operations in Missouri.
Removed
Under the proposed constitutional amendment, each of the six sports franchises that play in arenas that seat 11,500 or more would be eligible for a license to receive bets on games, player performance and other elements of a contest with a variable outcome.
Added
We may use artificial intelligence (“AI”) in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations. We may incorporate AI solutions into our business, offerings, services and features, and these applications may become important in our operations over time.
Removed
Companies that operate Missouri’s 13 casinos, including us, would also be eligible for a license, along with two online platforms with no physical presence in the state. It is unclear what impact these changes would have on our casinos in Missouri if enacted, but they could be material.
Added
Our competitors or other third parties may incorporate AI into their products more quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our results of operations.
Removed
We may experience construction delays and increased costs during our expansion or development projects, including the development and construction costs associated with the projects in Missouri, which could adversely affect our operations. From time to time we may commence construction projects at our properties.
Added
Additionally, if the content, analyses, or recommendations that AI applications assist in producing are or are alleged to be deficient, inaccurate, or biased, our business, financial condition, and results of operations may be adversely affected. The use of AI applications may result in cybersecurity incidents that implicate the personal data of end users of such applications.
Removed
Construction on the projects in Missouri began in 2022 and is expected to be completed in mid to late 2024. We may engage in additional construction projects in the future. Construction projects entail significant risks, which can substantially increase costs or delay completion of a project. Most of these factors are beyond our control.
Added
Any such cybersecurity incidents related to our use of AI applications could adversely affect our reputation and results of operations. AI also presents emerging ethical issues and if our use of AI becomes controversial, we may experience brand or reputational harm, competitive harm, or legal liability.
Removed
Our current and future projects could also experience:  failure to obtain necessary licenses, permits, entitlements or other governmental approvals;  changes to plans and specifications, some of which may require the approval of regulatory agencies;  delays and significant cost increases;  shortages of materials;  shortages of skilled labor, labor disputes, or work stoppages for contractors and subcontractors;  disputes with and defaults by contractors and subcontractors;  health and safety incidents and site accidents;  engineering problems, including defective plans and specifications;  poor performance or nonperformance by our partners or other third parties on whom we place reliance;  changes in laws and regulations, or in the interpretation and enforcement of laws and regulations, applicable to gaming and other facilities, real estate development or construction projects;  unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems;  environmental issues, including the discovery of unknown environmental contamination;  weather interference, floods, fires or other casualty losses; and  other unanticipated circumstances or cost increases.
Added
The rapid evolution of AI, including potential future regulation of AI, may also result in additional costs associated with compliance with emerging regulations.
Removed
The occurrence of any of these development and construction risks could increase the total costs of our construction projects or delay or prevent the construction or opening or otherwise affect the design and features of our construction projects. This could 11 materially adversely affect our plan of operations, financial condition and ability to satisfy our debt obligations.
Added
Regulatory developments and stakeholder expectations relating to corporate social responsibility and sustainability matters are rapidly evolving, and our business faces increasing scrutiny related to our corporate social responsibility and sustainability practices, disclosures and goals.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeBoth of these individuals hold Certified Information System Security Professional (“CISSP”) certifications. Our Board of Directors, primarily through the Audit Committee, oversees management's approach to managing cybersecurity risks. The Audit Committee, comprised solely of independent directors, is charged with overseeing the Company’s risk management, including information technology and cybersecurity.
Biggest changeThe CIO leads a team which includes our Corporate Director of Information Security and Senior Systems Engineer, with a combined 29 years of information technology and cybersecurity related experience. Both of these individuals hold Certified Information Systems Security Professional (“CISSP”) certifications. Our Board of Directors, primarily through the Audit Committee, oversees management's approach to managing cybersecurity risks.
As of the date of this report, we are not aware of any incidents from cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition. ‎ 21
Material cybersecurity incidents are required to be reported to the Board of Directors. As of the date of this report, we are not aware of any incidents from cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition.
The Audit Committee routinely engages with relevant management on a range of cybersecurity-related topics, including the threat of environment and vulnerability assessments, policies and practices, technology trends, and regulatory developments from the CIO.
The Audit Committee, comprised solely of independent directors, is charged with overseeing the Company’s risk management, including information technology and cybersecurity. The Audit Committee routinely engages with relevant management on a range of cybersecurity-related topics, including the threat of environment and vulnerability assessments, policies and practices, technology trends, and regulatory developments from the CIO.
Our Chief Information Officer (“CIO”) is responsible for assessing, identifying, and managing the risks from cybersecurity threats. Our CIO has over 14 years of experience in information technology and security positions. The CIO leads a team which includes our Corporate Director of Information Security and Senior Systems Engineer, with a combined 28 years of information technology and cybersecurity related experience.
Our Chief Information Officer (“ CIO ”) is responsible for assessing, identifying, and managing the risks from cybersecurity threats. Our CIO has over 15 years of experience in information technology and security positions.
Additionally, we conduct periodic internal exercises to gauge the effectiveness of the training and assess the need for additional controls and/or training. Material cybersecurity incidents are required to be reported to the Board of Directors.
Additionally, we conduct periodic internal exercises to gauge the effectiveness of the training and assess the need for additional 19 controls and/or training. Our teams evaluate the risk profile of third-party service providers, considering key risk factors such as cybersecurity measures, data privacy policies, and regulatory compliance.
Added
We maintain communication channels with key third-party service providers to assess and respond to potential impacts of incidents within a service provider’s organization. We rely on our third parties to communicate such incidents to us in a timely manner.
Added
Beyond cybersecurity assessments, our teams conduct a structured due diligence process as part of our vendor compliance program for third-party providers that meet specific criteria set by us. We use third-party risk management services to evaluate additional risk factors, including but not limited to past or pending litigation, criminal history, derogatory information, and financial stability.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAdditional Property Information As of December 31, 2023, our subsidiaries were pledged as collateral for our obligations under our credit agreement (“Goldman Credit Agreement”) with Goldman Sachs Bank USA (“Goldman”). As of December 31, 2023, a parcel of land in Kolbaskowo, Poland owned by Casinos Poland secured a bank guarantee with mBank.
Biggest changeFor the locations of these casinos, see “Additional Property Information” below. 20 Additional Property Information As of December 31, 2024, our US subsidiaries and the parent of our Canadian subsidiaries were pledged as collateral for our obligations under our credit agreement (“Goldman Credit Agreement”) with Goldman Sachs Bank USA (“Goldman”).
The Master Lease contains certain covenants, including minimum capital improvement expenditures. Century Casinos, Inc. has provided a guarantee of our subsidiaries’ obligations under the Master Lease. We account for the sale-leaseback transactions involving the Master Lease as failed sale-leasebacks, and therefore the Master Lease is accounted for as a financing obligation.
The Master Lease contains certain covenants, 21 including minimum capital improvement expenditures. Century Casinos, Inc. has provided a guarantee of our subsidiaries’ obligations under the Master Lease. We account for the sale-leaseback transactions involving the Master Lease as failed sale-leasebacks, and therefore the Master Lease is accounted for as a financing obligation.
For additional information regarding the Master Lease, see Note 7 to the Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this report. ‎ 23 Nugget Casino Lease The land, building, structures and other improvements of the Nugget Casino are leased from Smooth Bourbon (the “Nugget Lease”).
For additional information regarding the Master Lease, see Note 7 to the Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this report. Nugget Casino Lease The land, buildings, structures and other improvements of the Nugget Casino are leased from Smooth Bourbon (the “Nugget Lease”).
Corporate Offices – We lease approximately 13,200 square feet of office space in Colorado Springs, Colorado and approximately 2,500 square feet of office space in Vienna, Austria for corporate and administrative purposes. ‎ 22 Poland – The following table summarizes information about CPL’s casinos as of December 31, 2023 (1) .
Corporate Offices – We lease approximately 13,200 square feet of office space in Colorado Springs, Colorado and approximately 2,500 square feet of office space in Vienna, Austria for corporate and administrative purposes. Poland – The following table summarizes information about CPL’s casinos as of December 31, 2024 (1) .
The Master Lease has been amended since 2019 as follows: • On December 1, 2022, an amendment provided for (i) modifications with respect to certain project work to be done by the Company related to Century Casino Caruthersville, (ii) modifications to rent under the Master Lease to provide for an increase in initial annualized rent by approximately $4.2 million after completion of the Caruthersville casino project and (iii) other related modifications. • On July 25, 2023, an amendment (i) added Rocky Gap to the Master Lease, (ii) increased initial annualized rent by approximately $15.5 million and (iii) extended the initial Master Lease term for 15 years from the date of the amendment (subject to the existing four five-year renewal options). • On September 6, 2023, an amendment (i) added the Century Canadian Portfolio to the Master Lease, (ii) increased initial annualized rent by approximately CAD 17.3 million ($13.1 million based on the exchange rate on December 31, 2023) and (iii) extended the initial Master Lease term for 15 years from the date of the amendment (subject to the existing four five year renewal options).
The Master Lease has been amended since 2019 as follows: • On December 1, 2022, an amendment provided for (i) modifications with respect to certain project work to be done by the Company related to Century Casino Caruthersville, (ii) modifications to rent under the Master Lease to provide for an increase in initial annualized rent by approximately $4.2 million, the cash payments for which can be deferred for a period of 12 months after the completion of the project and (iii) other related modifications. • On July 25, 2023, an amendment (i) added Rocky Gap to the Master Lease, (ii) increased initial annualized rent by approximately $15.5 million and (iii) extended the initial Master Lease term for 15 years from the date of the amendment (subject to the four existing five-year renewal options). • On September 6, 2023, an amendment (i) added the Century Canadian Portfolio to the Master Lease, (ii) increased initial annualized rent by approximately CAD 17.3 million ($12.1 million based on the exchange rate on December 31, 2024) and (iii) extended the initial Master Lease term for 15 years from the date of the amendment (subject to the four existing five year renewal options).
The Master Lease provides for the lease of land, buildings, structures and other improvements on the land, easements and similar appurtenances to the land and improvements relating to the operations of the leased properties. The scheduled 2024 rent payments under the Master Lease, including a CPI increase, are approximately $52.2 million.
The Master Lease provides for the lease of land, buildings, structures and other improvements on the land, easements and similar appurtenances to the land and improvements relating to the operations of the leased properties. The scheduled 2025 rent payments under the Master Lease, including a CPI increase, are approximately $58.4 million.
The rent owed to Marnell is paid through dividends to noncontrolling partners. The scheduled 2024 rent payments under the Nugget Lease attributable to Marnell are $7.0 million. The rent payments are subject to annual escalations during the lease term.
The rent owed to Marnell is paid through dividends to non-controlling partners. The scheduled 2025 rent payments under the Nugget Lease attributable to Marnell are $7.7 million. The rent payments are subject to annual escalations during the lease term.
The following table sets forth the location, applicable reportable segment, size and description of certain types of gaming facilities at each of our casinos as of December 31, 2023: Summary of Property Information Segment/Property Year Opened / Acquired Approximate Casino Square Footage Acreage Slot / Electronic Gaming Machines (#) (1) Tables (#) (1) Hotel Rooms (#) Racetrack ‎ (#) United States East Mountaineer Casino, Resort & Races (2) 2019 72,380 1,528.1 1,052 26 357 1 Rocky Gap Casino, Resort & Golf (2) 2023 25,447 270.0 630 16 198 — Midwest Century Casino Cape Girardeau (2) 2019 41,530 19.1 832 23 — — Century Casino Caruthersville (2)(3) 2019 12,000 38.2 418 6 36 — Century Casino & Hotel - Central City 2006 22,640 1.3 400 8 26 — Century Casino & Hotel - Cripple Creek 1996 19,610 3.5 367 6 21 — West Nugget Casino Resort (4) 2023 71,200 25.1 931 24 1,382 — Subtotal 264,807 1,885.3 4,630 109 2,020 1 Canada Century Casino & Hotel - Edmonton (2) 2006 29,225 6.0 800 23 26 — Century Casino St.
The following table sets forth the location, applicable reportable segment, size and description of certain types of gaming facilities at each of our casinos as of December 31, 2024: Summary of Property Information Segment/Property Year Opened / Acquired Approximate Casino Square Footage Acreage Slot / Electronic Gaming Machines (#) (1) Tables (#) (1) Hotel Rooms (#) Racetrack ‎ (#) United States East Mountaineer Casino, Resort & Races (2) 2019 66,152 1,528.1 1,044 26 357 1 Rocky Gap Casino, Resort & Golf (2) 2023 25,447 270.0 630 16 198 — Midwest Century Casino & Hotel - Cape Girardeau (2) 2019 41,530 19.1 809 23 69 — Century Casino & Hotel - Caruthersville (2)(3) 2019 27,000 38.2 580 9 74 — Century Casino & Hotel - Central City 2006 22,640 1.3 398 8 26 — Century Casino & Hotel - Cripple Creek 1996 19,610 3.5 362 6 21 — West Nugget Casino Resort (4) 2023 71,200 25.1 933 25 1,382 — Subtotal 273,579 1,885.3 4,756 113 2,127 1 Canada Century Casino & Hotel - Edmonton (2) 2006 29,225 6.0 793 23 26 — Century Casino St.
Albert (2) 2016 13,269 7.1 432 10 — — Century Mile Racetrack and Casino (2) 2019 19,407 100.1 580 — — 1 Century Downs Racetrack and Casino (2) 2015 17,459 57.3 662 — — 1 Subtotal 79,360 170.5 2,474 33 26 2 Poland Casinos Poland (5) 2007 60,025 — 347 79 — — Total 404,192 2,055.8 7,451 221 2,046 3 (1) Machine and table counts are reported as the total number of machines as of December 31, 2023.
Albert (2) 2016 13,269 7.1 432 10 — — Century Mile Racetrack and Casino (2) 2019 19,407 100.1 580 — — 1 Century Downs Racetrack and Casino (2) 2015 17,459 57.3 660 — — 1 Subtotal 79,360 170.5 2,465 33 26 2 Poland Casinos Poland (5) 2007 31,893 — 350 92 — — Total 384,832 2,055.8 7,571 238 2,153 3 (1) Machine and table counts are reported as the total number of machines as of December 31, 2024.
City Location License Expiration Number of Slots Number of Tables Warsaw Marriott Hotel September 2028 70 37 Warsaw Hilton Hotel (2) June 2025 70 24 Warsaw LIM Center (2) July 2024 67 4 Krakow Dwor Kosciuszko Hotel May 2024 70 5 Lodz Manufaktura Entertainment Complex June 2024 70 9 (1) A detailed description of the regulations applicable to CPL licenses and our ability to obtain new licenses for our locations on their expiration is contained in Exhibit 99.1 to this report, which is incorporated herein by reference.
City Location License Expiration Number of Slots Number of Tables Warsaw Warsaw Presidential Hotel September 2028 70 37 Warsaw Hilton Hotel June 2025 70 24 Bielsko-Biala Hotel President February 2030 54 5 Katowice Metropol Hotel Katowice February 2030 16 4 Wroclaw Polonia Hotel December 2029 70 13 Lodz Manufaktura Entertainment Complex June 2030 70 9 (1) A detailed description of the regulations applicable to CPL licenses and our ability to obtain new licenses for our locations on their expiration is contained in Exhibit 99.1 to this report, which is incorporated herein by reference.
Master Lease In December 2019, certain subsidiaries of the Company and certain subsidiaries of VICI PropCo entered into a sale and leaseback transaction in connection with the 2019 Acquisition and entered into the Master Lease to lease the real estate assets.
We are waiting on regulatory approval to reopen the full gaming floor at the Katowice casino. Master Lease In December 2019, certain subsidiaries of the Company and certain subsidiaries of VICI PropCo entered into a sale and leaseback transaction in connection with the 2019 Acquisition and entered into the Master Lease to lease the real estate assets.
See Note 6 to the Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this report.
As of December 31, 2024, a parcel of land in Kolbaskowo, Poland owned by Casinos Poland secured a bank guarantee with mBank S.A. See Note 6 to the Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data” of this report.
We operated casinos in Katowice, Bielsko-Biala and Wroclaw during 2023, but closed these locations in the fourth quarter of 2023 due to the expiration of the gaming licenses. We were awarded licenses at Wroclaw in December 2023 and Katowice and Bielsko-Biala in February 2024.
We closed the casinos in Katowice and Bielsko-Biala in October 2023 and the casino in Wroclaw in November 2023 due to the expiration of the gaming licenses. The Bielsko-Biala casino reopened in February 2024, the Katowice casino reopened in March 2024 with a reduced gaming floor, and the Wroclaw casino reopened in October 2024.
(5) As of December 31, 2023, Casinos Poland operated five separate casinos in leased building spaces, including hotels, throughout Poland. For the locations of these casinos, see “Additional Property Information” below.
(4) The land and building are owned by Smooth Bourbon. We own 50% of Smooth Bourbon. (5) As of December 31, 2024, Casinos Poland operated six separate casinos in leased building spaces, including hotels, throughout Poland.
In Canada, slot/electronic gaming machines include video lottery terminals. (2) The land and buildings (as applicable) at these properties are leased under the Master Lease. For more information see “Master Lease” below. (3) Includes The Farmstead. (4) The land and building is owned by Smooth Bourbon. We own 50% of Smooth Bourbon.
In Canada, slot/electronic gaming machines include video lottery terminals. (2) Subsidiaries of VICI PropCo own the real estate assets underlying these properties, except The Riverview hotel in Cape Girardeau and The Farmstead hotel in Caruthersville. Subsidiaries of the Company lease these properties under the Master Lease with subsidiaries of VICI PropCo. (3) Includes The Farmstead.
Removed
(2) In October 2023, with approval from the Polish Minister of Finance, we exchanged the casino licenses for the LIM Center in Warsaw and the Hilton Hotel in Warsaw. The exchange of licenses extended the license for the Hilton Hotel in Warsaw from July 2024 to June 2025.
Removed
The Bielsko-Biala casino reopened in February 2024 and we anticipate that the Katowice casino will reopen in mid-March 2024 and that the Wroclaw casino will reopen in a new location in the third quarter of 2024.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeInformation about our Executive Officers Name Age Position Held Erwin Haitzmann 70 Chairman of the Board and Co-Chief Executive Officer Peter Hoetzinger 61 Vice Chairman of the Board, Co-Chief Executive Officer and President Margaret Stapleton 62 Chief Financial Officer and Corporate Secretary Timothy Wright 53 Chief Accounting Officer and Corporate Controller Andreas Terler 54 Managing Director of Century Resorts Management GmbH and ‎ Executive Vice President Nikolaus Strohriegel 54 Managing Director of Century Resorts Management GmbH and Executive Vice President Erwin Haitzmann holds a Doctorate and a Masters degree in Social and Economic Sciences from the University of Linz, Austria (1980), and has extensive casino gaming experience ranging from dealer through various casino management positions.
Biggest changeInformation about our Executive Officers Name Age Position Held Erwin Haitzmann 71 Chairman of the Board and Co-Chief Executive Officer Peter Hoetzinger 62 Vice Chairman of the Board, Co-Chief Executive Officer and President Margaret Stapleton 63 Chief Financial Officer and Corporate Secretary Timothy Wright 54 Chief Accounting Officer and Corporate Controller Andreas Terler 55 Managing Director of Century Resorts Management GmbH and ‎ Executive Vice President Nikolaus Strohriegel 55 Managing Director of Century Resorts Management GmbH and Executive Vice President Erwin Haitzmann holds a Doctorate and a Masters degree in Social and Economic Sciences from the University of Linz, Austria (1980), and has extensive casino gaming experience ranging from dealer through various casino management positions.
Timothy Wright was appointed Chief Accounting Officer effective October 2019 and Corporate Controller effective May 2010. Mr. Wright holds a Bachelor of Science degree in Accounting from the University of Colorado, Colorado Springs, Colorado (1995) and has over 30 years of experience in corporate accounting and finance. Mr.
Timothy Wright was appointed Chief Accounting Officer effective October 2019 and Corporate Controller effective May 2010. Mr. Wright holds a Bachelor of Science degree in Accounting from the University of Colorado, Colorado Springs, Colorado (1995) 22 and has over 30 years of experience in corporate accounting and finance. Mr.
He has served as Managing Director of CRM since February 2007 and Executive Vice President since February 2022. Mr. Terler previously served as Vice President of Operations from May 2011 to October 2019, Chief Information 24 Officer from February 2006 to January 2022 and Senior Vice President, Operations – Missouri and West Virginia from October 2019 to February 2022.
He has served as Managing Director of CRM since February 2007 and Executive Vice President since February 2022. Mr. Terler previously served as Vice President of Operations from May 2011 to October 2019, Chief Information Officer from February 2006 to January 2022 and Senior Vice President, Operations – Missouri and West Virginia from October 2019 to February 2022.
She holds a Bachelor of Science degree in Accounting from Regis University, Denver, Colorado (2004) and has over 30 years of experience in corporate accounting and internal audit. Mrs. Stapleton previously served as our Director of Internal Audit and Compliance from 2005 until May 2010 and as our Executive Vice President, Principal Financial/Accounting Officer from May 2010 to October 2019.
She holds a Bachelor of Science degree in Accounting from Regis University, Denver, Colorado (2004) and has over 30 years of experience in corporate accounting and internal audit. Ms. Stapleton previously served as our Director of Internal Audit and Compliance from 2005 until May 2010 and as our Executive Vice President, Principal Financial/Accounting Officer from May 2010 to October 2019.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThis table is not intended to forecast future performance of our common stock. 12/18 12/19 12/20 12/21 12/22 12/23 CNTY 100.00 107.17 86.47 164.82 95.13 66.04 Nasdaq 100.00 135.23 194.24 235.78 157.74 226.24 Dow Jones US Gambling Index 100.00 143.34 126.92 110.62 82.39 107.03 No dividends have been declared or paid by us.
Biggest changeThis table is not intended to forecast future performance of our common stock. 12/19 12/20 12/21 12/22 12/23 12/24 CNTY 100.00 80.68 153.79 88.76 61.62 40.91 Nasdaq 100.00 143.64 174.36 116.65 167.30 215.22 Dow Jones US Gambling Index 100.00 88.55 77.17 57.48 74.67 74.15 No dividends have been declared or paid by us.
In November 2009, our board of directors approved an increase of the amount available to be repurchased under the program to $15.0 million. The amount available for repurchase as of December 31, 2023 is $14.7 million. The repurchase program has no set expiration or termination date. No repurchases were made during the year ended December 31, 2023. Item 6.
In November 2009, our board of directors approved an increase of the amount available to be repurchased under the program to $15.0 million. The amount available for repurchase as of December 31, 2024 is $14.7 million. The repurchase program has no set expiration or termination date. No repurchases were made during the year ended December 31, 2024. Item 6.
The comparison assumes a $100 investment on December 31, 2018, in our common stock and in each of the foregoing indices, and assumes reinvestment of dividends, if any.
The comparison assumes a $100 investment on December 31, 2019, in our common stock and in each of the foregoing indices, and assumes reinvestment of dividends, if any.
The following graph illustrates the cumulative shareholder return of our common stock during the period beginning December 31, 2018 through December 31, 2023, and compares it to the cumulative total return on the Nasdaq and the Dow Jones US Gambling Index.
The following graph illustrates the cumulative shareholder return of our common stock during the period beginning December 31, 2019 through December 31, 2024, and compares it to the cumulative total return on the Nasdaq and the Dow Jones US Gambling Index.
Declaration and payment of dividends, if any, in the future will be at the discretion of the board of directors. At March 8, 2024, we had 144 holders of record of our common stock. In March 2000, our board of directors approved and announced a discretionary program to repurchase up to $5.0 million of our outstanding common stock.
Declaration and payment of dividends, if any, in the future will be at the discretion of the board of directors. At March 7, 2025, we had 119 holders of record of our common stock. In March 2000, our board of directors approved and announced a discretionary program to repurchase up to $5.0 million of our outstanding common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeDISCUSSION OF RESULTS Years ended December 31, 2023, 2022 and 2021 Century Casinos, Inc. and Subsidiaries For the year ended December 31, 2023/2022 2022/2021 Amounts in thousands 2023 2022 2021 $ Change % Change $ Change % Change Gaming Revenue $ 412,388 $ 365,986 $ 331,877 $ 46,402 12.7% $ 34,109 10.3% Pari-mutuel, Sports Betting and iGaming Revenue 20,165 19,607 18,848 558 2.8% 759 4.0% Hotel Revenue 42,269 9,628 8,286 32,641 339.0% 1,342 16.2% Food and Beverage Revenue 50,262 24,097 17,788 26,165 108.6% 6,309 35.5% Other Revenue 25,122 11,211 11,707 13,911 124.1% (496) (4.2%) Net Operating Revenue 550,206 430,529 388,506 119,677 27.8% 42,023 10.8% Gaming Expenses (216,475) (183,841) (161,119) 32,634 17.8% 22,722 14.1% Pari-mutuel, Sports Betting and iGaming Expenses (21,752) (22,149) (19,735) (397) (1.8%) 2,414 12.2% Hotel Expenses (14,379) (2,815) (2,360) 11,564 410.8% 455 19.3% Food and Beverage Expenses (45,065) (22,631) (16,523) 22,434 99.1% 6,108 37.0% Other Expenses (9,722) (1,205) (1,300) 8,517 706.8% (95) (7.3%) General and Administrative Expenses (140,505) (104,262) (92,189) 36,243 34.8% 12,073 13.1% Depreciation and Amortization (41,043) (27,109) (26,762) 13,934 51.4% 347 1.3% Gain on Sale of Casino Operations 1,660 — — (1,660) (100.0%) — — (Loss) on Sale of Assets — (2,154) — (2,154) (100.0%) 2,154 100.0% Total Operating Costs and Expenses (487,281) (366,166) (319,988) 121,115 33.1% 46,178 14.4% Earnings from Equity Investment 1,121 3,249 — (2,128) (65.5%) 3,249 100.0% Earnings from Operations 64,046 67,612 68,518 (3,566) (5.3%) (906) (1.3%) Income Tax Benefit (Expense) 5,343 7,660 (6,371) (2,317) (30.2%) 14,031 220.2% Net Earnings Attributable to Non-controlling Interests (9,709) (5,694) (1,156) 4,015 70.5% 4,538 392.6% Net (Loss) Earnings Attributable to Century Casinos, Inc.
Biggest changeSee Note 2 to the Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data” of this report. 25 DISCUSSION OF RESULTS Years ended December 31, 2024, 2023 and 2022 Century Casinos, Inc. and Subsidiaries For the year ended December 31, 2024/2023 2023/2022 Amounts in thousands 2024 2023 2022 $ Change % Change $ Change % Change Gaming Revenue $ 419,948 $ 412,388 $ 365,986 $ 7,560 1.8% $ 46,402 12.7% Pari-mutuel, Sports Betting and iGaming Revenue 19,016 20,165 19,607 (1,149) (5.7%) 558 2.8% Hotel Revenue 48,253 42,269 9,628 5,984 14.2% 32,641 339.0% Food and Beverage Revenue 58,947 50,262 24,097 8,685 17.3% 26,165 108.6% Other Revenue 29,755 25,122 11,211 4,633 18.4% 13,911 124.1% Net Operating Revenue 575,919 550,206 430,529 25,713 4.7% 119,677 27.8% Gaming Expenses (225,466) (216,475) (183,841) 8,991 4.2% 32,634 17.8% Pari-mutuel, Sports Betting and iGaming Expenses (22,234) (21,752) (22,149) 482 2.2% (397) (1.8%) Hotel Expenses (18,883) (14,379) (2,815) 4,504 31.3% 11,564 410.8% Food and Beverage Expenses (52,416) (45,065) (22,631) 7,351 16.3% 22,434 99.1% Other Expenses (11,381) (9,722) (1,205) 1,659 17.1% 8,517 706.8% General and Administrative Expenses (147,912) (140,505) (104,262) 7,407 5.3% 36,243 34.8% Depreciation and Amortization (49,595) (41,043) (27,109) 8,552 20.8% 13,934 51.4% Impairment - Goodwill (43,716) — — 43,716 100.0% — — Gain on Sale of Casino Operations — 1,660 — 1,660 100.0% (1,660) (100.0%) (Loss) on Sale of Assets — — (2,154) — — (2,154) (100.0%) Total Operating Costs and Expenses (571,603) (487,281) (366,166) 84,322 17.3% 121,115 33.1% Earnings from Equity Investment — 1,121 3,249 (1,121) (100.0%) (2,128) (65.5%) Earnings from Operations 4,316 64,046 67,612 (59,730) (93.3%) (3,566) (5.3%) Income Tax (Expense) Benefit (27,673) 5,343 7,660 (33,016) (617.9%) (2,317) (30.2%) Net Earnings Attributable to Non-controlling Interests (7,085) (9,709) (5,694) (2,624) (27.0%) 4,015 70.5% Net (Loss) Earnings Attributable to Century Casinos, Inc.
Rocky Gap was added to the East operating segment in July 2023 and Nugget was added to the West operating segment in April 2023.
Rocky Gap was added to the East operating segment in July 2023 and the Nugget was added to the West operating segment in April 2023.
We have received earn out payments from the sale of the Calgary casino operations of CAD 2.2 million ($1.7 million based on the exchange rate of December 31, 2023) that are recorded to gain on sale of casino operations in our consolidated statement of (loss) earnings for the year ended December 31, 2023.
We have received earn out payments from the sale of the Calgary casino operations of CAD 2.2 million ($1.7 million based on the exchange rate on December 31, 2023) that are recorded to gain on sale of casino operations in our consolidated statement of (loss) earnings for the year ended December 31, 2023.
Adjusted EBITDAR should not be viewed as a measure of overall operating performance as an indicator of our performance, considered in isolation, or construed as an alternative to operating income or net income, the most directly comparable GAAP measure, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as an alternative to any other measure determined in accordance with generally accepted accounting principles because this measure is not presented on a US GAAP basis and excludes certain expenses, including the rent expense related to our Master Lease, and is provided for the limited purposes discussed herein.
Adjusted EBITDAR should not be viewed as a measure of overall operating performance as an indicator of our performance, considered in isolation, or construed as an alternative to operating income or net earnings, the most directly comparable US GAAP measure, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as an alternative to any other measure determined in accordance with generally accepted accounting principles because this measure is not presented on a US GAAP basis and excludes certain expenses, including the rent expense related to our Master Lease, and is provided for the limited purposes discussed herein.
Interest expense increased $13.0 million due to additional properties added to the Master Lease, approximately $14.6 million due to increased borrowings under our Goldman Credit Agreement in April 2022 in connection with the Nugget Acquisition, increased interest rates on the term loan and borrowing on the revolving facility under our Goldman Credit Agreement, and $7.3 million related to the CDR land lease debt extinguishment in connection with the Canada Real Estate Sale.
In 2023, interest expense increased $13.0 million due to additional properties added to the Master Lease, approximately $14.6 million due to increased borrowings under our Goldman Credit Agreement in April 2022 in connection with the Nugget Acquisition, increased interest rates on the term loan and borrowing on the revolving facility under our Goldman Credit Agreement, and $7.3 million related to the CDR land lease debt extinguishment in connection with the Canada Real Estate Sale.
Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net income, because it excludes the rent expense associated with our Master Lease and certain other items. The reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders is presented below.
Consolidated Adjusted EBITDAR should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net earnings, because it excludes the rent expense associated with our Master Lease and certain other items. The reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders is presented below.
Cash flow estimates include assumptions regarding factors such as recent and budgeted operating performance, growth percentages as well as competitive impacts from current and anticipated competition, operating margins and current regulatory, social and economic climates. The most significant of the assumptions used in our valuations include revenue growth/decline percentages, discount rates, future 45 terminal values and capital expenditure assumptions.
Cash flow estimates include assumptions regarding factors such as recent and budgeted operating performance, growth percentages as well as competitive impacts from current and anticipated competition, operating margins and current regulatory, social and economic climates. The most significant of the assumptions used in our valuations include revenue growth/decline percentages, discount rates, future terminal values and capital expenditure assumptions.
Reportable Segment Operating Segment Reporting Unit United States East Mountaineer Casino, Resort & Races (1) Rocky Gap Casino, Resort & Golf (1) Midwest Century Casino & Hotel - Central City Century Casino & Hotel - Cripple Creek Century Casino Cape Girardeau (1) Century Casino Caruthersville (1) and The Farmstead West Nugget Casino Resort and Smooth Bourbon, LLC Canada Canada (2) Century Casino & Hotel - Edmonton (1) Century Casino St.
Reportable Segment Operating Segment Reporting Unit United States East Mountaineer Casino, Resort & Races (1) Rocky Gap Casino, Resort & Golf (1) Midwest Century Casino & Hotel — Central City Century Casino & Hotel — Cripple Creek Century Casino & Hotel — Cape Girardeau (1) Century Casino & Hotel — Caruthersville and The Farmstead (1) West Nugget Casino Resort and Smooth Bourbon, LLC Canada Canada Century Casino & Hotel — Edmonton (1) Century Casino St.
In addition to the increased revenue in Missouri, increased revenue from the third sports betting app in Colorado that launched in September 2022 was partially offset by decreased gaming revenue in Colorado. Operating expenses in the Midwest operating segment increased due to increased payroll and marketing costs.
In addition to the increased revenue in Missouri, increased 32 revenue from the third sports betting app in Colorado that launched in September 2022 was partially offset by decreased gaming revenue in Colorado. Operating expenses in the Midwest operating segment increased due to increased payroll and marketing costs.
For the year ended December 31, Amounts in millions 2023 2022 2021 East Pari-mutuel Revenue $ 5.9 $ 5.4 $ 6.2 Sports Betting Revenue 0.2 0.6 0.6 iGaming Revenue 1.1 0.6 0.2 7.2 6.6 7.0 Midwest Sports Betting Revenue 2.8 2.1 1.5 West Sports Betting Revenue 0.1 — — Total United States $ 10.1 $ 8.7 $ 8.5 A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the United States reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7.
For the year ended December 31, Amounts in millions 2024 2023 2022 East Pari-mutuel Revenue $ 5.7 $ 5.9 $ 5.4 Sports Betting Revenue 0.2 0.2 0.6 iGaming Revenue 1.8 1.1 0.6 7.7 7.2 6.6 Midwest Sports Betting Revenue 1.8 2.8 2.1 West Sports Betting Revenue 0.1 0.1 — Total United States $ 9.6 $ 10.1 $ 8.7 A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the United States reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7.
For the year ended December 31, 2023 Amounts in thousands United States Canada Poland Corporate and Other Total Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 18,036 $ 8,626 $ 3,446 $ (58,306) $ (28,198) Interest expense (income), net (1) 38,024 11,527 (345) 42,605 91,811 Income tax expense (benefit) 2,654 (4,256) 1,534 (5,275) (5,343) Depreciation and amortization 33,739 4,590 2,482 232 41,043 Net earnings attributable to non-controlling interests 5,284 2,701 1,724 — 9,709 Non-cash stock-based compensation — — — 3,610 3,610 (Gain) loss on foreign currency transactions, cost recovery income and other (2) (84) (3,195) (810) 401 (3,688) Loss on disposition of fixed assets 537 10 31 113 691 Acquisition costs — — — 4,412 4,412 Adjusted EBITDAR $ 98,190 $ 20,003 $ 8,062 $ (12,208) $ 114,047 (1) See “Non-Operating Income (Expense) – Interest” below for a breakdown of interest expense (income), net and “Liquidity and Capital Resources” below for more information on the rent payments related to the Master Lease.
(3) Related to the impairment of goodwill at the Nugget. 29 For the year ended December 31, 2023 Amounts in thousands United States Canada Poland Corporate and Other Total Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 18,036 $ 8,626 $ 3,446 $ (58,306) $ (28,198) Interest expense (income), net (1) 38,024 11,527 (345) 42,605 91,811 Income tax expense (benefit) 2,654 (4,256) 1,534 (5,275) (5,343) Depreciation and amortization 33,739 4,590 2,482 232 41,043 Net earnings attributable to non-controlling interests 5,284 2,701 1,724 — 9,709 Non-cash stock-based compensation — — — 3,610 3,610 (Gain) loss on foreign currency transactions, cost recovery income and other (2) (84) (3,195) (810) 401 (3,688) Loss on disposition of fixed assets 537 10 31 113 691 Acquisition costs — — — 4,412 4,412 Adjusted EBITDAR $ 98,190 $ 20,003 $ 8,062 $ (12,208) $ 114,047 (1) See “Non-Operating Income (Expense) – Interest” below for a breakdown of interest expense (income), net and “Liquidity and Capital Resources” below for more information on the rent payments related to the Master Lease.
As of December 31, 2023, we have made no changes to our estimates related to useful lives. We use judgment in estimating future cash flows when we review the carrying value of our property and equipment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable.
As of December 31, 2024, we have made no changes to our estimates related to useful lives. We use judgment in estimating future cash flows when we review the carrying value of our property and equipment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable.
See Item 2, “Properties”, above for a list of casinos operating as of December 31, 2023. We have a 75% ownership interest in CDR and we consolidate CDR as a majority-owned subsidiary for which we have a controlling financial interest. We account for and report the remaining 25% ownership interest in CDR as a non-controlling financial interest.
See Item 2, “Properties”, above for a list of casinos operating as of December 31, 2024. We have a 75% ownership interest in CDR and we consolidate CDR as a majority-owned subsidiary for which we have a controlling financial interest. We account for and report the remaining 25% ownership interest in CDR as a non-controlling financial interest.
Because management believes it is more likely than not that the benefit from certain deferred tax assets will not be realized, a valuation allowance of $11.4 million in foreign jurisdictions has been provided in recognition of these risks.
Because management believes it is more likely than not that the benefit from certain deferred tax assets will not be realized, a valuation allowance of $11.0 million in foreign jurisdictions has been provided in recognition of these risks.
We define Adjusted EBITDAR as net (loss) earnings attributable to Century Casinos, Inc. shareholders before interest expense (income), net, including interest expense related to the Master Lease as discussed below, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions.
We define Adjusted EBITDAR as net (loss) earnings attributable to Century Casinos, Inc. shareholders before interest expense (income), net, including interest expense related to the Master Lease as discussed below, income taxes (benefit), depreciation, amortization, non-controlling interests net earnings (losses) and transactions, pre-opening expenses, termination expenses related to closing a casino, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, loss (gain) on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions, cost recovery income and other, gain on business combination and certain other one-time transactions.
As of December 31, 2023, we believe that our investments in property and equipment are recoverable. Goodwill and Intangible Assets – We test goodwill and indefinite-lived intangible assets for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary. Our identifiable intangible assets include trademarks, player’s club lists and casino licenses.
As of December 31, 2024, we believe that our investments in property and equipment are recoverable. 42 Goodwill and Intangible Assets – We test goodwill and indefinite-lived intangible assets for impairment as of October 1 each year, or more frequently as circumstances indicate it is necessary. Our identifiable intangible assets include trademarks, player’s club lists and casino licenses.
Net cash used in investing activities for the year ended December 31, 2022 consisted of $95.0 million for the purchase of the 50% equity interest in Smooth Bourbon, $0.4 million for the purchase of a casino license in Poland, $1.7 million for slot machine purchases, $0.2 million in gaming-related purchases, $0.1 million for outdoor pool and patio furniture and $0.1 million for hotel carpet in West Virginia, $2.4 million for our hotel remodel in Cape Girardeau, $1.6 million for our casino project in Caruthersville, $2.9 million for our stand-alone hotel project in Caruthersville, $0.4 million for renovations to the pavilion in Caruthersville which is funded by VICI PropCo (the proceeds funded from VICI PropCo are recognized as financing activities) to relocate the casino from the riverboat and barge, $1.8 million for slot machine purchases at our Missouri properties, $0.7 million for slot machine purchases, $0.2 million in gaming-related purchases and $0.3 million in camera upgrades at our Colorado properties, $1.6 million for employee housing in Cripple Creek, $0.7 million in slot machine and table game purchases in Poland, $0.2 million for carpet at Century Downs, $0.2 million for drainage at Century Mile, and $4.1 million in other fixed asset additions at our properties, offset by $6.3 million in proceeds from the sale of the land and building in Calgary, $5.0 million in dividends from Smooth Bourbon and $0.1 million in proceeds from the disposition of assets.
Net cash used in investing activities for the year ended December 31, 2022 consisted of $95.0 million for the purchase of the 50% equity interest in Smooth Bourbon, $0.4 million for the purchase of a casino license in Poland, $4.2 million in slot machine purchases for our US properties, $0.7 million in gaming-related and surveillance purchases for our US properties, $0.1 million for outdoor pool and patio furniture and $0.1 million for hotel carpet in West Virginia, $2.4 million for our hotel remodel in Cape Girardeau, $1.6 million for our casino project in Caruthersville which is funded by VICI PropCo (the proceeds funded from VICI PropCo are recognized as financing activities), $2.9 million for our stand-alone hotel project in Caruthersville, $0.4 million for renovations to the pavilion in Caruthersville to relocate the casino from the riverboat and barge, $1.6 million for employee housing in Cripple Creek, $0.7 million in slot machine and table game purchases in Poland, $0.2 million for carpet at Century Downs, $0.2 million for drainage at Century Mile, and $4.1 million in other fixed asset additions at our properties, offset by $6.3 million in proceeds from the sale of the land and building in Calgary, $5.0 million in dividends from Smooth Bourbon and $0.1 million in proceeds from the disposition of assets.
The remaining cash payments due related to the transition tax total $0.7 million and are expected to be paid $0.3 million in 2024 and $0.4 million in 2025. Critical Accounting Estimates Management's discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements.
The remaining cash payments due related to the transition tax total $0.4 million and are expected to be paid in 2025. Critical Accounting Estimates Management's discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements.
We have a shelf registration statement with the SEC that became effective in June 2023 under which we may issue, from time to time, up to $100 million of common stock, preferred stock, debt securities and other securities.
We have a shelf registration statement with the SEC that became effective in June 2023 under which we may issue, from time to time, up to $100 million of common stock, preferred stock, debt securities and other securities. We intend to renew the shelf registration statement in 2026.
(4) Prior to the Nugget Acquisition, our equity investment in Smooth Bourbon was included in the Corporate Other reporting unit. 26 We have controlling financial interests through our subsidiary CRM in the following reporting units: We have a 66.6% ownership interest in CPL and we consolidate CPL as a majority-owned subsidiary for which we have a controlling financial interest.
(3) Prior to the Nugget Acquisition, our equity investment in Smooth Bourbon was included in the Corporate Other reporting unit. ‎ 24 We have controlling financial interests through our subsidiary CRM in the following reporting units: We have a 66.6% ownership interest in CPL and we consolidate CPL as a majority-owned subsidiary for which we have a controlling financial interest.
Property and Equipment – We have significant capital invested in our property and equipment, which represented approximately 69% of our total assets as of December 31, 2023. Judgments are made in determining the estimated useful lives of assets, salvage values to be assigned to assets and if or when an asset has been impaired.
Property and Equipment – We have significant capital invested in our property and equipment, which represented approximately 78% of our total assets as of December 31, 2024. Judgments are made in determining the estimated useful lives of assets, salvage values to be assigned to assets and if or when an asset has been impaired.
Our reporting units with goodwill balances as of December 31, 2023 are included within United States, Canada and Poland reportable segments.
Our reporting units with goodwill balances as of December 31, 2024 are included within United States, Canada and Poland reportable segments.
Financing Activities Net cash provided by financing activities for the year ended December 31, 2023 consisted of $162.6 million in proceeds from the Canada Real Estate Sale, $8.0 million in borrowings, net of principal payments, and $0.1 million in proceeds from the exercise of stock options, offset by $1.3 million to repurchase shares to satisfy tax withholding related to our performance stock unit awards and $19.6 million in distributions to non-controlling interests in CDR, CPL and Smooth Bourbon.
Net cash provided by financing activities for the year ended December 31, 2023 consisted of $162.6 million in proceeds from the Canada Real Estate Sale, $8.0 million in proceeds from borrowings, net of principal payments, of which $35.1 million consisted of proceeds from borrowings from VICI PropCo for the Caruthersville project and $0.1 million in proceeds from the exercise of stock options, offset by $1.3 million to repurchase shares to satisfy tax withholding related to our performance stock unit awards and $19.6 million in distributions to non-controlling interests in CDR, CPL and Smooth Bourbon.
(2) Included in the Canada segment is $1.7 million gain related to the earn out payment from the sale of casino operations in Calgary in 2020 and $3.5 million cost recovery income for CDR. ‎ 31 For the year ended December 31, 2022 Amounts in thousands United States Canada Poland Corporate and Other Total Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 24,759 $ 6,070 $ 5,811 $ (28,664) $ 7,976 Interest expense (income), net (1) 28,531 2,281 (686) 34,854 64,980 Income tax expense (benefit) 7,595 2,354 2,326 (19,935) (7,660) Depreciation and amortization 19,364 4,754 2,606 385 27,109 Net earnings attributable to non-controlling interests — 2,787 2,907 — 5,694 Non-cash stock-based compensation — — — 3,335 3,335 (Gain) loss on foreign currency transactions, cost recovery income and other (2) (1) 123 (1,153) (205) (1,236) Loss (gain) on disposition of fixed assets 49 27 63 (121) 18 Acquisition costs — — — 3,124 3,124 Adjusted EBITDAR $ 80,297 $ 18,396 $ 11,874 $ (7,227) $ 103,340 (1) See “Non-Operating Income (Expense) – Interest” below for a breakdown of interest expense (income), net and “Liquidity and Capital Resources” below for more information on the rent payments related to the Master Lease.
For the year ended December 31, 2022 Amounts in thousands United States Canada Poland Corporate and Other Total Net earnings (loss) attributable to Century Casinos, Inc. shareholders $ 24,759 $ 6,070 $ 5,811 $ (28,664) $ 7,976 Interest expense (income), net (1) 28,531 2,281 (686) 34,854 64,980 Income tax expense (benefit) 7,595 2,354 2,326 (19,935) (7,660) Depreciation and amortization 19,364 4,754 2,606 385 27,109 Net earnings attributable to non-controlling interests — 2,787 2,907 — 5,694 Non-cash stock-based compensation — — — 3,335 3,335 (Gain) loss on foreign currency transactions, cost recovery income and other (2) (1) 123 (1,153) (205) (1,236) Loss (gain) on disposition of fixed assets 49 27 63 (121) 18 Acquisition costs — — — 3,124 3,124 Adjusted EBITDAR $ 80,297 $ 18,396 $ 11,874 $ (7,227) $ 103,340 (1) See “Non-Operating Income (Expense) – Interest” below for a breakdown of interest expense (income), net and “Liquidity and Capital Resources” below for more information on the rent payments related to the Master Lease.
We aggregate all operating segments into three reportable segments based on the geographical locations in which our casinos operate: United States, Canada and Poland. We have additional business activities including certain other corporate and management operations that we report as Corporate and Other.
We aggregate all operating segments into three reportable segments based on the geographical locations in which our casinos operate: United States, Canada and Poland. We have additional business activities including certain other corporate and management operations that we report as Corporate and Other. In the United States, we view our operating segments as East, Midwest and West.
Potential Sources and Uses of Liquidity, and Short-Term and Long-Term Liquidity Historically, our primary source of liquidity and capital resources has been cash flow from operations. As of December 31, 2023, we had $171.3 million in cash and cash equivalents compared to $101.8 million in cash and cash equivalents at December 31, 2022.
Potential Sources and Uses of Liquidity, and Short-Term and Long-Term Liquidity Historically, our primary source of liquidity and capital resources has been cash flow from operations. As of December 31, 2024, we had $98.8 million in cash and cash equivalents compared to $171.3 million in cash and cash equivalents at December 31, 2023.
We received earn out payments of CAD 2.1 million ($1.7 million based on the exchange rate of December 31, 2023) for the year ended December 31, 2023 that are recorded to gain on sale of casino operations on our consolidated statements of (loss) earnings.
We received earn out payments related to the sale of the casino operations of Century Casino Calgary of CAD 2.1 million ($1.7 million based on the exchange rate of December 31, 2023) for the year ended December 31, 2023 that are recorded to gain on sale of casino operations in our consolidated statements of (loss) earnings.
We have seen a decrease in gaming revenue in West Virginia, particularly in table games, since sports betting in Ohio began at the beginning of 2023. Operating expenses in West Virginia decreased by ($0.2) million due to a decrease in gaming-related expenses. Midwest – Net operating revenue increased by $1.1 million.
We have seen a decrease in gaming revenue in West Virginia, particularly in table games, since sports betting in Ohio began at the beginning of 2023. Operating expenses in West Virginia decreased by ($0.2) million due to a decrease in gaming-related expenses.
CDR operates Century Downs Racetrack and Casino, a REC in Balzac, a north metropolitan area of Calgary, Alberta, Canada. We had concession agreements for ship-based casinos and had ownership in and a consulting agreement with MCE, all of which are terminated and are detailed further under “Corporate and Other” below.
CDR operates Century Downs Racetrack and Casino, a REC in Balzac, a north metropolitan area of Calgary, Alberta, Canada. We had concession agreements for ship-based casinos, all of which are terminated and are detailed further under “Corporate and Other” below.
Investing Activities Net cash used in investing activities for the year ended December 31, 2023 consisted of $98.8 million to acquire the Nugget, net of cash, $52.6 million to acquire Rocky Gap, net of cash, $0.5 million for a casino license in Poland, $0.4 million for slot machine purchases, $0.5 million in gaming-related purchases, $0.4 million on surveillance equipment, $1.4 million in various improvements to the Mountaineer property in West Virginia, $2.1 million in gaming-related purchases in Maryland, $20.0 million for our hotel project in Cape Girardeau, $18.6 million for our casino project in Caruthersville which is funded by VICI PropCo (the proceeds funded from VICI PropCo are recognized as financing activities), $1.3 million in improvement projects for the temporary land-based casino in Caruthersville, $0.2 million for our stand-alone hotel project in Caruthersville, $0.9 million for slot machine purchases and $0.4 million for surveillance equipment at our Missouri properties, $2.0 million for slot machine purchases, $1.2 million in signage and $1.1 million in exterior improvements in Nevada, $0.9 million for slot machine purchases and $0.1 million in camera upgrades at our Colorado properties, $0.6 million for employee housing in Cripple Creek, $1.4 million in slot machine 41 purchases and $0.5 million to remodel our new Wroclaw location in Poland, $0.6 million related to adding sportsbooks at our Canada properties and $5.1 million in other fixed asset additions at our properties, offset by $1.7 million in proceeds from the earn out related to the sale of casino operations in Calgary in 2020, $2.3 million in dividends from Smooth Bourbon, $0.1 million in proceeds from the disposition of assets, and $0.5 million in cash due to consolidating Smooth Bourbon following the Nugget Acquisition.
Albert in Canada, $4.9 million in renovations on the new Wroclaw casino location in Poland and $3.0 million in other fixed asset additions at our properties, offset by $0.1 million in proceeds from the disposal of assets and less than $0.1 million collected on a note receivable. 39 Net cash used in investing activities for the year ended December 31, 2023 consisted of $98.8 million to acquire the Nugget, net of cash, $52.6 million to acquire Rocky Gap, net of cash, $0.5 million for a casino license in Poland, $4.2 million in slot machine purchases for our US properties, $3.5 million in gaming-related and surveillance equipment purchases for our US properties, $1.4 million in various improvements to the Mountaineer property in West Virginia, $20.0 million for our hotel project in Cape Girardeau, $18.6 million for our casino project in Caruthersville which is funded by VICI PropCo (the proceeds funded from VICI PropCo are recognized as financing activities), $1.3 million in improvement projects for the temporary land-based casino in Caruthersville, $0.2 million for our stand-alone hotel project in Caruthersville, $1.2 million in signage and $1.1 million in exterior improvements in Nevada, $0.6 million for employee housing in Cripple Creek, $1.4 million in slot machine purchases and $0.5 million to remodel our new Wroclaw location in Poland, $0.6 million related to adding sportsbooks at our Canada properties and $5.1 million in other fixed asset additions at our properties, offset by $1.7 million in proceeds from the earn out related to the sale of casino operations in Calgary in 2020, $2.3 million in dividends from Smooth Bourbon, $0.1 million in proceeds from the disposition of assets, and $0.5 million in cash due to consolidating Smooth Bourbon following the Nugget Acquisition.
The fair values are determined primarily using the multi-period excess earnings methodology (“MPEEM”) and the relief from royalty method under the income approach. As of December 31, 2023, the fair value of our indefinite-lived intangible assets at our CSA reporting unit was 10% in excess of its related carrying value.
Our indefinite-lived intangible assets are not amortized. The fair values are determined primarily using the multi-period excess earnings methodology (“MPEEM”) and the relief from royalty method under the income approach. As of December 31, 2024, the fair value of our indefinite-lived intangible assets at our CSA reporting unit was 5% in excess of its related carrying value.
Inflation and Staffing – We have seen material increases in our operating expenses at our properties, including payroll wages and benefits, insurance and utilities, maintenance costs and food and beverage costs. We have also experienced difficulties attracting and retaining staff at some locations in the US and Canada.
Inflation and Staffing – During 2023, we saw material increases in our operating expenses at our properties, including payroll wages and benefits, insurance and utilities, maintenance costs and food and beverage costs. We also experienced difficulties attracting and retaining staff at some locations in the US and Canada.
The increase was primarily due to increased gaming revenue from a full year of normalized operations at our Caruthersville location which had disruptions in 2022 from low water levels in the Mississippi River, and from a full year of hotel revenue from The Farmstead, which opened in October 2022.
Midwest – Net operating revenue increased primarily due to increased gaming revenue from a full year of normalized operations at our Caruthersville location, which had disruptions in 2022 from low water levels in the Mississippi River, and from a full year of hotel revenue from The Farmstead, which opened in October 2022.
In February 2022, we ceased operating Century Sports, which contributed to a decrease in net operating revenue of (CAD 0.3 million) ($0.3 million) and decreased operating costs and expenses of (CAD 0.4 million) ($0.3 million) for the year ended December 31, 2023 compared to the year ended December 31, 2022. 2022 Compared to 2021 The following discussion highlights results for the year ended December 31, 2022 compared to the year ended December 31, 2021.
In February 2022, we ceased operating Century Sports, which contributed to a decrease in net operating revenue of (CAD 0.3 million) ($0.3 million) and decreased operating costs and expenses of (CAD 0.4 million) ($0.3 million) for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Net cash provided by financing activities for the year ended December 31, 2022 consisted of $178.5 million in proceeds from borrowings net of principal payments, $5.0 million proceeds from borrowing from VICI PropCo for construction at CCV and $0.3 million in proceeds from the exercise of stock options, offset by $18.9 million in payments of deferred financing costs, $0.4 million to repurchase shares to satisfy tax withholding related to our performance stock unit awards and $3.3 million in distributions to non-controlling interests in CDR and CPL.
Net cash provided by financing activities for the year ended December 31, 2022 consisted of $183.5 million in proceeds from borrowings net of principal payments, of which $5.0 million consisted of proceeds from borrowings from VICI PropCo for the Caruthersville project and $0.3 million in proceeds from the exercise of stock options, offset by $18.9 million in payments of deferred financing costs, $0.4 million to repurchase shares to satisfy tax withholding related to our performance stock unit awards and $3.3 million in distributions to non-controlling interests in CDR and CPL.
Intangible assets related to our CSA reporting unit were $9.2 million as of December 31, 2023. Key assumptions in the valuation of intangible assets at the CSA reporting unit relate to future earnings at CSA. A downturn in the Alberta economy could negatively affect the key assumptions management used in its analysis.
Intangible assets related to our CSA reporting unit were $8.5 million as of December 31, 2024. Key assumptions in the valuation of intangible assets at the CSA reporting unit relate to future earnings at CSA. A downturn in the Alberta economy could negatively affect the key assumptions management used in its analysis.
Results in US dollars were impacted by (3.7%) and (3.8%) decreases in the average exchange rate between the US dollar and Canadian dollar for the year ended December 31, 2023 compared to the year ended December 31, 2022, and the year ended December 31, 2022 compared to the year ended December 31, 2021, respectively.
Results in US dollars were impacted by (1.5%) and (3.7%) decreases in the average exchange rate between the US dollar and Canadian dollar for the year ended December 31, 2024 compared to the year ended December 31, 2023, and the year ended December 31, 2023 compared to the year ended December 31, 2022, respectively.
During the year ended December 31, 2023, we recognized an income tax benefit of ($5.3) million on pre-tax loss of ($23.8) million, representing an effective income tax rate of 22.4%, compared to income tax benefit of ($7.7) million on pre-tax income of $6.0 million, representing an effective income tax rate of (127.5%), and income tax expense of $6.4 million on pre-tax income of $28.1 million, representing an effective income tax rate of 22.6% for the years ended December 31, 2022 and 2021, respectively.
During the year ended December 31, 2024, we recognized income tax expense of $27.7 million on pre-tax loss of ($93.4) million, representing an effective income tax rate of (29.6%), compared to an income tax benefit of ($5.3) million on pre-tax loss of ($23.8) million, representing an effective income tax rate of 22.4%, and an income tax benefit of ($7.7) million on pre-tax income of $6.0 million, representing an effective income tax rate of (127.5%) for the years ended December 31, 2023 and 2022, respectively.
Net operating revenue decreased primarily due to decreased gaming revenue. As stated above, we had to temporarily close two casinos in October 2023 and one casino in November 2023. Revenue at these three locations decreased by PLN 25.2 million in the fourth quarter of 2023 compared to the fourth quarter of 2022.
Net operating revenue decreased primarily due to decreased gaming revenue. As stated above, we had to temporarily close three casinos in the fourth quarter of 2023. Revenue at these three locations decreased by PLN 25.2 million in the fourth quarter of 2023 compared to the fourth quarter of 2022.
Presentation of Foreign Currency Amounts The average exchange rates to the US dollar used to translate balances during each reported period are as follows: For the year ended December 31, % Change Average Rates 2023 2022 2021 2023/2022 2022/2021 Canadian dollar (CAD) 1.3496 1.3011 1.2537 (3.7%) (3.8%) Euros (EUR) 0.9248 0.9506 0.8456 2.7% (12.4%) Polish zloty (PLN) 4.2034 4.4559 3.8608 5.7% (15.4%) Source: 2023 and 2022 Xe Currency Converter, 2021 Pacific Exchange Rate Service 27 We recognize in our statement of (loss) earnings, foreign currency transaction gains or losses resulting from the translation of casino operations and other transactions that are denominated in a currency other than US dollars.
Presentation of Foreign Currency Amounts The average exchange rates to the US dollar used to translate balances during each reported period are as follows: For the year ended December 31, % Change Average Rates 2024 2023 2022 2024/2023 2023/2022 Canadian dollar (CAD) 1.3696 1.3496 1.3011 (1.5%) (3.7%) Euros (EUR) 0.9244 0.9248 0.9506 — 2.7% Polish zloty (PLN) 3.9807 4.2034 4.4559 5.3% 5.7% Source: Xe Currency Converter We recognize in our statement of (loss) earnings, foreign currency transaction gains or losses resulting from the translation of casino operations and other transactions that are denominated in a currency other than US dollars.
The Nugget Lease is considered an intercompany lease and income and expense related to the lease are eliminated in consolidation. The 50% interest in the Nugget Lease owned by Marnell is recorded as noncontrolling interest on our consolidated statements of (loss) earnings.
The Nugget Lease is considered an intercompany lease and income and expense related to the lease are eliminated in consolidation. The 50% interest in the Nugget Lease owned by Marnell through Smooth Bourdon is recorded as non-controlling interest on our consolidated statements of (loss) earnings.
Interest expense Interest expense is directly related to interest owed on our borrowings under our Goldman Credit Agreement, Macquarie Credit Agreement, our financing obligation with VICI PropCo, our CPL and CRM borrowings, our capital lease agreements and interest expense related to the CDR land lease.
Interest expense Interest expense is directly related to interest owed on our borrowings under our Goldman Credit Agreement, Macquarie Credit Agreement, our financing obligation under the Master Lease with VICI PropCo, our CPL and CRM borrowings, our capital lease agreements and, prior to the Canada Real Estate Sale, interest expense related to the CDR land lease.
As a result, we have had to adjust hours of some food and beverage outlets, the number of table games open and the number of rooms available at some of our hotels. We have been able to make adjustments during non-peak times to mitigate some of the impact to our operating results.
As a result, during 2023, we adjusted hours of some food and beverage outlets, the number of table games open and the number of rooms available at some of our hotels. We were able to make adjustments during non-peak times to mitigate some of the impact to our operating results.
We intend to renew the shelf registration statement in 2026. 44 If necessary, we may seek to obtain further term loans, mortgages or lines of credit with commercial banks, sale and leaseback transactions of property we own or acquire, or other debt or equity financings to supplement our working capital and investing requirements.
If necessary, we may seek to obtain further term loans, mortgages or lines of credit with commercial banks, sale and leaseback transactions of property we own or acquire, or other debt or equity financings to supplement our working capital and investing requirements.
The valuation of intangible assets requires management judgement, the utilization of independent valuation experts and often involves the use of significant estimates and assumptions with respect to timing and amounts of future cash inflows and outflows, discount rates, market prices and asset lives, among other things.
The valuation of intangible assets requires management judgements, the utilization of independent valuation experts and often involves the use of significant estimates and assumptions with respect to timing and amounts of future cash inflows and outflows, discount rates, market prices and asset lives, among other things. The valuation of intangible assets was determined using an income approach methodology.
In 2022, we wrote-off approximately $7.3 million of deferred financing costs to interest expense in connection with the prepayment of the $170.0 million term loan (the “Macquarie Term Loan”) issued under a credit agreement with Macquarie Capital (the “Macquarie Credit Agreement”).
In 2022, we wrote off approximately $7.3 million of deferred financing costs to interest expense in connection with the prepayment of the $170.0 million term loan (the “Macquarie Term Loan”) issued under a credit agreement with Macquarie Capital (the “Macquarie Credit Agreement”). Sports Betting (Colorado) – We mutually agreed to cancel two of our sports betting agreements in Colorado.
For the year 2023/2022 2022/2021 ended December 31, % % Amounts in CAD, in millions 2023 2022 2021 Change Change Change Change Net Operating Revenue Canada 101.8 93.1 58.2 8.7 9.4% 34.9 60.0% Operating Costs and Expenses (1) Canada 77.4 69.2 46.5 8.2 11.8% 22.7 48.8% For the year ended December 31, 2023/2022 2022/2021 Amounts in millions 2023 2022 2021 $ Change % Change $ Change % Change Net Operating Revenue Canada $ 75.5 $ 71.6 $ 46.4 $ 3.9 5.4% $ 25.2 54.3% Operating Costs and Expenses (1) Canada $ 57.4 $ 53.2 $ 37.0 $ 4.2 7.9% $ 16.2 43.8% (1) Operating costs and expenses are calculated as total operating costs and expenses less depreciation and amortization and gain on sale of casino operations and loss on sale of assets. 2023 Compared to 2022 The following discussion highlights results for the year ended December 31, 2023 compared to the year ended December 31, 2022.
For the year 2024/2023 2023/2022 ended December 31, % % Amounts in CAD, in millions 2024 2023 2022 Change Change Change Change Net Operating Revenue Canada 104.5 101.8 93.1 2.7 2.7% 8.7 9.4% Operating Costs and Expenses (1) Canada 76.8 77.4 69.2 (0.6) (0.8%) 8.2 11.8% For the year ended December 31, 2024/2023 2023/2022 Amounts in millions 2024 2023 2022 $ Change % Change $ Change % Change Net Operating Revenue Canada $ 76.3 $ 75.5 $ 71.6 $ 0.8 1.2% $ 3.9 5.4% Operating Costs and Expenses (1) Canada $ 56.1 $ 57.4 $ 53.2 $ (1.3) (2.3%) $ 4.2 7.9% (1) Operating costs and expenses are calculated as total operating costs and expenses less depreciation and amortization and gain on sale of casino operations and loss on sale of assets. 2024 Compared to 2023 The following discussion highlights results for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Shareholders Basic $ (0.93) $ 0.27 $ 0.70 $ (1.20) (444.4%) $ (0.43) (61.4%) Diluted $ (0.93) $ 0.25 $ 0.66 $ (1.18) (472.0%) $ (0.41) (62.1%) (1) For a discussion of Adjusted EBITDAR and reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders, see “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” below in this Item 7.
Shareholders Basic $ (4.19) $ (0.93) $ 0.27 $ (3.26) (350.5%) $ (1.20) (444.4%) Diluted $ (4.19) $ (0.93) $ 0.25 $ (3.26) (350.5%) $ (1.18) (472.0%) (1) For a discussion of Adjusted EBITDAR and reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders, see “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” below in this Item 7.
The purchase of the land at CDR resulted in a loss on debt extinguishment of CAD 9.9 million ($7.3 million based on the exchange rate as of September 6, 2023) that is recorded as interest expense in our consolidated statement of (loss) earnings for the year ended December 31, 2023.
As noted above, the purchase of the land at CDR resulted in a loss on debt extinguishment of $7.3 million that is recorded as interest expense in our consolidated statement of (loss) earnings for the year ended December 31, 2023.
Following is a breakout of earnings from operations by reportable segment for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021. United States increased by $3.1 million, or 5.1%, and decreased by ($16.1) million, or (21.0%). Canada increased by $3.6 million, or 31.5%, and by $6.9 million, or 152.8%. Poland decreased by ($3.7) million, or (39.7%), and increased by $9.6 million, or 2177.9%. Corporate and Other decreased by ($6.6) million, or (47.6%), and by ($1.3) million, or (10.7%).
Following is a breakout of earnings from operations by reportable segment for the year ended December 31, 2024 compared to the year ended December 31, 2023 and for the year ended December 31, 2023 compared to the year ended December 31, 2022. United States decreased by ($57.7) million, or (90.2%), and increased by $3.1 million, or 5.1%, respectively. Canada increased by $0.8 million, or 5.0%, and by $3.6 million, or 31.5%, respectively. Poland decreased by ($9.3) million, or (167.1%), and by ($3.7) million, or (39.7%), respectively. Corporate and Other increased by $6.5 million, or 31.7%, and decreased by ($6.6) million, or (47.6%), respectively.
Any worsening in economic conditions, or the perception that conditions may worsen, could reduce consumer discretionary spending or increase our costs and erode our net income and cash flows.
Any worsening in economic conditions in the regions in which we operate or globally, or the perception that conditions may worsen, could reduce consumer discretionary spending or increase our costs and erode our net earnings and cash flows.
In late November 2022, a competing casino was relocated to a new site approximately eight miles south of Century Downs. Competition from this casino has had a negative impact on financial results at this location. In addition, in January 2022, the AGLC removed the moratorium on new gaming facilities.
In November 2022, a competing casino was relocated to a new site approximately eight miles south of Century Downs. Competition from this casino has had a negative impact on financial results at this location.
Following is a breakout of operating costs and expenses by reportable segment for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021. United States increased by $108.9 million, or 52.4%, and by $1.4 million, or 0.7%. Canada increased by $0.3 million, or 0.4%, and by $18.2 million, or 43.5%. Poland increased by $7.6 million, or 9.4%, and by $22.3 million, or 38.0%. Corporate and Other increased by $4.4 million, or 25.1%, and by $4.2 million, or 32.2%.
Following is a breakout of operating costs and expenses by reportable segment for the year ended December 31, 2024 compared to the year ended December 31, 2023 and for the year ended December 31, 2023 compared to the year ended December 31, 2022. United States increased by $96.8 million, or 30.6%, and by $108.9 million, or 52.4%, respectively. Canada increased by $0.1 million, or 0.2%, and by $0.3 million, or 0.4%, respectively. Poland decreased by ($4.9) million, or (5.6%), and increased by $7.6 million, or 9.4%, respectively. Corporate and Other decreased by ($7.7) million, or (35.3%), and increased by $4.4 million, or 25.1%, respectively.
Cash Flows – Summary Our cash flows; cash, cash equivalents and restricted cash; and working capital consisted of the following: For the year ended December 31, Amounts in thousands 2023 2022 2021 Net cash provided by operating activities $ 24,055 $ 37,397 $ 59,190 Net cash used in investing activities (206,997) (103,140) (9,992) Net cash provided by (used in) financing activities 149,857 161,162 (4,713) As of December 31, Amounts in thousands 2023 2022 2021 Cash, cash equivalents and restricted cash (1) $ 171,590 $ 202,131 $ 108,041 Working capital (2) $ 113,398 $ 162,606 $ 80,247 (1) Cash, cash equivalents and restricted cash as of December 31, 2022 included $100.2 million related to the Acquisition Escrow.
Cash Flows – Summary Our cash flows; cash, cash equivalents and restricted cash; and working capital consisted of the following: For the year ended December 31, Amounts in thousands 2024 2023 2022 Net cash (used in) provided by operating activities $ (3,299) $ 24,055 $ 37,397 Net cash used in investing activities (60,888) (206,997) (103,140) Net cash (used in) provided by financing activities (4,376) 149,857 161,162 As of December 31, Amounts in thousands 2024 2023 2022 Cash, cash equivalents and restricted cash (1) $ 99,013 $ 171,590 $ 202,131 Working capital (2) $ 49,505 $ 113,398 $ 162,606 (1) Cash, cash equivalents and restricted cash as of December 31, 2022 included $100.2 million related to the Acquisition Escrow.
Shareholders 8,626 6,070 1,124 2,556 42.1% 4,946 440.0% Adjusted EBITDAR $ 20,003 $ 18,396 $ 9,510 $ 1,607 8.7% $ 8,886 93.4% In February 2022, we sold the land and building we owned in Calgary, transferred the lease agreement for the casino premises to the buyer and ceased operating Century Sports, which impacts comparability in 2022.
Shareholders 3,390 8,626 6,070 (5,236) (60.7%) 2,556 42.1% Adjusted EBITDAR $ 20,162 $ 20,003 $ 18,396 $ 159 0.8% $ 1,607 8.7% In February 2022, we sold the land and building we owned in Calgary, transferred the lease agreement for the casino premises to the buyer and ceased operating Century Sports, which impacts comparability in 2022.
A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the Poland reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7. ‎ 38 Corporate and Other For the year ended December 31, 2023/2022 2022/2021 Amounts in thousands 2023 2022 2021 $ Change % Change $ Change % Change Gaming $ 61 $ 184 $ 152 $ (123) (66.8%) $ 32 21.1% Other Revenue — 22 415 (22) (100.0%) (393) (94.7%) Net Operating Revenue 61 206 567 (145) (70.4%) (361) (63.7%) Gaming Expenses (49) (133) (110) (84) (63.2%) 23 20.9% General and Administrative Expenses (21,476) (16,875) (12,619) 4,601 27.3% 4,256 33.7% Depreciation and Amortization (232) (385) (432) (153) (39.7%) (47) (10.9%) Total Operating Costs and Expenses (21,757) (17,393) (13,161) 4,364 25.1% 4,232 32.2% Earnings from Equity Investment 1,121 3,249 — (2,128) (65.5%) 3,249 100.0% Losses from Operations (20,575) (13,938) (12,594) (6,637) (47.6%) (1,344) (10.7%) Income Tax Benefit (Expense) 5,275 19,935 (4,858) (14,660) (73.5%) 24,793 510.4% Net Loss Attributable to Century Casinos, Inc.
A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the Poland reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7. ‎ 36 Corporate and Other For the year ended December 31, 2024/2023 2023/2022 Amounts in thousands 2024 2023 2022 $ Change % Change $ Change % Change Gaming $ — $ 61 $ 184 $ (61) (100.0%) $ (123) (66.8%) Other Revenue 34 — 22 34 100.0% (22) (100.0%) Net Operating Revenue 34 61 206 (27) (44.3%) (145) (70.4%) Gaming Expenses — (49) (133) (49) (100.0%) (84) (63.2%) General and Administrative Expenses (13,919) (21,476) (16,875) (7,557) (35.2%) 4,601 27.3% Depreciation and Amortization (162) (232) (385) (70) (30.2%) (153) (39.7%) Total Operating Costs and Expenses (14,081) (21,757) (17,393) (7,676) (35.3%) 4,364 25.1% Earnings from Equity Investment — 1,121 3,249 (1,121) (100.0%) (2,128) (65.5%) Losses from Operations (14,047) (20,575) (13,938) 6,528 31.7% (6,637) (47.6%) Income Tax Benefit 1,116 5,275 19,935 (4,159) (78.8%) (14,660) (73.5%) Net Loss Attributable to Century Casinos, Inc.
Following is a breakout of net operating revenue by reportable segment for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021. United States increased by $112.0 million, or 41.7%, and decreased by ($14.7) million, or (5.2%). Canada increased by $3.9 million, or 5.4%, and by $25.1 million, or 54.2%. Poland increased by $3.9 million, or 4.4%, and by $31.9 million, or 54.9%. Corporate and Other decreased by ($0.1) million, or (70.4%), and by ($0.4) million, or (63.7%). ‎ 29 Operating costs and expenses increased by $121.1 million, or 33.1%, and by $46.2 million, or 14.4%, for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021, respectively.
Following is a breakout of net operating revenue by reportable segment for the year ended December 31, 2024 compared to the year ended December 31, 2023 and for the year ended December 31, 2023 compared to the year ended December 31, 2022. United States increased by $39.1 million, or 10.3%, and by $112.0 million, or 41.7%, respectively. Canada increased by $0.9 million, or 1.2%, and by $3.9 million, or 5.4%, respectively. Poland decreased by ($14.2) million, or (15.1%), and increased by $3.9 million, or 4.4%, respectively. Corporate and Other remained constant and decreased by ($0.1) million, or (70.4%), respectively.
Items deducted from or added to earnings from operations to arrive at net (loss) earnings include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense and non-controlling interests. Items that impacted the comparability of the results are discussed above.
Items deducted from or added to earnings from operations to arrive at net (loss) earnings include interest income, interest expense, gains (losses) on foreign currency transactions and other, income tax expense (benefit) and non-controlling interests.
Earnings from operations decreased by ($3.6) million, or (5.3%), and by ($0.9) million, or (1.3%), for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021, respectively.
Earnings from operations decreased by ($59.7) million, or (93.3%), and by ($3.6) million, or (5.3%), for the year ended December 31, 2024 compared to the year ended December 31, 2023 and for the year ended December 31, 2023 compared to the year ended December 31, 2022, respectively.
For the year ended December 31, Amounts in thousands 2023 2022 2021 Interest Expense - Credit Agreements $ 39,703 $ 25,089 $ 11,439 Interest Expense - VICI Financing Obligation 42,426 28,533 28,232 Interest Expense - CDR Land Lease 1,450 2,254 1,777 Interest Expense - Deferred Financing Costs 2,695 2,412 1,565 Interest Expense - Misc 327 239 168 Interest Expense - Other (1) 7,324 7,304 (349) Total Interest Expense $ 93,925 $ 65,831 $ 42,832 (1) Interest Expense – Other consists of $7.3 million related to the loss on debt extinguishment related to our CDR land lease in 2023, $7.3 million of deferred financing costs written off in connection with the prepayment of the Macquarie Term Loan in 2022, and ($0.3) million interest expense adjustments related to the Polish IRS tip litigation in 2021.
For the year ended December 31, Amounts in thousands 2024 2023 2022 Interest Expense - Credit Agreements $ 38,931 $ 39,703 $ 25,089 Interest Expense - VICI Financing Obligation 61,356 42,426 28,533 Interest Expense - CDR Land Lease — 1,450 2,254 Interest Expense - Deferred Financing Costs 2,695 2,695 2,412 Interest Expense - Miscellaneous 385 327 239 Interest Expense - Other (1) — 7,324 7,304 Total Interest Expense $ 103,367 $ 93,925 $ 65,831 (1) Interest Expense – Other consists of $7.3 million related to the loss on debt extinguishment related to our CDR land lease in 2023 and $7.3 million of deferred financing costs written off in connection with the prepayment of the Macquarie Term Loan in 2022.
A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the Corporate and Other reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7. ‎ 39 Non-Operating Income (Expense) Non-operating income (expense) for the years ended December 31, 2023, 2022 and 2021 was as follows: For the year ended December 31, 2023/2022 2022/2021 Amounts in thousands 2023 2022 2021 $ Change % Change $ Change % Change Interest Income $ 2,114 $ 851 $ 174 $ 1,263 148.4% $ 677 389.1% Interest Expense (93,925) (65,831) (42,832) 28,094 42.7% 22,999 53.7% Gain on Foreign Currency Transactions, Cost Recovery Income and Other 3,933 3,378 2,289 555 16.4% 1,089 47.6% Non-Operating (Expense) $ (87,878) $ (61,602) $ (40,369) $ (26,276) (42.7%) $ (21,233) (52.6%) Interest income Interest income is related to interest earned on our cash reserves.
A reconciliation of Adjusted EBITDAR to net loss attributable to Century Casinos, Inc. shareholders for the Corporate and Other reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7. ‎ 37 Non-Operating (Expense) Income Non-operating (expense) income for the years ended December 31, 2024, 2023 and 2022 was as follows: For the year ended December 31, 2024/2023 2023/2022 Amounts in thousands 2024 2023 2022 $ Change % Change $ Change % Change Interest Income $ 2,644 $ 2,114 $ 851 $ 530 25.1% $ 1,263 148.4% Interest Expense (103,367) (93,925) (65,831) (9,442) (10.1%) (28,094) (42.7%) Gain on Foreign Currency Transactions, Cost Recovery Income and Other 2,995 3,933 3,378 (938) (23.8%) 555 16.4% Non-Operating (Expense) Income $ (97,728) $ (87,878) $ (61,602) $ (9,850) (11.2%) $ (26,276) (42.7%) Interest income Interest income is related to interest earned on our cash reserves.
We estimate that approximately $118.0 million of our total $171.3 million in cash and cash equivalents at December 31, 2023 is held by our foreign subsidiaries, of which $76.8 million is held by our Canadian subsidiaries and $29.4 million is held by our Austrian subsidiary.
We estimate that approximately $58.4 million of our total $98.8 million in cash and cash equivalents at December 31, 2024 is held by our foreign subsidiaries, of which $21.6 million is held by our Canadian subsidiaries and $31.0 million is held by our Austrian subsidiary.
Net earnings decreased by ($36.2) million, or (453.5%), and by ($12.6) million, or (61.3%), for the year ended December 31, 2023 compared to the year ended December 31, 2022 and for the year ended December 31, 2022 compared to the year ended December 31, 2021, respectively.
Net earnings decreased by ($100.0) million, or (354.5%), and by ($36.2) million, or (453.5%), for the year ended December 31, 2024 compared to the year ended December 31, 2023 and for the year ended December 31, 2023 compared to the year ended December 31, 2022, respectively.
Shareholders 3,446 5,811 440 (2,365) (40.7%) 5,371 1220.7% Adjusted EBITDAR $ 8,062 $ 11,874 $ 2,629 $ (3,812) (32.1%) $ 9,245 351.7% In Poland, casino gaming licenses are granted for a term of six years. These licenses are not renewable.
Shareholders (1,909) 3,446 5,811 (5,355) (155.4%) (2,365) (40.7%) Adjusted EBITDAR $ 2,563 $ 8,062 $ 11,874 $ (5,499) (68.2%) $ (3,812) (32.1%) In Poland, casino gaming licenses are granted for a term of six years. These licenses are not renewable.
For the year ended December 31, 2023/2022 2022/2021 Amounts in millions 2023 2022 2021 $ Change % Change $ Change % Change Net Operating Revenue East $ 143.0 $ 112.9 $ 115.0 $ 30.1 26.7% $ (2.1) (1.8%) Midwest 156.8 155.7 168.3 1.1 0.7% (12.6) (7.5%) West 80.8 — — 80.8 100.0% — — Total United States 380.6 268.6 283.3 112.0 41.7% (14.7) (5.2%) Operating Costs and Expenses (1) East $ 118.8 $ 94.9 $ 94.9 $ 23.9 25.2% $ — — Midwest 97.3 93.5 92.9 3.8 4.1% 0.6 0.6% West 66.7 — — 66.7 100.0% — — Total United States 282.8 188.4 187.8 94.4 50.1% 0.6 0.3% (1) Operating costs and expenses are calculated as total operating costs and expenses less depreciation and amortization. 2023 Compared to 2022 The following discussion highlights results for the year ended December 31, 2023 compared to the year ended December 31, 2022.
For the year ended December 31, 2024/2023 2023/2022 Amounts in millions 2024 2023 2022 $ Change % Change $ Change % Change Net Operating Revenue East $ 171.6 $ 143.0 $ 112.9 $ 28.6 20.0% $ 30.1 26.7% Midwest 160.6 156.8 155.7 3.8 2.4% 1.1 0.7% West 87.5 80.8 — 6.7 8.3% 80.8 100.0% Total United States 419.7 380.6 268.6 39.1 10.3% 112.0 41.7% Operating Costs and Expenses (1) East $ 145.0 $ 118.8 $ 94.9 $ 26.2 22.1% $ 23.9 25.2% Midwest 103.6 97.3 93.5 6.3 6.5% 3.8 4.1% West 77.8 66.7 — 11.1 16.6% 66.7 100.0% Total United States 326.4 282.8 188.4 43.6 15.4% 94.4 50.1% (1) Operating costs and expenses are calculated as total operating costs and expenses less depreciation and amortization and impairment – goodwill. 2024 Compared to 2023 The following discussion highlights results for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Borrowings and Repayments of Long-Term Debt and Lease Agreements As of December 31, 2023, our total debt under bank borrowings and other agreements net of $14.1 million related to deferred financing costs was $332.7 million, of which $324.2 million was long-term debt and $8.5 million was the current portion of long-term debt.
Borrowings and Repayments of Long-Term Debt and Lease Agreements As of December 31, 2024, our total debt under bank borrowings and other agreements net of $11.5 million related to deferred financing costs was $328.2 million, of which $321.9 million was long-term debt and $6.2 million was the current portion of long-term debt.
As such, a portion of the periodic payment under the Master Lease is recognized as interest expense with the remainder of the payment impacting the financing obligation using the effective interest method. 30 Adjusted EBITDAR information is a non-GAAP measure that is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported US GAAP measures because we believe this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies.
Adjusted EBITDAR information is a non-GAAP measure that is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported US GAAP measures because we believe this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies.
We also continued our construction projects in Caruthersville and Cape Girardeau. Additional Gaming Projects We continue to explore additional potential gaming projects and acquisition opportunities. Along with the capital needs of potential projects, there are various other risks which, if they materialize, could affect our ability to complete a proposed project or acquisition or could eliminate its feasibility altogether.
Along with the capital needs of potential projects, there are various other risks which, if they materialize, could affect our ability to complete a proposed project or acquisition or could eliminate its feasibility altogether.
In addition, operating expenses in the third quarter of 2022 increased due to hosting the World Professional Chuckwagon Association World Finals. A reconciliation of Adjusted EBITDAR to net (loss) earnings attributable to Century Casinos, Inc. shareholders for the Canada reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7.
A reconciliation of Adjusted EBITDAR to net earnings attributable to Century Casinos, Inc. shareholders for the Canada reportable segment can be found in the “Non-GAAP Measures Definitions and Calculations – Adjusted EBITDAR” discussion above in this Item 7.
Common Stock Repurchase Program The total amount remaining under our stock repurchase program was $14.7 million as of December 31, 2023. We did not repurchase any common stock in 2023, 2022 or 2021. The repurchase program has no set expiration or termination date. We may consider repurchasing our common stock or increasing the amount of our stock repurchase program.
We did not repurchase any common stock in 2024, 2023 or 2022. The repurchase program has no set expiration or termination date. We may consider repurchasing our common stock or increasing the amount of our stock repurchase program.
Recent Developments Related to Economic Uncertainty and COVID-19 Current macroeconomic conditions remain very dynamic, including impacts from rising inflation and interest rates, volatile changes in foreign currency exchange rates, political unrest and armed conflicts, COVID-19 and other factors.
Recent Developments Related to Economic Uncertainty Current macroeconomic conditions remain very dynamic, including volatile changes in inflation, foreign currency exchange rates, political unrest and armed conflicts, US domestic and other international economic policies, such as tariffs, and other factors.
We recognize and measure the identifiable assets acquired, liabilities assumed and any non-controlling interest acquired at fair value at the acquisition date.
We consolidate the operating results of the Nugget and Rocky Gap from the date of each acquisition. We recognize and measure the identifiable assets acquired, liabilities assumed and any non-controlling interest acquired at fair value at the acquisition date.
Shareholders (58,306) (28,664) (30,570) (29,642) (103.4%) 1,906 6.2% Adjusted EBITDAR $ (12,208) $ (7,227) $ (9,973) $ (4,981) (68.9%) $ 2,746 27.5% We released the $10.2 million US valuation allowance in 2022, resulting in an income tax benefit of $7.7 million for the year ended December 31, 2022.
Shareholders (53,229) (58,306) (28,664) 5,077 8.7% (29,642) (103.4%) Adjusted EBITDAR $ (13,838) $ (12,208) $ (7,227) $ (1,630) (13.4%) $ (4,981) (68.9%) We released a US valuation allowance in 2022, resulting in an income tax benefit for the year ended December 31, 2022.
Albert (1) Century Mile Racetrack and Casino (1) Century Downs Racetrack and Casino (1) Poland Poland Casinos Poland Corporate and Other Corporate and Other Cruise Ships & Other (3) Corporate Other (4) (1) The real estate assets are owned by VICI PropCo and leased to us under the Master Lease. (2) We operated Century Sports through February 10, 2022.
Albert (1) Century Mile Racetrack and Casino (1) Century Downs Racetrack and Casino (1) Poland Poland Casinos Poland Corporate and Other Corporate and Other Cruise Ships & Other (2) Corporate Other (3) (1) The real estate assets, except The Riverview hotel in Cape Girardeau and The Farmstead hotel in Caruthersville, are owned by VICI PropCo and leased to us under the Master Lease.
When necessary and available, we supplement the cash flows generated by our operations with either cash on hand or funds provided by bank borrowings or other debt or equity financing activities.
When necessary and available, we supplement the cash flows generated by our operations with either cash on hand or funds provided by bank borrowings, other debt or equity financing activities or funding arrangements with third-party partners, such as VICI PropCo in connection with our casino project in Caruthersville.
Capital expenditures in 2023 were approximately $21.0 million excluding the Missouri construction projects. We spent approximately $20.0 million on the Cape Girardeau hotel and approximately $18.6 million on the Caruthersville project in 2023. We received $35.1 million from VICI PropCo in 2023 to fund the Caruthersville project.
Capital expenditures in 2024 were approximately $23.1 million excluding the Missouri construction projects. We spent approximately $7.7 million on the Cape Girardeau hotel and approximately $28.4 million on the Caruthersville project in 2024. We received $11.8 million from VICI PropCo in 2024 to fund the Caruthersville project.
Before a gaming license expires, there is a public notification of the available license and any gaming company can apply for a new license for that city. The licenses in Krakow, Lodz and for the LIM Center in Warsaw all expire in 2024.
Before a gaming license expires for a particular city, there is a public notification of the available license and any gaming company can apply for a new license for that city. The license for the Hilton Hotel in Warsaw expires in 2025.
United States For the year ended December 31, 2023/2022 2022/2021 Amounts in thousands 2023 2022 2021 $ Change % Change $ Change % Change Gaming Revenue $ 272,499 $ 232,871 $ 249,397 $ 39,628 17.0% $ (16,526) (6.6%) Pari-mutuel, Sports Betting and iGaming Revenue 10,145 8,728 8,492 1,417 16.2% 236 2.8% Hotel Revenue 41,750 9,159 8,241 32,591 355.8% 918 11.1% Food and Beverage Revenue 36,803 12,394 11,761 24,409 196.9% 633 5.4% Other Revenue 19,394 5,430 5,394 13,964 257.2% 36 0.7% Net Operating Revenue 380,591 268,582 283,285 112,009 41.7% (14,703) (5.2%) Gaming Expenses (145,799) (117,731) (120,316) 28,068 23.8% (2,585) (2.1%) Pari-mutuel, Sports Betting and iGaming Expenses (6,416) (6,402) (6,656) 14 0.2% (254) (3.8%) Hotel Expenses (14,108) (2,568) (2,315) 11,540 449.4% 253 10.9% Food and Beverage Expenses (30,670) (10,451) (9,842) 20,219 193.5% 609 6.2% Other Expenses (9,601) (1,004) (943) 8,597 856.3% 61 6.5% General and Administrative Expenses (76,260) (50,178) (47,794) 26,082 52.0% 2,384 5.0% Depreciation and Amortization (33,739) (19,364) (18,398) 14,375 74.2% 966 5.3% Total Operating Costs and Expenses (316,593) (207,698) (206,264) 108,895 52.4% 1,434 0.7% Earnings from Operations 63,998 60,884 77,021 3,114 5.1% (16,137) (21.0%) Income Tax Expense (2,654) (7,595) — (4,941) (65.1%) 7,595 100.0% Net Earnings Attributable to Non-controlling Interests (5,284) — — 5,284 100.0% — — Net Earnings Attributable to Century Casinos, Inc.
United States For the year ended December 31, 2024/2023 2023/2022 Amounts in thousands 2024 2023 2022 $ Change % Change $ Change % Change Gaming Revenue $ 293,702 $ 272,499 $ 232,871 $ 21,203 7.8% $ 39,628 17.0% Pari-mutuel, Sports Betting and iGaming Revenue 9,597 10,145 8,728 (548) (5.4%) 1,417 16.2% Hotel Revenue 47,675 41,750 9,159 5,925 14.2% 32,591 355.8% Food and Beverage Revenue 45,548 36,803 12,394 8,745 23.8% 24,409 196.9% Other Revenue 23,146 19,394 5,430 3,752 19.3% 13,964 257.2% Net Operating Revenue 419,668 380,591 268,582 39,077 10.3% 112,009 41.7% Gaming Expenses (163,012) (145,799) (117,731) 17,213 11.8% 28,068 23.8% Pari-mutuel, Sports Betting and iGaming Expenses (6,798) (6,416) (6,402) 382 6.0% 14 0.2% Hotel Expenses (18,609) (14,108) (2,568) 4,501 31.9% 11,540 449.4% Food and Beverage Expenses (37,874) (30,670) (10,451) 7,204 23.5% 20,219 193.5% Other Expenses (11,240) (9,601) (1,004) 1,639 17.1% 8,597 856.3% General and Administrative Expenses (88,908) (76,260) (50,178) 12,648 16.6% 26,082 52.0% Depreciation and Amortization (43,254) (33,739) (19,364) 9,515 28.2% 14,375 74.2% Impairment - Goodwill (43,716) — — 43,716 100.0% — — Total Operating Costs and Expenses (413,411) (316,593) (207,698) 96,818 30.6% 108,895 52.4% Earnings from Operations 6,257 63,998 60,884 (57,741) (90.2%) 3,114 5.1% Income Tax Expense (28,016) (2,654) (7,595) 25,362 955.6% (4,941) (65.1%) Net Earnings Attributable to Non-controlling Interests (7,097) (5,284) — 1,813 34.3% 5,284 100.0% Net (Loss) Earnings Attributable to Century Casinos, Inc.
Amounts in thousands December 31, 2023 December 31, 2022 Total long-term debt, including current portion $ 332,680 $ 349,580 Deferred financing costs 14,149 16,844 Total principal $ 346,829 $ 366,424 Less: Cash and cash equivalents $ 171,327 $ 101,785 Net Debt $ 175,502 $ 264,639 32 REPORTABLE SEGMENTS The following discussion provides further detail of consolidated results by reportable segment.
Amounts in thousands December 31, 2024 December 31, 2023 Total long-term debt, including current portion $ 328,156 $ 332,680 Deferred financing costs 11,454 14,149 Total principal $ 339,610 $ 346,829 Less: Cash and cash equivalents $ 98,769 $ 171,327 Net Debt $ 240,841 $ 175,502 30 REPORTABLE SEGMENTS The following discussion provides further detail of consolidated results by reportable segment.
Other revenue also includes revenue from ATM and credit card commissions. Non-GAAP Measures Definitions and Calculations Adjusted EBITDAR Adjusted EBITDAR is used outside of our financial statements as a valuation metric.
Pari-mutuel expenses relate to pari-mutuel revenue and the operation of our racetracks. Other Other revenue and other expenses include gift shops, entertainment, golf and spa. Other revenue also includes revenue from ATM and credit card commissions. ‎ 28 Non-GAAP Measures Definitions and Calculations Adjusted EBITDAR Adjusted EBITDAR is used outside of our financial statements as a valuation metric.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+1 added−1 removed4 unchanged
Biggest changeDuring the years ended December 31, 2023, 2022 and 2021, the change in the relative value of the US dollar against all foreign currencies in which our foreign subsidiaries operate resulted in a ($3.8) million decrease, $9.7 million increase, and $0.5 million increase, respectively, in accumulated other comprehensive loss within shareholders equity.
Biggest changeDuring the years ended December 31, 2024, 2023 and 2022, the change in the relative value of the US dollar against all foreign currencies in which our foreign subsidiaries operate resulted in a $2.4 million increase, ($3.8) million decrease, and $9.7 million increase, respectively, in accumulated other comprehensive loss within shareholders equity. 44 We translate revenue and expenses at each period’s average exchange rate on our consolidated statements of (loss) earnings and the gains and losses from translation are included in the results of operations as incurred.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk. Our earnings, cash flows and financial position are exposed to market risks relating to fluctuations in interest rates and foreign currency exchange rates. All of the potential changes noted below are based on information available at December 31, 2023.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk. Our earnings, cash flows and financial position are exposed to market risks relating to fluctuations in interest rates and foreign currency exchange rates. All of the potential changes noted below are based on information available at December 31, 2024.
See Index to Financial Statements on page F-1. 47 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. None.
See Index to Financial Statements on page F-1. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.
For the year ended December 31, 2023, a 10% depreciation in the value of the US dollar relative to the Canadian dollar and the Polish zloty would have resulted in an increase in earnings from operations of $2.3 million. As of December 31, 2023, our debt is primarily held in US dollars. Item 8. Financial Statements and Supplementary Data.
For the year ended December 31, 2024, a 10% depreciation in the value of the US dollar relative to the Canadian dollar and the Polish zloty would have resulted in an increase in earnings from operations of $1.3 million. As of December 31, 2024, our debt is primarily held in US dollars. Item 8. Financial Statements and Supplementary Data.
The timing of the changes in the relative value of the US dollar combined with the operations that are impacted by that change can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our earnings from operations. In 2023, earnings from operations were $64.0 million.
The timing of the changes in the relative value of the US dollar combined with the operations that are impacted by that change can affect the magnitude of the impact that fluctuations in foreign exchange rates have on our earnings from operations. In 2024, earnings from operations were $4.3 million.
The majority of our $346.8 million face value of debt outstanding as of December 31, 2023 is variable-rate debt. Each one percentage point change associated with the variable rate debt would result in a $3.5 million change to our annual cash interest expenses.
The majority of our $339.6 million face value of debt outstanding as of December 31, 2024 is variable-rate debt. Each one percentage point change associated with the variable rate debt would result in a $3.4 million change to our annual cash interest expenses.
Removed
We translate revenue and expenses at each period’s average exchange rate on our consolidated statements of (loss) earnings and the gains and losses from translation are included in the results of operations as incurred.
Added
An appreciation in the value of the US dollar in relation to all foreign currencies in which we operate would decrease the earnings from our foreign operations when translated into US dollars.

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