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What changed in GOLDEN ENTERTAINMENT, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of GOLDEN ENTERTAINMENT, INC.'s 2022 and 2023 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 2023 report.

+267 added−297 removedSource: 10-K (2024-02-29) vs 10-K (2023-03-01)

Top changes in GOLDEN ENTERTAINMENT, INC.'s 2023 10-K

267 paragraphs added · 297 removed · 196 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

66 edited+19 added−43 removed40 unchanged
Biggest changeOperations We conduct our business through five reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, Nevada Taverns and Distributed Gaming. 2 The following table sets forth certain information regarding our operations by reportable segment as of December 31, 2022 (certain amenities at our casino properties may remain closed or operate in a limited capacity as a result of the impact of the COVID-19 pandemic): Location Casino Space (Sq. ft.) Slot Machines Table Games Hotel Rooms Nevada Casino Resorts The STRAT Hotel, Casino & SkyPod (“The STRAT”) Las Vegas, NV 80,000 724 41 2,429 Aquarius Casino Resort (“Aquarius”) Laughlin, NV 69,750 1,106 29 1,906 Edgewater Hotel & Casino Resort (“Edgewater”) Laughlin, NV 57,457 630 13 1,052 Colorado Belle Hotel & Casino Resort (“Colorado Belle”) (1) Laughlin, NV — — — — Nevada Locals Casinos Arizona Charlie’s Boulder Las Vegas, NV 41,969 624 — 303 Arizona Charlie’s Decatur Las Vegas, NV 67,360 719 10 259 Gold Town Casino Pahrump, NV 10,000 185 — — Lakeside Casino & RV Park Pahrump, NV 11,009 174 — — Pahrump Nugget Hotel Casino (“Pahrump Nugget”) Pahrump, NV 22,528 337 9 69 Maryland Casino Resort Rocky Gap Flintstone, MD 25,447 630 16 198 Nevada Taverns 64 branded tavern locations Nevada — 1,018 — – Distributed Gaming Nevada distributed gaming Nevada — 7,011 — – Montana distributed gaming Montana — 3,632 — – Totals 385,520 16,790 118 6,216 (1) The operations of the Colorado Belle remain suspended.
Biggest changeThe following table sets forth certain information regarding our operations by reportable segment as of December 31, 2023: Location Casino Space (Sq. ft.) Slot Machines Table Games Hotel Rooms Nevada Casino Resorts The STRAT Hotel, Casino & Tower (“The STRAT”) Las Vegas, NV 80,000 759 39 2,429 Aquarius Casino Resort (“Aquarius”) Laughlin, NV 69,750 1,103 29 1,906 Edgewater Casino Resort (“Edgewater”) Laughlin, NV 57,457 654 13 1,037 Nevada Locals Casinos Arizona Charlie’s Boulder Las Vegas, NV 41,969 598 — 303 Arizona Charlie’s Decatur Las Vegas, NV 67,360 706 10 259 Gold Town Casino Pahrump, NV 10,000 187 — — Lakeside Casino & RV Park Pahrump, NV 11,009 173 — — Pahrump Nugget Hotel Casino (“Pahrump Nugget”) Pahrump, NV 22,528 337 9 69 Nevada Taverns 69 branded tavern locations Nevada — 1,093 — — Distributed Gaming Nevada distributed gaming (1) Nevada — 6,667 — — Totals 360,073 12,277 100 6,003 (1) Subsequent to our fiscal year end, we sold our distributed gaming operations in Nevada on January 10, 2024.
Their greater resources may also provide them with the ability to expand operations in the future. Furthermore, several states are currently considering legalizing casino gaming in designated areas, and Native American tribes may develop or expand gaming properties in markets located more closely to our customer base (particularly Native American casinos located in California and Arizona).
Their greater resources may also provide them with the ability to expand operations in the future. Furthermore, several states are currently considering legalizing casino gaming in designated areas, and Native American tribes may develop or expand gaming properties in markets located more closely to our customer base (particularly Native American 4 casinos located in California and Arizona).
We cannot assure you that we will be able to obtain and maintain the gaming licenses and related approvals necessary to conduct our gaming operations. Any failure to maintain or renew our existing licenses, registrations, permits or approvals could have a material adverse effect on our business, financial condition, results of 6 operations and prospects.
We cannot assure you that we will be able to obtain and maintain the gaming licenses and related approvals necessary to conduct our gaming operations. Any failure to maintain or renew our existing licenses, registrations, permits or approvals could have a material adverse effect on our business, financial condition, results of operations and prospects.
If state regulatory authorities were to find any person unsuitable with regard to his, her or its relationship to us or any of our subsidiaries, we would be required to sever our relationship with that person, which could materially adversely affect our business.
If state regulatory authorities were to find any person unsuitable with regard to his, her or its relationship to us 5 or any of our subsidiaries, we would be required to sever our relationship with that person, which could materially adversely affect our business.
Our casino business competes with numerous casinos and casino-hotels of varying quality and size in our markets. We also compete with other non-gaming resorts and vacation destinations, and with various other casino and other entertainment businesses.
Our casino business competes with numerous casinos and casino-hotels of varying quality and size in our markets. We also compete with other non-gaming resorts and vacation destinations and other entertainment businesses.
We support food security programs, including but not limited to, Feed a Family, Meals for Christmas and Thanksgiving, and Meals for the Nevada Housing Authority, and our team members volunteer in food banks. In addition, Golden participates in “adopt the school” programs in each community we operate in and supports local schools through both charitable donations and supply drives.
We support food security programs, including but not limited to, Feed a Family, Meals for Christmas and Thanksgiving, and Meals for the Nevada Housing Authority, and our team members volunteer in food banks. In addition, we participate in “adopt the school” programs in each community we operate in and support local schools through both charitable donations and supply drives.
Training, Employee Retention and Development We consider employee training, retention, and development to be an important part of our overall employee professional development policy, as such initiatives also lead to a higher level of team member engagement and job satisfaction. In 2022, we enhanced our learning management system, internally branded as “GEMS,” by adding 40 learning opportunities.
Training, Employee Retention and Development We consider employee training, retention, and development to be an important part of our overall employee professional development policy, as such initiatives also lead to a higher level of team member engagement and job satisfaction. In 2023, we enhanced our learning management system, internally branded as “GEMS,” by adding 35 learning opportunities.
The mailing address of our headquarters is 6595 S. Jones Boulevard, Las Vegas, Nevada 89118, and our telephone number at that location is (702) 893-7777. Overview We own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and distributed gaming operations (including gaming in our branded taverns).
The mailing address of our headquarters is 6595 S. Jones Boulevard, Las Vegas, Nevada 89118, and our telephone number at that location is (702) 893-7777. Overview We own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and branded tavern operations.
Our locals casino properties typically experience a higher frequency of customer visits compared to our casino resort properties in Nevada and Maryland, with many of our customers visiting our Nevada Locals Casinos on a weekly basis.
Our locals casino properties typically experience a higher frequency of customer visits compared to our casino resort properties, with many of our customers visiting our Nevada Locals Casinos on a weekly basis.
Loyalty points are redeemable for slot play, promotional table game chips, food and beverages and grocery gift cards. All points earned in the loyalty program roll up into a single account balance which is redeemable at over 140 participating locations. Our rewards technology is designed to track customer behavior indicators such as visitation, customer spend and customer engagement.
Loyalty points are redeemable for slot play, promotional table game chips, cash back, food and beverages and grocery gift cards. All points earned in the loyalty program roll up into a single account balance which are redeemable at all of our locations. Our rewards technology is designed to track customer behavior indicators such as visitation, customer spend and customer engagement.
Social Responsibility and Environmental Stewardship We believe that our organization’s environmental and social goals as well as our team members’ involvement have a positive impact on the community.
Social Responsibility and Environmental Stewardship We believe that our organization’s environmental and social goals as well as our team members’ involvement have a positive impact on the communities we serve.
We are proud to be involved in various charitable events, including an annual fundraiser for amyotrophic lateral sclerosis (“ALS”), the Keep Memory Alive foundation for brain disorders, Scale The STRAT for the American Lung Association, and others. We have been contributing to the AAA Scholarship fund since 2018 and donate over $100,000 each year.
We are proud to be involved in various charitable events, including an annual fundraiser for amyotrophic lateral sclerosis (“ALS”), the Keep Memory Alive foundation for brain disorders, Scale The STRAT for the American Lung Association, and others. We have been contributing to the AAA Scholarship fund since 2018 and donate $0.2 million each year.
In 2022, the average hire time was 14 days, which was a decrease from 52 days in 2021. We recruit applicants by utilizing various recruitment platforms and sources in an effort to secure a diverse pool of applicants and ensure sustainability of our talent pipeline. We offer referral and retention incentives to remain competitive in a limited labor market.
In 2023, the average hire time was 43 days, which was an increase from 14 days in 2022. We recruit applicants by utilizing various recruitment platforms and sources in an effort to secure a diverse pool of applicants and ensure sustainability of our talent pipeline. We offer referral and retention incentives to remain competitive in a limited labor market.
Our number one applicant source is Indeed, followed by our company site, and team member referrals. 9 Team Member Benefits We engage with a nationally recognized compensation and benefits consulting firm to independently evaluate the effectiveness and competitiveness of our benefits program within the industry.
Our number one applicant and new hire source is Indeed, followed by our company site, and team member referrals. Team Member Benefits and Well-Being We engage with a nationally recognized compensation and benefits consulting firm to independently evaluate the effectiveness and competitiveness of our benefits program within the industry.
As a diverse organization, we offer our team members several options for annual benefits enrollment, including enrollment by telephone, online or through an app, and we support multi-lingual options. Our comprehensive benefits program provides our team members with the flexibility to choose their preferred medical, dental and vision plans.
As an organization with a diverse workforce across our casino properties and branded taverns, we offer our team members several options for annual benefits enrollment, including enrollment by telephone, online or through an app, and we support multi-lingual options. Our comprehensive benefits program provides our team members with the flexibility to choose their preferred medical, dental and vision plans.
While other factors like unemployment levels, market competition and the diversification of our business may either offset or magnify seasonal effects, some seasonality is likely to continue, which could result in significant fluctuation in our quarterly operating results.
While other factors like unemployment levels and market competition may either offset or magnify seasonal effects, some seasonality is likely to 6 continue, which could result in significant fluctuation in our quarterly operating results.
We consider employee retention to be an integral part of our overall employment strategy and invest in the continuous development of our team members and their growth within the company. Diversity and Gender Equity As of December 31, 2022, the organizational makeup was 50.4% female and 49.6% male with approximately 41.0% of management roles held by women.
We consider employee retention to be an integral part of our overall employment strategy and invest in the continuous development of our team members and their growth within the company. Diversity and Gender Equity As of December 31, 2023, our organizational makeup was 50.5% female and 49.5% male with approximately 45% of management roles held by women.
Individuals over the age of 40 represented 69% of the salaried workforce. Employees and Collective Bargaining Agreements As of December 31, 2022, over 1,700 of our employees were covered by various collective bargaining agreements. Other unions may seek to organize the workers of our casino properties from time to time.
Individuals over the age of 40 represented 73% of the salaried workforce. Employees and Collective Bargaining Agreements As of December 31, 2023, over 1,400 of our employees were covered by various collective bargaining agreements. Other unions may seek to organize the workers of our casino properties from time to time.
We offer our True Rewards loyalty program at all ten of our casino properties, as well as at all of our branded taverns and other participating distributed gaming locations. Members of our True Rewards loyalty program earn points based on gaming activity and food and beverage purchases at our casino properties, branded taverns and participating distributed gaming locations.
We offer our True Rewards loyalty program at all of our casino properties, as well as at all of our branded tavern locations. Members of our True Rewards loyalty program earn points based on gaming activity and food and beverage purchases at our casino properties and branded taverns.
Copies of these documents are also available to our shareholders upon written request to our Chief Financial Officer at 6595 S. Jones Boulevard, Las Vegas, Nevada 89118. Information on the website does not constitute part of this Annual Report. These filings are also available free of charge on the SEC’s website at www.sec.gov .
Copies of these documents are also available to our shareholders upon written request to our Chief Financial Officer at 6595 S. Jones Boulevard, Las Vegas, Nevada 89118. These filings are also available free of charge on the SEC’s website at www.sec.gov .
Specifically, Century agreed to acquire the operations of Rocky Gap from us for $56.1 million in cash (subject to adjustment based on Rocky Gap’s working capital and cage cash at closing), subject to the conditions and terms set forth therein, and VICI agreed to acquire the real estate assets relating to Rocky Gap from us for $203.9 million in cash, subject to the conditions and terms set forth therein.
Specifically, Century acquired the operations of Rocky Gap from us for $56.1 million in cash (subject to adjustment based on Rocky Gap’s working capital and cage cash at closing), and VICI acquired the real estate assets relating to Rocky Gap from us for $203.9 million in cash.
We engage in responsible gaming practices and are committed to promoting such practices and providing responsible gaming information to our customers. We are a member of the Nevada Council on Problem Gaming and have contributed over $300,000 to the organization since 2015.
We engage in responsible gaming practices and are committed to promoting such practices and providing responsible gaming information to our customers. We are a member of the Nevada Council on Problem Gaming and have contributed nearly $0.4 million to the organization since 2015.
In addition, we have also registered or applied to register numerous other trademarks in various jurisdictions in the United States in connection with our properties, facilities and development projects. We also hold a patent in the United States related to player tracking systems. Competition The casino, tavern and distributed gaming industries are highly competitive.
In addition, we have also registered or applied to register numerous other trademarks in various jurisdictions in the United States in connection with our properties, facilities and development projects. We also hold a patent in the United States related to player tracking systems. Competition The casino, hotel and hospitality industry is highly competitive.
In addition to hotel rooms, gaming, sportsbook and bingo facilities , Arizona Charlie’s Boulder offers five r estaurants and an RV park with 221 RV hook-up sites and Arizona Charlie’s Decatur offers five restaurants.
In addition to hotel rooms, gaming, race and sports book facilities, and bingo facilities , Arizona Charlie’s Boulder offers three r estaurants and an RV park with 221 RV hook-up sites and Arizona Charlie’s Decatur offers four restaurants.
Our investment in our team members’ talent and ongoing development is one of the key aspects of our employee retention efforts, as we believe that creating an involved environment for our team members sets us apart from our competitors and makes us an attractive employer.
We have successfully completed the second year of the program with over 30 GWG graduates. Our investment in our team members’ talent and ongoing development is one of the key aspects of our employee retention efforts, as we believe that creating an involved environment for our team members sets us apart from our competitors and makes us an attractive employer.
For example, we implemented xeriscaping as an environmental design choice, which allows for a reduction in our water usage and maintenance costs associated with commercial landscaping and allows us to adapt to the current pressures around monitoring and minimizing water usage.
Our goal is to reduce our consumptive water use and invest more efforts in water reuse and conservation programs. For example, we implemented xeriscaping as an environmental design choice, which allows for a reduction in our water usage and maintenance costs associated with commercial landscaping and allows us to adapt to the current pressures around monitoring and minimizing water usage.
We also made wage adjustments throughout Golden to remain competitive with market conditions and to improve retention in line level positions. In 2022, we continued our relationships with various local non-profit organizations to connect job seekers with employment opportunities within Golden and attended numerous career fairs throughout the year.
We also made wage adjustments throughout Golden to remain competitive with market conditions and to improve retention in line level positions. In 2023, we continued our relationships with various local non-profit organizations to connect job seekers with employment opportunities within Golden and hosted hiring events throughout the ye ar.
We believe we have good relationships with our employees, including those represented by unions. At The STRAT, our employees are covered by three collective bargaining agreements. Our collective bargaining agreement with the International Union of Operating Engineers, Local 501, AFL-CIO, as extended, expired on March 31, 2022, and we are in the process of negotiating an extension of the agreement.
We believe we have good relationships with our employees, including those represented by unions. At The STRAT, our employees are covered by three collective bargaining agreements. Our collective bargaining agreement with the International Union of Operating Engineers, Local 501, AFL-CIO expires on March 31, 2026.
In addition to gaming, sportsbook and bingo facilities at our Pahrump casino properties, Pahrump Nugget offers hotel rooms, a bowling center and a 5,200 square foot banquet and event center, and Lakeside Casino & RV Park offers 159 RV hook-up sites.
In addition to gaming and race and sports book facilities at each of our Pahrump casino properties, the Pahrump Nugget offers hotel rooms, four restaurants, bingo, a bowling center, and a 5,200 square foot banquet and event center. Our Lakeside Casino & RV Park also offers a bingo facility, a restaurant and 159 RV hook-up sites.
We strictly prohibit any marketing and advertisements directed toward underage persons or high-risk individuals. Our patrons have an opportunity to be removed from any promotional mailings and gambling on site by requesting to be a part of our self-exclusion program.
We include a toll-free help number and responsible gaming messaging at all of our properties and branded tavern locations. We strictly prohibit any marketing and advertisements directed toward underage persons or high-risk individuals. Our patrons have an opportunity to be removed from any promotional mailings and gambling on site by requesting to be a part of our self-exclusion program.
Sales and Marketing We market our Nevada Casino Resorts through both local and regional advertising, with a focus on offering a more complete resort destination experience that may include rooms, entertainment, dining and attractions. We advertise through various media channels, including television, radio, outdoor, digital, social media and public relations.
Sales and Marketing We market our Nevada Casino Resorts through both local and regional advertising, with a focus on offering a more complete resort destination experience that may include rooms, entertainment, dining and attractions.
Changes to any of the laws, rules, regulations or ordinances to which we are subject, new laws or regulations, or material differences in interpretations by courts or governmental authorities could have a material adverse effect on our business, financial condition, results of operations and prospects. 7 Our operations are subject to various environmental laws and regulations relating to emissions and discharges into the environment, and the storage, handling and disposal of hazardous and non-hazardous substances and wastes.
Changes to any of the laws, rules, regulations or ordinances to which we are subject, new laws or regulations, or material differences in interpretations by courts or governmental authorities could have a material adverse effect on our business, financial condition, results of operations and prospects.
The breakdown for salaried team members was 68.8% Caucasian and 31.2% non-Caucasian (all other races) with 26.8% of management roles held by non-Caucasian team members. Among the overall workforce, as of December 31, 2022, 67% were over the age of 40, 33% were under the age of 40 and 11% were over the age of 65.
The breakdown for salaried team members was 64% Caucasian and 36% non-Caucasian (all other races) with 30% of management roles held by non-Caucasian team members. Among the overall workforce, as of December 31, 2023, 32% were under the age of 40 and 68% were over the age of 40, 12% 8 of which were 65 and older.
The expansion of internet gaming in Nevada and other jurisdictions could result in significant additional competition for our operations. Regulation Gaming Regulation We are subject to extensive federal, state, and local regulation.
Various forms of internet gaming have been approved in Nevada, and legislation permitting internet gaming has been proposed by the federal government and other states. The expansion of internet gaming in Nevada and other jurisdictions could result in significant additional competition for our operations. Regulation Gaming Regulation We are subject to extensive federal, state, and local regulation.
(“VICI”), an affiliate of VICI Properties Inc., for aggregate consideration 1 of $260.0 million (the “Rocky Gap Transactions”).
(“VICI”), an affiliate of VICI Properties Inc., for aggregate cash consideration of $260.0 million.
Additionally, we offer extended benefits to employees with disabilities and chronic health conditions, including no cost Medicare and Medicaid assistance programs and prescription savings solutions for team members with chronic health conditions.
Additionally, we offer extended benefits to employees with disabilities and chronic health conditions, including no cost Medicare and Medicaid assistance programs and prescription savings solutions for team members with chronic health conditions. We continue to offer a number of on-site health clinics to ensure the health and well-being of our team members.
Our collective bargaining agreement with the Professional, Clerical and Miscellaneous Employees, Teamsters Local Union 986 (Valet and Warehouse) expires on March 31, 2024. Our collective 10 bargaining agreement with the Culinary Workers Union, Local 226 and Bartenders Union, Local 165 expires on May 31, 2023.
Our collective bargaining agreement with the Professional, Clerical and Miscellaneous Employees, Teamsters Local Union 986 (Valet and Warehouse) expires on March 31, 2024. Our collective bargaining agreement with the Culinary Workers Union, Local 226 and Bartenders Union, Local 165 expires on September 30, 2028. At the Aquarius, our employees are covered by three collective bargaining agreements.
Our efforts to re-staff since the COVID-19 closures contributed to the increase in team members in 2022. Mission and Values In 2022, we continued to emphasize our organizational mission and values, as well as our “I CARE” guest service initiative. Our mission is to create authentic entertainment experiences where premium service is delivered at an exceptional value.
Mission and Values In 2023, we continued to emphasize our organizational mission and values, as well as our “I CARE” guest service initiative. Our mission is to create authentic entertainment experiences where premium service is delivered at an exceptional value.
Our marketing practices adhere to legal and regulatory requirements, and we put a significant emphasis on raising awareness about our commitment to responsible gaming to mitigate risks and promote a healthy gaming experience throughout our properties and branded tavern locations. We include a toll-free help number and responsible gaming messaging at all of our properties and branded tavern locations.
Responsible Marketing & Advertising We consider responsible gaming to be an important part of our overall marketing strategy. Our marketing practices adhere to legal and regulatory requirements, and we put a significant emphasis on raising awareness about our commitment to responsible gaming to mitigate risks and promote a healthy gaming experience throughout our properties and branded tavern locations.
Our collective bargaining agreement with the International Union of Operating Engineers, Local 501, AFL-CIO, as extended, expired on March 31, 2022, and we are in the process of negotiating an extension of the agreement. Our collective bargaining agreement with the International Union of Security, Police, and Fire Professionals of America, as extended, expires on February 28, 2025.
Our collective bargaining agreement with the International Union of Operating Engineers, Local 501, AFL-CIO, expires on March 31, 2026. Our collective bargaining agreement with the International Union of Security, Police, and Fire Professionals of America expires on February 28, 2025. Our collective bargaining agreement with the United Steelworkers of America, expires on March 31, 2026.
Laughlin casinos : We own and operate three casino resorts in Laughlin, Nevada, which is located approximately 90 miles from Las Vegas on the western bank of the Colorado River. In addition to hotel rooms, gaming and sportsbook facilities, the Aquarius has nine restaurants and the Edgewater offers six restaurants.
Laughlin casinos : We own and operate two casino resorts in Laughlin, Nevada, the Aquarius and the Edgewater, which are located approximately 90 miles from Las Vegas on the western bank of the Colorado River.
Recruitment In 2022, we offered employment to 5,729 candidates from a total pool of 40,818 applications, or 14% of total applications, and over 3,700 of the offers converted to new hires. Compared to 2021, we received 8,943 more applications in 2022, a 28% increase from the previous year.
Recruitment In 2023, we offered employment to 5,488 candidates from a total pool o f 47,636 applications, or 12% o f total applications, and 3,155 of the offers converted to new hires. Compared to 2022, we received 6,818 more applications in 2023, a 17% increase from the previous year.
We enhanced job skills training initiatives so that those with a skills gap or no prior experience could receive training enabling them to perform job duties. Further, we established company-wide behavioral interviewing standards and training to support investment in our top talent.
We offer internship programs for students within our 7 Finance and Accounting, Hospitality, Marketing, and Information Technology departments. We enhanced our training initiatives so that those with a skills gap or no prior experience could receive training enabling them to perform their job duties effectively. Further, we provided behavioral interviewing training to support investment in our top talent.
We also operate branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. Rocky Gap Sale On August 24, 2022, we entered into definitive agreements to sell Rocky Gap Casino Resort (“Rocky Gap”) to Century Casinos, Inc. (“Century”) and VICI Properties, L.P.
Our portfolio includes eight casino properties located in Nevada, as well as 69 branded taverns targeting local patrons located primarily in the greater Las Vegas, Nevada metropolitan area. Rocky Gap Sale On July 25, 2023, we completed the sale of Rocky Gap Casino Resort (“Rocky Gap”) to Century Casinos, Inc. (“Century”) and VICI Properties, L.P.
Our casino properties, branded taverns and distributed gaming businesses in Nevada have historically experienced lower revenues during the summer as a result of fewer tourists due to higher temperatures, as well as increased vacation activity by local residents. Rocky Gap typically experiences higher revenues during summer months and may be significantly adversely impacted by inclement weather during winter months.
Our casino properties and branded taverns in Nevada have historically experienced lower revenues during the summer as a result of fewer tourists due to higher temperatures, as well as increased vacation activity by local residents. Our branded taverns typically experience higher revenues during the fall which corresponds with several professional sports seasons.
In addition, we continue to offer a number of on-site health clinics to ensure the health and well-being of our team members. Such clinics are offered free of charge and include, but are not limited to, dental exams, preventative care health screenings, and mental health awareness and support.
Such clinics are offered free of charge and include, but are not limited to, dental exams, preventative care health screenings, and mental health awareness and support.
In addition to hotel rooms, gaming and sportsbook facilities in an 80,000 square foot casino, The STRAT offers ten restaurants, two rooftop pools, a fitness center, retail shops and entertainment facilities.
The STRAT is comprised of a casino, a hotel and a tower, which includes indoor and outdoor observation decks, thrill rides and the SkyJump attraction. The STRAT offers hotel rooms, gaming, race and sports book facilities in an 80,000 square foot casino, ten restaurants, two rooftop pools, a fitness center, retail shops and entertainment facilities.
In addition, we face ever-increasing competition from online gaming, including mobile gaming applications for smart phones and tablet computers, state-sponsored lotteries, card clubs, sports books, fantasy sports websites and other forms of legalized gaming. Various forms of internet gaming have been approved in Nevada, and legislation permitting internet gaming has been proposed by the federal government and other states.
With respect to our branded taverns, we face competition from other operators of casinos, hotels, taverns and other entertainment venues. In addition, we face ever-increasing competition from online gaming, including mobile gaming applications for smart phones and tablet computers, state-sponsored lotteries, card clubs, sports books, fantasy sports websites and other forms of legalized gaming.
Our casino resort properties in Nevada have a significantly larger number of hotel rooms compared to the other casino properties in our portfolio. While hotel stays at these casino resorts are typically longer, the overall frequency of visitation from guests is lower when compared to our Nevada Locals Casinos.
While hotel stays at these casino resorts are typically longer, the overall frequency of visitation from guests is lower when compared to our Nevada Locals Casinos. 2 The STRAT : The STRAT is our premier casino resort property, located on Las Vegas Boulevard on the north end of the Las Vegas Strip.
Most of our branded taverns are located in the greater Las Vegas, Nevada metropolitan area and cater to local patrons seeking more convenient entertainment establishments than traditional casino properties. Our tavern patrons are typically younger than traditional casino customers, which diversifies our customer demographic.
Our branded taverns offer a casual, upscale environment catering to local patrons offering superior food, craft beer and other alcoholic beverages, and are typically limited to 15 slot machines. Most of our branded taverns are located in the greater Las Vegas, Nevada metropolitan area and cater to local patrons seeking more convenient entertainment establishments than traditional casino properties.
Marketing for our Nevada Locals Casinos targets the local communities in which these properties operate with an emphasis on the gaming experience, casino promotions and dining. The advertising is geared towards a local audience and typically includes radio, outdoor, digital and social media with television used occasionally for promotional messaging and brand campaigns when appropriate.
We advertise through various media channels, including television, radio, outdoor, digital, social media, airport and public relations. 3 Marketing for our Nevada Locals Casinos targets the local communities in which these properties operate with an emphasis on the gaming experience, casino promotions and dining.
These laws and regulations are complex, and subject to change, and violations can lead to significant costs for corrective action and remediation, fines and penalties.
Our operations are subject to various environmental laws and regulations relating to emissions and discharges into the environment, and the storage, handling and disposal of hazardous and non-hazardous substances and wastes. These laws and regulations are complex, and subject to change, and violations can lead to significant costs for corrective action and remediation, fines and penalties.
Average rate of pay for female salaried employees falls within 10% of the overall average pay for male employees in the same category. As of December 31, 2022, the ethnic distribution of the overall workforce was 53% Caucasian and 47% non-Caucasian (all other races).
Average rate of pay for female salaried employees falls within 10% of the overall average pay for male employees in the same category.
Nevada Taverns Our Nevada Taverns segment is comprised of branded tavern locations, where we control the food and beverage operations as well as the slot machines located within the tavern. Our branded taverns offer a casual, upscale environment catering to local patrons offering superior food, craft beer and other alcoholic beverages, and are typically limited to 15 slot machines.
Nevada Taverns Our Nevada Taverns segment is comprised of branded tavern locations, where we historically controlled the food and beverage operations as well as the slot machines located within the tavern.
At the Edgewater, our collective bargaining agreement with the United Brotherhood of Carpenters and Joiner of America, Local 1780, as extended, expires on July 31, 2023. At Rocky Gap, our collective bargaining agreement with the United Food and Commercial Workers Union, Local 27 expires on November 1, 2023.
At the Edgewater, our collective bargaining agreement with the United Brotherhood of Carpenters and Joiner of America, Local 1780 expires on July 31, 2028. Website and Available Information Our website is located at www.goldenent.com .
We regularly train our team members on ways to detect and prevent minors from gambling and consuming alcohol or loitering in designated gaming areas.
We regularly train our team members on ways to detect and prevent minors from gambling and consuming alcohol or loitering in designated gaming areas. This training is required to be taken by all team members upon hire. True Rewards Loyalty Program Our marketing efforts seek to capitalize on repeat visitation through the use of our True Rewards loyalty program.
Intellectual Property We pursue registration of our important trademarks and service marks in the states where we do business and with the United States Patent and Trademark Office.
As of December 31, 2023, we had over 600,000 active players in our marketing database, providing us with an avenue to drive customer engagement and cross-marketing opportunities across our properties. Intellectual Property We pursue registration of our important trademarks and service marks in the states where we do business and with the United States Patent and Trademark Office.
The mission of the GWG is to promote a support network among its members and to provide mentoring and professional education for established and emerging women within our organization. The focus of this program is to build leadership skills and strategies that will positively impact the GWG class members by enhancing their professional skill set and relationships.
In 2022, we launched our Golden Women’s Group (“GWG”), a women’s leadership development program dedicated to the workplace advancement of women. The mission of the GWG is to promote a support network among its members and to provide mentoring and professional education for established and emerging women leaders within our organization.
Our tavern brands include PT’s Pub, PT’s Gold, PT’s Ranch, Sean Patrick’s, Sierra Gold and SG Bar. As of December 31, 2022, we owned and operated 64 branded taverns, which offered a total of over 1,000 onsite slot machines. We continue to look for opportunities to pursue additional tavern openings and acquisitions.
As of December 31, 2023, we owned and operated 69 branded taverns, which offered a total of nearly 1,100 onsite slot machines. We continue to look for opportunities to pursue additional tavern openings and acquisitions. Distributed Gaming Our Distributed Gaming segment was comprised of the operation of slot machines in third-party non-casino locations in Montana and Nevada.
The Edgewater also offers dedicated entertainment 3 venues, including the Edge Pavilion and the Laughlin Event Center. As noted above, the operations of the Colorado Belle remain suspended. Nevada Locals Casinos Our Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius.
The operations of Colorado Belle Casino Resort (“Colorado Belle”) have remained suspended since March 2020. As of June 30, 2023, we voluntarily surrendered our gaming license for the property. Nevada Locals Casinos Our Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius of our properties.
We plan to increase our investment in smart technologies that allow us to track our usage of utilities more efficiently and to prioritize budgeting for water-efficient equipment and appliances. COVID-19 Response and Ongoing Focus on Team Member Well-being Our response to the COVID-19 outbreak demonstrates our commitment to the community, our team members, and guests.
We plan to increase our investment in smart technologies that allow us to track our usage of utilities more efficiently and to prioritize budgeting for water-efficient equipment and appliances. Human Capital We are committed to recruiting, developing and retaining a superior workforce. We have a long history and deep cultural commitment to service and authenticity.
New leader orientation and tavern leadership training has been facilitated through a monthly virtual classroom in the learning management system. Additionally, all safety and compliance training, except certain required hands-on certifications, are part of the online curriculum. Certifications have been assigned to manage reoccurring safety and compliance requirements, including COVID-19 safety protocols.
All safety and compliance training, except certain required hands-on certifications, are part of the online curriculum. Certifications have been assigned to manage reoccurring safety and regulatory compliance requirements. The training catalog includes multiple courses for leadership and management processes, as well as options to improve technical skills.
We have also invested in equipment and resources to make online training more accessible to our team members, which resulted in over 82,000 training courses completed in 2022. In 2022, we launched our Golden Women’s Group (“GWG”), a women’s leadership development program. GWG is a group for Golden’s team members dedicated to the workplace advancement of women.
Additionally, we have expanded department level training and development initiatives with leadership facilitated instructor training. We have also invested in resources to make online training more accessible to our team members, which resulted in over 76,000 training courses completed in 2023.
We are also committed to energy efficiency, and we have replaced older light bulbs and fixtures with more efficient devices at all our properties. We are planning to install electric vehicle (“EV”) charging stations at The STRAT as well as our other casino properties.
We are also committed to energy efficiency, and continue an ongoing effort of replacing older light bulbs and fixtures with more efficient devices at all our casino properties and branded tavern locations. We are currently evaluating our water management and water efficiency programs with plans to implement additional programs in the future.
Our sales and marketing efforts include our consolidated loyalty program, True Rewards®, designed to encourage repeat business at our properties, branded taverns and other participating distributed gaming locations, as discussed below. Responsible Marketing & Advertising We consider responsible gaming to be an important part of our overall marketing strategy.
The majority of our marketing efforts are focused on maximizing profitability from a high-frequency, convenience-driven customer base utilizing direct marketing, targeted advertising, public relations and social media. Our sales and marketing efforts include our consolidated loyalty program, True Rewards®, designed to encourage repeat business at our casino properties and branded taverns, as discussed below.
Human Capital We are committed to recruiting, developing and retaining a superior workforce. We have a long history and deep cultural commitment to service and authenticity. As of December 31, 2022, we employed over 6,400 team members, which is a 2% increase from December 31, 2021 when we had approximately 6,300 employees.
As of December 31, 2023, we employed over 5,800 team members , which is a 9% decrease from December 31, 2022, when we had over 6,400 employees. Current year decrease in workforce is primarily attributable to the divestitures of operations completed in 2023 as discussed above.
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Our portfolio includes ten casino properties located in Nevada and Maryland. Our distributed gaming operations involve the installation, maintenance and operation of slot machines and amusement devices in non-casino locations such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada and Montana.
Added
Prior to its sale, the operations of Rocky Gap were presented in our Maryland Casino Resort reportable segment.
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The Rocky Gap Transactions are required by their terms to close concurrently and we expect the Rocky Gap Transactions to close during the second quarter of 2023, subject to the satisfaction or waiver of customary regulatory approvals and closing conditions.
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Refer to the discussion in “ Note 3 — Divestitures and Assets Held for Sale ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further information. 1 Distributed Gaming Operations Sale On March 3, 2023, we entered into definitive agreements to sell our distributed gaming operations in Nevada and Montana to an affiliate of J&J Ventures Gaming, LLC (“J&J Gaming”), for aggregate consideration of $322.5 million.
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Impact of COVID-19 As of December 31, 2022, all of our properties were open other than the Colorado Belle (whose operations remain suspended), and no ne of our casino properties or distributed gaming locations were subject to COVID-19 operating restrictions.
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On September 13, 2023, we completed the sale of our distributed gaming operations in Montana for cash consideration of $109.0 million plus working capital and other adjustments and purchased cash at closing.
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Despite the resurgence of Omicron variants during 2022, our casino properties and distributed gaming operations experienced positive trends during the first half of 2022, including an increase in occupancy of hotel rooms and guest visitation following the removal of COVID-19 mitigation measures.
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On January 10, 2024, we completed the sale of our distributed gaming operations in Nevada for cash consideration of $213.5 million plus working capital and other adjustments and purchased cash at closing.
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Our results of operations in the second half of 2021 also benefited from pent-up demand following the easing of COVID-19 mitigation measures and the effect of government stimulus on discretionary consumer spending. Future COVID-19 variants, mandates, restrictions or mitigation measures imposed by governmental authorities or regulatory bodies are uncertain and could have a significant impact on our future operations.
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Prior to the sales, the results of the distributed gaming operations in Montana were combined with the results of the distributed gaming operations in Nevada and presented in our Distributed Gaming reportable segment.
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The STRAT : The STRAT is our premier casino resort property, located on Las Vegas Boulevard on the north end of the Las Vegas Strip. The STRAT comprises a casino, a hotel and the iconic SkyPod, which includes indoor and outdoor observation decks, thrill rides and the SkyJump attraction.
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Refer to the discussion in “ Note 3 — Divestitures and Assets Held for Sale ” and “ Note 16 — Subsequent Events ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further information.
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Maryland Casino Resort Our Maryland Casino Resort segment is comprised of our AAA Four Diamond Award® winning Rocky Gap casino resort, which is geographically disparate from our Nevada properties, operates in a separate regulatory jurisdiction and has only a limited number of hotel rooms compared to our Nevada Casino Resorts.
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Acquisition of Taverns On November 21, 2023, we acquired the operations of Lucky’s Lounge & Restaurant (“Lucky’s”), comprised of four tavern locations in Nevada, for cash consideration of $10 million, as part of an expansion of our branded tavern portfolio. The acquired Lucky’s taverns have been included in our Nevada Taverns reportable segment from the date of acquisition.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

61 edited+10 added−16 removed126 unchanged
Biggest changeConsequently, we may have difficulties servicing such unhedged indebtedness and funding our other fixed costs, and our available cash flow for general corporate requirements may be materially adversely affected. In the future, we may enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility.
Biggest changeIf we decide not to enter into hedges on such indebtedness, our interest expense on such indebtedness will fluctuate based on variable interest rates. Consequently, we may have difficulties servicing such unhedged indebtedness and funding our other fixed costs, and our available cash flow for general corporate requirements may be materially adversely affected.
Our level of debt could, among other things: • require us to dedicate a larger portion of our cash flow from operations to the servicing and repayment of our debt, thereby reducing funds available for working capital, capital expenditures and acquisitions, and other general corporate requirements; • limit our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements; • limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; • restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; 19 • increase our vulnerability to general adverse economic and industry conditions and increases in interest rates; • place us at a competitive disadvantage compared to our competitors that have less debt; and • adversely affect our credit rating or the market price of our common stock.
Our level of debt could, among other things: • require us to dedicate a larger portion of our cash flow from operations to the servicing and repayment of our debt, thereby reducing funds available for working capital, capital expenditures and acquisitions, and other general corporate requirements; • limit our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements; • limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; • restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; • increase our vulnerability to general adverse economic and industry conditions and increases in interest rates; • place us at a competitive disadvantage compared to our competitors that have less debt; and • adversely affect our credit rating or the market price of our common stock.
Any actual or perceived deterioration or weakness in general, regional or local economic conditions, unemployment levels, the job or housing markets, consumer debt levels or consumer confidence, as well as any increase in gasoline prices, tax rates, interest rates, inflation rates or other adverse economic or market conditions, may lead to our customers having less discretionary income to spend on gaming, entertainment and discretionary travel, any of which may have a material adverse effect on our business, financial condition, results of operations and prospects.
Any actual or perceived deterioration or weakness in general, regional or local economic conditions, unemployment levels, the job or housing markets, consumer debt levels or consumer confidence, as well as any increase in gasoline prices, tax rates, interest rates, inflation rates or other adverse economic or 9 market conditions, may lead to our customers having less discretionary income to spend on gaming, entertainment and discretionary travel, any of which may have a material adverse effect on our business, financial condition, results of operations and prospects.
If our competitors operate more successfully than we do, if they attract customers away from us as a result of aggressive pricing and promotion, if they are more successful than us in attracting and retaining employees, if their properties are enhanced or 12 expanded, if they operate in jurisdictions that give them operating advantages due to differences or changes in gaming regulations or taxes, or if additional hotels and casinos are established in and around our markets, we may lose market share or the ability to attract or retain employees.
If our competitors operate more successfully than we do, if they attract customers away from us as a result of aggressive pricing and promotion, if they are more successful than us in attracting and retaining employees, if their properties are enhanced or expanded, if they operate in jurisdictions that give them operating advantages due to differences or changes in gaming regulations or taxes, or if additional hotels and casinos are established in and around our markets, we may lose market share or the ability to attract or retain employees.
We may be subject to risks arising from climate-related matters Most of our business segments are located in areas classified as extreme weather locations, which puts our business at potential risk from natural disasters such as floods, flash floods, droughts, and high winds, which may result in sudden interruption of business operations, flight cancellations, and a reduction in customers visitation.
We may be subject to risks arising from climate-related matters. Most of our operations are located in areas classified as extreme weather locations, which puts our business at potential risk from natural disasters such as floods, flash floods, droughts, and high winds, which may result in sudden interruption of business operations, flight cancellations, and a reduction in customers visitation.
In addition, our insurance costs may increase and we may not be able to obtain the same insurance coverage in the future. Although we have comprehensive property and liability insurance policies for our properties, with coverage features and insured limits that we believe are customary in their breadth and scope, each such policy has certain exclusions.
In addition, our insurance costs may increase and we may not be able to obtain the same insurance coverage in the future. 12 Although we have comprehensive property and liability insurance policies for our properties, with coverage features and insured limits that we believe are customary in their breadth and scope, each such policy has certain exclusions.
In addition, difficulties or delays in obtaining any of the requisite licenses, permits or authorizations from regulatory authorities can increase the cost or delay the completion of an expansion or development. Significant budget overruns or delays with respect to expansion and development projects could materially adversely affect our results of operations.
In addition, difficulties or delays in obtaining any of the requisite licenses, permits or authorizations from regulatory authorities can increase the cost or delay the completion of an expansion or development. Significant budget overruns or delays with respect to expansion and development 10 projects could materially adversely affect our results of operations.
Our operations are subject to various environmental laws and regulations relating to emissions and discharges into the environment, and the storage, handling and disposal of hazardous and non-hazardous substances and wastes. These laws and 14 regulations are complex, and subject to change, and violations can lead to significant costs for corrective action and remediation, and fines and penalties.
Our operations are subject to various environmental laws and regulations relating to emissions and discharges into the environment, and the storage, handling and disposal of hazardous and non-hazardous substances and wastes. These laws and regulations are complex, and subject to change, and violations can lead to significant costs for corrective action and remediation, and fines and penalties.
The loss or suspension of any liquor or food service license could have a material adverse effect on our business, financial condition, results of operations and prospects. Our insurance coverage may not be adequate to cover all possible losses that our properties could suffer.
The loss or suspension of any liquor or food service license could have a material adverse effect on our business, financial condition, results of operations and prospects. Our insurance coverage may not be adequate to cover all possible losses that our business could suffer.
Our Credit Facility and Indenture contain, and any future debt instruments likely will contain, covenants that may restrict our ability to implement our business plan, finance future operations, respond to changing business and economic conditions, secure additional financing, and engage in opportunistic transactions, such as strategic acquisitions.
Our Credit Facility and Indenture contain, and any future debt instruments likely will contain, covenants that may restrict our 17 ability to implement our business plan, finance future operations, respond to changing business and economic conditions, secure additional financing, and engage in opportunistic transactions, such as strategic acquisitions.
Subject to certain administrative proceeding requirements, gaming authorities have the authority to deny any application or limit, condition, restrict, revoke or suspend any license, registration, finding of suitability or approval, or fine any person licensed, registered or found suitable or approved, for any cause deemed reasonable by the gaming authorities.
Subject to certain administrative proceeding 18 requirements, gaming authorities have the authority to deny any application or limit, condition, restrict, revoke or suspend any license, registration, finding of suitability or approval, or fine any person licensed, registered or found suitable or approved, for any cause deemed reasonable by the gaming authorities.
This redemption may divert our cash resources from other productive uses and require us to obtain additional financing which, if in the form of equity financing, would be dilutive to our shareholders. Further, any debt financing may involve additional restrictive covenants and further leveraging of our fixed assets.
This redemption may divert our cash resources from other productive uses and require us to obtain additional financing which, if in the form of equity financing, would be dilutive to our shareholders. Further, any debt financing may involve additional restrictive covenants and 19 further leveraging of our fixed assets.
Our business is subject to extensive gaming regulation, which is costly to comply with, and gaming authorities have significant control over our operations. We are subject to a variety of gaming regulations in the jurisdictions in which we operate, including the extensive gaming laws 13 and regulations of the State of Nevada. Compliance with these regulations is costly and time-consuming.
Our business is subject to extensive gaming regulation, which is costly to comply with, and gaming authorities have significant control over our operations. We are subject to a variety of gaming regulations in the jurisdictions in which we operate, including the extensive gaming laws and regulations of the State of Nevada. Compliance with these regulations is costly and time-consuming.
Any such change to the regulatory environment or the adoption of new federal, state or local government legislation could impose additional restrictions or costs or could otherwise have a material adverse effect on our business, financial condition, results of operations and prospects.
Any such change to the regulatory environment or the adoption of new federal, state or local government legislation could impose additional restrictions or costs or could otherwise 11 have a material adverse effect on our business, financial condition, results of operations and prospects.
Under the Indenture, if certain specified change of control events occur, each holder of the 2026 Unsecured Notes may require us to repurchase all of such holder’s 2026 Unsecured Notes at a purchase price equal to 101% of the principal amount of such notes.
Under the Indenture, if certain specified change of control events occur, each holder of the 2026 Unsecured Notes may require us to repurchase all of such holder’s 2026 Unsecured Notes at a purchase 20 price equal to 101% of the principal amount of such notes.
Our Nevada Locals Casinos, branded taverns and distributed gaming operations largely depend on the locals market for customers. Competition for local customers in Las Vegas in particular is intense. Local competitive risks and our failure to attract a sufficient number of guests, gaming customers and other visitors in these locations could adversely affect our business.
Our Nevada Locals Casinos and branded taverns largely depend on the locals market for customers. Competition for local customers in Las Vegas in particular is intense. Local competitive risks and our failure to attract a sufficient number of guests, gaming customers and other visitors in these locations could adversely affect our business.
We implemented a variety of measures to further enhance our cybersecurity protections and minimize the impact of any future cyber incidents.
We implemented a variety of measures to further enhance our cybersecurity protections and minimize the impact of any future cybersecurity incidents.
Any compromise of our security could result in a loss of confidence in our security measures, and subject us to litigation, civil or criminal penalties, and negative publicity, any of which could have a material adverse effect on our business, financial condition, results of operations and prospects.
Any compromise of our security could result in a loss of confidence in our security measures, and subject us to litigation, liability, fines and civil or criminal penalties, and negative publicity, any of which could have a material adverse effect on our business, financial condition, results of operations and prospects.
Our Credit Facility includes a $240 million revolving credit facility (the “Revolving Credit Facility”), which was undrawn at December 31, 2022. In addition, our Credit Facility and the indenture governing the 2026 Unsecured Notes (the “Indenture”) permit us, subject to specific limitations, to incur additional indebtedness.
Our Credit Facility includes a $240 million revolving credit facility (the “Revolving Credit Facility”), which was undrawn at December 31, 2023. In addition, our Credit Facility and the indenture governing the 2026 Unsecured Notes (the “Indenture”) permit us, subject to specific limitations, to incur additional indebtedness.
The inability to obtain additional financing to redeem a disqualified shareholder’s securities may result in the loss of a current or potential gaming license. We expect our stock price to be volatile. The market price of our common stock has been, and is likely to continue to be, volatile.
The inability to obtain additional financing to redeem a disqualified shareholder’s securities may result in the loss of a current or potential gaming license. Our stock price may continue to be volatile. The market price of our common stock has been, and is likely to continue to be, volatile.
The market price of our common stock may be significantly affected by many factors, including: • changes in general or local economic or market conditions; • quarterly variations in operating results; • strategic developments by us or our competitors; • developments in our relationships with our customers, distributors and suppliers; • regulatory developments or any breach, revocation or loss of any gaming license; • changes in our revenues, expense levels or profitability; • changes in financial estimates and recommendations by securities analysts; and • failure to meet the expectations of securities analysts. 22 Any of these events may cause the market price of our common stock to fall.
The market price of our common stock may be significantly affected by many factors, including: • changes in general or local economic or market conditions; • quarterly variations in operating results; • strategic developments by us or our competitors; • developments in our relationships with our customers, distributors and suppliers; • regulatory developments or any breach, revocation or loss of any gaming license; • changes in our revenues, expense levels or profitability; • changes in financial estimates and recommendations by securities analysts; and • failure to meet the expectations of securities analysts.
Renovations and other capital improvements of casino properties in particular require significant capital expenditures. For example, between May 2018 and December 31, 2021 we invested over $109 million in strategic renovations of The STRAT. Any such renovations and capital improvements usually generate little or no cash flow until the projects are completed.
Renovations and other capital improvements of casino properties in particular require significant capital expenditures. For example, between May 2018 and December 31, 2023, we invested over $171 million in strategic renovations of The STRAT. Any such renovations and capital improvements usually generate little or no cash flow until the projects are completed.
(as administrative agent and collateral agent) (the “Credit Facility”) and approximately $335 million of 7.625% Senior Notes due 2026 (“2026 Unsecured Notes”).
(as administrative agent and collateral agent) (the “Credit Facility”) and approximately $276 million of 7.625% Senior Notes due 2026 (“2026 Unsecured Notes”).
For example, our ability to meet certain sustainability goals or initiatives may depend in part on third-party collaboration, mitigation innovations and/or the availability of economically feasible solutions at scale. Our revenues may be negatively impacted by volatility in our hold percentage, and we also face the risk of fraud or cheating.
For example, our ability to meet certain sustainability goals or initiatives may depend in part on third-party collaboration, the availability of suppliers that can satisfy new requirements, mitigation innovations and/or the availability of economically feasible solutions at scale. Our revenues may be negatively impacted by volatility in our hold percentage, and we also face the risk of fraud or cheating.
Our business is geographically concentrated, which subjects us to greater risks from changes in local or regional conditions. We currently operate casino properties solely in Nevada and in Flintstone, Maryland, operate our branded taverns mostly in the greater Las Vegas, Nevada metropolitan area, and conduct our distributed gaming business solely in Nevada and Montana.
Our business is geographically concentrated, which subjects us to greater risks from changes in local or regional conditions. We currently operate casino properties solely in Nevada and operate our branded taverns mostly in the greater Las Vegas, Nevada metropolitan area.
As of December 31, 2022, our senior indebtedness, excluding unamortized debt issuance costs, was approximately $910 million, which was comprised of $575 million in principal amount of outstanding term loan borrowings under our senior secured credit facility with JPMorgan Chase Bank, N.A.
As of December 31, 2023, our senior indebtedness, excluding unamortized debt issuance costs, was approximately $674 million, which was comprised of $398 million in principal amount of outstanding term loan borrowings under our senior secured credit facility with JPMorgan Chase Bank, N.A.
Consumers’ perceptions of our efforts to achieve these goals often differ widely and present risks to our reputation and brands. In addition, our ability to implement some initiatives or achieve some goals is dependent on external factors.
Consumer, government and other stakeholders’ perceptions of our efforts to achieve these goals often differ widely and present risks to our reputation and brands. In addition, our ability to implement some initiatives or achieve some goals is dependent on external factors.
As of December 31, 2022, our executive officers and directors and entities affiliated with them owned, in the aggregate, approximately 23% of the outstanding shares of our common stock.
As of December 31, 2023, our executive officers and directors and entities affiliated with them owned, in the aggregate, approximately 25% of the outstanding shares of our common stock.
In addition, the stock market in general has experienced significant volatility, which may adversely affect the market price of our common stock regardless of our operating performance. Future sales of our common stock could lower our stock price and dilute existing shareholders.
Any of these events may cause the market price of our common stock to fall. In addition, the stock market in general has experienced significant volatility, which may adversely affect the market price of our common stock regardless of our operating performance. Future sales of our common stock could lower our stock price and dilute existing shareholders.
As a result of the geographic concentration of our businesses, we face a greater risk of a negative impact on our business, financial condition, results of operations and prospects in the event that any of the geographic areas in which we operate is more severely impacted by any such adverse condition, as compared to other areas in the United States.
As a result of the geographic concentration of our businesses, we face a greater risk of a negative impact on our business, financial condition, results of operations and prospects in the event that any of the geographic areas in which we operate is more severely impacted by any such adverse condition, as compared to other areas in the United States. 15 We may experience seasonal fluctuations that could significantly impact our quarterly operating results.
The potential difficulties, and resulting costs and delays, relating to the integration of our business with our strategic acquisitions include: • the difficulty in integrating newly acquired businesses and operations in an efficient and effective manner; • the challenges in achieving strategic objectives, cost savings and other benefits expected from acquisitions; • the diversion of management’s attention from day-to-day operations and additional demands on management relating to an increase in size or scope of our company following a significant acquisition; • the assimilation of employees and the integration of different business cultures and challenges in retaining key personnel; • the need to integrate information, accounting, finance, sales, billing, payroll and regulatory compliance systems; and • challenges in combining product offerings and sales and marketing activities.
The potential difficulties, and resulting costs and delays, relating to the integration of our business with our strategic acquisitions include: • the difficulty in integrating newly acquired businesses and operations in an efficient and effective manner; • the challenges in achieving strategic objectives, cost savings and other benefits expected from acquisitions; • the diversion of management’s attention from day-to-day operations and additional demands on management relating to an increase in size or scope of our company following a significant acquisition; • the assimilation of employees and the integration of different business cultures and challenges in retaining key personnel; • the need to integrate information, accounting, finance, sales, billing, payroll and regulatory compliance systems; and • challenges in combining product offerings and sales and marketing activities. 16 There is no assurance that we will successfully or cost-effectively integrate our businesses with the businesses we acquire, and the costs of achieving systems integration may substantially exceed the levels originally projected.
An inability to hire quality employees or the loss of key employees could have a material adverse effect on our business, financial condition, results of operations and prospects. Inability to complete the sale of Rocky Gap could negatively impact our business, financial condition, results of operations or prospects.
An inability to hire quality employees or the loss of key employees could have a material adverse effect on our business, financial condition, results of operations and prospects.
Any work stoppage at one or more of our casino properties could cause significant disruption of our operations or require us to expend significant funds to hire replacement workers, and qualified replacement labor may not be available at reasonable costs, if at all.
We may experience attempts by labor organizations to organize certain of our non-union employees. Any work stoppage at one or more of our casino properties could cause significant disruption of our operations or require us to expend significant funds to hire replacement workers, and qualified replacement labor may not be available at reasonable costs, if at all.
Risks Related to our Indebtedness Our significant indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations. We have a significant amount of indebtedness.
Risks Related to our Indebtedness Our significant indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations.
Increasing prices or shortages of energy and water may increase our cost of operations. Our properties use significant amounts of water, electricity, natural gas and other forms of energy. Our Nevada properties in particular are located in a desert where water is scarce and the hot temperatures require heavy use of air conditioning.
Our properties use significant amounts of water, electricity, natural gas and other forms of energy. Our Nevada properties are located in a desert where water is scarce, and the hot temperatures require heavy use of air conditioning.
A finding of unsuitability by a particular gaming authority impacts that person’s ability to associate or affiliate with gaming licensees in that particular jurisdiction and could impact the person’s ability to associate or affiliate with gaming licensees in other jurisdictions. 21 Many jurisdictions also require any person who acquires beneficial ownership of more than a certain percentage of voting securities of a gaming company and, in some jurisdictions, non-voting securities, typically 5%, to report the acquisition to gaming authorities, and gaming authorities may require such holders to apply for qualification or a finding of suitability, subject to limited exceptions for “institutional investors” that hold a company’s voting securities for investment purposes only.
Many jurisdictions also require any person who acquires beneficial ownership of more than a certain percentage of voting securities of a gaming company and, in some jurisdictions, non-voting securities, typically 5%, to report the acquisition to gaming authorities, and gaming authorities may require such holders to apply for qualification or a finding of suitability, subject to limited exceptions for “institutional investors” that hold a company’s voting securities for investment purposes only.
Any renegotiation of these and other labor agreements could significantly increase our costs for wages, healthcare, pension plans and other benefits, and could have a material adverse effect on the business of our casino properties and our financial condition, results of operations and prospects.
Unions may also limit our flexibility in dealing with our workforce. Any renegotiation of collective bargaining and other labor agreements could significantly increase our costs for wages, healthcare, pension plans and other benefits, and could have a material adverse effect on the business of 13 our casino properties and our financial condition, results of operations, and prospects.
Our response may require additional investments and implementation of new practices and reporting processes, all entailing additional compliance risk. In addition, we have announced a number of ESG initiatives and goals, which will require ongoing investment, and there is no assurance that we will achieve any of these goals or that our initiatives will achieve their intended outcomes.
In addition, we have undertaken or announced a number of ESG initiatives and goals, which will require ongoing investment, and there is no assurance that we will achieve any of these goals or that our initiatives will achieve their intended outcomes.
Nonetheless, if unauthorized parties gain access to our information technology and other systems, they may be able to misappropriate assets or sensitive information (such as personally identifiable information of our customers, business partners and employees), cause interruption in our operations, corruption of data or computers, or otherwise damage our reputation and business.
Nonetheless, if unauthorized parties gain access to our information technology and other systems, they may be able to access or misappropriate patron data, credit card information, vendor records, intellectual property, or confidential or other sensitive information (such as personally identifiable information of our customers, business partners and employees), disrupt our operations, corrupt data or computers, cause a competitive disadvantage or otherwise damage our reputation and business.
Any of these risks could have a material adverse effect on our business, financial condition, results of operations and prospects. From time to time we may make strategic acquisitions; any failure to successfully integrate our businesses and businesses we acquire could materially adversely affect our business, and we may not realize the full benefits of our strategic acquisitions.
From time to time we may make strategic acquisitions; any failure to successfully integrate our businesses and businesses we acquire could materially adversely affect our business, and we may not realize the full benefits of our strategic acquisitions.
The expansion of internet gaming in Nevada and other jurisdictions could result in significant additional competition for our operations. The casino, hotel and hospitality industry is capital intensive and we may not be able to finance development, expansion and renovation projects, which could put us at a competitive disadvantage.
The casino, hotel and hospitality industry is capital intensive and we may not be able to finance development, expansion and renovation projects, which could put us at a competitive disadvantage.
In such circumstances, we may incur expenses to retrieve such data, could be held liable to our customers or other parties, or could be subject to regulatory or other actions for breaching privacy rules.
In the event of a breach of our information technology or other systems or other cybersecurity incident, we may incur expenses to retrieve data, could be held liable to our customers or other parties, or could be subject to regulatory or other actions for breaching privacy rules.
Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also materially adversely impact our 11 business, financial condition, results of operations or prospects.
Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also materially adversely impact our business, financial condition, results of operations or prospects. If any of the following risks actually occur, our business, financial condition, results of operations or prospects could be materially harmed and the trading price of our common stock could decline.
However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk.
In the future, we may enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any swaps we enter into may not fully mitigate our interest rate risk.
We expect that potable water in Nevada, 15 where the majority of our facilities are located, will become an increasingly scarce commodity at an increasing price due to the long duration of severe drought experienced in Las Vegas and other potential causes of water shortage.
We expect that potable water in Nevada will become an increasingly scarce commodity at an increasing price due to the long duration of severe drought experienced in Las Vegas and other potential causes of water shortage. Work stoppages, labor problems and unexpected shutdowns may limit our operational flexibility and negatively impact our future profits.
Our casino properties compete with numerous casinos and casino-hotels of varying quality and size in our markets. We also compete with other non-gaming resorts and vacation destinations, and with various other casino and other entertainment businesses.
We face substantial competition in our business segments and may lose market share. The casino, hotel and hospitality industry is highly competitive. Our casino properties compete with numerous casinos and casino-hotels of varying quality and size in our markets. We also compete with other non-gaming resorts and vacation destinations, and other entertainment businesses.
Our casino properties, branded taverns and distributed gaming businesses in Nevada have historically experienced lower revenues during the summer as a result of fewer tourists due to higher temperatures, as well as increased vacation activity by local residents. Rocky Gap typically experiences higher revenues during summer months and may be significantly adversely impacted by inclement weather during winter months.
We may experience seasonal fluctuations that could significantly impact our quarterly operating results. Our casino properties and branded taverns in Nevada have historically experienced lower revenues during the summer as a result of fewer tourists due to higher temperatures, as well as increased vacation activity by local residents.
We cannot ensure that, upon the expiration of existing collective bargaining agreements, new agreements will be reached without union action or that any such new agreements will be on terms satisfactory to us.
As of December 31, 2023, we had over 1,400 employees at our casino properties covered by collective bargaining agreements, representing 25% of our total workforce. We cannot ensure that, upon the expiration of existing collective bargaining agreements, new agreements will be reached without union action or that any such new agreements will be on terms satisfactory to us.
Further, if we are unable to comply with the security standards established by banks and the payment card industry, we may be subject to fines, restrictions, and expulsion from card acceptance programs, which could materially adversely affect our operations. Our reputation and business could be negatively impacted as a result of environmental, social and governance matters.
Further, if we are unable to comply with applicable privacy laws and regulations (including noncompliance by third parties or vendors engaged by us) or with the security standards established by banks and the payment card industry, we may be subject to liability (including fines), expulsion from card acceptance programs, and restrictions on our use or transfer of data, any of which could materially adversely affect our operations or result in damage to our reputation and business.
Each quarter point change in interest rates would result in a $1.4 million change in annual interest expense on our indebtedness under our Credit Facility. For example, in 2022, we incurred an additional $6.8 million in interest expense under our Credit Facility as a result of the increase in the interest rates.
Each quarter point change in interest rates would result in a $1.0 million change in annual interest expense on our indebtedness under our Credit Facility.
There can be no assurance that potential climate change effects and other extreme weather conditions that may arise will not have a material adverse effect on our business, financial condition, results of operations and prospects. We face substantial competition in our business segments and may lose market share. The casino, tavern and distributed gaming industries are highly competitive.
There can be no assurance that potential climate change effects and other extreme weather conditions that may arise will not have a material adverse effect on our business, financial condition, results of operations and prospects. Increasing prices or shortages of energy and water may increase our cost of operations.
Regulators, investors and other stakeholders are increasingly focused on environmental, social, and governance (“ESG”) matters. For example, new laws and regulations relating to ESG matters, including human capital, diversity, sustainability, climate change and cybersecurity, are under consideration or being adopted, which may include specific, target-driven 16 disclosure requirements or obligations.
For example, new laws and regulations relating to ESG matters, including human capital, diversity, sustainability, climate change and cybersecurity, are under consideration or being adopted, which may include specific, target-driven disclosure requirements or obligations. Our response may require additional investments and implementation of new practices and reporting processes, all entailing additional compliance risk.
While other factors like unemployment levels, market competition and the diversification of our business may either offset or magnify seasonal effects, some seasonality is likely to continue, which could result in significant fluctuation in our quarterly operating results. The success of our distributed gaming operations is dependent on our ability to renew our agreements .
Our branded taverns typically experience higher revenues during the fall which corresponds with several professional sports seasons. While other factors like unemployment levels and market competition may either offset or magnify seasonal effects, some seasonality is likely to continue, which could result in significant fluctuation in our quarterly operating results.
In addition, we face ever-increasing competition from online gaming, including mobile gaming applications for smart phones and tablet computers, state-sponsored lotteries, card clubs, sports books, fantasy sports websites and other forms of legalized gaming. Various forms of internet gaming have been approved in Nevada, and legislation permitting internet gaming has been proposed by the federal government and other states.
With respect to our branded taverns, we face competition from other operators of casinos, hotels, taverns and other entertainment venues. In addition, we face ever-increasing competition from online gaming, including mobile gaming applications for smart phones and tablet computers, state-sponsored lotteries, card clubs, sports books, fantasy sports websites and other forms of legalized gaming.
During 2022, the market price of our common stock has ranged from $32.53 to $59.96.
During 2023, the market price of our common stock has ranged from $30.55 to $43.60.
Among other things, our systems are susceptible to outages due to fire, floods, power loss, break-ins, cyber-attacks, network penetration, denial of service attacks and similar events. An increasing number of companies like us have experienced breaches of their security, some of which have involved sophisticated and highly targeted attacks on their computer networks.
Among other things, our systems are susceptible to outages due to fire, floods, power loss, break-ins, cybersecurity incidents, network penetration, denial of service attacks and similar events.
While we have and will continue to implement network security measures and data protection safeguards, our servers and other computer systems are vulnerable to viruses, malicious software, hacking, break-ins or theft, data privacy or security breaches, third-party security breaches, employee error or malfeasance and similar events.
While we have and will continue to implement network security me asures and data protection safeguards, our servers and other computer systems are vulnerable to viruses, malicious software, an event by a third-party in the form of a cybersecurity incident, an intrusion, hacking, break-in or theft, data privacy or security breach, employee error or malfeasance or another breach type or si milar events, and our disaster plan may not account for all possible cybersecurity threat scenarios and assure the protection of information.
While we carry business interruption insurance and general liability insurance, this insurance may not be adequate to cover all losses in such event. We renew our insurance policies on an annual basis. The cost of coverage may become so high that we may need to reduce our policy limits or agree to certain exclusions from our coverage.
The cost of coverage may become so high that we may need to reduce our policy limits or agree to certain exclusions from our coverage.
There is no assurance that we will successfully or cost-effectively integrate our businesses with the businesses we acquire, and the costs of achieving systems integration may substantially exceed the levels originally projected. Integration of recently acquired businesses into our own operations in particular can be time consuming and present financial, managerial and operational challenges.
Integration of recently acquired businesses into our own operations in particular can be time consuming and present financial, managerial and operational challenges.
The inability to negotiate and enter into new collective bargaining agreements on favorable terms could result in an increase in our operating expenses or covered employees could strike or engage in other collective behaviors.
The inability to negotiate and enter into new collective bargaining agreements on favorable terms could result in an increase in our operating expenses. We cannot predict how stable our relationship with a given union is and whether we will be able to meet the union’s requirements without impacting our financial condition.
Our reputation and business could be materially harmed as a result of data breaches, data theft, unauthorized access or hacking.
Our reputation and business could be materially harmed as a result of data breaches, data theft, unauthorized access or cybersecurity incident. We collect and store confidential, personal information relating to our employees, guests, and others for various business purposes, including marketing, promotional and financial purposes, as well as credit card information for processing payments.
Removed
If any of the following risks actually occur, our business, financial condition, results of operations or prospects could be materially harmed and the trading price of our common stock could decline.
Added
Various forms of internet gaming have been approved in Nevada, and legislation permitting internet gaming has been proposed by the federal government and other states. The expansion of internet gaming in Nevada and other jurisdictions could result in significant additional competition for our operations.
Removed
With respect to our branded taverns and distributed gaming operations, we face competition from other operators of casinos, hotels, taverns and other entertainment venues, as well as from others involved in the distributed gaming business.
Added
While we carry business interruption insurance and general liability insurance, this insurance may not be adequate to cover all losses in such event. Similarly, although we have cybersecurity insurance policies, our coverage may not be sufficient to fully cover the costs related to cyber or other security threats or disruptions.
Removed
Work stoppages, labor problems and unexpected shutdowns may limit our operational flexibility and negatively impact our future profits. A number of employees at our casino properties are covered by collective bargaining agreements, which have staggered expirations over the next several years. Certain of our collective bargaining agreements have expired and we are in the process of negotiating extensions.
Added
Moreover, as cybersecurity incidents increase in frequency and magnitude, we may be unable to obtain cybersecurity insurance in amounts and on terms we view as adequate for our operations. We renew our insurance policies on an annual basis.
Removed
We may experience seasonal fluctuations that could significantly impact our quarterly operating results. We may experience seasonal fluctuations that could significantly impact our quarterly operating results.
Added
We may share confidential or personal information with vendors or other third parties. Our collection and use of personal data are governed by state and federal privacy laws and regulations.
Removed
Our Nevada branded taverns and distributed gaming operations typically experience higher 17 revenues during the fall which corresponds with several professional sports seasons.
Added
Compliance with applicable privacy laws and regulations that are subject to frequent changes may increase our operating costs and/or adversely impact our ability to market our products, properties and services to our guests.
Removed
Our Montana distributed gaming operations typically experience higher revenues during the winter due to the inclement weather in the state and less opportunity for outdoor activities, in addition to the impact from professional sports seasons during the fall.
Added
An increasing number of companies like us have experienced breaches of their security, including criminal cybersecurity incidents, some of which have involved sophisticated and highly targeted attacks on their computer networks or those of vendors and other third-party service providers.
Removed
We conduct our distributed gaming business under space lease and participation agreements with third parties. Agreements with chain store and other third-party customers are renewable at the option of the owner of the applicable chain store or a third party. As our distributed gaming agreements expire, we are required to compete for renewals.
Added
Our third-party service providers may experience cybersecurity risks, similar to mentioned above. We do not have direct 14 control over the information systems or operations security of third parties. Unauthorized access to the information technology and other systems of vendors and other third-party service providers may have a materially adverse effect on our operations.
Removed
If we are unable to renew a material portion of our space lease and participation agreements, this could have a material adverse effect on our business, financial condition, results of operations and prospects. We cannot assure you that our existing agreements will be renewed on reasonable or comparable terms, or at all.
Added
Our reputation and business could be negatively impacted as a result of environmental, social and governance matters. Regulators, investors and other stakeholders are increasingly focused on environmental, social, and governance (“ESG”) matters.
Removed
The closing of the Rocky Gap Transactions is subject to a number of closing conditions and there can be no assurance that these conditions will be satisfied on the timeline we expect or at all.
Added
For example, in 2023, we incurred an additional $3.2 million in interest expense under our Credit Facility as a result of the increase in the interest rates, despite the significant year-over-year reduction in the level of our outstanding debt for the year ended December 31, 2023. We are not required to enter into interest rate swaps to hedge such indebtedness.
Removed
The Rocky Gap Transactions may also be terminated in certain specified circumstances, including if the sale is not completed by August 24, 2023 (subject to certain extensions under certain circumstances).

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe lease expires in 2052, with an option to renew for an additional 20 years. Nevada Taverns 64 branded tavern locations (Las Vegas, NV and Reno, NV) — All tavern locations are leased with lease terms ranging from 5 to 20 years, with various renewal options from 5 to 25 years.
Biggest changeLakeside Casino & RV Park (Pahrump, NV) 35 Pahrump Nugget (Pahrump, NV) 40 Approximately 20 acres are undeveloped and reserved for future development. Nevada Taverns 69 branded tavern locations (Las Vegas, NV and Reno, NV) — All tavern locations are leased with lease terms ranging from 5 to 20 years, with various renewal options from 5 to 25 years.
Gold Town Casino (Pahrump, NV) 9 The casino property is located on four leased parcels of land.
Gold Town Casino (Pahrump, NV) 7 The casino property is located on four leased parcels of land.
PROPERTIES The location and characteristics of our properties are provided in Part I, Item 1: Business of this Annual Report. 23 The following table provides further information on our properties and identifies the properties subject to leases of the underlying real estate assets as of December 31, 2022: Name and Location Approximate Acres Notes Nevada Casino Resorts The STRAT (Las Vegas, NV) 34 Approximately 17 acres are undeveloped and reserved for future development, approximately 7 acres of which have been leased to a third party for development.
PROPERTIES The location and characteristics of our properties are provided in Part I, Item 1: Business of this Annual Report. 22 The following table provides further information on our properties and identifies the properties subject to leases of the underlying real estate assets as of December 31, 2023: Name and Location Approximate Acres Notes Nevada Casino Resorts The STRAT (Las Vegas, NV) 34 Approximately 9 acres are undeveloped and reserved for future development and approximately 8 acres have been leased to a third party for development.
Aquarius (Laughlin, NV) 18 Approximately 1.6 acres are undeveloped and reserved for future development. Edgewater (Laughlin, NV) 16 In addition, we lease approximately 20 acres of land for the Laughlin Event Center for our Laughlin casino properties. The lease is with an unrelated party and expires in 2027.
Aquarius (Laughlin, NV) 18 Approximately 2 acres are undeveloped and reserved for future development. Edgewater (Laughlin, NV) 16 In addition, we lease approximately 20 acres of land for the Laughlin Event Center for our Laughlin casino properties. The lease is with an unrelated party and expires in 2027. Colorado Belle 22 The operations of this casino resort remain suspended.
Colorado Belle (Laughlin, NV) 22 The operations of this casino resort remain suspended. Nevada Locals Casinos Arizona Charlie’s Boulder (Las Vegas, NV) 24 Arizona Charlie’s Decatur (Las Vegas, NV) 17 We lease office, storage and laundry space for our Arizona Charlie’s Decatur in an adjacent shopping center. The lease is with an unrelated party and expires in 2097.
Nevada Locals Casinos Arizona Charlie’s Boulder (Las Vegas, NV) 24 Arizona Charlie’s Decatur (Las Vegas, NV) 17 We lease office, storage and laundry space for our Arizona Charlie’s Decatur in an adjacent shopping center. The lease is with an unrelated party and expires in 2097.
Removed
Lakeside Casino & RV Park (Pahrump, NV) 35 Pahrump Nugget (Pahrump, NV) 40 Approximately 20 acres are undeveloped and reserved for future development. Maryland Casino Resort Rocky Gap (Flintstone, MD) 270 Approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated is leased from the Maryland DNR pursuant to a 40-year ground lease.
Added
Corporate and Other Company headquarters (Las Vegas, NV) — The locations are leased with lease terms ranging from 5 to 10 years, with two 5-year renewal options. Office and warehouse space (NV) — The location is leased with a lease term of 5 years, with one 5-year renewal option.
Removed
Corporate and Other Company headquarters (Las Vegas, NV) — Office and warehouse space (NV) — Office and warehouse space (MT) —

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+3 added−6 removed3 unchanged
Biggest changeCumulative Total Returns - Year Ending December 31, 2017 2018 2019 2020 2021 2022 Golden Entertainment, Inc. $ 100.00 $ 49.07 $ 58.86 $ 60.92 $ 154.76 $ 114.55 NASDAQ Composite 100.00 96.13 129.97 186.70 226.63 151.61 Dow Jones US Gambling 100.00 67.36 96.55 85.49 74.51 55.50 The performance graph and the related chart and text should not be deemed filed or incorporated by reference into any other filing by us under the Securities Act of 1933, as amended or the Exchange Act of 1934, as amended except to the extent we specifically incorporate the performance graph by reference herein.
Biggest changeThe stock price performance in this graph is not necessarily indicative of future performance. 24 Cumulative Total Returns - Year Ending December 31, 2018 2019 2020 2021 2022 2023 Golden Entertainment, Inc. $ 100.00 $ 119.97 $ 124.15 $ 315.41 $ 233.46 $ 249.31 NASDAQ Composite 100.00 135.23 194.24 235.78 157.74 226.24 Dow Jones US Gambling 100.00 143.35 126.93 110.62 81.56 108.05 The performance graph and the related chart and text should not be deemed filed or incorporated by reference into any other filing by us under the Securities Act of 1933, as amended or the Exchange Act of 1934, as amended except to the extent we specifically incorporate the performance graph by reference herein.
Stock Performance Graph The following performance graph compares the cumulative five-year shareholders’ returns (based on appreciation of the market price of our common stock) on an indexed basis with Nasdaq Composite Index and the Dow Jones US Gambling index, during the five years ended December 31, 2022.
Stock Performance Graph The following performance graph compares the cumulative five-year shareholders’ returns (based on appreciation of the market price of our common stock) on an indexed basis with Nasdaq Composite Index and the Dow Jones US Gambling index, during the five years ended December 31, 2023.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the Nasdaq Global Market under the ticker symbol “GDEN.” As of February 20, 2023, there were 270 shareholders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is traded on the Nasdaq Global Market under the ticker symbol “GDEN.” As of February 19, 2024, there were 263 shareholders of record of our common stock.
Share Repurchase Program and Issuer Purchase of Equity From time to time, we repurchase shares of our common stock pursuant to our $75 million share repurchase program authorized by our Board of Directors on November 1, 2022.
Share Repurchase Program and Issuer Purchase of Equity From time to time, we repurchase shares of our common stock pursuant to our $100 million share repurchase program authorized by our Board of Directors on July 27, 2023.
The graph plots the changes in value of an initial $100 investment over the indicated time period, assuming all dividends are reinvested. The stock price performance in this graph is not necessarily indicative of future stock price performance.
The graph plots the changes in value of an initial $100 investment over the indicated time period, assuming all dividends are reinvested.
Removed
Dividends Other than the special cash dividend that was made in July 2016 pursuant to the terms of the Sartini Gaming merger agreement, we have neither declared nor paid any cash dividends with respect to our common stock.
Added
Dividends In July 2023, our Board of Directors declared a one-time cash dividend of $2.00 per share of the outstanding common stock, totaling $57.7 million in the aggregate. The one-time cash dividend was paid on August 25, 2023 to our shareholders of record as of August 11, 2023.
Removed
The current policy of our Board of Directors is to retain all future earnings, if any, for use in the operation and development of our business.
Added
In addition, subsequent to our fiscal year end, on February 27, 2024, our Board of Directors declared a recurring quarterly cash dividend of $0.25 per share of our outstanding common stock, the first of which is payable on April 4, 2024 to shareholders of record as of March 18, 2024.
Removed
Share repurchases executed in May 2022 (under our previously authorized share repurchase program) and November 2022 included 210,000 shares and 263,418 shares, respectively, repurchased from a related party as discussed in “Note 14 — Related Party Transactions” in Part II, Item 8: Financial Statements and Supplemental Data. The rest of the repurchases were made through open market transactions.
Added
During the three months ended December 31, 2023, we did not repurchase any shares through open market transactions, and as of December 31, 2023, we had $90.9 million of remaining share repurchase availability under our July 27, 2023 authorization.
Removed
The following table presents our common stock purchases made pursuant to our share repurchase program for the year ended December 31, 2022: Total Number of Shares Purchased Average Price per Share Total Number of Shares Purchased as Part of a Publicly Announced Program Approximate Dollar Value That May Yet Be Purchased Under the Program (in millions) Period January 1-31, 2022 — $ — — $ 39.4 February 1-28, 2022 — $ — — $ 39.4 March 1-31, 2022 268,791 $ 56.54 268,791 $ 24.2 April 1-30, 2022 — $ — — $ 24.2 May 1-31, 2022 211,100 $ 42.59 211,100 $ 41.0 (1) (2) June 1-30, 2022 303,900 $ 44.34 303,900 $ 27.5 July 1-31, 2022 — $ — — $ 27.5 August 1-31, 2022 — $ — — $ 27.5 September 1-30, 2022 — $ — — $ 27.5 (3) October 1-31, 2022 — $ — — $ 27.5 November 1-30, 2022 263,418 $ 41.35 263,418 $ 64.1 (4) December 1-31, 2022 65,479 $ 40.30 65,479 $ 61.5 Total 1,112,688 $ 46.01 1,112,688 $ 61.5 (1) Our Board of Directors increased the amount authorized for share repurchases to $50 million on May 3, 2022.
Removed
(2) Includes 210,000 shares repurchased from Anthony A. Marnell III, an independent non-employee member of our Board of Directors, at a price of $42.61 per share. (3) Our Board of Directors increased the amount authorized for share repurchases to $75 million on November 1, 2022. (4) Represents shares repurchased from Anthony A.
Removed
Marnell III, an independent non-employee member of our Board of 26 Directors, at a price of $41.35 per share.

Item 7. Management's Discussion & Analysis

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

55 edited+37 added−31 removed28 unchanged
Biggest changeWe define “Adjusted EBITDA” as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of goodwill and intangible assets, severance expenses, preopening and related expenses, gain or loss on disposal of assets, share-based compensation expenses, non-cash lease expense, and other non-cash charges that are deemed to be not indicative of our core operating results, calculated before corporate overhead (which is not allocated to each reportable segment). 31 The following table presents our total revenues and Adjusted EBITDA by reportable segment and a reconciliation of net income (loss) to Adjusted EBITDA: Year Ended December 31, (In thousands) 2022 2021 2020 Revenues Nevada Casino Resorts $ 406,950 $ 389,712 $ 250,643 Nevada Locals Casinos 157,514 159,855 113,031 Maryland Casino Resort 78,010 78,155 51,636 Nevada Taverns 109,965 110,170 64,041 Distributed Gaming 365,472 357,414 214,215 Corporate and other 3,808 1,237 589 Total Revenues $ 1,121,719 $ 1,096,543 $ 694,155 Adjusted EBITDA Nevada Casino Resorts $ 135,104 $ 149,077 $ 57,462 Nevada Locals Casinos 75,848 80,005 45,610 Maryland Casino Resort 25,383 26,697 15,094 Nevada Taverns 37,610 39,762 10,086 Distributed Gaming 44,021 47,514 16,866 Corporate and other (50,886) (51,337) (34,861) Total Adjusted EBITDA $ 267,080 $ 291,718 $ 110,257 Net income (loss) $ 82,346 $ 161,776 $ (136,611) Adjustments Other non-operating income — (60,000) — Depreciation and amortization 100,123 106,692 124,430 Non-cash lease expense 165 762 1,344 Share-based compensation 13,433 14,401 9,637 Loss on disposal of assets 934 1,260 803 Loss on debt extinguishment and modification 1,590 975 — Preopening and related expenses (1) 161 246 533 Severance expenses 378 228 3,710 Impairment of goodwill and intangible assets — — 33,964 Other, net 3,939 2,089 3,275 Interest expense, net 63,490 62,853 69,110 Change in fair value of derivative — — 1 Income tax provision 521 436 61 Adjusted EBITDA $ 267,080 $ 291,718 $ 110,257 (1) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded tavern and casino locations as well as food and beverage and other venues within our casino locations.
Biggest changeWe define “Adjusted EBITDA” as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, impairment of assets, severance expenses, preopening and related expenses, preopening and related expenses, gain or loss on disposal of assets and businesses, share-based compensation expenses, non-cash lease expense, and other non-cash charges that are deemed to be not indicative of our core operating results, calculated before corporate overhead (which is not allocated to each reportable segment). 28 The following table presents our total revenues and Adjusted EBITDA by reportable segment and a reconciliation of net income to Adjusted EBITDA: Year Ended December 31, (In thousands) 2023 2022 2021 Revenues Nevada Casino Resorts $ 413,058 $ 406,950 $ 389,712 Nevada Locals Casinos 157,435 157,514 159,855 Maryland Casino Resort (1) 43,456 78,010 78,155 Nevada Taverns 109,215 109,965 110,170 Distributed Gaming (2) 320,680 365,472 357,414 Corporate and other 9,305 3,808 1,237 Total Revenues $ 1,053,149 $ 1,121,719 $ 1,096,543 Adjusted EBITDA Nevada Casino Resorts $ 120,256 $ 135,104 $ 149,077 Nevada Locals Casinos 73,846 75,848 80,005 Maryland Casino Resort (1) 12,652 25,383 26,697 Nevada Taverns 32,682 37,610 39,762 Distributed Gaming (2) 34,545 44,021 47,514 Corporate and other (51,459) (50,886) (51,337) Total Adjusted EBITDA $ 222,522 $ 267,080 $ 291,718 Net income $ 255,756 $ 82,346 $ 161,776 Adjustments Other non-operating income — — (60,000) Depreciation and amortization 88,933 100,123 106,692 Non-cash lease expense (15) 165 762 Share-based compensation 13,476 13,433 14,401 (Gain) loss on disposal of assets (228) 934 1,260 Gain on sale of businesses (303,179) — — Loss on debt extinguishment and modification 1,734 1,590 975 Preopening and related expenses (3) 760 161 246 Severance expenses 149 378 228 Impairment of assets 12,072 — — Other, net 11,342 3,939 2,089 Interest expense, net 65,515 63,490 62,853 Change in fair value of derivative — — — Income tax provision 76,207 521 436 Adjusted EBITDA $ 222,522 $ 267,080 $ 291,718 (1) Comprised of the operations of Rocky Gap, which was sold on July 25, 2023.
Our Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius, and typically have no or a limited number of hotel rooms and offer fewer food and beverage outlets or other amenities, with revenues primarily generated from slot machine play.
Our Nevada Locals Casinos segment is comprised of casino properties that cater to local customers who generally live within a five-mile radius of our properties, and typically have no or a limited number of hotel rooms and offer fewer food and beverage outlets or other amenities, with revenues primarily generated from slot machine play.
Loss on Disposal of Assets Loss on disposal of assets in the amount of $0.9 million for the year ended December 31, 2022 was primarily related to sales of used gaming equipment by our Nevada Taverns segment and disposals of property and equipment by our casino properties located in Nevada.
Loss on disposal of assets in the amount of $0.9 million for the year ended December 31, 2022 was primarily related to sales of used gaming equipment by our Nevada Taverns segment and disposals of property and equipment by our casino properties located in Nevada.
Moreover, we can provide no assurances that the investigation or pursuit of an opportunity will result in a completed transaction. Critical Accounting Policies and Estimates Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements, which have been prepared in accordance with GAAP.
Moreover, we can provide no assurances that the investigation or pursuit of an opportunity will result in a completed transaction. 32 Critical Accounting Policies and Estimates Management’s discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements, which have been prepared in accordance with GAAP.
Share Repurchase Program Share repurchases may be made from time to time in open market transactions, block trades or in private transactions in accordance with applicable securities laws and regulations and other legal requirements, including compliance with our finance agreements.
Share Repurchase Program Share repurchases may be made from time to time in open market transactions, block trades or in private transactions in 31 accordance with applicable securities laws and regulations and other legal requirements, including compliance with our finance agreements.
Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to our properties, 36 and other factors.
Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to our properties, and other factors.
If our estimates of future cash flows are not met or if there are changes in significant assumptions and judgments used in the estimation process, we may have to record impairment charges in the future.
If our estimates of future cash flows are not met or if there are changes in significant assumptions and judgments used in the estimation process, we may have to record additional impairment charges in the future.
Recoverability of a long-lived asset is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated.
Recoverability of a long-lived asset is evaluated by comparing the estimated future cash flows of the asset, on an undiscounted 33 basis, to its carrying amount. If the undiscounted estimated future cash flows exceed the carrying amount, no impairment is indicated.
Application of alternative estimates and assumptions could produce significantly different results, especially with regards to estimated future cash flows, as they are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are unpredictable and inherently uncertain, since they are based on the current regulatory, political and economic climates, recent operating information and projections.
Application of alternative estimates and assumptions could produce significantly different results, especially with regards to estimated future cash flows, as they are, by their nature, subjective and actual results may differ materially from such estimates. Cash flow estimates are unpredictable and inherently uncertain, because they are based on the current regulatory, political and economic climates, recent operating information and projections.
As of December 31, 2022, we had borrowing availability of $240 million under our Revolving Credit Facility (refer to “ Note 7 — Long-Term Debt ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for additional information regarding our Revolving Credit Facility).
As of December 31, 2023, we had borrowing availability of $240 million under our Revolving Credit Facility (refer to “ Note 7 — Long-Term Debt ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for additional information regarding our Revolving Credit Facility).
As discussed in “Note 5 — Goodwill and Intangible Assets” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report, we concluded that there was no impairment of our goodwill and intangible assets as of December 31, 2022 and 2021.
As discussed in “Note 5 — Goodwill and Intangible Assets” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report, we concluded that there was no impairment of our goodwill and intangible assets as of December 31, 2023 and 2022.
Since we review the carrying amounts of our long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, suspension of this casino resort property’s operations qualified as an indicator that impairment may exist related to our long-lived assets at Colorado Belle.
Since we review the carrying amounts of our long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable, suspension of this casino resort property’s operations continues to qualify as an indicator of impairment related to our long-lived assets at Colorado Belle.
The increase in revenue was driven by increases of $6.3 million, $9.4 million and $6.3 million in food and beverage, rooms, and other revenues, respectively, offset by a decrease of $4.8 million in gaming revenues.
The increase in revenue was driven by increases of $9.3 million, $5.6 million and $5.8 million in food and beverage, rooms, and other revenues, respectively, offset by a decrease of $14.6 million in gaming revenues.
Our Maryland Casino Resort segment is comprised of our Rocky Gap casino resort. Our Nevada Taverns segment is comprised of the operations of our branded taverns located primarily in the greater Las Vegas, Nevada metropolitan area, targeting local patrons seeking more convenient entertainment establishments than traditional casino properties.
Our Nevada Taverns segment is comprised of the operations of our branded taverns located primarily in the greater Las Vegas, Nevada metropolitan area, targeting local patrons seeking more convenient entertainment establishments than traditional casino properties.
Preopening Expenses Preopening expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded tavern and casino locations as well as food and beverage and other venues within our casino locations.
Preopening Expenses Preopening expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded taverns and food and beverage and other venues within our casino locations.
Income Taxes The effective income tax rate w as 0.63% for the year ended December 31, 2022, which differed from the federal income tax rate of 21% due to the partial release of the valuation allowance related to deferred tax assets, excess tax deductions related to the exercise of stock options, and the limitation of tax deductions on executive compensation under the Internal Revenue Code Section 162(m).
The effective income tax rate f or the year ended December 31, 2022 was 0.63%, which differed from the federal tax rate of 21% due to the partial release of the valuation allowance related to deferred tax assets, excess tax deductions related to the exercise of stock options, and the limitation of tax deductions on executive compensation under Section 162(m) of the Internal Revenue Code.
Recently Issued Accounting Pronouncements Refer to “Note 2 — Summary of Significant Accounting Policies” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for information regarding recently issued accounting pronouncements. Regulation and Taxes The casino and distributed gaming industries are subject to extensive regulation by state gaming authorities.
Recently Issued Accounting Pronouncements Refer to “Note 2 — Summary of Significant Accounting Policies” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for information regarding recently issued accounting pronouncements. Regulation and Taxes Our business is subject to extensive regulation by state gaming authorities.
We believe that our estimates and assumptions are reasonable, based upon information presently available; however, actual results may differ from these estimates under different assumptions or conditions. Valuation of Goodwill and Indefinite-Lived Intangible Assets As of December 31, 2022, the value of our goodwill and indefinite-lived intangible assets was $158.4 million and $46.8 million, respectively.
We believe that our estimates and assumptions are reasonable, based upon information presently available; however, actual results may differ from these estimates under different assumptions or conditions. Valuation of Goodwill and Indefinite-Lived Intangible Assets As of December 31, 2023, the value of our goodwill and indefinite-lived intangible assets was $84.3 million and $47.9 million, respectively.
Nevada Locals Casinos Revenues and Adjusted EBITDA decreased by $2.3 million, or 1%, and $4.2 million, or 5%, respectively, for the year ended December 31, 2022 compared to the prior year.
Nevada Locals Casinos Revenues and Adjusted EBITDA decreased by $0.1 million, or less than 1%, and $2.0 million, or 3%, respectively, for the year ended December 31, 2023 compared to the prior year.
In addition to the historical information, certain statements in this discussion are forward-looking statements based on current expectations that involve risks and uncertainties. Actual results and the timing of certain events may differ significantly from those projected in such forward-looking statements.
In addition to the historical information, certain statements in this discussion are forward-looking statements based on current expectations that involve risks and uncertainties. Actual results and the timing of certain events may differ significantly from those projected in such forward-looking statements. Refer to “Forward-Looking Statements” in Part I of this Annual Report for additional information regarding forward-looking statements.
If our estimates of future cash flows are not met or if there are changes in significant assumptions and judgments used in the estimation process, including the discount rate and market multiple, we may have to record impairment charges in the future.
If our estimates of future cash flows are not met or if there are changes in significant assumptions and judgments used in the estimation process, including the discount rate and market multiple, we may have to record impairment charges in the future. Valuation of Long-Lived Assets at Colorado Belle The operations of Colorado Belle have remained suspended since March 2020.
Preopening expenses for the year ended December 31, 2022 primarily related to new branded tavern openings within our Nevada Taverns segment and opening of new venues within our Nevada Casino Resorts segment. Preopening expenses for the year ended December 31, 2021 primarily related to our planned expansion into new markets for our Distributed Gaming segment.
Preopening expenses for the years ended December 31, 2023 and 2022 primarily related to new branded tavern openings within our Nevada Taverns segment and the opening of new venues within our Nevada Casino Resorts segment.
The decrease in revenues was driven by a $6.1 million decrease in gaming revenues, offset by increases of $1.2 million, $2.5 million, and $0.1 million in food and beverage, rooms, and other revenues, respectively .
The decrease in revenues was driven by a $1.6 million decrease in gaming revenue, offset by a $1.1 million increase in food and beverage revenues, $0.2 million increase in rooms and $0.2 million other revenues during 2023 .
Liquidity and Capital Resources As of December 31, 2022, we had $142.0 million in cash and cash equivalents. We believe that our cash and cash equivalents, cash flows from operations and borrowing availability under our $240 million revolving credit facility (the “Revolving Credit Facility”) will be sufficient to meet our capital requirements during the next 12 months.
We believe that our cash and cash equivalents, cash flows from operations and borrowing availability under our $240 million Revolving Credit Facility will be sufficient to meet our capital requirements during the next 12 months.
SG&A expenses are comprised of marketing and advertising, utilities, building rent, maintenance contracts, corporate office overhead, information technology, legal, accounting, third-party service providers, executive compensation, share-based compensation, payroll expenses and payroll taxes.
We also experienced increases in payr oll and related expenses as well as an increase in costs related to marketing and advertising, utilities, and maintenance contracts in 2023. SG&A expenses are comprised of marketing and advertising, utilities, building rent, maintenance contracts, corporate office overhead, information technology, legal, accounting, third-party service providers, executive compensation, share-based compensation, payroll expenses and payroll taxes.
As discussed in “Note 4 — Property and Equipment” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report, the results of interim and annual assessments conducted during the year did not result in an impairment of the long-lived assets at Colorado Belle as of and for the years ended December 31, 2022 and 2021.
As discussed in “Note 4 — Property and Equipment” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report, the results of the assessment conducted for the year ended December 31, 2023 indicated a $12.1 million impairment of the long-lived assets of Colorado Belle.
Higher food and beverage and rooms revenues were primarily driven by a higher average daily rate and an increase in guest visitation. The decrease in Adjusted EBITDA compared to the prior year was primarily attributable to higher labor costs and cost of goods.
The increase in rooms revenue was primarily attributable to a higher hotel occupancy at higher average daily rates, which resulted in an increase in food and beverage revenues during 2023. The decrease in Adjusted EBITDA compared to the prior year was primarily attributable to higher labor costs and cost of goods.
The decrease in Adjusted EBITDA over the prior year is primarily related to an increase in labor costs and an increase in costs of providing gaming related services to third parties under our space lease and participation agreements.
Further, Adjusted EBITDA for the year ended December 31, 2023 was impacted by an increase in labor costs and an increase in costs of providing gaming related services to third parties under our space lease and participation agreements.
Operating Expenses The $36.8 million, or 6% , increase in operating expenses for the year ended December 31, 2022 compared to the prior year resulted from increases of $12.8 million, $13.3 million, $7.8 million, and $2.9 million in gaming, food and beverage, rooms, 29 and other operating expenses, respectively.
Operating Expenses The $37.1 million, or 6% , decrease in operating expenses for the year ended December 31, 2023 compared to the prior year resulted from a $49.1 million decrease in gaming expenses, offset by increases of $3.5 million, $5.9 million, and $2.6 million in food and beverage, rooms, and other operating expenses, respectively.
We conduct our business through five reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, Nevada Taverns, and Distributed Gaming. Our Nevada Casino Resorts segment is comprised of destination casino resort properties offering a variety of food and beverage outlets, entertainment venues and other amenities.
Our Nevada Casino Resorts segment is comprised of destination casino resort properties offering a variety of food and beverage outlets, entertainment venues and other amenities.
Such expansions will be influenced and determined by a number of factors, which may include licensing availability and approval, suitable investment opportunities and availability of acceptable financing.
Other Opportunities We may investigate and pursue expansion opportunities in our existing or new markets from time to time. Such expansions will be influenced and determined by a number of factors, which may include licensing availability and approval, suitable investment opportunities and availability of acceptable financing.
If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is recorded based on the difference between the asset’s estimated fair value and its carrying amount. To estimate fair values, we generally use market comparables, when available, or a discounted cash flow model.
If the undiscounted estimated future cash flows do not exceed the carrying amount, impairment is recorded based on the difference between the asset’s estimated fair value and its carrying amount.
Year Ended December 31, (In thousands) 2022 2021 2020 Revenues Gaming $ 760,906 $ 766,307 $ 476,753 Food and beverage 175,363 167,815 112,081 Rooms 122,324 109,802 71,411 Other 63,126 52,619 33,910 Total revenues 1,121,719 1,096,543 694,155 Expenses Gaming 428,984 416,197 275,041 Food and beverage 131,863 118,541 92,202 Rooms 56,414 48,632 39,935 Other operating 19,889 16,968 11,789 Selling, general and administrative 235,404 221,967 183,122 Depreciation and amortization 100,123 106,692 124,430 Loss on disposal of assets 934 1,260 803 Preopening expenses 161 246 308 Impairment of goodwill and intangible assets — — 33,964 Total expenses 973,772 930,503 761,594 Operating income (loss) 147,947 166,040 (67,439) Non-operating expense Other non-operating income — 60,000 — Interest expense, net (63,490) (62,853) (69,110) Loss on debt extinguishment and modification (1,590) (975) — Change in fair value of derivative — — (1) Total non-operating expense, net (65,080) (3,828) (69,111) Income (loss) before income tax provision 82,867 162,212 (136,550) Income tax provision (521) (436) (61) Net income (loss) $ 82,346 $ 161,776 $ (136,611) Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 Revenues T he $25.2 million, or 2%, increase in re venues for the year ended December 31, 2022 compared to the prior year resulted from increases of $7.6 million, $12.5 million, and $10.5 million in food and beverage, rooms, and other revenues, respectively, as offset by a $5.4 million decrease in gaming revenues.
Year Ended December 31, (In thousands) 2023 2022 2021 Revenues Gaming $ 674,301 $ 760,906 $ 766,307 Food and beverage 182,408 175,363 167,815 Rooms 124,649 122,324 109,802 Other 71,791 63,126 52,619 Total revenues 1,053,149 1,121,719 1,096,543 Expenses Gaming 379,929 428,984 416,197 Food and beverage 135,373 131,863 118,541 Rooms 62,297 56,414 48,632 Other operating 22,415 19,889 16,968 Selling, general and administrative 255,565 235,404 221,967 Depreciation and amortization 88,933 100,123 106,692 (Gain) loss on disposal of assets (228) 934 1,260 Gain on sale of businesses (303,179) — — Preopening expenses 760 161 246 Impairment of assets 12,072 — — Total expenses 653,937 973,772 930,503 Operating income 399,212 147,947 166,040 Non-operating expense Other non-operating income — — 60,000 Interest expense, net (65,515) (63,490) (62,853) Loss on debt extinguishment and modification (1,734) (1,590) (975) Total non-operating expense, net (67,249) (65,080) (3,828) Income before income tax provision 331,963 82,867 162,212 Income tax provision (76,207) (521) (436) Net income $ 255,756 $ 82,346 $ 161,776 Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Revenues T he $68.6 million, or 6%, decrease in re venues for the year ended December 31, 2023 compared to the prior year resulted from an $86.6 million decrease in gaming revenues, offset by increases of $7.0 million, $2.3 million, and $8.7 million in food and beverage, rooms, and other revenues, respectively .
Our Distributed Gaming operations in Montana and Nevada resumed on May 4, 2020 and June 4, 2020, respectively. 33 Adjusted EBITDA Margin For the year ended December 31, 2022, Adjusted EBITDA as a percentage of segment revenues (or Adjusted EBITDA margin) was 33% , 48%, 33%, 34%, and 12% for Nevada Casino Resorts, Nevada Locals Casinos, Maryland Casino Resort, Nevada Taverns, and Distributed Gaming, respectively, as compared to Adjusted EBITDA margins of 38%, 50%, 34%, 36%, and 13% for the year ended December 31, 2021.
Adjusted EBITDA Margin For the year ended December 31, 2023, Adjusted EBITDA as a percentage of segment revenues (or Adjusted EBITDA margin) was 29% , 47%, 30%, and 11% for Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming, respectively, as compared to Adjusted EBITDA margins of 33%, 48%, 34%, and 12%, respectively, for the year ended December 31, 2022.
Cash flow estimates are unpredictable and inherently uncertain, since they are based on the current regulatory, political and economic climates, recent operating information and projections. Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to our properties, and other factors.
Such estimates could be negatively impacted by changes in federal, state or local regulations, economic downturns, competition, events affecting various forms of travel and access to our properties, and other factors.
Net cash used in financing activities was $177.4 million, $149.9 million and $9.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.
We also acquired four Lucky’s taverns for $10.0 million during 2023. Net cash used in investing activities was $51.3 million and $28.9 million for the years ended December 31, 2022 and 2021, respectively. Net cash used in financing activities was $330.6 million, $177.4 million and $149.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Loss on disposal of assets in the amount of $1.3 million for the year ended December 31, 2021 was primarily related to disposals of property and equipment by our Distributed Gaming segment and sales of used gaming equipment by our Maryland Casino Resort.
Gain or Loss on Disposal of Assets Gain on disposal of assets in the amount of $0.2 million for the year ended December 31, 2023 was primarily driven by sales of used gaming equipment in our Distributed Gaming segment.
Nevada Taverns Revenues and Adjusted EBITDA decreased by $0.2 million, or 0.2%, and $2.2 million, or 5%, respectively, for the year ended December 31, 2022 compared to the prior year.
Distributed Gaming Revenues decreased by $44.8 million, or 12%, and Adjusted EBITDA decreased by $9.5 million, or 22%, for the year ended December 31, 2023 compared to the prior year.
The lower Adjusted EBITDA margins for the year ended December 31, 2022 compared to the prior year were primarily attributable to increases in labor costs and cost of goods. In addition, lower Adjusted EBITDA margins in our Distributed Gaming segment reflect the fixed and variable amounts paid to third parties under our space lease and participation agreements as expenses.
The lower Adjusted EBITDA margins for the year ended December 31, 2023 compared to the prior year were primarily attributable to increases in labor costs and cost of goods.
Our Distributed Gaming segment is comprised of the operation of slot machines and amusement devices in over 1,000 third-party non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores, across Nevada and Montana, with a limited number of slot machines in each location. 28 Results of Operations The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual Report for the year ended December 31, 2022.
As of December 31, 2023, our Distributed Gaming segment was comprised of the operation of slot machines and amusement devices in 640 third-party non-casino locations, such as restaurants, bars, taverns, convenience stores, liquor stores and grocery stores in Nevada, with a limited number of slot machines in each location.
Cash Flows Net cash provided by operating activities was $150.2 million, $295.8 million and $36.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Cash Flows Net cash provided by operating activities was $119.2 million, $150.2 million and $295.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. The $31.0 million, or 21%, decrease in operating cash flows in 2023 compared to 2022 primarily related to a decrease in operating income and the timing of working capital spending.
Year Ended December 31, 2021 Compared to Year Ended December 31, 2020 For a discussion of our results of operations (including revenues and Adjusted EBITDA for our Nevada Casino Resorts, Nevada Locals Casinos and Maryland Casino Resort segments) for the year ended December 31, 2021 compared to the year ended December 31, 2020, see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021.
In addition, lower Adjusted EBITDA margins in our Distributed Gaming segment reflected the fixed and variable amounts paid to third parties under our space lease and participation agreements as expenses. 30 Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 For a discussion of our results of operations for the year ended December 31, 2022 compared to the year ended December 31, 2021, see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022.
The increase in operating expenses for the year ended December 31, 2022 was primarily driven by higher labor costs and cost of goods incurred, as well as an increase in other operating expenses related to the increase in the number of concert events hosted at our Laughlin Event Center during the first half of 2022 following the lifting of COVID-19 mitigation measures and related operating restrictions during the summer of 2021.
The increase in food and beverage and rooms expenses was primarily attributable to higher labor costs and cost of goods incurred during the current year period. The increase in other operating expenses during 2023 was primarily attributable to an increase in the number of events hosted at our Laughlin Event Center compared to the prior year.
The decrease in Adjusted EBITDA compared to the prior year was primarily attributable to higher labor costs and cost of goods and additional expenses related to the entertainment offerings at our Laughlin Event Center for the year ended December 31, 2022.
The decrease in revenues was primarily attributable to the decrease in gaming revenue due to a decrease in visitation to our tavern locations during 2023 . The decrease in Adjusted EBITDA was primarily attributable to higher labor costs and cost of goods compared to the prior year.
Nevada Casino Resorts Revenues increased by $17.2 million, or 4%, and Adjusted EBITDA decreased by $14.0 million, or 9%, for the year ended December 31, 2022 compared to the prior year.
Accordingly, the year-over-year decrease in revenues and Adjusted EBITDA reflects a full year of operations in 2022 as compared to a partial period in 2023 through the date of sale. Nevada Taverns Revenues and Adjusted EBITDA decreased by $0.8 million, or 1%, and $4.9 million, or 13%, respectively, for the year ended December 31, 2023 compared to the prior year.
The estimation of fair value utilizing a discounted cash flow model requires management to make critical estimates, judgments and assumptions with regards to estimated future cash flows, including future growth rates, operating margins, economic and business conditions, and discount rate, as they are, by their nature, subjective and actual results may differ materially from such estimates.
The estimation of fair value requires management to make critical estimates, judgments and assumptions, such as: the valuation methodology, the estimated future cash flows from a market participant’s perspective, including with respect to Colorado Belle, the potential reopening date of the property, future growth rates, operating margins, discount rate and forecasted capital expenditures used to calculate the present value of such cash flows.
Depreciation and Amortization The decrease in depreciation and amortization expenses of $6.6 million, or 6%, for the year ended December 31, 2022 compared to the prior year was primarily related to long-lived assets acquired in connection with the American Casino and Entertainment Properties LLC acquisition being fully depreciated and amortized.
In addition, a majority of the long-lived assets acquired in connection with the American Casino Entertainment Properties, LLC acquisition became fully depreciated and amortized during 2023. The decrease in depreciation and amortization expenses in 2023 was offset by the acceleration of depreciation on certain of our casino resort properties and depreciation on new assets placed in service.
The $27.5 million, or 18%, increase in net cash used in financing activities in 2022 34 compared to 2021 primarily related to the prepayment of outstanding term loan borrowings with a principal amount of $75.0 million, a $39.5 million repurchase in principal amount of 2026 Unsecured Notes in open market transactions, and $51.2 million in repurchases of our common stock pursuant to the share repurchase program, followed by payments of tax withholding on option exercises and the vesting of RSUs.
The $153.1 million, or 86%, increase in net cash used in financing activities in 2023 compared to 2022 primarily related to the $177.0 million reduction in the amount of outstanding term loan borrowings under our Credit Facility (refer to “Note 7 — Long-Term Debt” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further discussion) as well as the repurchase of $59.0 million in principal amount of 2026 Unsecured Notes in open market transactions, the $57.7 million payment of a one-time cash dividend of $2.00 per share of the outstanding common stock, and the payment of $16.9 million in tax withholding on option exercises and the vesting of RSUs during 2023.
The effective income tax rate f or the year ended December 31, 2021 was 0.27%, which differed from the federal tax rate of 21% primarily due to the change in valuation allowance. 30 We recognize penalties and interest related to uncertain tax benefits in the provision for income taxes.
Income Taxes The effective income tax rate for the year ended December 31, 2023 w as 22.96%, which differed from the federal income tax rate of 21% primarily due to state taxes.
Interest expense, net, increased by $0.6 million, or 1%, for the year ended December 31, 2022 due to the increase in the interest rates under our Credit Facility.
Non-Operating Expense, Net Non-operating expense, net increased b y $2.2 million, or 3%, for the year ended December 31, 2023 compared to the prior year primarily due to a $2.0 million, or 3%, increase in interest expense as a result of higher interest rates experienced in 2023.
Refer to “Forward-Looking Statements” in Part I of this Annual Report for additional information regarding forward-looking statements. 27 Overview We own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and distributed gaming operations (including gaming in our branded taverns).
Overview We own and operate a diversified entertainment platform, consisting of a portfolio of gaming assets that focus on casino and branded tavern operations. As of December 31, 2023, we conducted our business through four reportable segments: Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming.
The increase in revenues over the prior year was primarily driven by an increase in occupancy of our hotel rooms during the first half of 2022 relative to the prior year (reflecting the lifting of COVID-19 mitigation measures and related operating restrictions during the summer of 2021) combined with a higher average daily rate.
The increase in food and beverage revenues compared to the prior year was primarily driven by the addition of new food and beverage outlets, revised menus and increased revenue per cover combined with a higher cover count. The increase in rooms revenues was primarily attributable to an increase in occupancy of our hotel rooms.
The decrease in Adjusted EBITDA was primarily attributable to higher labor costs and cost of goods compared to the prior year. Revenues and Adjusted EBITDA increased by $46.1 million, or 72%, and $29.7 million, or 294%, respectively, for the year ended December 31, 2021 compared to 2020.
The decrease in gaming revenues over the prior year was primarily driven by a reevaluation of gaming related marketing programs and an increase in complimentary products and services provided to our customers to incentivize future gaming activity. The decrease in Adjusted EBITDA compared to the prior year was primarily attributable to higher labor costs and cost of goods in 2023.
Distributed Gaming Revenues increased by $8.1 million, or 2%, and Adjusted EBITDA decreased by $3.5 million, or 7%, for the year ended December 31, 2022 compared to the prior year. The increase in revenues was driven by increases of $7.1 million and $1.0 million in gaming and other revenues, respectively.
(3) Preopening and related expenses consist of labor, food, utilities, training, initial licensing, rent and organizational costs incurred in connection with the opening of branded taverns and food and beverage and other venues within our casino locations. 29 Nevada Casino Resorts Revenues increased by $6.1 million, or 2%, and Adjusted EBITDA decreased by $14.8 million, or 11%, for the year ended December 31, 2023 compared to the prior year.
Valuation of Long-Lived Assets at Colorado Belle As of December 31, 2022, the balance of long-lived assets at Colorado Belle was $29.1 million. As discussed elsewhere in this Annual Report, the operations of the Colorado Belle remain suspended.
Impairment of Assets As discussed elsewhere in this Annual Report, during the year ended December 31, 2023, we voluntarily surrendered our gaming license for Colorado Belle and decided to continue to keep the operations of the property suspended.
Removed
The increase in food and beverage, rooms, and other revenues for the year ended December 31, 2022 compared to the prior year was driven primarily by an increase in occupancy and the average daily room rate of our hotel rooms during the first half of 2022 relative to the prior year and an overall increase in guest visitation following the lifting of COVID-19 mitigation measures and related operating restrictions during the summer of 2021 and the effect of government stimulus payments in 2021 and early 2022 on discretionary consumer spending .
Added
Rocky Gap Sale On July 25, 2023, we completed the sale of Rocky Gap to Century and VICI, an affiliate of VICI Properties Inc., for aggregate cash consideration of $260.0 million.
Removed
The $5.4 million decrease in gaming revenues for the year ended December 31, 2022 was primarily attributable to the stabilization of demand in 2022 compared to the pent-up demand for gaming experienced in the prior year following the lifting of COVID-19 mitigation measures and related operating restrictions.
Added
Specifically, Century acquired the operations of Rocky Gap from us for $56.1 million in cash (subject to adjustment based on Rocky Gap’s working capital and cage cash at closing), and VICI acquired the real estate assets relating to Rocky Gap from us for $203.9 million in cash.
Removed
In addition, our patrons typically engaged in less discretionary spending in 2022 due to the impact of macroeconomic conditions.
Added
Prior to its sale, the operations of Rocky Gap were presented in our Maryland Casino Resort reportable segment. Refer to the discussion in “ Note 3 — Divestitures and Assets Held for Sale ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further information.
Removed
Selling, General and Administrative Expenses The $13.4 million, or 6%, increase in selling, general and administrative (“SG&A”) expenses for the year ended December 31, 2022 compared to the prior year was primarily attributable to the increase in payr oll and related expenses as well as an increase in costs related to utilities and maintenance contracts .
Added
Distributed Gaming Operations Sale On March 3, 2023, we entered into definitive agreements to sell our distributed gaming operations in Nevada and Montana to an affiliate of J&J Gaming for aggregate consideration of $322.5 million.
Removed
In addition, as discussed in “Note 3 — Assets Held for Sale” in Part I, Item 1: Financial Statements, in connection with our entry into definitive agreements for the sale of Rocky Gap, the assets related to Rocky Gap were classified as held for sale as of September 30, 2022 and we ceased recording depreciation and amortization of the long-lived assets included in the sale from the date of execution of the definitive agreements on August 24, 2022.
Added
On September 13, 2023, we completed the sale of our distributed gaming operations in Montana for cash consideration of $109.0 million plus working capital and other adjustments and purchased cash at closing.
Removed
Non-Operating Expense, Net Non-operating expense, net increased b y $61.3 million, or 1600%, for the year ended December 31, 2022 compared to the prior year primarily due to the decrease in other non-operating income of $60.0 million related to our agreement with William Hill providing for certain payments arising from the acquisition of William Hill by Caesars Entertainment, Inc. discussed in “ Note 13 — Commitments and Contingencies ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report.
Added
On January 10, 2024, we completed the sale of our distributed gaming operations in Nevada for cash consideration of $213.5 million plus working capital and other adjustments and purchased cash at closing.
Removed
We made a $75.0 million prepayment of our term loan borrowings and repurchased $39.5 million in principal amount of 2026 Unsecured Notes in open market transactions during the year, which resulted in a $0.6 million, or 63%, year-over-year increase in non-cash charges for the accelerated amortization of the debt issuance costs and discount, as discussed in “ Note 7 — Long-Term Debt ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report.
Added
Prior to the sale, the results of the distributed gaming operations in Montana were combined with the results of the distributed gaming operations in Nevada and presented in our Distributed Gaming reportable segment.
Removed
The decrease in gaming revenues over the prior year was primarily attributable to a decrease in demand for gaming in the second half of the year due to the 32 impact of macroeconomic conditions on our gaming patrons.
Added
Refer to the discussion in “ Note 3 — Divestitures and Assets Held for Sale ” and “ Note 16 — Subsequent Events ” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report for further information. 25 Acquisition of Taverns On November 21, 2023, we acquired the operations of Lucky’s, comprised of four tavern locations in Nevada, for cash consideration of $10 million, as part of an expansion of our branded tavern portfolio.
Removed
The decrease in gaming revenues over the prior year was primarily attributable to a decrease in patron visitation due to the stabilization of demand for gaming compared to the pent-up demand experienced in the second half of 2021 following the lifting of COVID-19 mitigation measures during the summer of 2021 and the effect of government stimulus payments in 2021 on discretionary consumer spending.
Added
The acquired Lucky’s taverns have been included in our Nevada Taverns reportable segment from the date of acquisition. Results of Operations The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Annual Report for the year ended December 31, 2023.
Removed
Maryland Casino Resort Revenues remained relatively consistent with the prior year with a decrease of $0.1 million compared to 2021 and Adjusted EBITDA decreased $1.3 million, or 5%, for the year ended December 31, 2022 compared to the prior year.
Added
The decrease in revenues was primarily attributable to the exclusion of more than a full quarter of results for Rocky Gap and our distributed gaming operations in Montana that were sold on July 25, 2023 and September 13, 2023, respectively.
Removed
The decrease in revenues was driven by a $1.2 million decrease in gaming revenues, offset by increases of $0.5 million and $0.6 million in food and beverage and rooms revenues, respectively .
Added
The decrease in gaming revenues for the year ended December 31, 2023 compared to the prior year was also driven by an increase in complimentary products and services provided to our customers to incentivize future gaming activity.
Removed
Higher food and beverage and rooms revenues were driven by a higher average daily rate and an increase in guest visitation following the easing of COVID-19 mitigation measures during the summer of 2021. The decrease in Adjusted EBITDA compared to the prior year resulted from an increase in labor costs and costs of goods.
Added
The increase in food and beverage revenues for the year ended December 31, 2023 compared to the prior year was primarily related to the addition of new food and beverage outlets, revised menus and increased revenue per cover combined with the higher cover count.
Removed
The decrease in revenues was driven by decreases of $0.3 million and $0.4 million in gaming and food and beverage revenues, respectively, offset by an increase of $0.5 million in other revenues.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2022, we had $575 million in principal amount of outstanding term loan borrowings under the Credit Facility with no outstanding borrowings under our $240 million Revolving Credit Facility. Our primary interest rate under the Credit Facility is the Eurodollar rate plus an applicable margin.
Biggest changeAs of December 31, 2023, we had $398 million in principal amount of outstanding Term Loan B-1 borrowings under the Credit Facility with no outstanding borrowings under our $240 million Revolving Credit Facility. Our primary interest rate under the Credit Facility is the SOFR rate plus an applicable margin.
As of December 31, 2022, our variable rate long-term debt primarily comprised our indebtedness under the Credit Facility (refer to “Note 7 — Long-Term Debt” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report).
As of December 31, 2023, our variable rate long-term debt primarily comprised our indebtedness under the Credit Facility (refer to “Note 7 — Long-Term Debt” in Part II, Item 8: Financial Statements and Supplemental Data of this Annual Report).
Assuming the outstanding balance under our Credit Facility remained constant over a year, a 50 basis point increase in the applicable interest rate would increase interest incurred, prior to effects of capitalized interest, by $2.9 million over a twelve-month period.
Assuming the outstanding balance under our Credit Facility remained constant over a year, a 50 basis point increase in the applicable interest rate would increase interest incurred, prior to effects of capitalized interest, by $2.0 million over a twelve-month period.
The weighted-average effective interest rate on our outstanding 37 borrowings under the Credit Facility was approximately 4.85% for the year ended December 31, 2022.
The weighted-average effective interest rate on our outstanding borrowings under the Credit Facility was approximately 7.92% for the year ended December 31, 2023.
Removed
As of December 31, 2022, our investment portfolio included $142.0 million in cash and cash equivalents and $5.0 million in short-term investments. We continue to evaluate the potential impact of the eventual replacement of the LIBOR benchmark interest rate.
Added
As of December 31, 2023, our investment portfolio included $197.6 million in cash and cash equivalents, which included $40.1 million of cash and cash equivalents related to assets held for sale. 34
Removed
While some LIBOR rates are now extended through June 2023, lenders are no longer allowed to issue new loans and other financial instruments that are linked to LIBOR.
Removed
Although we are not able to predict what will become a widely accepted benchmark in place of LIBOR, or the exact impact such a transition may have, our current expectation is that this transition will not have a material impact on our business, financial condition or results of operations. 38

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