What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-07-30 compared with 2025-05-02 · 141 added, 88 removed, 384 unchanged (37% of the section changed)

83 unchanged sentences

While we do provide casino credit and the ability to transfer digital funds from a player's cashless "BoydPay" wallet, subject to certain gaming regulations and jurisdictions, most of our customers wager with cash and pay for non-gaming services with cash or by credit card.

We also hold a five percent equity ownership interest in FanDuel Group Parent, LLC ("FanDuel"), the nation's leading sports-betting operator.

On July 10, 2025, we entered into a definitive agreement with FanDuel and TSE Holdings Ltd., to sell our equity interest, terminate certain existing market access agreements and enter into certain new market access agreements for aggregate cash consideration of $1.755 billion.

See also Note 10 , Subsequent Events.

Our industry is capital intensive, and we rely heavily on the ability of our operations to generate operating cash flow to fund maintenance capital expenditures, pay income taxes, repay debt financing and associated interest costs, repurchase our debt or equity securities, pay dividends, and provide excess cash for future development and to help fund acquisitions.

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Three Months Ended

Six Months Ended

(In millions)

2 unchanged sentences

Total Revenues

Total revenues for the three months ended March 31, 2025 increased by $31.0 million, or 3.2% , compared to the prior year comparable period, primarily due to the following:

(i) an increase in online revenue of $23.4 million, which was driven by an increase of $13.6 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners, during the three months ended March 31, 2025, as compared to the prior year comparable period and a $10.9 million increase in revenue from Boyd Interactive's operations, which was driven primarily by the acquisition of Resorts Digital Gaming, LLC ("Resorts Digital") on September 1, 2024;

(ii) an increase in gaming revenues of $4.6 million, or 0.7%, driven by an increase in slot handle of 1.5% and table game hold of 4.8%;

Total revenues for the three months ended June 30, 2025 increased by $66.5 million, or 6.9% , compared to the prior year comparable period, primarily due to the following:

(i) an increase in online revenue of $43.1 million, which was driven by an increase of $30.4 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners, during the three months ended June 30, 2025, as compared to the prior year comparable period and a $10.7 million increase in revenue from Boyd Interactive's operations, which was driven primarily by the acquisition of Resorts Digital Gaming, LLC ("Boyd Digital") on September 1, 2024;

(ii) an increase in gaming revenues of $20.6 million, or 3.2%, driven by an increase in slot handle of 3.6%, slot win of 3.5% and table game hold of 7.1%;

and (iii) an increase of $2.5 million related to the Sky River Casino management fee.

Total revenues for the six months ended June 30, 2025 increased by $97.5 million, or 5.1% , compared to the prior year comparable period, primarily due to the following:

(i) an increase in online revenue of $66.5 million, which was driven by an increase of $44.0 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners, during the six months ended June 30, 2025, as compared to the prior year comparable period and a $21.6 million increase in revenue from Boyd Interactive's operations, which was driven primarily by the acquisition of Boyd Digital on September 1, 2024;

(ii) an increase in gaming revenues of $25.2 million, or 2.0%, driven by an increase in slot handle of 2.6%, slot win of 2.2% and table game hold of 5.9%;

and (iii) an increase of $5.4 million related to the Sky River Casino management fee.

Operating Income

Operating income decreased by $19.5 million, or 8.9% , for the three months ended March 31, 2025 , compared to the prior year comparable period.

Operating income was unfavorably impacted by a $21.8 million increase in impairment of assets over the prior year comparable period as the Company recorded a long-lived asset impairment charge of $32.3 million during the three months ended March 31, 2025 related to property and equipment in the Las Vegas Locals segment, compared to a $10.5 million impairment charge during the three months ended March 31, 2024 related to a gaming license right in the Midwest & South segment.

Operating income increased by $15.3 million, or 6.7% , for the three months ended June 30, 2025 , compared to the prior year comparable period, primarily due to the $66.5 million total revenue increase, as discussed above.

While online revenues grew $43.1 million, $30.4 million of the revenue growth is due to reimbursements of gaming taxes and other expenses paid on behalf of our online partners that results in zero operating income as an equal amount is also recorded as an expense.

Net income de

Operating income decreased by $4.2 million, or 0.9%, for the six months ended June 30, 2025, compared to the prior year comparable period.

Operating income was favorably impacted by the $97.5 million revenue growth, as discussed above.

W hile online revenues grew $66.5 million, $44.0 million of the revenue growth is due to reimbursements of gaming taxes and other expenses paid on behalf of our online partners that results in zero operating income as an equal amount is also recorded as an expense.

Operating income was unfavorably impacted by a $9.6 million increase in depreciation driven by the new land-based casino at Treasure Chest, which opened in June 2024 and hotel room renovations at multiple properties.

Operating income was also unfavorably impacted by a $21.8 million increase in impairment of assets over the prior year comparable period as the Company recorded a long-lived asset impairment charge of $32.3 million during the six months ended June 30, 2025 related to property and equipment in the Las Vegas Locals segment, compared to a $10.5 million impairment charge during the six months ended June 30, 2024 related to a gaming license right in the Midwest & South segment.

Net income increased

million for the three months ended

March 31, 2025

, compared to the prior year comparable period, primarily due to the $19.5 million decrease in operating income, as discussed above.

In addition, interest expense unfavorably impacted net income and increased $6.1 million primarily due to an increase in the weighted average long-term debt balance of $498.1 million.

June 30, 2025

, compared to the prior year comparable period, primarily due to the $15.3 million increase in operating income, as discussed above.

Net income was unfavorably impacted by an increase in interest expense of $7.6 million primarily due to an increase in the weighted average long-term debt balance of $638.8 million.

Net income de

creased $15.1

million for the six months ended June 30, 2025, compared to the prior year comparable period, primarily due to an increase in interest expense of $13.7 million, which was driven by an increase in the weighted average long-term debt balance of $568.9 million, and the $4.2 million operating income decline, as discussed above.

Operating Revenues

We derive the majority of our revenues from our gaming operations, which produced approximately

66% of revenues for the three months ended

March 31, 2025 and

2024, respectively.

65% of revenues for the three and six months ended

June 30, 2025, respectively, and

67% of revenues for the three and six months ended June 30, 2024, respectively.

Online revenues, including reimbursements received from our third-party operators for gaming taxes and other expenses we pay under collaborative arrangements, represent our next most significant revenue source, generating

of revenues for the three months ended

March 31, 2025

June 30, 2025

, respectively, and 17% and 14% of revenues for the

six months ended June 30, 2025 and 2024

, respectively.

Food & beverage revenues, room revenues, management fee revenues and other revenues separately contributed 8% or less of revenues during these periods.

Food & beverage revenues, room revenues, management fee revenues and other revenues each separately contributed 8% or less of revenues during these periods.

Three Months Ended

Six Months Ended

(In millions)

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Gaming revenues are comprised primarily of the net win from our slot machine operations and to a lesser extent from table games win.

The increase in gaming revenues of $4.6 million, or 0.7% , during the three months ended March 31, 2025 , compared to the prior year comparable period, was primarily due to increases in slot handle of 1.5% and table game hold of 4.8%.

The increase in gaming revenues of $20.6 million, or 3.2% , during the three months ended June 30, 2025 , compared to the prior year comparable period, was primarily due to increases in slot handle of 3.6%, slot win of 3.5% and table game hold of 7.1%.

Gaming revenues increased $25.2 million, or 2.0% , during the six months ended June 30, 2025 , compared to the prior year comparable period, and was primarily due to increases in slot handle of 2.6%, slot win of 2.2% and table game hold of 5.9%.

Food & Beverage

Food & beverage revenues increased $1.5 million, or 2.1% , during the three months ended March 31, 2025 , compared to the prior year comparable period, with margins staying consistent at 14.7% for the three months ended March 31, 2025, as compared to 14.6% for the prior year comparable period.

Room revenues decreased $1.6 million, or 3.2% , during the three months ended March 31, 2025 , compared to the prior year comparable period, primarily due to a decline of 3.1% in average daily rate.

Online revenue s increased $23.4 million during the three months ended March 31, 2025, compared to the prior year comparable period, primarily driven by an increase of $13.6 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners and a $10.9 million increase in revenue from Boyd Interactive's operations, driven by the acquisition of Resorts Digital on September 1, 2024.

Food & beverage revenues increased $1.2 million, or 1.5% , and $2.7 million, or 1.8% during the three and six months ended June 30, 2025 , respectively, compared to the prior year comparable periods, primarily due to increases in average guest check of 5.6% and 5.4%, respectively, over the prior year comparable periods.

Room revenues decreased $1.1 million, or 2.2% , and $2.7 million, or 2.7% during the three and six months ended June 30, 2025 , respectively, compared to the prior year comparable periods, primarily due to a decline in average daily rate of 2.5% and 2.8%, respectively, over the prior year comparable periods.

Online reven ues increased $43.1 million during the three months ended June 30, 2025 , compared to the prior year comparable period, primarily driven by an increase of $30.4 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners and a $10.7 million increase in revenue from Boyd Interactive's operations, driven by the acquisition of Boyd Digital on September 1, 2024.

Online revenu es increased $66.5 million during the six months ended June 30, 2025 , compared to the prior year comparable period, primarily driven by an increase of $44.0 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners and a $21.6 million increase in revenue from Boyd Interactive's operations, driven by the acquisition of Boyd Digital on September 1, 2024.

Management fee

Management fee revenues during the three months ended March 31, 2025 and 2024 of $25.1 million and $22.2 milli on, respectively, relate to our management agreement with Wilton Rancheria to manage the Sky River Casino in northern California.

Management fee revenues during the three months ended June 30, 2025 and 2024 of $23.8 million and $21.3 milli on, respectively, and during the six months ended June 30, 2025 and 2024 of $48.9 million and $43.5 milli on, respectively, relate to our management agreement with Wilton Rancheria to manage the Sky River Casino in northern California.

Other revenues relate to patronage visits at the other amenities at our properties, including entertainment and nightclub revenues, retail sales, theater tickets and other venues.

Other rev enues increased $0.2 milli on, or 0.6%, as compared to the corresponding period of the prior year.

Other rev enues increased $0.2 milli on, or 0.5%, and $0.4 million, or 0.6%, during the three and six months ended June 30, 2025 , respectively, as compared to the corresponding periods of the prior year.

Revenues and Adjusted EBITDAR by Reportable Segment

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Three Months Ended

Six Months Ended

(In millions)

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Las Vegas Locals

Total revenues decreased by $2.8 million, or 1.3% , during the three months ended March 31, 2025 , as compared to the prior year comparable period, due primarily to a $2.6 million decline in room revenues.

Total revenues increased by $4.0 million, or 1.8% , during the three months ended June 30, 2025 , as compared to the prior year comparable period driven by gaming revenues.

Gaming revenues increased $3.5 million primarily due to increases in slot win of 3.2% and slot handle of 2.3%.

Total revenues increased by $1.2 million, or 0.3%, during the six months ended June 30, 2025, as compared to the prior year comparable period.

Gaming revenues increased $2.8 million primarily due to increases in slot win of 1.8% and slot handle of 1.3%.

Food & beverage revenues increased $1.9 million which was attributable to a 3.2% increase in food covers and 5.3% increase in average guest check.

Offsetting these revenue increases, was a $3.5 million decline in room revenues.

The decrease in room revenues was attributable to declines in average daily rate of 6.2% and hotel occupancy rate of 1.6% over the prior year comparable period.

The reduction in average daily rate and hotel occupancy rate was driven primarily from the prior year benefiting from the Super Bowl held in Las Vegas during the first quarter of 2024.

Adjusted EBITDAR decreased by

million, or 3.5%, during the three months ended

March 31, 2025

, as compared to the prior year comparable period, due primarily to the room revenues decline discussed above.

Adjusted EBITDAR increased by $3.5 million, or 3.2% , and decreased by $0.4 million, or 0.2% , during the three and six months ended June 30, 2025 , respectively, as compared to the prior year comparable periods, due primarily to the revenue changes for the respective time periods discussed above.

At our Las Vegas Locals properties, gaming and room revenues are the highest margin revenue streams while food & beverage revenues have the lowest margin and are significantly lower than gaming and room margins.

The shift in the revenue growth to higher margin revenue streams for the three months ended June 30, 2025, contributed more favorably to Adjusted EBITDAR growth for this period as compared to the six months ended June 30, 2025.

Downtown Las Vegas

Total revenues increased by $3.8 million, or 7.0%, during the three months ended

March 31, 2025

, as compared to the prior year comparable period, reflecting revenue increases in all departmental categories.

Gaming revenue growth of $2.9 million drove the increase which was primarily attributable to increases in slot handle of 5.5% and slot win of 6.8% over the prior year comparable period.

Total revenues decreased by $2.4 million, or 4.2%, during the three months ended June 30, 2025 , as compared to the prior year comparable period, driven by a decline in gaming revenues of $2.6 million due to decreases in slot win of 7.6% and slot handle of 6.4%.

We continue to tailor our marketing programs in the Downtown Las Vegas segment to focus on the Hawaiian market.

The Hawaiian market represented approximately 52% of our occupied rooms in this segment during both the three months ended March 31, 2025 and 2024.

Occupied rooms by Hawaiian guests increased 7.8% from the prior year comparable period as airfare from Hawaii decreased from the prior year's elevated levels driven by the Super Bowl in Las Vegas.

Adjusted EBITDAR increased by

, during the three months ended

March 31, 2025

, as compared to the prior year comparable period, primarily due to the gaming revenues increase discussed above.

The Hawaiian market represented approximately 53% and 56% of our occupied rooms in this segment during the three months ended June 30, 2025 and 2024, respectively.

The second quarter of 2024 benefited from increased visitation from our Hawaiian customers, as elevated airfare prices in the first quarter of 2024 due to the Super Bowl in Las Vegas reduced Hawaiian visitation in the first quarter of 2024.

Total revenues increased by $1.3 million, or 1.2%, during the six months ended June 30, 2025, as compared to the prior year comparable period, reflecting revenue increases in all departmental categories.

Room revenues increased by $0.7 million primarily due to an increase in the hotel occupancy rate of 3.3%.

Adjusted EBITDAR decreased by

, and increased by

three and six months ended June 30, 2025

, respectively, as compared to the prior year comparable periods, due primarily to the revenue changes for the respective time periods discussed above.

Midwest & South

Total revenues increased by $3.8 million, or 0.8% , during the three months ended March 31, 2025, as compared to the corresponding period of the prior year, reflecting revenue increases in all departmental categories.

Gaming revenues increased $1.9 million which was attributable to increases in table game hold of 6.3% and slot handle of 1.6% over the prior year comparable period.

Total revenues increased by $18.3 million, or 3.5% , during the three months ended June 30, 2025 , as compared to the corresponding period of the prior year.

Gaming revenues increased $18.9 million which was attributable to increases in table game hold of 10.4%, slot handle of 5.2% and slot win of 4.4% over the prior year comparable period.

The increases were primarily driven by Treasure Chest, which opened its new land-based casino in June 2024.

Total revenues increased by $22.1 million, or 2.2% , during the six months ended June 30, 2025, as compared to the corresponding period of the prior year, reflecting revenue increases in all departmental categories.

Gaming revenues increased $20.9 million which was attributable to increases in table game hold of 8.4%, slot handle of 3.4% and slot win of 2.5% over the prior year comparable period.

The increases were driven by Treasure Chest, which opened its new land-based casino in June 2024.

Offsetting the strong performance at Treasure Chest, was an increase in weather-impacted days during the first quarter of 2025 of 28%, as compared to the prior year comparable period.

Adjusted EBITDA R increased by $2.2 million, or 1.2% , during the three months ended March 31, 2025 , as compared to the corresponding prior year period, due primarily to the gaming revenues increase, as discussed above.

Online reven ues increased $23.4 million during the three months ended March 31, 2025 , as compared to the prior year comparable period, primarily due to an increase of $13.6 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners and a $10.9 million increase in revenue from Boyd Interactive's operations, driven by the acquisition of Resorts Digital on September 1, 2024.

Adjusted EBITDAR increased $2.8 million during the three months ended March 31, 2025 , as compared to the corresponding period of the prior year.

Adjusted EBITDA R increased by $5.9 million, or 3.0% , and $8.2 million, or 2.2%, during the three and six months ended June 30, 2025 , respectively, as compared to the corresponding prior year periods, due primarily to the gaming revenues increase, as discussed above.

Online revenu

million during the

six months ended June 30, 2025

, compared to the prior year comparable period, primarily driven by an increase of $44.0 million in reimbursements of gaming taxes and other expenses paid on behalf of our online partners and a $21.6 million increase in revenue from Boyd Interactive's operations, driven by the acquisition of Boyd Digital on September 1, 2024.

Adjusted EBITDAR increased $5.2 million and $8.0 million during the three and six months ended June 30, 2025 , respectively, as compared to the corresponding periods of the prior year.

As discussed earlier, there is an equal amount of expense recorded for the revenue recorded related to the reimbursement of gaming taxes and other expenses, thus resulting in no impact to Adjusted EBITDAR.

As such, the Adjusted EBITDAR increase for the three months ended March 31, 2025, is driven by the revenue increase from Boyd Interactive's operations.

As such, the Adjusted EBITDAR increase for the three and six months ended June 30, 2025, is driven primarily by the revenue increase from Boyd Interactive's operations.

Managed & Ot her

three months ended March 31, 2025

three and six months ended June 30, 2025

, total revenues increased by

million and Adjusted EBITDAR increased by

million, as compared to the corresponding period of the prior year, primarily due to a $2.9 million increase in Sky River Casino management fees.

million and $6.3 million, respectively, and Adjusted EBITDAR increased by

million, respectively, as compared to the corresponding period of the prior year, primarily due to a $2.5 million and $5.4 million increase in Sky River Casino management fees for the

three and six months ended June 30, 2025

, respectively.

Other Operating Costs and Expenses

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Three Months Ended

Six Months Ended

(In millions)

11 unchanged sentences

10.9% during the

three months ended March 31, 2025 and 2024, respectively, and essentially flat to prior year.

three months ended June 30, 2025 and 2024, respectively, and

11.1% during the

six months ended June 30, 2025 and 2024, respectively.

While we continue to focus on our disciplined operating model and targeted marketing approach, selling, general and administrative expense

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lease rent expense remained generally flat period over period at $28.4 million and $27.9 million during the

three months ended March 31, 2025 and 2024, respectively.

three months ended June 30, 2025 and 2024, respectively, and

$56.6 million and

$55.1 million during the

six months ended June 30, 2025 and 2024, respectively.

Maintenance and Utilities

2 unchanged sentences

3.8% during the

three months ended March 31, 2025 and 2024, respectively.

three months ended June 30, 2025 and 2024, respectively, and

3.7% for both the

six months ended June 30, 2025 and 2024.

Depreciation and Amortization

Depreciation and amortization expenses were $70.0 million and $65.7 million during the

three months ended March 31, 2025 and 2024

, respectively

The increase is primarily attributable to the new land-based casino at Treasure Chest, that opened in June 2024.

three months ended June 30, 2025 and 2024

, respectively, and $138.2 million and $128.6 million during the

six months ended June 30, 2025 and 2024, respectivel

The increase for both periods presented is primarily attributable to the new land-based casino at Treasure Chest, which opened in June 2024 and hotel room renovations at multiple properties.

Corporate Expense

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of revenues during the

three months ended March 31, 2025 and 2024

, respectively.

three months ended June 30, 2025 and 2024

, respectively, and 3.2% and 3.1% during the

six months ended June 30, 2025 and 2024, respectively

Project Development, Preopening and Writedowns

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During the three months ended

March 31, 2025

, project development, preopening and writedowns were favorably impacted from $2.5 million in insurance proceeds related to an asset disposition and offset by $0.9 million related to preopening costs.

During the three months ended March 31, 2024, the Company incurred $1.8 million in demolition costs and $0.9 million related to preopening costs.

June 30, 2025

, project development, preopening and writedowns included $1.8 million in preopening costs.

During the three months ended June 30, 2024, the Company incurred $5.9 million in project development and preopening cost, primarily related to the opening of the Treasure Chest land-based casino, and $1.1 million in demolition costs.

six months ended June 30, 2025

, project development, preopening and writedowns included $2.7 million of preopening expenses and $1.1 million of asset writedowns offset by $2.5 million in insurance proceeds related to an asset disposition.

During the six months ended June 30, 2024, the Company incurred $6.9 million in project development and preopening costs, primarily related to the opening of the Treasure Chest land-based casino, and $3.0 million in demolition costs.

Impairment of Assets

During the three months ended March 31, 2025 , as a result of our first quarter impairment review, the Company recorded a long-lived asset impairment charge of $32.3 million for property and equipment related to our Las Vegas Locals segment.

During the three months ended March 31, 2024, as a result of our first quarter impairment review, the Company recorded an impairment charge of $10.5 million for a gaming license right related to our Midwest & South segment.

During the six months ended June 30, 2025 , as a result of our first quarter impairment review, the Company recorded a long-lived asset impairment charge of $32.3 million for property and equipment related to our Las Vegas Locals segment.

During the six months ended June 30, 2024, as a result of our first quarter impairment review, the Company recorded an impairment charge of $10.5 million for a gaming license right related to our Midwest & South segment.

Other Operating Items, net

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Three Months Ended

Six Months Ended

(In millions)

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(1) Average debt balance calculation does not include the related discounts or deferred finance charges.

Interest expense, net of capitalized interest a nd interest income, for the three months ended March 31, 2025 , increased $5.8 million, or 13.8% , from the prior year comparable period primarily due to an increase in the weighted average debt balance of $498.1 million offset by an approximate 20 basis point decrease in the weighted average interest rate.

The effective tax rates during the three months ended March 31, 2025 and 2024 were 27.1% and 23.1%, respectively.

Our tax rate for the three months ended March 31, 2025 , was unfavorably impacted by state taxes, nondeductible compensation, including a one-time discrete charge which was partially offset by excess tax benefits related to equity compensation and tax credits.

Our tax rate for the three months ended March 31, 2024 , was unfavorably impacted by state taxes, certain nondeductible expenses which were partially offset by the inclusion of excess tax benefits related to equity compensation and tax credits, as a component of the provision for income taxes.

Interest expense, net of capital ized interest and interest income, for the three months ended June 30, 2025 , increased $6.8 million, or 15.9% , from the prior year comparable period and is primarily driven by an increase in the weighted average debt balance of $638.8 million offset by an approximate 20 basis point decrease in the weighted average interest rate.

I nterest expense, net of capitalized interest a nd interest income, for the six months ended June 30, 2025 , increased $12.5 million, or 14.8%, from the prior year comparable period primarily due to an increase in the weighted average debt balance of $568.9 million offset by an approximate 20 basis point decrease in the weighted average interest rate.

The effective tax rates during the six months ended June 30, 2025 and 2024 were 24.3% and 23.7% , respectively.

Our tax rate for the six months ended June 30, 2025 , was unfavorably impacted by state taxes, nondeductible compensation, including a one-time discrete charge which was partially offset by excess tax benefits related to equity compensation and tax credits.

Our tax rate for the six months ended June 30, 2024 , was unfavorably impacted by state taxes, nondeductible expenses, including nondeductible compensation and employee benefit expenses, which were partially offset by excess tax benefits related to equity compensation and tax credits, as a component of the provision for income taxes.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law.

The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation and the business interest expense limitation, and a broad range of other tax provisions.

Accounting Standards Codification 740, Income Taxes , requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted.

As the legislation was signed into law after the close of our second quarter, the impacts are not included in our operating results for the six months ended June 30, 2025.

LIQUIDITY AND CAPITAL RESOURCES

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We generally operate with minimal or negative levels of working capital in order to minimize borrowings and related interest costs.

At March 31, 2025 and December 31, 2024, we had cash and cash equivalents of $311.5 million and $316.7 million, respectively.

In addition, we held restricted cash balances of $5.3 million and $4.7 million at March 31, 2025 and December 31, 2024, respectively.

Our working capital deficit at March 31, 2025 and December 31, 2024, wa s $127.9 million and $61.2 million, respectively.

At June 30, 2025 and December 31, 2024, we had cash and cash equivalents of $320.1 million and $316.7 million, respectively.

In addition, we held restricted cash balances of $5.9 million and $4.7 million at June 30, 2025 and December 31, 2024, respectively.

Our working capital deficit at June 30, 2025 and December 31, 2024, wa s $88.8 million and $61.2 million, respectively.

We believe that current cash balances together with the available borrowing capacity under our Revolving Credit Facility (as defined in Indebtedness below) and cash flows from operating activities will be sufficient to meet our liquidity and capital resource needs for the next twelve months, including our projected operating requirements and maintenance capital expenditures.

2 unchanged sentences

Cash Flows Summary

Three Months Ended

Six Months Ended

(In millions)

8 unchanged sentences

Cash flows from financing activities

Net borrowings (payments) under credit facility

Net borrowings under credit facility

Share-based compensation activities

1 unchanged sentence

Dividends paid

Other financing activities

Net cash used in financing activities

Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash

Decrease in cash, cash equivalents and restricted cash

Increase (decrease) in cash, cash equivalents and restricted cash

Cash Flows from Operating Activities

During the three months ended March 31, 2025 and 2024 , we generated operating cash flows of $256.4 million and $250.7 million, respectively.

Generally, operating cash flows in creased during 2025 as compared to the prior year comparable period due to revenue increases, after excluding the $13.6 million increase from online revenue reimbursements of gaming taxes and other expenses as an equal amount was paid out as expenses.

During the six months ended June 30, 2025 and 2024 , we generated consistent operating cash flows of $461.4 million and $463.8 million, respectively.

Cash Flows from Investing Activities

Our industry is capital intensive and we use cash flows for acquisitions, facility expansions, investments in future development or business opportunities and maintenance capital expenditures.

During the three months ended March 31, 2025 , we incurred net cash outflows for investing activities of $250.4 million comprised of the following:

During the six months ended June 30, 2025 , we incurred net cash outflows for investing activities of $375.9 million comprised of the following:

(i) capital expenditures of $294.3 million, primarily related to our various guest room remodels, meeting and convention space at Ameristar St.

Charles, slot machines, land, IT equipment and building projects at various properties;

Charles, casino development in Norfolk, Virginia and new Cadence Crossing casino, slot machines, land, IT equipment and building projects at various properties;

(ii) cash paid for asset acquisitions of $41.5 million;

and (iii) advances made under a note receivable of $31.8 million.

During the three months ended March 31, 2024 , we incurred net cash outflows for investing activities of $90.3 million comprised of capital expenditures of $89.6 million, primarily related to our Treasure Chest land-based casino project, various guest room remodels, IT equipment and building projects at various properties.

During the six months ended June 30, 2024 , we incurred net cash outflows for investing activities of $205.5 million comprised of capital expenditures of $204.0 million, primarily related to our Treasure Chest land-based casino project, various guest room remodels, slot machines, IT equipment and building projects at various properties.

Cash Flows from Financing Activities

We rely on our financing cash flows to provide funding for investment opportunities, repayments of obligations, returning capital to shareholders and ongoing operations.

The net cash outflows from financing activities during the three months ended March 31, 2025 is primarily driven by share repurchases and dividends paid, reflecting the priority of our capital return program and focus on returning capital to shareholders.

During the first quarter of 2025, we increased borrowings under the Credit Facility as we increased our share repurchase activity, resulting in net borrowings under the Credit Facility in the first quarter of 2025 of $338.1 million driven by the $328.0 million in share repurchases for the quarter.

The net cash outflows from financing activities during the three months ended March 31, 2024, primarily reflect share repurchases, payments on the outstanding principal under our Credit Facility, dividends paid and share-based compensation.

The net cash outflows from financing activities during the six months ended June 30, 2025 is primarily driven by share repurchases and dividends paid, reflecting the priority of our capital return program and focus on returning capital to shareholders.

During the first half of 2025, we increased borrowings under the Credit Facility as we increased our share repurchase activity, resulting in net borrowings under the Credit Facility during the six months ended June 30, 2025, of $387.8 million driven by the $433.0 million in share repurchases for the six months ended June 30, 2025.

The net cash outflows from financing activities during the six months ended June 30, 2024 , primarily reflect share repurchases, incremental borrowings under our Credit Facility, share-based compensation and dividends paid.

The outstanding principal balances of long-term debt, before unamortized discounts and fees, and the changes in those balances are as follows:

(In millions)

March 31, 2025

December 31, 2024

Credit facility

9 unchanged sentences

Total outstanding principal amounts

With a total revolving credit commitment of $1,450.0 million available under the Credit Facility, $825.0 million and $65.4 million in borrowings outstanding on the Revolving Credit Facility and the Swing Loan, respectively, and $13.0 million allocated to support various letters of credit, there was a remaining contractual availability under the Credit Facility of $546.6 million as of March 31, 2025.

The blended interest rate for outstanding borrowings under the Credit Facility was 6.2% at both March 31, 2025 and December 31, 2024.

With a total revolving credit commitment of $1,450.0 million available under the Credit Facility, $905.0 million and $46.1 million in borrowings outstanding on the Revolving Credit Facility and the Swing Loan, respectively, and $13.0 million allocated to support various letters of credit, there was a remaining contractual availability under the Credit Facility of $485.9 million as of June 30, 2025.

The blended interest rate for outstanding borrowings under the Credit Facility was 6.1% and 6.2% at June 30, 2025 and December 31, 2024.

Debt Service Requirements

3 unchanged sentences

Covenant Compliance

As of March 31, 2025, we were in compliance with the financial covenants of our debt instruments.

As of June 30, 2025, we were in compliance with the financial covenants of our debt instruments.

The indentures governing the senior notes contain provisions that allow for the incurrence of additional indebtedness, if after giving effect to such incurrence, the fixed charge coverage ratio (as defined in the respective indentures, which is a ratio of our consolidated EBITDA to fixed charges, including interest) for the trailing four quarter period on a pro forma basis would be at least 2.0 to 1.0.

10 unchanged sentences

Summarized combined results of operations for the parent company and the Guarantors is as follows:

Three Months Ended

Six Months Ended

(In millions)

March 31, 2025

June 30, 2025

Operating income

2 unchanged sentences

On October 21, 2021, our Board of Directors authorized a share repurchase program of $300.0 million (the "Share Repurchase Program").

In addition, our Board of Directors authorized increases to the Share Repurchase Program of $500.0 million on each of June 1, 2022, May 4, 2023, May 9, 2024 and December 5, 2024.

As of March 31, 2025, we were authorized to repurchase up to an additional $312.5 million in shares of our common stock under the Share Repurchase Program.

We repurchased 4.5 million shares and 1.7 million shares during the three months ended March 31, 2025 and 2024, respectively.

In addition, our Board of Directors authorized increases to the Share Repurchase Program of $500.0 million on each of June 1, 2022, May 4, 2023, May 9, 2024, December 5, 2024 and July 17, 2025.

As of June 30, 2025 and prior to the additional authorization on July 17, 2025, we were authorized to repurchase up to an additional $207.5 million in shares of our common stock under the Share Repurchase Program.

We repurchased 1.5 million shares and 3.1 million shares during the three months ended June 30, 2025 and 2024, respectively, and 5.9 million and 4.8 million shares during the six months ended June 30, 2025 and 2024, respectively.

Subject to applicable laws, repurchases under the Share Repurchase Program may be made at such times and in such amounts as we deem appropriate.

15 unchanged sentences

April 15, 2024

June 15, 2024

July 15, 2024

December 5, 2024

4 unchanged sentences

April 15, 2025

June 16, 2025

July 15, 2025

Other Items Affecting Liquidity

11 unchanged sentences

Finally, we are expanding our portfolio with a $750 million resort development in Norfolk, Virginia.

We plan to open a modest transitional casino in late 2025 and the resort, featuring 1,500 slots, 50 table games, a 200-room hotel, eight food and beverage outlets and other amenities, in late 2027.

We plan to open a modest transitional casino in late 2025 and the resort, featuring a 65,000 square-foot casino, a 200-room hotel, eight food and beverage outlets and other amenities, in late 2027.

We expect to spend between $150 million and $200 million on this project in 2025.

During the three months ended March 31, 2025, the company spent approximately $170 million of the total estimated $600 million to $650 million of capital spend expected in 2025.

During the six months ended June 30, 2025, the company spent approximately $294 million of the total estimated $600 million to $650 million of capital spend expected in 2025.

Other Opportunities

45 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis