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Leases
9 Months Ended
Sep. 30, 2018
Leases [Abstract]  
Leases

Note 10 – Leases

Rental Income

The Company recorded rental revenue of $1.9 million for the three months ended September 30, 2018 and no rental revenue during the three months ended September 30, 2017. The Company recorded rental revenue of $5.5 million for the nine months ended September 30, 2018 and de minmus amount for the nine months ended September 30, 2017.

Rent Expense

The Company leases its branded tavern locations, office headquarters building, land, equipment and vehicles under noncancelable operating leases that are not subject to contingent rents. The Company leases one of its tavern locations and its office headquarters building from a related party. See Note 13, Related Party Transactions, for more detail.

Slot placement contracts in the form of space agreements are also accounted for as operating leases. Under space agreements, the Company pays fixed monthly rental fees for the right to install, maintain and operate its slots at business locations, which are recorded in gaming expenses. Other operating leases include an operating ground lease with the Maryland Department of Natural Resources for approximately 270 acres in the Rocky Gap State Park on which Rocky Gap is situated, and leases of four parcels of land in Pahrump, Nevada, on which the Company’s Gold Town Casino is located.

Operating lease rental expense associated with all operating leases, which is calculated on a straight-line basis, is as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Space agreements

 

$

9,559

 

 

$

9,245

 

 

$

28,981

 

 

$

27,884

 

Related party leases

 

 

384

 

 

 

469

 

 

 

1,175

 

 

 

1,550

 

Other operating leases

 

 

3,805

 

 

 

3,430

 

 

 

11,215

 

 

 

9,958

 

Total rent expense

 

$

13,748

 

 

$

13,144

 

 

$

41,371

 

 

$

39,392