Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Disaggregation of revenue

Complimentary food and beverage revenues, and complimentary room revenues for the years ended December 31, 2018 and 2017, respectively, were as follows:

	Year ended December 31,
	2018	2017
	(in thousands)
Complimentary food and beverage revenues	$10,837	$1,000
Complimentary room revenues	3,455	—

Summary of retail value amounts included in promotional allowances

The retail value amounts included in promotional allowances for the years ended December 31, 2017 and 2016 were as follows:

	Year ended December 31,
	2017	2016
	(in thousands)
Food and beverage	$1,000	$1,486
Non-subsidized free play	2,718	978
Players Club awards	324	383
Total retail value of promotional allowances	$4,042	$2,847

Summary of estimated cost of providing complimentary food, beverages and other items

The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2017, and 2016 were as follows:

	Year ended December 31,
	2017	2016
	(in thousands)
Food and beverage	$1,750	$2,080
Non-subsidized free play	1,603	577
Players Club awards	324	383
Total cost of promotional allowances	$3,677	$3,040

Schedule of cash and cash equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:

	December 31, 2018	December 31, 2017	December 31, 2016
	(in thousands)
Cash and cash equivalents	$28,338	$10,380	$11,012
Restricted cash	373	693	1,078
Restricted cash and cash equivalents for Development Projects	21,039	41,982	26,384
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$49,750	$53,055	$38,474

Summary of useful lives for property, plant and equipment

The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives:

Assets	Estimated Useful Lives
Vehicles	5-10 years
Furniture, fixtures and equipment	5-10 years
Land improvements	5-20 years
Building improvements	5-40 years
Buildings	40 years

Property and equipment are comprised of the following at December 31, 2018 and 2017:

	12/31/2018		12/31/2017
	(in thousands)
Land	$770		$770
Land improvements	2,382		1,759
Buildings	622,043		4,727
Building improvements	103,621		29,874
Furniture, fixtures and equipment	10,954		5,551
Construction in Progress	2,784		77
	742,554		42,758
Less: Accumulated depreciation	(44,875	)	(15,895	)
	$697,679		$26,863

Summary of the approximate number of common stock equivalents outstanding

The following table shows the approximate number of common stock equivalents outstanding at December 31, 2018, 2017 and 2016 that could potentially dilute basic loss per share in the future, but were not included in the calculation of diluted loss per share for the years ended December 31, 2018, 2017 and 2016, because their inclusion would have been anti-dilutive:

	Outstanding at December 31,
	2018	2017	2016
Unvested Restricted stock	37,000	139,000	216,000
Warrants	193,000	133,000	133,000
Restricted stock units ("RSUs")	196,000	73,000	—
Option Matching Rights	—	3,000	21,000
Options	—	13,000	34,000
Total	426,000	361,000	404,000

Summary of fair values, assets

The following table presents the carrying amount, fair values and classification level within the fair value hierarchy of financial instruments measured or disclosed at fair value on a recurring basis:

	December 31, 2018		December 31, 2017
	Carrying Amount	Fair Value	Carrying Amount		Fair Value	Level of Fair Value Hierarchy
Assets:	(in thousands)
Cash and cash equivalents	$28,338	$28,338	$10,380		$10,380	Level 1
Restricted cash	373	373	693		693	Level 1
Interest Rate Cap	143	143	251		251	Level 2
Restricted cash, cash equivalents and investments for Development Projects:
Cash and cash equivalents	21,039	21,039	41,982		41,982	Level 1
Short-term investments	—	—	94,449		94,209	Level 2
Other assets:
Non-derivative financial asset - Series F Preferred Stock, redeemable	31,122	31,122	—		—	Level 2
Contingent forward contract - bet365	1,865	1,865	—		—	Level 3
Liabilities:
Term B Loan, net of discount	440,803	440,660	443,161		449,749	Level 2
Term A Loan	64,750	64,750	—		—	Level 2
Bangkok Bank Loan	20,000	20,000	16,000		16,000	Level 3
Revolving Credit Facility	15,000	15,000	—		—	Level 2
Long-term loan, related party, net of debt issuance costs	30,954	30,954	—		—	Level 3
Equipment loans	20,384	20,384	31,095		31,095	Level 3
Guaranty liability - MHHA agreement	2,300	2,300	—	—		Level 2
Derivative liability - bet365	879	879	—		—	Level 3

Summary of fair values, liabilities

he following table presents the carrying amount, fair values and classification level within the fair value hierarchy of financial instruments measured or disclosed at fair value on a recurring basis:

	December 31, 2018		December 31, 2017
	Carrying Amount	Fair Value	Carrying Amount		Fair Value	Level of Fair Value Hierarchy
Assets:	(in thousands)
Cash and cash equivalents	$28,338	$28,338	$10,380		$10,380	Level 1
Restricted cash	373	373	693		693	Level 1
Interest Rate Cap	143	143	251		251	Level 2
Restricted cash, cash equivalents and investments for Development Projects:
Cash and cash equivalents	21,039	21,039	41,982		41,982	Level 1
Short-term investments	—	—	94,449		94,209	Level 2
Other assets:
Non-derivative financial asset - Series F Preferred Stock, redeemable	31,122	31,122	—		—	Level 2
Contingent forward contract - bet365	1,865	1,865	—		—	Level 3
Liabilities:
Term B Loan, net of discount	440,803	440,660	443,161		449,749	Level 2
Term A Loan	64,750	64,750	—		—	Level 2
Bangkok Bank Loan	20,000	20,000	16,000		16,000	Level 3
Revolving Credit Facility	15,000	15,000	—		—	Level 2
Long-term loan, related party, net of debt issuance costs	30,954	30,954	—		—	Level 3
Equipment loans	20,384	20,384	31,095		31,095	Level 3
Guaranty liability - MHHA agreement	2,300	2,300	—	—		Level 2
Derivative liability - bet365	879	879	—		—	Level 3

Schedule of derivative assets at fair value

The fair value of the derivative liabilities and asset was determined using a Monte Carlo simulation valuation approach with the following assumptions:

	Derivative Liability - bet365	Contingent forward contract - bet365
Equity value	$29.48	$29.48
Strike price	$20.00	$20.00
Expected term	3.46 years	3.13 years
Volatility	61%	62%
Risk-free rate	2.9%	2.9%
Dividend yield	—%	—%

The following table provides a roll forward of the aggregate fair values of the Company’s derivative liabilities and asset, for which fair value is determined using Level 3 inputs (in thousands):

	Derivative Liability - bet365	Contingent forward contract -bet365
Balance as of December 31, 2017	$0	$0
Initial fair value of derivative (liability) asset in connection with Collaboration Agreement	$(879)	$1,865
Change in fair value	$0	$0
Balance as of December 31, 2018	$(879)	$1,865

Schedule of derivative liabilities at fair value

The fair value of the derivative liabilities and asset was determined using a Monte Carlo simulation valuation approach with the following assumptions:

	Derivative Liability - bet365	Contingent forward contract - bet365
Equity value	$29.48	$29.48
Strike price	$20.00	$20.00
Expected term	3.46 years	3.13 years
Volatility	61%	62%
Risk-free rate	2.9%	2.9%
Dividend yield	—%	—%

The following table provides a roll forward of the aggregate fair values of the Company’s derivative liabilities and asset, for which fair value is determined using Level 3 inputs (in thousands):

	Derivative Liability - bet365	Contingent forward contract -bet365
Balance as of December 31, 2017	$0	$0
Initial fair value of derivative (liability) asset in connection with Collaboration Agreement	$(879)	$1,865
Change in fair value	$0	$0
Balance as of December 31, 2018	$(879)	$1,865

Schedule of derivative instruments

The fair value of the guaranty liability recognized in connection with the Company’s agreement with MHHA (see Note J) was determined based on significant inputs that are observable and quoted prices in active markets for similar liabilities, which represents a Level 2 measurement within the fair value hierarchy. The fair value of the derivative liability was determined using a Black Scholes valuation approach with the following assumptions:

	Guaranty Liability - MHHA Horsemen
Equity value	$10.13
Strike price	$27.50
Expected term	6.11 years
Volatility	68%
Risk-free rate	2.6%
Dividend yield	—%