Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

The Company is a party from time to time to various legal actions that arise in the normal course of business. In the opinion of management, the resolution of these other matters will not have a material and adverse effect on our consolidated financial position, results of operations or cash flows.

Leases

The Company primarily leases land, vehicles, slot machines and certain office equipment. The Company determines if an agreement is or contains a lease at inception. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of the lease payments over the lease term and are recognized at the lease commencement date.

Since most of the Company's leases do not provide an implicit rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of the Company's lease agreements include rental payments adjusted periodically for inflation. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants.

The following table represents the components of lease expenses for the three-month and six-month periods ended June 30, 2019:

		Three months ended	Six months ended
Lease expense	Classification	June 30, 2019	June 30, 2019
		(in thousands)	(in thousands)
Operating lease cost	Gaming expense or SG&A expense	$2,962	$5,772
Variable lease cost:	Gaming expense or SG&A expense	686	1,070
Net lease cost (1)		$3,648	$6,842

(1) Net lease cost does not include short-term leases, none of which are material.

The schedule below lists the Company's lease terms and discount rates as of June 30, 2019:

	June 30, 2019
Weighted-average remaining lease term (years)
Operating leases	13.25
Weighted-average discount rate
Operating leases	12.26	%

Supplemental condensed consolidated balance sheet information related to leases at June 30, 2019 is presented below:

Leases	Classification	June 30, 2019
Assets		(in thousands)
Operating lease ROU assets	Other assets (non-current)	$63,623
Total leased assets		$63,623
Liabilities
Operating	Other long-term liabilities	$74,468
Total lease liabilities		$74,468

The Company's lease liability maturities at June 30, 2019 were as follows:

	Operating
Period	Leases
	(in thousands)
2019 (remaining of year)	$4,427
2020	8,940
2021	8,487
2022	8,400
2023	8,400
Thereafter	353,357
Total lease payments	392,011
Less: Imputed interest	317,543
Total lease liabilities	$74,468

Supplemental cash flow and other information related to leases for the six-month period ended June 30, 2019 is presented below:

	Six months ended
	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:	(in thousands)
Operating cash flows from operating leases	$(94)