Revenue

The Company’s revenue from contracts with customers primarily consists of casino wagers and sales of rooms, food and beverage, entertainment, retail and other goods and services.

Gross casino revenues are measured by the aggregate net difference between gaming wins and losses. The Company applies a practical expedient by accounting for its casino wagering transactions on a portfolio basis versus an individual basis as all wagers have similar characteristics. Commissions rebated to customers either directly or indirectly through games promoters and cash discounts and other cash incentives earned by customers are recorded as a reduction of casino revenues. In addition to the wager, casino transactions typically include performance obligations related to complimentary goods or services provided to incentivize future gaming or in exchange for points earned under the Company’s loyalty programs.

For casino transactions that include complimentary goods or services provided by the Company to incentivize future gaming, the Company allocates the standalone selling price of each good or service to the appropriate revenue type based on the good or service provided. Complimentary goods or services that are provided under the Company’s control and discretion and supplied by third parties are recorded as an operating expense.

The Company offers loyalty programs at both its Macau Operations and its Las Vegas Operations. Under the program at its Macau Operations, customers earn points based on their level of table games and slots play, which can be redeemed for free play, gifts and complimentary goods or services provided by the Company. Under the program at its Las Vegas Operations, customers earn points based on their level of slots play, which can be redeemed for free play. For casino transactions that include points earned under the Company’s loyalty programs, the Company defers a portion of the revenue by recording the estimated standalone selling price of the earned points that are expected to be redeemed as a liability.

Upon redemption of the points for Company-owned goods or services, the standalone selling price of each good or service is allocated to the appropriate revenue type based on the good or service provided. Upon the redemption of the points with third parties, the redemption amount is deducted from the liability and paid directly to the third party.

After allocating amounts to the complimentary goods or services provided and to the points earned under the Company’s loyalty programs, the residual amount is recorded as casino revenue when the wager is settled.

The transaction price for rooms, food and beverage, entertainment, retail and other transactions is the net amount collected from the customer for such goods and services and is recorded as revenue when the goods are provided, services are performed or events are held. Sales tax and other applicable taxes collected by the Company are excluded from revenues. Advance deposits on rooms and advance ticket sales are performance obligations that are recorded as customer deposits until services are provided to the customer. Revenues from contracts with multiple goods or services are allocated to each good or service based on its relative standalone selling price. Entertainment, retail and other revenue also includes lease revenue, which is recognized on a time proportion basis over the lease term. Contingent lease revenue is recognized when the right to receive such revenue is established according to the lease agreements.

Disaggregation of Revenues

The Company operates integrated resorts in Macau and Las Vegas and generates revenues at its properties by providing the following types of services and products: gaming, rooms, food and beverage and entertainment, retail and other. Revenues disaggregated by type of revenue and geographic location are as follows (in thousands):



Year Ended December 31, 2018	Macau Operations		Las Vegas Operations		Total
Casino	$	4,350,907	$	434,083	$	4,784,990
Rooms	283,562		468,238		751,800
Food and beverage	187,006		567,122		754,128
Entertainment, retail and other (1)	230,616		196,126		426,742
Total operating revenues	$	5,052,091	$	1,665,569	$	6,717,660

Year Ended December 31, 2017
Casino	$	3,788,210	$	456,093	$	4,244,303
Rooms	217,581		453,376		670,957
Food and beverage	164,189		567,926		732,115
Entertainment, retail and other (1)	197,217		225,568		422,785
Total operating revenues	$	4,367,197	$	1,702,963	$	6,070,160

Year Ended December 31, 2016
Casino	$	2,313,518	$	437,372	$	2,750,890
Rooms	158,126		437,484		595,610
Food and beverage	99,703		535,708		635,411
Entertainment, retail and other (1)	134,948		228,938		363,886
Total operating revenues	$	2,706,295	$	1,639,502	$	4,345,797

(1) Includes lease revenue accounted for under lease accounting guidance.

Customer Contract Liabilities

In providing goods and services to its customers, there is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or holding events.

The Company’s primary liabilities associated with customer contracts are as follows (in thousands):



	December 31, 2018		December 31, 2017		Increase (decrease)			December 31, 2017		December 31, 2016		Increase (decrease)
Casino outstanding chips and front money deposits (1)	$	905,561	$	991,957	$	(86,396	)	$	991,957	$	546,487	$	445,470
Advance room deposits and ticket sales (2)	42,197		48,065		(5,868		)	48,065		41,583		6,482
Other gaming-related liabilities (3)	12,694		12,765		(71		)	12,765		12,033		732
Loyalty program and related liabilities (4)	18,148		18,421		(273		)	18,421		7,942		10,479
	$	978,600	$	1,071,208	$	(92,608	)	$	1,071,208	$	608,045	$	463,163

(1) Casino outstanding chips represent amounts owed to junkets and customers for chips in their possession, and casino front money deposits represent funds deposited by customers before gaming play occurs. These amounts are included in customer deposits on the Consolidated Balance Sheets and may be recognized as revenue or will be redeemed for cash in the future.

(2) Advance room deposits and ticket sales represent cash received in advance for goods or services to be provided in the future. These amounts are included in customer deposits on the Consolidated Balance Sheets and will be recognized as revenue when the goods or services are provided or the events are held. Decreases in this balance generally represent the recognition of revenue and increases in the balance represent additional deposits made by customers. The deposits are expected to primarily be recognized as revenue within one year.

(3) Other gaming-related liabilities generally represent unpaid wagers primarily in the form of unredeemed slot, race and sportsbook tickets or wagers for future sporting events. The amounts are included in other accrued liabilities on the Consolidated Balance Sheets.

(4) Loyalty program and related liabilities represent the deferral of revenue until the loyalty points or other complimentaries are redeemed. The amounts are included in other accrued liabilities on the Consolidated Balance Sheets and are expected to be recognized as revenue within one year of being earned by customers.