Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

. Revenue Recognition

The Company recognizes as casino revenue the net win from gaming activities, which is the difference between gaming wins and losses, not the total amount wagered. Progressive jackpots are accrued and charged to revenue at the time the obligation to pay the jackpot is established. Gaming revenues are recognized net of certain cash and free play incentives. Pari-mutuel commissions consist of commissions earned from thoroughbred and harness racing and importing of simulcast signals from other race tracks and are recognized at the time wagers are made. Such commissions are a designated portion of the wagering handle as determined by state racing commissions and are shown net of the taxes assessed by state and local agencies, as well as purses and other contractual amounts paid to horsemen associations. The Company recognizes revenues from fees earned through the exporting of simulcast signals to other race tracks at the time wagers are made, which are recorded on a gross basis. Such fees are based upon a predetermined percentage of handle as contracted with the other race tracks.

The Company’s consolidated statement of operations presents net revenue disaggregated by type or nature of the good or service. A summary of net revenues disaggregated by type of revenue and reportable segment is presented below (amounts in thousands). Refer to Note 1 and Note 16 for additional information on the Company’s reportable segments.


	Three Months Ended June 30, 2020
	West		Midwest		South		East		Central		Corporate and Other		Total
Casino and pari-mutuel commissions	$	15,276	$	21,119	$	27,303	$	19,777	$	18,004	$	—	$	101,479
Food and beverage	3,564		614		1,519		245		625		—		6,567
Hotel	6,171		616		1,378		—		751		—		8,916
Other	4,926		438		560		1,204		468		1,912		9,508
Net revenues	$	29,937	$	22,787	$	30,760	$	21,226	$	19,848	$	1,912	$	126,470


	Three Months Ended June 30, 2019
	West		Midwest		South		East		Central		Corporate and Other		Total
Casino and pari-mutuel commissions	$	55,493	$	85,223	$	94,871	$	124,052	$	97,523	$	—	$	457,162
Food and beverage	29,209		5,897		13,056		14,959		12,235		—		75,356
Hotel	33,943		4,101		6,838		24,336		9,173		—		78,391
Other	9,082		2,018		2,172		7,108		3,861		1,971		26,212
Net revenues	$	127,727	$	97,239	$	116,937	$	170,455	$	122,792	$	1,971	$	637,121


	Six Months Ended June 30, 2020
	West		Midwest		South		East		Central		Corporate and Other		Total
Casino and pari-mutuel commissions	$	60,253	$	74,432	$	106,955	$	99,708	$	99,880	$	—	$	441,228
Food and beverage	27,147		4,013		12,170		9,709		9,774		—		62,813
Hotel	28,016		3,160		6,312		13,560		6,244		—		57,292
Other	20,011		1,975		2,375		6,305		3,655		3,885		38,206
Net revenues	$	135,427	$	83,580	$	127,812	$	129,282	$	119,553	$	3,885	$	599,539


	Six Months Ended June 30, 2019
	West		Midwest		South		East		Central		Corporate and Other		Total
Casino and pari-mutuel commissions	$	108,899	$	170,392	$	204,221	$	249,003	$	195,333	$	—	$	927,848
Food and beverage	57,187		11,984		27,765		29,680		24,021		—		150,637
Hotel	61,451		7,723		13,175		44,333		16,493		—		143,175
Other	18,285		3,927		4,490		13,672		7,417		3,493		51,284
Net revenues	$	245,822	$	194,026	$	249,651	$	336,688	$	243,264	$	3,493	$	1,272,944

Contract and Contract Related Liabilities

The Company records contract or contract-related liabilities related to differences between the timing of cash receipts from the customer and the recognition of revenue. The Company generally has three types of liabilities related to contracts with customers: (1) outstanding chip liability, which represents the amounts owed in exchange for gaming chips held by a customer, (2) player loyalty program obligations, which represents the deferred allocation of revenue relating to player loyalty program incentives earned, and (3) customer deposits and other deferred revenue, which is primarily funds deposited by customers related to gaming play, advance payments received for goods and services yet to be provided (such as advance ticket sales, deposits on rooms and convention space or for unpaid wagers), and deferred revenues associated with the Company’s interests in William Hill (see Note 7) and Flutter Entertainment PLC (“Flutter”), following Flutter’s acquisition of The Stars Group (“TSG”). Except for deferred revenues related to William Hill and TSG, these liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within accrued other liabilities on the Company’s Consolidated Balance Sheets.

The following table summarizes the activity related to contract and contract-related liabilities (in thousands):


	Outstanding Chip Liability						Player Loyalty Liability						Customer Deposits and Other Deferred Revenue
	2020		2019		2020		2019		2020		2019
Balance at January 1	$	9,770	$	8,930	$	13,461	$	17,639	$	171,641	$	27,588
Balance at June 30	7,041		7,802		12,975		14,723		167,245		174,287
Increase / (decrease)	$	(2,729)	$	(1,128)	$	(486)	$	(2,916)	$	(4,396)	$	146,699

The June 30, 2020 balances exclude liabilities related to assets held for sale recorded in 2020 and 2019 (see Note 5). The significant change in customer deposits and other deferred revenue during the six months ended June 30, 2019 was primarily attributed to the initial recognition of the Company’s interests in William Hill, which is recorded in other long-term liabilities on the Consolidated Balance Sheets (see Note 7).