Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Segment Reporting Information, by Segment


(in thousands,)	December 31,
	2024		2023		2022
Distributed gaming
Total net revenues (1)	$	1,229,577	$	1,170,420	$	969,797
Adjustments: (2)
Cost of revenue	852,226		809,524		666,126
Compensation related costs - operations (3)	77,902		67,523		59,174
Compensation related costs - general and administrative (3)	53,606		51,926		37,070
All other segment items (4)	56,899		60,002		45,035
Adjusted EBITDA for distributed gaming	$	188,944	$	181,445	$	162,392

Adjusted EBITDA for “all other” operating segment (5)	$	203	$	—	$	—

Less Adjustments for:
Depreciation and amortization of property and equipment	$	43,978	$	37,906	$	29,295
Amortization of intangible assets and route and customer acquisition costs	22,577		21,211		17,484
Interest expense, net	35,892		33,144		21,637
Emerging markets	165		(948)		2,598
Stock-based compensation	12,204		9,416		6,840
Loss (gain) on change in fair value of contingent earnout shares	1,276		8,539		(19,544)
Gain on expiration of warrants	(13)		—		—
Other expenses, net	19,339		6,453		9,320
Income before income tax expense	$	53,729	$	65,724	$	94,762
Income tax expense	18,438		20,121		20,660
Net income	$	35,291	$	45,603	$	74,102

(1)Total net revenues is further disaggregated by revenue stream as included on the consolidated statements of operations and comprehensive income.

(2)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(3)Compensation related costs represent payroll and other related costs that are included in General and administrative on the consolidated statements of operations and comprehensive income.

(4)All other segment items include other operating and general and administrative expenses (such as general and administrative expenses related to parts, advertising, information technology, etc.) which are included in general and administrative on the consolidated statements of operations and comprehensive income and cost of manufacturing good sold, as well as, adjustments for stock-based compensation expense and emerging markets.

(5)Given the timing of the acquisition for the casino and racing business in December of 2024 (see Note 10, Business and Asset Acquisitions, for information on the acquisition), all corporate expenses were allocated to the distributed gaming reportable segment as of December 31, 2024. The "all other" operating segment had total net revenues of $1.4 million; cost of revenues of $147 thousand; compensation related costs - operations of $581 thousand and all other segment items of $464 thousand.