The Company determines if an arrangement is a lease at inception. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate in each of the jurisdictions in which its subsidiaries operate to calculate the present value of lease payments. Lease terms may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the Company will exercise those options. Operating lease expense is recorded on a straight-line basis over the lease term.

The Company accounts for lease agreements with lease and non-lease components as a single lease component for all asset classes. The Company does not establish ROU assets or lease liabilities for operating leases with terms of 12 months or less.

The Company’s operating and finance leases include land, casino space, corporate offices, and gaming and other equipment. The leases have remaining lease terms of one month to 48 years. The Master Lease was evaluated as a sale-leaseback of real estate. The Company determined that the Master Lease did not qualify for sale-leaseback accounting and accounted for the transaction as a financing obligation based on the fair value of the real estate assets subject to the Master Lease (see Notes 2 and 7).

The components of lease expense were as follows:


	For the year ended
	December 31,
Amounts in thousands	2024		2023			2022
Operating lease expense	$	6,288	$	5,686	$	5,345

Finance lease expense:
Amortization of right-of-use assets	$	168	$	108	$	136
Interest on lease liabilities		61		40		29
Total finance lease expense	$	229	$	148	$	165

Short-term lease expense	$	137	$	102	$	—

Variable lease expense	$	1,005	$	1,405	$	1,478

Variable lease expense relates primarily to rates based on a percentage of gaming revenue, changes in indexes that are excluded from the lease liability and fluctuations in foreign currency related to leases in Poland.

Supplemental cash flow information related to leases was as follows:


	For the year ended
	December 31,
Amounts in thousands	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	59	$	41	$	25
Operating cash flows from operating leases		6,230		5,499		5,168
Financing cash flows from finance leases		264		166		157

Right-of-use assets obtained in exchange for operating lease liabilities	$	10,014	$	3,489	$	142
Right-of-use assets obtained in exchange for finance lease liabilities	$	448	$	229	$	934

Supplemental balance sheet information related to leases was as follows:


	As of		As of
Amounts in thousands	December 31, 2024		December 31, 2023
Operating leases
Leased right-of-use assets, net	$	30,015	$	25,973

Current portion of operating lease liabilities		4,034		3,395
Operating lease liabilities, net of current portion		29,148		25,834
Total operating lease liabilities		33,182		29,229

Finance leases
Finance lease right-of-use assets, gross		1,198		1,028
Accumulated depreciation		(256)		(296)
Property and equipment, net		942		732

Current portion of finance lease liabilities		260		199
Finance lease liabilities, net of current portion		494		427
Total finance lease liabilities		754		626

Weighted-average remaining lease term
Operating leases		12.5 years		14.6 years
Finance leases		3.3 years		3.4 years

Weighted-average discount rate
Operating leases		8.6%		8.7%
Finance leases		7.7%		7.7%