Financial Analysis

9. COMMITMENTS AND CONTINGENCIES Litigation The Company is party to a number of pending legal proceedings related to matters that occurred in the normal course of business. Management does not expect that the outcome of any such proceedings, either individually or in the aggregate, will have a material effect on the Companys financial position, results of operations and cash flows. Contingent Gaming License Fees in Illinois As required for its gaming licensure at American Place, the Company continues to accrue for a Reconciliation Payment that will be due to the Illinois Gaming Board (IGB) over a long-term basis. The Reconciliation Payment is calculated in February 2026 (three years after the commencement of gaming operations in Illinois) in an amount equal to 75% of the adjusted gross receipts for the most lucrative trailing 12-month period of operations, offset by certain licensing fees already paid by the Company. The Reconciliation Payment is due in installments over a period of six years, expected to begin in 2026 or early 2027. The estimated present value of the long-term obligation for the Companys gaming license in Illinois consists of the following, and results in a corresponding increase to the Illinois gaming license valuation: (In thousands) September 30, December 31, 2025 2024 Estimated IGB Reconciliation Fee (1) $ 53,506 $ 46,039 Less: Amount representing interest (2) (8,955) (11,173) Present value of IGB Reconciliation Fee (3) $ 44,551 $ 34,866 __________ (1) C …

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(In thousands) Three Months Ended September 30, 2025 Contracted Sports Midwest & South West Wagering Total Revenues Casino $ 46,667 $ 13,156 $ $ 59,823 Food and beverage 8,248 1,702 9,950 Hotel 1,777 2,688 4,465 Other operations, including contracted sports wagering 1,633 447 1,632 3,712 Total consolidated revenues 58,325 17,993 1,632 77,950 Less: Payroll and related costs 15,622 5,874 21,496 Cost of sales 4,460 827 5,287 Gaming taxes and other (1) 10,782 766 13 11,561 Other segment items (2) 15,909 7,317 77 23,303 Total segment expenses 46,773 14,784 90 61,647 Adjusted Segment EBITDA 11,552 3,209 1,542 16,303 Other operating costs and expenses: Depreciation and amortization (10,641) Corporate expenses (1,491) Project development costs (57) Loss on sale of Stockmans (4) Stock-based compensation (674) Operating income 3,436 Other expense: Interest expense, net (11,128) Loss before income taxes (7,692) Income tax benefit (14) Net loss $ (7,678) __________ (1) Excludes real estate and property taxes. (2) For each reportable segment, the Other segment items category includes: Midwest & South and West - Advertising and marketing, rent expense, insurance, and other miscellaneous costs. Contracted Sports Wagering - Credit loss expense net of recoveries, as well as certain overhead expenses. (In thousands) Three Months Ended September 30, 2024 Contracted Sports Midwest & South West Wagering Total Revenues Casino $ 41,855 $ 14,261 $ $ 56,116 Food and beverage 8,866 2,234 1 …

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8. INCOME TAXES The Companys effective income tax rates for the three months ended September 30, 2025 and 2024 were 0.2% and 1.5%, respectively, primarily due to the Companys projections for pre-tax book income in each of those years. For the nine months ended September 30, 2025 and 2024, the Companys effective income tax rates were (0.3%) and (0.7%), respectively, primarily due to changes in valuation allowances, which were affected by the release of deferred tax liabilities in connection with the sale of Stockmans intangible assets in April 2025. The Companys income tax provision or benefit for interim periods has been determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Company continues to assess the realizability of deferred tax assets (DTAs) and concluded that it has not met the more likely than not threshold. At September 30, 2025, the Company continues to provide a valuation allowance against its DTAs that cannot be offset by existing deferred tax liabilities. In accordance with Accounting Standards Codification 740 (ASC 740), this assessment has taken into consideration the jurisdictions in which these DTAs reside. The valuation allowance against DTAs has no effect on the actual taxes paid or owed by the Company. Changes in tax laws, rulings, policies, or related legal and regulatory interpretations occur frequently and may have significant favorable or adverse impacts on our effective tax rate. On July 4, 2025, new U.S. tax …

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6 . LONG-TERM DEBT Long-term debt consists of the following: (In thousands) September 30, December 31, 2025 2024 Revolving Credit Facility due 2027 $ 30,000 $ 27,000 8.25% Senior Secured Notes due 2028 450,000 450,000 Less: Unamortized debt issuance costs and discounts/premiums, net (6,923) (8,861) $ 473,077 $ 468,139 Senior Secured Notes due 2028. On February 12, 2021, the Company issued $310.0 million aggregate principal amount of 8.25% Senior Secured Notes due 2028 (the 2028 Notes) to refinance all of its prior notes and repurchase all of its outstanding warrants. Additionally, $180 million of bond proceeds were initially placed into a construction reserve account to fund the construction of Chamonix, which was later increased to $221 million in January 2022 to reflect an expansion of the project. Such construction reserve account was effectively closed during the fourth quarter of 2024, as Chamonixs phased opening was completed in October 2024. On February 7, 2022, the Company closed a private offering for an additional $100.0 million of Senior Secured Notes due 2028, which sold at a price of 102.0% of such principal amount. Proceeds from this sale were used: (i) to develop, equip and open the temporary American Place facility, which the Company is operating while it designs and constructs its permanent facility, (ii) to pay the transaction fees and expenses of such offer and sale, and (iii) for general corporate purposes. The additional notes from this sale were issued p …

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Accounting Pronouncements: ASU 2023-09, Income Taxes, Topic 740, Improvements to Income Tax Disclosures (Update 2023-09). In December 2023, the FASB issued Update 2023-09 to improve income tax disclosure requirements, primarily related to rate reconciliations and income taxes paid. Update 2023-09 is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of the adoption of Update 2023-09 to the consolidated financial statements, and plans to adopt Update 2023-09 for its annual period ending December 31, 2025. ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures, Subtopic 220-40, Disaggregation of Income Statement Expenses (Update 2024-03). In November 2024, the FASB issued Update 2024-03, which expands disclosures about specific expense categories presented on the face of the income statement. Update 2024-03 is effective for financial statements issued for annual periods beginning after December 15, 2026, with early adoption permitted. The Company is evaluating the impact of the adoption of Update 2024-03 to the consolidated financial statements. A variety of proposed or otherwise potential accounting standards are currently being studied by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, the Company believes that there are no other …

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7. CUSTOMER CONTRACT LIABILITIES There is often a timing difference between the Company receiving cash and the Company recording revenue for providing services or hosting events. With the exception of noncurrent portions of deferred revenues from contracted sports wagering, these liabilities are generally expected to be recognized as revenue within one year of being purchased, earned, or deposited and are recorded within Other accrued liabilities on the consolidated balance sheets. The following table summarizes the primary activities related to short- and long-term customer contract related liabilities: Outstanding Players Contracted Progressive (In thousands) Chip Liability Club Points Sports Wagering Jackpots and Other 2025 2024 2025 2024 2025 2024 2025 2024 Balance at January 1 $ 683 $ 527 $ 930 $ 765 $ 10,404 $ 12,367 $ 5,767 $ 4,477 Balance at September 30 568 516 994 919 6,519 7,006 6,171 5,549 Increase (Decrease) $ (115) $ (11) $ 64 $ 154 $ (3,885) $ (5,361) $ 404 $ 1,072 …

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11. SEGMENT INFORMATION The Company manages its reporting segments based on geographic regions within the United States and type of income. The Companys management views the regions where each of its casino resorts are located as reportable segments, in addition to its contracted sports wagering segment. Reportable segments are aggregated based on geography, economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. Therefore, the Company has determined three reportable segments as follows: Midwest & South, West, and Contracted Sports Wagering (see Note 1 ). The Companys chief operating decision maker (CODM) is the chief executive officer. The Companys CODM assesses the performance of each segment by using Adjusted Segment EBITDA as the measure of segment profitability. Adjusted Segment EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each segment. The Companys CODM uses Adjusted Segment EBITDA for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual varia …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing