12/6/24
Promo Allowance -SEC
• SEC accounting rules require that the estimated cost associated with providing the complimentary rooms, food and beverage and other services be classified in the income statement in the department which benefited from the complimentary. • In most cases, this would be the casino department. Compliance with the regs requires reclassifying this estimated cost from the hotel department or food and beverage department to the casino department • These reclassifications are performed on a consolidated basis.
23
23
Financial Statement Disclosure Example
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Revenue Recognition and Promotional Allowances Gaming revenue represents the net win from gaming activities, which is the aggregate difference between gaming wins and losses. The majority of our gaming revenue is counted in the form of cash and chips and therefore is not subject to any significant or complex estimation procedures. Cash discounts, commissions and other cash incentives to customers related to gaming play are recorded as a reduction of gross gaming revenues. Room revenue recognition criteria are met at the time of occupancy. Food and beverage revenue recognition criteria are met at the time of service. Gross revenues include the estimated retail value of rooms, food and beverage, and other goods and services provided to customers on a complimentary basis, or without charge. Such amounts are then deducted as promotional allowances. The estimated departmental cost of providing such promotional allowances is included primarily in gaming expenses as follows: Promotional allowances also include incentives such as cash, goods and services (such as complimentary rooms and food and beverages) earned in our slot bonus point program. We reward customers, through the use of bonus programs, with points based on amounts wagered or won that can be redeemed for a specified period of time, principally for cash, and to a lesser extent for goods or services, depending upon the property. We record the estimated retail value of these goods and services as revenue and then deduct them as promotional allowances.
2023
2022
Room
29,766
25,271
F&B
114,711
123,444
Other
3,031
8,418
Total
$150,508
$157,133
24
24
12
Made with FlippingBook - Online catalogs