NEW ROYAL HOLDCO I INC.GDEN
NEW ROYAL HOLDCO I INC. Goodwill & Intangibles Disclosure
Goodwill and Intangible Assets, Net
The Company tests goodwill, and indefinite-lived intangible assets comprised of trade names for impairment annually during
the fourth quarter of each year, and whenever events or circumstances indicate that it is more likely than not that the carrying value of a reporting unit exceeds its fair value. Finite-lived intangible assets are evaluated for potential impairment whenever there is an indicator that the carrying value of an asset group may not be recoverable. Refer to “Note 2 — Summary of Significant Accounting Policies” for further information on the Company’s accounting policies related to its goodwill and intangible assets.
The estimated fair value of goodwill for the years ended December 31, 2025 and 2024 was determined using an income valuation approach utilizing discounted cash flow models. The income valuation approach conducted in 2025 utilized the following Level 3 inputs: discount rates of 9.0%-10.5% and long-term revenue growth rate of 2.5%. The income valuation approach conducted in 2024 utilized a discount rate of 13.5%-14.5% and long-term revenue growth rate of 2.5%.
The estimated fair value of indefinite-lived intangible assets for the years ended December 31, 2025 and 2024 was determined using an income approach by applying the relief from royalty method using Level 3 inputs. The Company utilized royalty rates of 0.75% to 2.0% in 2025 and 1.0% to 2.0% in 2024 and the same discount rate and long-term revenue growth rate assumptions as the rates applied to valuation of goodwill.
The Company’s 2025 annual review of goodwill and intangible assets for impairment indicated no impairment of the Company’s goodwill and intangible assets. The results of the analyses conducted for the year ended December 31, 2024 resulted in a full impairment of goodwill and trade name of certain of the Company’s Nevada Locals Casinos properties in the amount of $1.8 million and $, respectively.
The following table summarizes goodwill balances by reportable segment:
| (In thousands) | Nevada Casino Resorts | Nevada Locals Casinos | Nevada Taverns | Total Goodwill | ||||||||||||||||||||||
| Balance, January 1, 2024 | $ | 22,105 | $ | 38,187 | $ | 24,033 | $ | 84,325 | ||||||||||||||||||
Goodwill acquired during the year (1) | — | — | 3,988 | 3,988 | ||||||||||||||||||||||
| (1,773) | (1,773) | |||||||||||||||||||||||||
| Balance, December 31, 2024 and 2025 | $ | 22,105 | $ | 36,414 | $ | 28,021 | $ | 86,540 | ||||||||||||||||||
(1) Related to the acquisition of GAP taverns completed in 2024 discussed in “Note 1 — Nature of Business and Basis of Presentation.”
(2) Related to the impairment of goodwill and trade name of certain of the Company’s Nevada Locals Casinos properties recognized in 2024.
Intangible assets, net, consisted of the following:
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands) | Useful Life (Years) | Gross Carrying Value | Cumulative Amortization | Cumulative Impairment | Intangible Assets, Net | |||||||||||||||||||||||||||
| Indefinite-lived intangible assets | ||||||||||||||||||||||||||||||||
| Trade names | Indefinite | $ | 55,524 | $ | — | $ | (7,516) | $ | 48,008 | |||||||||||||||||||||||
| 55,524 | — | (7,516) | 48,008 | |||||||||||||||||||||||||||||
| Amortizing intangible assets | ||||||||||||||||||||||||||||||||
| Player relationships | 2-14 | 44,268 | (42,803) | — | 1,465 | |||||||||||||||||||||||||||
| Non-compete agreements | 2-5 | 7,147 | (5,918) | — | 1,229 | |||||||||||||||||||||||||||
| 51,415 | (48,721) | — | 2,694 | |||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 106,939 | $ | (48,721) | $ | (7,516) | $ | 50,702 | ||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| (In thousands) | Useful Life (Years) | Gross Carrying Value | Cumulative Amortization | Cumulative Impairment | Intangible Assets, Net | |||||||||||||||||||||||||||
| Indefinite-lived intangible assets | ||||||||||||||||||||||||||||||||
| Trade names | Indefinite | $ | 55,524 | $ | — | $ | (7,516) | $ | 48,008 | |||||||||||||||||||||||
| 55,524 | — | (7,516) | 48,008 | |||||||||||||||||||||||||||||
| Amortizing intangible assets | ||||||||||||||||||||||||||||||||
| Player relationships | 2-14 | 44,268 | (41,905) | — | 2,363 | |||||||||||||||||||||||||||
| Non-compete agreements | 2-5 | 7,147 | (4,131) | — | 3,016 | |||||||||||||||||||||||||||
| 51,415 | (46,036) | — | 5,379 | |||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 106,939 | $ | (46,036) | $ | (7,516) | $ | 53,387 | ||||||||||||||||||||||||
Total amortization expense related to intangible assets was $2.7 million for the year ended December 31, 2025 and $2.4 million for each of the years ended December 31, 2024 and 2023. Estimated future amortization expense related to intangible assets is as follows:
| (In thousands) | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total (1) | |||||||||||||||||||||||||||||||||||||
| Estimated amortization expense | $ | 2,017 | $ | 304 | $ | 236 | $ | 137 | $ | — | $ | — | $ | 2,694 | ||||||||||||||||||||||||||||||
(1) The Company did not have intangible assets that were not placed in service as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 14, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.