Segment Reporting
An operating segment is a component of an entity that: (i) engages in business activities from which it may earn revenues and incur expenses; (ii) has discrete financial information available; and (iii) is regularly reviewed by the entity’s CODM for purposes of performance assessment and resource allocation.
The Company’s CODM is its chief executive officer. The Company manages its operations as a single operating segment that engages in online gaming and retail sports betting business activities. The Company derives its revenues from its gaming offerings such as real-money online casino, online sports betting and retail sports betting (i.e., sports betting services provided at bricks-and-mortar locations), as well as social gaming, which involves free-to-play games using virtual credits that user can earn or purchase (where permitted). The accounting policies for this segment are consistent with those described in the summary of significant accounting policies.
The Company’s CODM regularly reviews financial information of the single operating segment for the purposes of assessing performance and making operating decisions. The CODM uses consolidated net income (loss) to allocate resources and assess the performance of the Company by comparing actual results to historical results and previously forecasted financial information. Consolidated net income (loss) is also reviewed to assess whether and when to reinvest profits, for example, expanding into new jurisdictions, acquiring businesses or distributing dividends. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.
The Company’s revenue, significant expenses and net income (loss) for its consolidated segment are as follows:
| | | | | | | | | | | | | | | | | |
| Years Ended
December 31, |
| ($ in thousands) | 2025 | | 2024 | | 2023 |
Revenue | $ | 1,134,428 | | | $ | 924,083 | | | $ | 691,161 | |
Less: | | | | | |
Costs of revenue(1) | 741,360 | | | 600,920 | | | 463,950 | |
Sales and marketing(1) | 158,434 | | | 155,842 | | | 158,425 | |
General and administrative(1) | 80,979 | | | 74,782 | | | 60,618 | |
Interest income | (10,191) | | | (8,450) | | | (3,703) | |
Interest expense | 918 | | | 957 | | | 938 | |
Depreciation and amortization | 39,970 | | | 32,203 | | | 29,759 | |
Income tax expense | (85,108) | | | 24,566 | | | 11,209 | |
Other segment items(2) | 134,037 | | | 36,027 | | | 30,020 | |
Consolidated net income (loss) | $ | 74,029 | | | $ | 7,236 | | | $ | (60,055) | |
(1)Excludes share-based compensation expense.
(2)Other segment items include share-based compensation expense and change in tax receivable agreement liability.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.