Century Casinos Inc.

Company Overview

Business Model: Century Casinos, Inc. is a casino entertainment company focused on developing and operating gaming establishments, along with related lodging, restaurant, horse racing (including off-track betting), and entertainment facilities. Its primary revenue is generated from gaming machines and tables, supplemented by ancillary revenue from hotel, restaurant, horse racing, sports betting, and iGaming operations. The company's strategy emphasizes growth through the development and acquisition of new gaming opportunities, as well as reinvestment in its existing operations.

Market Position: Century Casinos, Inc. operates across North America (United States and Canada) and Poland. The company faces intense competition from other casinos, many of which possess greater name recognition and financial resources. It competes by promoting its players' clubs, enhancing social networking initiatives, and implementing targeted marketing efforts. Key differentiators include full-service resort amenities, golf courses, showrooms, complimentary heated parking, and horse racetracks.

Recent Strategic Developments:

• Strategic Review Process: In August 2025, the Board of Directors initiated a comprehensive strategic review to explore potential alternatives for its assets and businesses, aiming to enhance shareholder value and support long-term growth. Potential alternatives include optimizing the capital structure, evaluating mergers, strategic partnerships, or the sale of the Company, and analyzing asset divestments. No timetable has been set, and no assurance can be given regarding the outcome.
• Sports Betting - Missouri: In May 2025, Century Casinos, Inc. partnered with BetMGM, LLC to launch a sports book at its Cape Girardeau property and an online/mobile sports betting application under its Missouri license. Operations commenced on December 1, 2025.
• iGaming - Alberta, Canada: Following the passage of Alberta’s Bill 48 in June 2025, which regulates iGaming and creates an open market for online sports betting and iGaming, Century Casinos, Inc. plans to offer retail sports betting at its Alberta locations through a licensed third-party provider or the Alberta Gaming, Liquor and Cannabis Commission.
• Casino Licenses - Poland: The company was awarded a second casino license in Wroclaw in March 2025, with the new casino opening in February 2026. This follows the closure of other Polish casinos (Krakow, LIM Center in Warsaw, Hilton Hotel in Warsaw) in 2024 and 2025 due to license expirations or non-renewal.

Geographic Footprint: Century Casinos, Inc. aggregates its operations into five reportable segments based on geographical locations:

• United States – East: Mountaineer Casino, Resort & Races (West Virginia) and Rocky Gap Casino, Resort & Golf (Maryland).
• United States – Midwest: Century Casino & Hotel – Caruthersville (Missouri), Century Casino & Hotel – Cape Girardeau (Missouri), Century Casino & Hotel – Central City (Colorado), and Century Casino & Hotel – Cripple Creek (Colorado).
• United States – West: Nugget Casino Resort (Nevada).
• Canada: Century Casino & Hotel – Edmonton (Alberta), Century Casino St. Albert (Alberta), Century Mile Racetrack and Casino (Alberta), and Century Downs Racetrack and Casino (Alberta).
• Poland: Casinos Poland operates six casinos throughout Poland (as of February 2026).

Financial Performance

Revenue Analysis

Profitability Metrics:

• Operating Margin: 8.95% (2025) vs. -3.85% (2024)
• Net Margin: -10.72% (2025) vs. -26.67% (2024)

Investment in Growth:

• Capital Expenditures: $21,951k (2025) vs. $59,235k (2024).
• Strategic Investments:
  • Caruthersville Land-Based Casino and Hotel: $4,000k (2025) and $30,000k (2024) for the project, which opened November 1, 2024, with a total cost of approximately $51,900k.
  • Cape Girardeau Hotel (The Riverview): $11,100k (2024) for the project, which opened April 4, 2024, with a total cost of approximately $30,500k.
  • New Wroclaw Casino (Poland): $1,600k (2025) for renovations, opened February 2026.

Business Segment Analysis

US East

Financial Performance:

• Revenue: $169,496k (-1.2% YoY)
• Operating Income: $11,905k (+175.4% YoY)
• Key Growth Drivers: Increased pari-mutuel revenue at Mountaineer Casino, Resort & Races and increased hotel revenue (due to room rates) at Rocky Gap Casino, Resort & Golf. These gains were partially offset by decreased gaming revenue at Mountaineer Casino, Resort & Races and increased promotional allowances at both properties. Winter weather negatively impacted performance in Q1 2025. Product Portfolio:
• Mountaineer Casino, Resort & Races: Casino, 357-room hotel, golf course, racetrack, pari-mutuel wagering, sports book, dining, and mobile apps for sports betting and iGaming.
• Rocky Gap Casino, Resort & Golf: Casino, 198-room hotel, five food and beverage venues, 18-hole golf course, event center, spa, and outdoor activities. Market Dynamics:
• Mountaineer Casino, Resort & Races: Competes with four casinos within 50 miles, marketing as a year-round entertainment destination.
• Rocky Gap Casino, Resort & Golf: Holds a AAA 4-Diamond Award® designation and operates the only Jack Nicklaus Design Golf Course in Maryland, attracting customers from surrounding states.
• Competitive threats: Happy Valley Casino (Pennsylvania) is expected to open in Spring 2026, 112 miles from Rocky Gap Casino, Resort & Golf.

US Midwest

Financial Performance:

• Revenue: $163,810k (+2.0% YoY)
• Operating Income: $43,028k (+0.7% YoY)
• Key Growth Drivers: Revenue growth primarily driven by the new land-based casino in Caruthersville and the new hotel at Cape Girardeau, both opened in 2024. This was partially offset by decreased gaming revenue at Cape Girardeau and a decline in Colorado due to the termination of two sports betting agreements in 2024, the elimination of table games at Colorado properties, and inclement weather in February 2025. Product Portfolio:
• Century Casino & Hotel – Caruthersville: Casino with 579 slot machines and 7 live table games, 74-room hotel, food and beverage, and RV park.
• Century Casino & Hotel – Cape Girardeau: Casino, 69-room hotel (The Riverview), dining, conference center, and sports betting (retail and mobile app).
• Century Casino & Hotel – Central City: Casino with 409 slot machines, 26-room hotel, bar, and restaurant.
• Century Casino & Hotel – Cripple Creek: Casino with 377 slot machines, 21-room hotel, bars, restaurant, and mobile sports betting app. Market Dynamics:
• Missouri properties: Operate in competitive markets with competitors in Missouri, Arkansas, and Illinois. The two Missouri properties do not materially compete with each other.
• Colorado properties: Located in highly competitive casino markets, with numerous competitors offering larger hotels and more amenities. Table games were eliminated in January 2025, with expense savings offsetting revenue impact.

US West

Financial Performance:

• Revenue: $79,561k (-9.1% YoY)
• Operating Loss: $(4,463)k (90.5% reduction in loss YoY)
• Key Growth Drivers: Revenue decreased primarily due to fewer events at the outdoor event center and reduced gaming, hotel, and food and beverage revenue, partially offset by decreased promotional allowances. Winter weather negatively impacted performance in Q1 2025. Product Portfolio:
• Nugget Casino Resort: Casino with 907 slot machines and 22 tables, over 1,300-room hotel, 120,000 sq ft convention space, 8,555-seat outdoor amphitheater, seven food and beverage venues, and a sports book. Market Dynamics:
• Reno-Sparks area: Operates in a highly competitive market with over 20 casinos. Marketing efforts focus on concerts, events, high-end dining, and group/convention sales.
• Competitive threats: In 2024, goodwill at Nugget Casino Resort was fully impaired by $43.7 million due to revised future operating results assumptions and a sustained decrease in performance since its acquisition.

Canada

Financial Performance:

• Revenue: $75,929k (-0.5% YoY, or +1.4% in Canadian dollars)
• Operating Income: $15,928k (+0.6% YoY, or +1.2% in Canadian dollars)
• Key Growth Drivers: Increased gaming revenue at St. Albert and Century Downs Racetrack and Casino, increased pari-mutuel revenue at both racetracks, and increased food and beverage revenue at St. Albert. These gains were partially offset by decreased gaming revenue at Edmonton and Century Mile Racetrack and Casino. Payroll costs increased. Product Portfolio:
• Century Casino & Hotel – Edmonton: Casino with 792 slot machines and 23 tables, 26-room hotel, off-track betting parlor, showrooms, and dining.
• Century Casino St. Albert: Casino with 432 slot machines and 10 tables, off-track betting parlor, and dining.
• Century Mile Racetrack and Casino: Racing and entertainment center with 581 slot machines, one-mile horse racetrack, dining, and off-track betting. Operates the majority of the Alberta pari-mutuel network.
• Century Downs Racetrack and Casino: Racing and entertainment center with 660 slot machines, horse racetrack, and dining. Century Casinos, Inc. holds a 75% ownership interest. Market Dynamics:
• Edmonton market: Competes with five casinos. Century Casino & Hotel – Edmonton is one of two casinos with a hotel and showrooms and the only one with a complimentary heated parking garage. Century Mile Racetrack and Casino is the only casino with a horse racetrack.
• Calgary market: Century Downs Racetrack and Casino is the only property with a horse racetrack among seven competitors.
• Regulatory: A temporary increase in the percentage of slot machine net sales retained by casinos (from 15% to 17%) was extended through March 31, 2029, contributing approximately $2.9 million to net operating revenue in both 2025 and 2024.
• Competitive threats: A competitor received conditional approval to relocate its casino to south Edmonton, anticipated to open in 2027. The Alberta Gaming, Liquor and Cannabis Commission operates an online gaming website, "Play Alberta."
• Foreign Currency Impact: US dollar results were negatively impacted by a 2.1% decrease in the average exchange rate between the US dollar and Canadian dollar in 2025 compared to 2024.

Poland

Financial Performance:

• Revenue: $84,168k (+5.3% YoY, or -0.5% in Polish zloty)
• Operating Loss: $(1,356)k (63.6% reduction in loss YoY)
• Key Growth Drivers: Increased revenue from casinos that reopened in 2024 (Wroclaw, Bielsko-Biala, and Katowice) and increased revenue at the Warsaw Presidential Hotel. This was offset by licensing-related closures of the LIM Center and Krakow casinos and the Hilton Hotel casino in Warsaw. Payroll expenses decreased due to casino closures. Product Portfolio:
• Casinos Poland: Operates six casinos (as of February 2026) in leased building spaces, primarily within hotels in major cities. Market Dynamics:
• Regulatory: Casino gaming licenses are granted for a non-renewable six-year term, requiring new applications upon expiration. The Polish government restricts external marketing of gaming activities.
• Competitive threats: Faces competition from other casinos in each district (e.g., five competitors in Warsaw), as well as state-run slot arcades and online gaming.
• Foreign Currency Impact: US dollar results were positively impacted by a 5.5% increase in the average exchange rate between the US dollar and Polish zloty in 2025 compared to 2024.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Century Casinos, Inc. repurchased and retired 1,951,955 shares of its common stock for $4,000k in 2025 under 10b5-1 trading plans.
• Dividend Payments: No dividends have been declared or paid.
• Future Capital Return Commitments: The company has a discretionary program to repurchase up to $15,000k of common stock, with approximately $10,800k remaining as of December 31, 2025. A new 10b5-1 plan for up to $1,500k was announced on January 2, 2026, expiring May 10, 2026.

Balance Sheet Position:

• Cash and Equivalents: $68,921k (2025) vs. $98,769k (2024).
• Total Debt (principal): $337,690k (2025) vs. $339,610k (2024).
• Net Debt Position: $268,769k (2025) vs. $240,841k (2024).
• Debt Maturity Profile:
  • Goldman Term Loan: $333,384k outstanding (weighted average interest rate of 10.48% in 2025), matures April 1, 2029, with scheduled quarterly payments of $875k.
  • CPL Credit Agreement: $526k outstanding (weighted average interest rate of 6.04% in 2025), matures December 2029.
  • CPL Credit Facility: $3,780k outstanding (weighted average interest rate of 7.00% in 2025), matures June 25, 2026.
  • Scheduled 2026 debt maturities total $7,558k.
  • Long-term financing obligation to VICI Properties Inc. subsidiaries (Master Lease): $715,749k (2025) vs. $700,970k (2024). The imputed discount rate is approximately 8.9%. The current lease term extends through September 30, 2038, with three additional five-year renewal options. Scheduled 2026 cash payments are estimated at $67,300k, including a CPI increase and deferred rent.
  • Nugget Casino Resort Lease (50% attributable to Marnell Gaming LLC): Payments were $7,768k in 2025 vs. $7,001k in 2024. Estimated 2026 payments are $7,900k.

Cash Flow Generation:

• Operating Cash Flow: $6,688k (2025) vs. $(3,299)k (2024).

Operational Excellence

Production & Service Model: Century Casinos, Inc. develops and operates integrated casino entertainment facilities, offering gaming, lodging, dining, horse racing, and entertainment. The operational philosophy centers on providing a full-service resort experience, leveraging player loyalty programs and targeted marketing to attract and retain customers. In Canada, Century Mile Racetrack and Casino operates the majority of the Alberta pari-mutuel network, distributing content and live video to 23 off-track betting parlors and broadcasting races from over 90 racetracks globally.

Supply Chain Architecture: Key Suppliers & Partners:

• Real Estate Lessors: VICI Properties Inc. subsidiaries (for US East, US Midwest, and Canada properties under the Master Lease) and Smooth Bourbon, LLC (for Nugget Casino Resort land and building, 50% owned by Century Casinos, Inc.).
• Sports Betting & iGaming Operators: BetMGM, LLC (Missouri) and other unnamed sports betting and iGaming partners (Colorado, West Virginia, Nevada).
• Gaming Regulators: Alberta Gaming, Liquor and Cannabis Commission (Canada), West Virginia Lottery Commission, Missouri Gaming Commission, Nevada Gaming Commission, Horse Racing Alberta (Canada), and the Polish Minister of Finance.

Facility Network:

• Casinos: 15 casinos across its five reportable segments.
• Hotels: A total of 2,153 hotel rooms across its properties.
• Racetracks: Three racetracks: Mountaineer Casino, Resort & Races, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.
• Corporate Offices: Colorado Springs, Colorado (13,200 sq ft) and Vienna, Austria (2,500 sq ft).

Operational Metrics:

• Slot/Electronic Gaming Machines: 7,562
• Tables: 199
• Hotel Rooms: 2,153
• Racetracks: 3
• Total Casino Square Footage: 407,986 sq ft

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes an enterprise sales force for conventions and group bookings, particularly at properties like Nugget Casino Resort, and maintains direct customer relationships through its casino operations.
• Channel Partners: Engages in strategic partnerships with sports betting and iGaming operators (e.g., BetMGM, LLC) to expand digital offerings. In Canada, the company acts as an agent for the Alberta Gaming, Liquor and Cannabis Commission for gaming facility operations and receives commissions from Horse Racing Alberta.
• Digital Platforms: Offers online sales channels and e-commerce initiatives through mobile apps for sports betting and iGaming in various US jurisdictions.

Customer Portfolio: Enterprise Customers: Focuses on attracting major enterprise relationships through group and convention sales for its hotel and event facilities. Strategic Partnerships: Key partnerships include BetMGM, LLC and other sports betting/iGaming operators. Geographic Revenue Distribution (2025 Net Operating Revenue):

• US East: 29.6%
• US Midwest: 28.6%
• US West: 13.9%
• Canada: 13.2%
• Poland: 14.7%

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The casino entertainment industry is capital-intensive and highly dependent on discretionary consumer spending, making it sensitive to economic conditions, inflation, and geopolitical events. It is extensively regulated at state, local, provincial, and federal levels, encompassing licensing, taxation, and operational standards. The market is characterized by intense competition from numerous operators, including larger entities with substantial resources. Technology plays a critical role, with reliance on advanced systems for gaming, security, and online platforms.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Century Casinos, Inc. faces direct competition from numerous casinos in each of its operating regions. For example, Mountaineer Casino, Resort & Races has four competitors within 50 miles, Rocky Gap Casino, Resort & Golf has five within 80 miles, and the Reno-Sparks market has over 20 casinos. In Colorado, Cripple Creek has 11 competitors within half a mile, and Central City has 20 within a mile, including larger, more amenity-rich facilities in Black Hawk. In Poland, there are other casinos in each district, such as five competitors in Warsaw.

Emerging Competitive Threats:

• New Entrants/Expansions: New casinos are expected to open near existing properties, such as Happy Valley Casino (Pennsylvania) near Rocky Gap Casino, Resort & Golf in Spring 2026, and a relocated casino in south Edmonton near Century Mile Racetrack and Casino in 2027. Marshall Yards (Kentucky) opened in February 2026.
• Online Gaming: Increased competition from online gaming platforms, including the Alberta Gaming, Liquor and Cannabis Commission's "Play Alberta" and state-run online gaming in Poland.
• Technological Disruption: The rapid evolution of technologies like AI could intensify cybersecurity risks and introduce new competitive dynamics.

Competitive Response Strategy: The company's strategy includes promoting its players' clubs and unique amenities, such as showrooms and golf courses, to differentiate its offerings. It also engages in strategic partnerships for sports betting and iGaming to expand its digital presence and implements cost-saving measures and operating efficiencies to maintain competitiveness.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The company is highly sensitive to general economic conditions, market downturns, and factors affecting discretionary consumer spending, including inflation, economic contraction, geopolitical tensions, and public health emergencies. Intense competition from larger, better-resourced entities and the expansion of legalized gaming (e.g., online sports betting) pose significant threats. Technology Disruption: Increased competition from online gaming and other technology platforms could adversely impact net gaming revenue. The rapid evolution of AI also presents emerging cybersecurity and ethical risks. Strategic Review Uncertainty: The ongoing strategic review process creates uncertainty, potentially affecting employee retention, customer relationships, and supplier partnerships, with no guarantee of a successful outcome or increased shareholder value.

Operational & Execution Risks

Supply Chain Vulnerabilities: Reliance on third-party service providers for online services and data processing exposes the company to operational disruptions and increased expenses if performance issues arise. Geographic Concentration: Operating across North America and Europe exposes the company to risks from foreign currency fluctuations, diverse regulatory environments, cultural differences, labor regulations, and geopolitical instability (e.g., Russia-Ukraine war impact on Poland operations). Information Systems & Cybersecurity: The company faces risks of interruptions or cybersecurity breaches (e.g., phishing, business email compromise, AI-related threats) to its information systems, potentially leading to data loss, business disruption, reputational harm, and legal liabilities. Property Damage/Disruption: Operations are vulnerable to severe weather, natural disasters, and other catastrophic events, which could cause property damage, business interruption, and claims. Insurance coverage may be inadequate or become more costly. Fraud, Theft, and Cheating: The risk of fraud, theft, or cheating by customers or employees could lead to financial losses and reputational damage. Staff Shortages & Labor Issues: Challenges in attracting and retaining employees may lead to reduced operating hours or amenity closures. Work stoppages or unionization efforts could disrupt business and increase labor costs. Nugget Casino Relocation: A potential expansion of Interstate 80 could require rebuilding the Nugget Casino Resort, with no assurance that compensation from the Nevada Department of Transportation would cover full construction costs, potentially necessitating additional funding.

Financial & Regulatory Risks

Indebtedness & Lease Obligations: Significant outstanding debt ($337.7 million) and Master Lease obligations ($715.7 million financing obligation) create substantial financial commitments. Insufficient cash flow to service these obligations could force asset sales, refinancing, or restructuring. Lease payments are subject to annual escalations and minimum capital investments. Foreign Exchange: Exposure to fluctuations in the Canadian dollar and Polish zloty against the US dollar impacts translated operating profit, with no current hedging strategy. Capital Availability: The capital-intensive nature of the industry means that an inability to secure funding on favorable terms for operations or expansion could lead to reduced or delayed projects, asset sales, or dilutive equity financing. Goodwill Impairment: There is a risk of future impairment losses if the fair values of reporting units fall below their carrying values due to adverse business changes, market conditions, or revised assumptions (e.g., $70.2 million impairment in 2024). Gaming Regulation & Licensing: Extensive and evolving gaming regulations, including licensing requirements, pose risks of limitation, suspension, revocation, or non-renewal of licenses (e.g., Poland's non-renewable licenses, upcoming US renewals). Changes in laws could increase competition or restrict operations. Taxation: The company is subject to significant gaming taxes and fees, in addition to income taxes, which are subject to increase. Changes in tax laws, rates, or interpretations could materially affect financial results. Valuation allowances on deferred tax assets ($70.4 million in US, $11.5 million in foreign jurisdictions as of December 31, 2025) indicate uncertainty in realizing tax benefits. Horsemen/Pari-mutuel Agreements: Dependence on agreements with horse owners/trainers and pari-mutuel clerks for simulcasting and live racing. Failure to renew or modify these agreements could adversely affect operations. FCPA/Anti-corruption: International operations expose the company to the US Foreign Corrupt Practices Act and similar anti-corruption laws, with potential for severe sanctions and reputational damage from violations.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Century Casinos, Inc. focuses on core gaming technologies (slot machines, table games) and leverages partnerships for online platforms, including mobile apps for sports betting and iGaming. The company utilizes a proprietary database for slot machine customers to develop targeted marketing and promotional programs.

Intellectual Property Portfolio:

• Trademark Strategy: The company owns five trademarks: Century Casinos, Mountaineer, Nugget, Rocky Gap, and Casinos Poland. Finite-lived trademarks (Mountaineer, Rocky Gap, Nugget) are amortized over ten years, while indefinite-lived trademarks (Casinos Poland, Century Casinos) are not amortized.

Technology Partnerships: Century Casinos, Inc. engages in strategic alliances with technology providers, notably BetMGM, LLC and other sports betting/iGaming operators, to enhance its digital offerings and market reach.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company is highly dependent on the services of its founders and Co-Chief Executive Officers, Erwin Haitzmann and Peter Hoetzinger. Their employment agreements include provisions that could allow one executive to leave for cause if the other departs.

Board Composition: The Board of Directors initiated a comprehensive strategic review in August 2025. The Audit Committee, composed solely of independent directors, is responsible for overseeing the company's risk management, including information technology and cybersecurity.

Human Capital Strategy

Workforce Composition: As of December 31, 2025, Century Casinos, Inc. had 2,911 full-time and 845 part-time employees. Approximately 201 employees in Poland, 44 at Mountaineer Casino, Resort & Races, and 211 at Rocky Gap Casino, Resort & Golf belong to trade unions.

Talent Management: Acquisition & Retention: The company prioritizes employee development and fostering a positive work environment. It offers training and development programs to support employee success and career advancement, including an "Upward Mobility Program" in Missouri designed to develop leadership skills and provide mentorship opportunities for front-line employees. Diversity & Development: Century Casinos, Inc. strives to build a diversified workforce to meet the varied customer expectations across its international markets. It is committed to being a community leader and contributing positively to its employees, their families, and local communities through various social responsibility initiatives.

Environmental & Social Impact

Social Impact Initiatives: Century Casinos, Inc. is committed to supporting its local communities through contributions to charitable and non-profit organizations, volunteer events, fundraising drives, event sponsorships, and charity events. In Alberta, Canada, the company participates in a charitable gaming model where licensed charitable organizations conduct and manage casino events at its properties.

Business Cyclicality & Seasonality

Demand Patterns: The company's business experiences seasonality and cyclicality.

• Seasonal Trends: North American properties generally see adverse impacts from winter weather. US East properties (West Virginia, Maryland) attract more customers from March to August and during summer months, respectively. Colorado casinos (US Midwest) are busier in warmer months (May-September), while Missouri casinos (US Midwest) see highest volumes in February and March. Nugget Casino Resort (US West) attracts more customers in summer due to outdoor events. Canadian properties generally have a steady influx of customers, with increased activity during summer racing seasons. Polish casinos typically attract more customers from October through March, as domestic customers often vacation during summer.
• Economic Sensitivity: Demand is heavily influenced by general economic conditions, the availability of discretionary income, and consumer confidence, making the business sensitive to economic slowdowns or recessions.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Century Casinos, Inc. is subject to extensive state, local, foreign, provincial, and federal gaming regulations. This includes strict requirements for obtaining and maintaining gaming licenses, which can be limited, conditioned, suspended, revoked, or not renewed. In Poland, casino licenses are granted for non-renewable six-year terms, necessitating new applications upon expiration. Licenses for Mountaineer Casino, Resort & Races and Cape Girardeau are scheduled for renewal in 2026. Other Regulations: The company is also subject to various non-gaming regulations, including safety, health, employment, environmental, alcoholic beverage, building, parking, fire codes, and anti-money laundering laws. Violations of these regulations could result in penalties or operational impairments.

Legal Proceedings: Century Casinos, Inc. is not a party to any pending litigation that management believes would have a material effect on its financial position or results of operations.

Tax Strategy & Considerations

Tax Profile: The company's effective income tax rate was (5.4%) for 2025 on a pre-tax loss of $(51.1) million, compared to (22.2%) for 2024 on a pre-tax loss of $(119.9) million. This rate is influenced by varying statutory tax rates across its US (federal 21%, state 4.0%-8.25%), Canadian (23%), Polish (19%), Austrian (23%), and Mauritian (17%) jurisdictions. Tax Reform Impact: The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, extended key provisions of the Tax Cuts and Jobs Act of 2017 and modified international taxation. The OBBBA did not have a material impact on the company’s 2025 effective tax rate or income taxes paid. Valuation Allowances: As of December 31, 2025, Century Casinos, Inc. recorded valuation allowances of $70.4 million in the US and $11.5 million in foreign jurisdictions against deferred tax assets, reflecting management's assessment that it is more likely than not that the benefit from certain deferred tax assets will not be realized. Unremitted Foreign Subsidiary Earnings: A deferred tax liability of $4.2 million has been recorded for foreign withholding tax on a potential cash dividend to the US related to earnings from the sale and leaseback of Canadian properties in 2023, as well as current foreign earnings. Historical earnings in Canada and other foreign jurisdictions are intended to be indefinitely reinvested outside the US.

Insurance & Risk Transfer

Risk Management Framework: Century Casinos, Inc. maintains customary industry insurance coverage, including property, casualty, terrorism, cybersecurity, and business interruption insurance. However, this coverage is subject to deductibles and limits, including limitations on the coverage period for business interruption, which may not fully cover all potential losses. The cost of maintaining coverage has increased in recent years, potentially leading to reduced policy limits, exclusions, or self-insurance in the future.