Route and Customer Acquisition Costs |
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| Route and Customer Acquisition Costs | Route and Customer Acquisition Costs The Company enters into contracts with third parties and its gaming locations to install and operate gaming terminals. Payments are due when gaming operations commence and then on a periodic basis for a specified period of time thereafter. Gross payments due, based on the number of live locations, were approximately $15.1 million and $11.2 million as of December 31, 2025 and 2024, respectively. Payments are due over varying terms of the individual agreements and are discounted at the Company’s incremental borrowing rate associated with its long-term debt at the time the contract is acquired. The net present value of payments due was $12.7 million and $9.4 million as of December 31, 2025 and 2024, respectively, of which approximately $2.5 million and $2.2 million was included in current liabilities in the accompanying consolidated balance sheets as of both December 31, 2025 and 2024, respectively. The route and customer acquisition cost asset is comprised of upfront payments made on the contracts of $31.2 million and $22.3 million as of December 31, 2025 and 2024, respectively. The Company has upfront payments of commissions paid to the third parties for the acquisition of the customer contracts that are subject to a claw back provision if the customer cancels the contract prior to completion. The payments subject to a claw back were $5.0 million and $1.2 million as of December 31, 2025 and 2024, respectively. Route and customer acquisition costs consist of the following as of December 31 (in thousands):
Estimated amortization expense related to route and customer acquisition costs for the next five years and thereafter is as follows (in thousands):
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