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Monarch Casino Reports Adjustments to 2024 Fourth Quarter and Full Year Financial Results

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Monarch Casino & Resort Inc. reported on an SEC Form 8-K filed on February 18, 2025, that the District Court, City and County of Denver, Colorado (Court), issued its decision in the litigation between Monarch and PCL Construction Services Inc. (PCL). The Court awarded damages in favor of PCL of $74,772,551 and awarded $144,894 to Monarch for its counterclaims against PCL. The Court entered a single judgment in the amount of the net difference between the cross-judgment and awarded PCL a principal judgment amount of $74,627,657 (the Judgment).

Based upon its initial review of the Court’s Judgment, Monarch anticipates filing an appeal to the Colorado Court of Appeals.

Monarch further reported that because of the Judgment and because Monarch had announced its fourth quarter and year end results for the periods ended December 31, 2024 on February 11, 2025, before the Judgment was issued, Monarch would update and adjust its fourth quarter and year end results.

Monarch’s balance sheet as of September 30, 2024, included a liability of $47,008,285 due to PCL, which was adjusted as of December 31, 2024 to reflect the Judgment amount.

As a result, an adjustment of $27,619,372 was made to Accounts Payable in the December 31, 2024 Balance Sheet. In accordance with ASC 855-10-20 subsequent events guidance, Monarch reflected the Judgment as a Type I subsequent event in the Company’s Annual Report on SEC Form 10-K, which is being filed with the SEC (the “2024 Form 10-K”). The Company recorded a corresponding expense item, Loss on Litigation, in the amount of $27,619,372.

These adjustments impact the previously reported results as follows:

Net income for the three month and twelve months ended December 31, 2024 were $4211 thousand and $72,769 thousand, respectively, compared to the previously reported $25,495 thousand and $94,053 thousand, respectively.

Basic earnings per share for such periods are $0.23 and $3.91, respectively, compared to the previously reported $1.39 and $5.05, respectively.

Diluted earnings per share for such periods are $0.22 and $3.84, respectively, compared to the previously reported $1.36 and $4.96, respectively.

Adjusted EBITDA (a non-GAAP measure) was not impacted.

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The 2024 Form 10-K provides detailed reporting on the above.

Compliance Updates

Attention: Important Information from the Arizona Department of Gaming Regarding Reporting Gambling Winnings on Taxes

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The Arizona Department of Gaming (“ADG”) has received inquiries from patrons seeking to verify the legitimacy of companies that are issuing tax forms for gambling winnings. As a result, the ADG wants to take this opportunity to remind Arizonans to be cautious this tax season and to thoroughly review and investigate any requests from anyone purporting to be the Internal Revenue Service (“IRS”).

The ADG would like to remind Arizonans that if they participate in casino gambling, parimutuel/simulcast wagering, event wagering, and/or fantasy sports, they may receive a W-2G or 1099-MISC form for their winnings. It is important to be aware that the gambling institution that you choose to participate in gaming activities with will be the payor, and the payor is responsible for issuing the tax form. The ADG
advises that Arizonans keep accurate records of any winnings from all gambling activities throughout the year to avoid any confusion during tax season. It is further recommended that Arizonans consult a tax professional if they have any questions about income reporting requirements to ensure they file an accurate tax return.

To help ensure Arizonans are aware of common tax scams, the ADG advises Arizonans to review the
following links and articles on the IRS website discussing common tax scams for 2025:

  1. As stated on the IRS website, the IRS will make initial contact with a taxpayer through a letter
    sent via the United States Postal Service. Be wary of anyone purporting to be the IRS or ADG
    contacting you by phone, email, or social media requesting personal or financial information.
  2. If you receive a letter from someone purporting to be the IRS, you can verify that the letter is
    legitimate through the IRS website.
  3. Dirty Dozen tax scams for 2025: IRS warns taxpayers to watch out for dangerous threats.
  4. Misleading social media advice leads to false claims for Fuel Tax Credit, Sick and Family Leave
    Credit, household employment taxes; FAQs help address common questions, next steps for those
    receiving IRS letters.

What to Do If You Encounter Fraud or Identity Theft:

If you believe you or someone you know has been targeted by fraudulent payors or individuals
purporting to be the IRS, file a consumer complaint by visiting azag.gov/consumer. You can also find the
contact information for the Arizona Attorney General’s Office below:

  • Phoenix: (602) 542-5763
  • Tucson: (520) 628-6648
  • Statewide: (800) 352-8431

For more information, check out the Department’s related news releases from this past year:

  • ADG PSA: Tips for Safe and Responsible Online Gaming
  • Please Remain Vigilant: Department PSA on Gaming Scam Calls
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Latest News

Tribal-Wide Self-Exclusion Program to Launch with Support from National Leaders

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In a landmark initiative to enhance responsible gaming and support community well-being, tribal gaming leaders have announced their support for the upcoming launch of a comprehensive Tribal-Wide Self-Exclusion Program. This program will enable individuals to voluntarily exclude themselves from all participating tribal casinos in sovereign nations and territories in one step.

The program will launch in Wisconsin in March before expanding to other states in collaboration with participating tribal gaming commissions.

For those attending the Indian Gaming Tradeshow and Convention, a presentation will be held at the Chairman’s Lounge on April 2, 2025, as well as individual meetings with tribes throughout the event.

An Advisory Board for the Tribal-Wide program has been established and includes:

Anika Howard – President/CEO, Wondr Nation

Jamie Hummingbird – Chairman, National Tribal Gaming Commissioners/Regulators

Oscar Schuyler – Chairman, Board of Regulators, Tribal Gaming Regulatory Authority, Alabama Coushatta Tribe of Texas

Ernie Stevens – Chairman, Indian Gaming Association of Washington DC

Tamara Van Schyndel – Executive Director, Paskenta Tribal Gaming Commission

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“This initiative reflects our unwavering commitment to the health of our people and communities. By tribes coming together to offer a streamlined process for self-exclusion with a technology partner that shares our values, we help people in our communities who are looking to take a break or stop gambling do so for the amount of time they need,” Ivory Kelly, CEO of the Tribal Council for Responsible Gaming, said.

The self-exclusion platform is provided by idPair, whose award-winning self-exclusion software is designed to comply with local regulations, protect tribal sovereignty, and effectively serve the needs of diverse communities.

“Tribal nations have long been at the forefront of promoting responsible gaming practices, demonstrating leadership through our actions. This initiative not only underscores the commitment of tribal nations to player protection but also sets a precedent for others to follow. We encourage all tribal leaders and regulators to extend their consideration in joining this program, expanding its reach and reinforcing our collective dedication to responsible gaming,” Ernie Stevens, Jr., Chairman of the Indian Gaming Association of Washington DC., said.

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NCPG: March is Problem Gambling Awareness Month

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The National Council on Problem Gambling (NCPG) has announced the observance of Problem Gambling Awareness Month (PGAM) throughout March 2025. This year’s theme, “Seeking Understanding,” aims to increase awareness of problem gambling as a serious yet often misunderstood mental health condition. PGAM serves as a crucial platform for improving public understanding, removing barriers to care, and encouraging open conversations about the impact of gambling on individuals, families, and communities.

Cait Huble, NCPG’s Director of Communications, said: “Problem gambling is often described as a ‘hidden addiction,’ and with an estimated 9 million Americans affected, the need for awareness and support has never been greater. By fostering a deeper understanding of the issue, we can encourage empathy, reduce barriers to treatment, and provide support to those affected by gambling-related harm.”

Throughout March, local and national organizations will host special events, offer educational workshops, and engage in local advocacy efforts to advance the two primary goals of PGAM: To increase public awareness of problem gambling and the availability of prevention, treatment and recovery services; and to encourage healthcare providers to screen clients for problem gambling. The observance brings together stakeholders, including public health organizations, advocacy groups, professional sports leagues, and gambling operators.

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