Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

			Page
PART I.	Financial Information

	Item 1.	Financial Statements (Unaudited)	3

		Consolidated Statements of Operations	3

		Consolidated Balance Sheets	4

		Consolidated Statements of Stockholders’ Equity	5

		Consolidated Statements of Cash Flows	6

		Condensed Notes to Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	17

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31

	Item 4.	Controls and Procedures	31

PART II.	Other Information

	Item 1.	Legal Proceedings	33

	Item 1A.	Risk Factors	33

	Item 6.	Exhibits	33

	Signatures		34


	Three months ended March 31,
	2015			2014
Revenues
Casino	$	26,354		$	27,481
Food and beverage		5,849			5,024
Hotel		1,279			1,195
Management fees		--			494
Other operations		638			611
Gross revenues		34,120			34,805
Less promotional allowances		(5,036	)		(4,356	)
Net revenues		29,084			30,449

Operating costs and expenses
Casino		13,732			14,461
Food and beverage		2,100			2,099
Hotel		120			108
Other operations		268			228
Selling, general and administrative		10,844			11,133
Preopening and other		42			56
Depreciation and amortization		1,992			2,455
		29,098			30,540

Operating loss		(14	)		(91	)

Other (expense) income
Interest expense, net of $0.2 million and $0.08 million, capitalized		(1,525	)		(1,517	)
Other		12			--
		(1,513	)		(1,517	)

Loss before income taxes		(1,527	)		(1,608	)
Provision (benefit) for income taxes		228			(526	)

Net loss	$	(1,755	)	$	(1,082	)

Basic and diluted loss per share	$	(0.09	)	$	(0.06	)

Basic and diluted weighted average number of common shares outstanding		18,876,681			18,870,681


	March 31, 2015			December 31, 2014
	(Unaudited)
ASSETS
Current assets
Cash and equivalents	$	14,337		$	15,639
Accounts receivable, net of allowance for doubtful accounts of $341 and $513		1,316			1,573
Income tax receivable		--			3,095
Prepaid expenses		2,951			2,105
Other		649			728
		19,253			23,140

Property and equipment, net		98,141			95,040

Other long-term assets
Goodwill		16,480			16,480
Intangible assets, net of accumulated amortization of $6,695 and $6,195		2,818			3,382
Deposits		393			178
Loan fees, net of accumulated amortization of $4,231 and $3,827		2,271			2,650
Deferred tax asset		74			74
		22,036			22,764
	$	139,430		$	140,944
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	4,092		$	4,102
Construction contracts payable		1,280			1,638
Accrued player club points and progressive jackpots		1,932			1,709
Accrued payroll and related		2,402			3,743
Other accrued expenses		2,895			3,704
Deferred tax liability		901			901
Current portion of capital lease obligation		679			690
Current portion of long-term debt		3,059			1,337
		17,240			17,824

Long-term debt, net of current portion		60,033			59,294
Deferred tax liability		327			99
Capital lease obligation, net of current portion		6,051			6,230
		83,651			83,447

Commitments and contingencies (Note 10)

Stockholders’ equity
Common stock, $0.0001 par value, 100,000,000 shares authorized; 20,233,276 shares issued; 18,876,681 shares outstanding		2			2
Additional paid-in capital		45,915			45,878
Treasury stock, 1,356,595 common shares		(1,654	)		(1,654	)
Retained earnings		11,516			13,271
		55,779			57,497
	$	139,430		$	140,944


	Common stock				Additional paid-in		Treasury stock					Retained			Total Stockholders’
Three months ended March 31, 2015	Shares		Dollars		capital		Shares		Dollars			Earnings			Equity

Beginning balances		20,233	$	2	$	45,878		1,357	$	(1,654	)	$	13,271		$	57,497
Stock-based compensation		--		--		37		--		--			--			37
Net loss		--		--		--		--		--			(1,755	)		(1,755	)
Ending balances		20,233	$	2	$	45,915		1,357	$	(1,654	)	$	11,516		$	55,779


	Three months ended March 31,
	2015			2014

Cash flows from operating activities:

Net loss	$	(1,755	)		$	(1,082	)

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		1,492				1,814
Amortization of loan fees		404				370
Amortization of player loyalty program, land lease and water rights		500				641
Loss on disposals		--				1
Stock-based compensation		37				79
Increases and decreases in operating assets and liabilities:
Accounts receivable, net		257				134
Income tax receivable		3,095				1,970
Prepaid expenses		(846	)			(440	)
Other assets		162				(9	)
Deferred tax		228				--
Accounts payable and accrued expenses		(1,988	)			(1,664	)
Net cash provided by operating activities		1,586				1,814
Cash flows from investing activities:
Purchase of property and equipment, net of construction contracts payable		(4,900	)			(2,019	)
Deposits		(234	)			(1,964	)
Other		--				(10	)
Net cash used in investing activities		(5,134	)			(3,993	)

Cash flows from financing activities:
First Term loan borrowings		4,461				--
Revolving loan (repayment)/borrowings		(2,000	)			2,000
Repayment of long-term debt on capital lease obligation		(190	)			(237	)
Other		(25	)			(1	)
Net cash provided by financing activities		2,246				1,762

Net decrease in cash and equivalents		(1,302	)			(417	)
Cash and equivalents, beginning of period		15,639				14,936
Cash and equivalents, end of period	$	14,337			$	14,519

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	1,113			$	1,212
Cash received from income tax refunds, net of cash paid of $0.05 million for income taxes in 2014	$	(3,095	)		$	(1,915	)

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued property and equipment capital expenditures	$	1,331			$	648

Organization. Formed as a Delaware corporation in 1987, Full House Resorts, Inc., owns, operates, develops, manages, and/or invests in casinos and related hospitality and entertainment facilities. References in this document to “Full House,” the “Company”, “we”, “our,” or “us” refer to Full House Resorts, Inc. and its subsidiaries, except where stated or the context otherwise indicates.

Property	Acquisition Date	Location
Silver Slipper Casino (Owned)	2012	Bay St. Louis, MS (near New Orleans)
Rising Star Casino Resort (Owned)	2011	Rising Sun, IN (near Cincinnati)
Stockman’s Casino (Owned)	2007	Fallon, NV (one hour east of Reno)
Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort)	2011	Incline Village, NV (North Shore of Lake Tahoe)

Basis of Presentation. As permitted by the rules and regulations of the Securities and Exchange Commission, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s 2014 annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The interim consolidated financial statements of the Company and its subsidiaries included herein reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the entire year.

The consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Certain minor reclassifications have been made to prior-period amounts to conform to the current period presentation. These reclassifications had no effect on the previously reported net loss.

At least annually during the fourth quarter or more frequently when there is a material change in circumstances that could have a negative effect, the Company performs an assessment of its goodwill and other indefinite-lived intangible assets to determine if the carrying value of such assets exceeds the fair value. No change in circumstances that would trigger an evaluation were observed during the three months ended March 31, 2015 or subsequently, and no impairment charges were recorded during the March 31, 2015 and 2014 quarters. We evaluate these assets using the market (comparable transactions) and income (discounted cash flow) approaches to value, both of which use Level 3 inputs as defined by GAAP.

We amortize our definite-lived intangible assets, including our player loyalty programs, loan fees, land leases and water rights, over their estimated useful lives. For the three months ended March 31, 2015, the aggregate amortization expense was $0.9 million, which includes $0.4 million for loan fees. For the three months ended March 31, 2014, such amount was $1.0 million, including $0.4 million for loan fees. Loan fees are amortized to interest expense.

Our Indiana subsidiary, Gaming Entertainment (Indiana) LLC, leases a 104-room hotel at Rising Star Casino Resort pursuant to a capital lease agreement (the “Rising Star Lease Agreement”) with Rising Sun/Ohio County First, Inc., an Indiana non-profit corporation (the “Landlord”) for $77,537 per month and an annual interest rate varying between 2.5% and 4.5% during the term of the lease. The Rising Star Lease Agreement is not guaranteed by the parent company or any subsidiary other than Gaming Entertainment (Indiana), LLC. The term is for 10 years with the Landlord having a right to sell the hotel to us at the end of the term for $1 plus closing costs on the terms set forth in the Rising Star Lease Agreement. During the term, we also have the exclusive option to purchase the hotel at any time at a price based upon the project’s actual cost of $7.7 million, reduced by the cumulative principal payments made by the Company during the lease term. Upon expiration of the term of the lease, if we have not exercised our option to purchase the hotel tower, we have the option to purchase the hotel for $1 plus closing costs. In the event of a default on the lease agreement, the Landlord’s recourse allows for them to take possession of the property; collection of rents as defined; the right to seek remediation for any attorneys’ fees and litigation expenses; and the costs of retaking and re-leasing the property.


	March 31, 2015 (Unaudited)			December 31, 2014
Long-term debt, net of current portion:
First Term Loan, maturing June 29, 2016, quarterly payments of $0.25 million beginning June 1, 2015; quarterly payments of $1.25 million beginning October 1, 2015; interest payable monthly at a variable rate which averaged 4.75% for both periods presented	$	43,092		$	38,631

Revolving Loan, maturing June 29, 2016, interest payable monthly at a variable rate which averaged 4.75% for both periods presented		--			2,000

Second Term Loan, maturing April 1, 2017, interest payable monthly at 14.25% per annum (13.25% prior to July 18, 2014)		20,000			20,000

Less current portion		(3,059	)		(1,337	)
	$	60,033		$	59,294

First and Second Lien Credit Facilities. The First Lien Credit Facility, including the Revolving Loan, and Second Lien Credit Facility are secured by substantially all of our assets, and our wholly owned subsidiaries guarantee our obligations under the agreements. As of March 31, 2015, we had drawn $5.6 million of the $10 million term loan under the First Lien Credit Facility. The remaining $4.4 million of funding availability under the term loan will be used to fund a portion of the construction costs of the 129-room hotel addition to the Silver Slipper Casino, which is scheduled to open in phases during the second quarter of 2015.

We have elected to pay interest on the First Lien Credit Facility based on the greater of the elected London Interbank Offered Rate (“LIBOR”) rate or 1.0%, plus a margin rate. As of March 31, 2015, the interest rate was 4.75% on the balance outstanding on the First Lien Credit Facility, based on the 1.0% minimum plus a 3.75% margin.

First Lien Credit Facility

Applicable Period

Maximum

Total Leverage
Ratio

Maximum

First Lien Leverage Ratio

Minimum

Fixed Charge Coverage Ratio

June 30, 2014 through and including September 29, 2014

4.75

3.50

1.10

September 30, 2014 through and including December 30, 2014

5.50

3.50

1.10

December 31, 2014 through and including June 29, 2015

5.50

4.00

1.10

June 30, 2015 through and including September 29, 2015

4.75

3.50

1.10

September 30, 2015 through and including December 30, 2015

4.50

3.25

1.10

December 31, 2015 through and including March 30, 2016

4.25

3.00

1.10

March 31, 2016 and thereafter

4.25

3.00

1.10

Second Lien Credit Facility

Applicable Period

Maximum

Total Leverage
Ratio

Maximum

First Lien Leverage Ratio

Minimum

Fixed Charge Coverage Ratio

June 30, 2014 through and including September 29, 2014

5.00

3.75

1.00

September 30, 2014 through and including December 30, 2014

5.75

3.75

1.00

December 31, 2014 through and including March 30, 2015

5.75

4.25

1.00

March 31, 2015 through and including June 29, 2015

5.75

4.25

1.00

June 30, 2015 through and including September 29, 2015

5.00

3.75

1.00

September 30, 2015 through and including December 30, 2015

4.75

3.50

1.00

December 31, 2015 through and including March 30, 2016

4.50

3.25

1.00

March 31, 2016 and thereafter

4.50

3.25

1.00

We had a provision for income taxes in the first quarter of 2015 despite incurring a pre-tax loss. This was due to the effects of the valuation allowance against our deferred tax assets and the recording of a deferred tax expense on the tax amortization of indefinite-lived intangible assets. Our effective income tax rate for continuing operations for the three months ended March 31, 2015 was -14.9%, or an expense of $0.2 million, as compared to an effective tax rate of 32.7%, or a benefit of $0.5 million, for the corresponding prior-year period. In the prior-year period, we recorded a benefit against a pre-tax loss. Subsequently, in the fourth quarter of 2014, we created a valuation reserve against our deferred tax assets due to the uncertainty that such benefits would be realized. We continued the practice of recording a valuation reserve against our deferred tax assets during the first quarter of 2015.

Grand Lodge Casino Lease. In 2011, we entered into a lease with Hyatt Equities L.L.C. to operate the Grand Lodge Casino (“Grand Lodge Lease”). The Grand Lodge Lease is secured by the Company’s interests under the lease and property as defined and is subordinate to the liens in the First and Second Lien Credit Facilities. Hyatt Equities, L.L.C. has an option to purchase our leasehold interest and related operating assets of the Grand Lodge Casino subject to assumption of applicable liabilities. The option price is an amount equal to the Grand Lodge Casino’s positive working capital, plus Grand Lodge Casino’s earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the twelve-month period preceding the acquisition or for such period of time remaining on the lease term, whichever is less, plus the fair market value of the Grand Lodge Casino’s personal property. The Grand Lodge Lease was amended in 2013 to extend the initial term to August 31, 2018 among certain other conforming changes.

Options to Purchase Silver Slipper Casino Leased Land. In 2004, our subsidiary, Silver Slipper Casino Venture, LLC, entered into a land lease with Cure Land Company, LLC for approximately 31 acres of marshlands and a seven-acre parcel on which the Silver Slipper Casino is situated. The lease includes base monthly payments of $77,500 plus 3% of gross gaming revenue in excess of $3.65 million, as defined. The land lease includes an exclusive option to purchase the leased land (“Purchase Option”) after February 26, 2019 through October 1, 2027, as well as an option to purchase only a four-acre portion of the leased land for $2.0 million, which may be exercised at any time in conjunction with the development of a hotel. If there is no change in ownership, the purchase price of the leased land will be $15.5 million ($13.5 million if the four-acre parcel has been previously purchased) plus a retained interest in Silver Slipper Casino operations of 3% of net income as defined. In the event that we sell or transfer substantially all of the assets of our ownership in Silver Slipper Casino, then the purchase price will increase to $17.1 million. The current term of the land lease is through April 30, 2058.

On August 26, 2013, the Silver Slipper Casino entered into an agreement for the construction of a 129-room hotel adjoining the casino. We expect costs related to the construction of the hotel to be approximately $20 million, inclusive of capitalized interest. We intend to finance $10 million of the construction costs with proceeds from the term loan under the First Lien Credit Facility as described in Note 8. The remaining construction and related costs will be funded from available working capital. As of March 31, 2015, we had funded $8.5 million of hotel construction costs in cash, and anticipate funding an additional $1.6 million in cash to complete the project, including capitalized interest. We expect to complete and open the hotel in phases during the second quarter of 2015.

During 2014, we received a proposed assessment of $1.6 million, including interest and penalties, from the Indiana Department of Revenue (“IDOR”) related to unpaid sales and use taxes for periods prior to 2013. We protested and resolved the proposed assessment after March 31, 2015 for an amount that approximated our estimate. See Note 13 for additional information regarding the resolution of this issue.

Compensation Cost. We recognized stock compensation expense of $37,000 for the three months ended March 31, 2015 compared to $78,000 during the prior-year period. Share-based compensation expense is included in selling, general and administrative expense. As of March 31, 2015, there was approximately $0.6 million of total unrecognized compensation cost related to unvested stock options granted by the Company. This unrecognized compensation cost is expected to be recognized over a weighted-average period of 3.8 years.

On January 30, 2015, we entered into an employment agreement with Lewis Fanger to serve as the Company’s Senior Vice President, Chief Financial Officer and Treasurer. In connection with entering into the employment agreement, Mr. Fanger was granted, outside of the 2006 Plan and qualifying as inducement options, nonqualified stock options covering 300,000 shares of Company common stock with an exercise price of $1.37, the closing price per share on the grant date. The stock options will vest with respect to 25% of the shares on January 30, 2016 and will continue to vest with respect to an additional 1/48th of the shares on each monthly anniversary thereafter, subject to Mr. Fanger’s continued service through the applicable vesting date. The stock options will vest in full on a change in control of the Company.

The aggregate intrinsic value of options outstanding was $0.3 million at March 31, 2015, none of which were exercisable. The aggregate intrinsic value represents the total pre-tax intrinsic value that would have been realized by the option holders had all option holders exercised their options on the applicable date. The intrinsic value of a stock option is the excess of our closing stock price on that date over the exercise price, multiplied by the number of in-the-money options.

We estimated the fair value of each stock option award on the grant date using the Black-Scholes valuation model. Option valuation models require the input of highly subjective assumptions. Changes in assumptions used can materially affect the fair value estimate. Option valuation assumptions for Mr. Fanger’s options granted during the three months ended March 31, 2015 were as follows:

The following tables reflect selected information for our reporting segments for the three months ended March 31, 2015 and 2014. The casino/resort segments include the Silver Slipper Casino in Bay St. Louis, Mississippi; the Rising Star Casino Resort in Rising Sun, Indiana; and the Northern Nevada segment, which consists of the Grand Lodge Casino in Incline Village, Nevada and Stockman’s Casino in Fallon, Nevada. The Development/Management segment includes costs associated with casino development and management projects, including our management contract with the Pueblo of Pojoaque that expired in September 2014.


Three Months Ended March 31, 2015

	Casino/Resort Operations

	Northern Nevada		Rising Star Casino Resort			Silver Slipper Casino		Development/ Management			Corporate			Consolidated

Revenues, net	$	4,245	$	11,115		$	13,724	$	--		$	--		$	29,084
Selling, general and administrative		1,501		3,896			4,283		--			1,164			10,844
Depreciation and amortization		200		688			1,100		--			4			1,992
Operating income (loss)		83		(483	)		1,558		(4	)		(1,168	)		(14	)
Interest expense, net of amounts capitalized		--		42			5		--			1,478			1,525
Net income (loss)		81		(516	)		1,334		(4	)		(2,650	)		(1,755	)


Three Months Ended March 31, 2014

	Casino/Resort Operations

	Northern Nevada		Rising Star Casino Resort			Silver Slipper Casino		Development/ Management		Corporate			Consolidated

Revenues, net	$	4,387	$	13,248		$	12,320	$	494	$	--		$	30,449
Selling, general and administrative		1,448		4,387			4,126		--		1,172			11,133
Depreciation and amortization		217		847			1,386		--		5			2,455
Operating income (loss)		148		(250	)		750		438		(1,177	)		(91	)
Interest expense, net of amounts capitalized		--		48			--		--		1,469			1,517
Net income (loss)		97		(248	)		495		320		(1,746	)		(1,082	)


March 31, 2015

	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort		Silver Slipper Casino		Development/ Management		Corporate		Consolidated

Total assets	$	10,767	$	38,083	$	80,698	$	--	$	9,882	$	139,430
Property, equipment and capital lease, net		6,483		33,129		58,498		--		31		98,141
Goodwill		1,809		--		14,671		--		--		16,480
Liabilities		1,662		11,604		4,105		--		66,280		83,651


December 31, 2014

	Casino/Resort Operations
	Northern Nevada		Rising Star Casino Resort		Silver Slipper Casino		Development/ Management		Corporate		Consolidated

Total assets	$	12,471	$	39,101	$	76,898	$	--	$	12,474	$	140,944
Property, equipment and capital lease, net		6,656		33,801		54,548		--		35		95,040
Goodwill		1,809		--		14,671		--		--		16,480
Liabilities		1,970		11,543		4,182		--		65,752		83,447

Indiana Department of Revenue (IDOR). In April 2015, we agreed to withdrawal our formal protest with the IDOR and accept the IDOR’s revised audit findings and proposed assessment relating to unpaid sales and use taxes for periods prior to 2013. The assessment payment totaled $237,000, including interest and penalties, and was remitted in April 2015.

Equity Incentive Plan. On March 31, 2015, our Board adopted the Full House Resorts, Inc. 2015 Equity Incentive Plan (the “2015 Plan”), subject to and effective upon stockholder approval. On May 5, 2015, the 2015 Plan became effective and the 2006 Plan was terminated. The 2015 Plan includes shares reserved for issuance of up to 1,400,000 new shares to directors, employees and consultants, and 1,243,834 shares issuable in respect to non-qualified stock options granted to Mr. Lee and to Mr. Fanger in connection with their employment. The 2015 Plan includes a variety of forms of awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents and performance-based compensation.

This management’s discussion and analysis of financial condition and results of operations (“MD&A”) contains forward-looking statements that involve risks and uncertainties. Please see “Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions that may cause our actual results to differ materially from those discussed in the forward-looking statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes for the fiscal year ended December 31, 2014, which were included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 26, 2015. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc. together with its subsidiaries may be referred to as “Full House”, the “Company”, “we”, “our” or “us”.


Property	Acquisition Date	Location
Silver Slipper Casino (Owned)	2012	Bay St. Louis, MS (near New Orleans)
Rising Star Casino Resort (Owned)	2011	Rising Sun, IN (near Cincinnati)
Stockman’s Casino (Owned)	2007	Fallon, NV (one hour east of Reno)
Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort)	2011	Incline Village, NV (North Shore of Lake Tahoe)

Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit. Additionally, our operating results may be affected by, among other things, overall economic conditions affecting the disposable income of our guests, weather conditions affecting our properties, achieving and maintaining cost efficiencies, competitive factors, gaming tax increases and other regulatory changes, the commencement of new gaming operations and construction at existing facilities. We may experience significant fluctuations in our quarterly operating results due to seasonality, variations in gaming hold percentages and other factors. Consequently, our operating results for any quarter or year are not necessarily comparable and may not be indicative of future periods’ results.

Our revenues are primarily derived from gaming sources, which include revenues from slot machines, table games and live keno. Gaming revenues are generally defined as gaming wins less gaming losses. In addition, we derive a significant amount of revenue from our hotel rooms and our food and beverage outlets. We also derive revenues from our golf course at the Rising Star Casino Resort, retail outlets and entertainment. Promotional allowances consist primarily of hotel, food and beverages furnished to customers on a complimentary basis. The retail value of such services is included in the respective revenue classifications and is then deducted as promotional allowances to calculate net revenues. We calculate operating income (loss) as net revenues less total operating costs and expenses. Operating income (loss) represents only those amounts that relate to our operations and excludes interest income, interest expense, and other non-operating income and expenses.

Hotel occupancy rate is an indicator of the utilization of our available rooms; average daily rate (“ADR”) is a price indicator; and hotel revenue per available room (“RevPAR”) is the product of the two and indicates the overall revenue generation of the hotel. Complimentary room sales, or the retail value of accommodations gratuitously furnished to customers, are included in the calculation of the hotel occupancy rate, ADR and RevPAR.

We manage our casinos based on geographical regions within the United States. Accordingly, Stockman’s Casino and Grand Lodge Casino comprise a Northern Nevada business segment, while Rising Star Casino Resort and the Silver Slipper Casino are currently distinct segments. We previously managed certain casinos owned by Native American tribes and we also consider our fee-based casino development and management services as a segment, although none of our current casino properties are managed for others.


	Three Months Ended March 31,						Percent of Net Revenues						Increase (Decrease)
	2015			2014			2015			2014			Dollars			Percent
Net Revenues
Silver Slipper Casino	$	13,724		$	12,320			47.2	%		40.5	%	$	1,404			11.4	%
Rising Star Casino Resort		11,115			13,248			38.2	%		43.5	%		(2,133	)		(16.1	)%
Northern Nevada Casinos		4,245			4,387			14.6	%		14.4	%		(142	)		(3.2	)%
Corporate and Other		--			494			--	%		1.6	%		(494	)		--	%
	$	29,084		$	30,449			100.0	%		100.0	%	$	(1,365	)		(4.5	)%
Operating income (loss)
Silver Slipper Casino	$	1,558		$	750			5.4	%		2.5	%	$	808			107.7	%
Rising Star Casino Resort		(483	)		(250	)		(1.7	)%		(0.8	)%		(233	)		(93.2	)%
Northern Nevada Casinos		83			148			0.3	%		0.4	%		(65	)		(43.9	)%
Corporate and Other		(1,172	)		(739	)		(4.0	)%		(2.4	)%		(433	)		(58.6	)%
	$	(14	)	$	(91	)		(0.0	)%		(0.3	)%	$	77			84.6	%

Net revenues increased primarily due to an increase in the number of patrons, marketing program improvements implemented early in the first quarter of 2015, and better weather conditions compared to the prior-year period. These items helped result in a $0.9 million (8.8%) increase in slot revenue and a $0.3 million (21.8%) increase in table games revenue. Non-gaming revenues (principally food and beverage revenues) increased $0.5 million (17.3%) largely due to the increased promotional activity. During 2015, we continued to have construction disruption related to the property’s adjoining hotel, which is now expected to open in phases during the second quarter of 2015.

Operating income benefited from the increase in revenue and a $0.3 million decrease in depreciation and amortization due to certain assets becoming fully depreciated. These items were partially offset by increased casino expenses of $0.5 million (8.8%) and food and beverage expenses of $0.2 million (24.9%), reflecting higher gaming volumes and the increase in promotional allowances. We also incurred $38,000 of preopening expenses for staffing and training for the new hotel.

Net revenues were lower primarily as a result of decreased gaming revenue of $2.1 million (17.5%), reflecting competitive pressure from both new and existing nearby casinos. All potentially licensed casinos in Indiana and southern Ohio have now opened. The most recent openings of new regional competitors were in May and August of 2014.

Operating income was lower due to the decrease in gaming revenue, partially offset by decreased casino expenses of $1.1 million (15.1%), reflecting cost-cutting measures and the declines in volumes and gaming revenues. During the prior-year period, Rising Star recorded a one-time operating expense credit adjustment of $0.5 million related to the estimated effective state gaming tax rate resulting from lower than anticipated gaming revenues and $0.2 million related to the over-accrual of unemployment taxes.


	Three Months Ended March 31,						Percent of Net Revenues						Increase (Decrease)
	2015			2014			2015			2014			Dollars			Percent

Revenues, net
Casino	$	26,354		$	27,481			90.6	%		90.3	%	$	(1,127	)		(4.1	)%
Non-casino related, net of promotional allowances		2,730			2,474			9.4	%		8.1	%		256			10.3	%
Management fees		--			494			--	%		1.6	%		(494	)		--	%
		29,084			30,449			100.0	%		100.0	%		(1,365	)		(4.5	)%

Costs and expenses
Casino		13,732			14,461			47.2	%		47.5	%		(729	)		(5.0	)%
Non-casino related		2,488			2,435			8.5	%		8.0	%		53			2.2	%
Selling, general and administrative		10,886			11,189			37.4	%		36.7	%		(303	)		(2.7	)%
Depreciation and amortization		1,992			2,455			6.9	%		8.1	%		(463	)		(18.9	)%
		29,098			30,540			100.0	%		100.3	%		(1,442	)		(4.7	)%

Operating loss		(14	)		(91	)		--	%		(0.3	)%		77			84.6	%

Interest expense and other		1,513			1,517			5.2	%		5.0	%		(4	)		(.3	)%

Loss before income tax benefit		(1,527	)		(1,608	)		(5.2	)%		(5.3	)%		81			5.0	%

Provision (benefit) for income taxes		228			(526	)		0.8	%		(1.7	)%		(754	)		(143.3	)%

Net loss	$	(1,755	)	$	(1,082	)		(6.0	)%		(3.6	)%	$	(673	)		(62.2	)%


	Three Months Ended March 31,				Percent of Net Revenues						Increase (Decrease)
	2015		2014		2015			2014			Dollars			Percent
Casino revenues
Slots	$	22,466	$	23,789		77.2	%		78.1	%	$	(1,323	)		(5.6	)%
Table games		3,796		3,618		13.1	%		11.9	%		178			4.9	%
Other		92		74		0.3	%		0.3	%		18			24.3	%
		26,354		27,481		90.6	%		90.3	%		(1,127	)		(4.1	)%

Non-casino revenues, net
Food and beverage		2,158		1,966		7.4	%		6.4	%		192			9.8	%
Hotel		153		123		0.5	%		0.4	%		30			24.4	%
Other		419		385		1.5	%		1.3	%		34			8.8	%
		2,730		2,474		9.4	%		8.1	%		256			10.3	%

Management fees		--		494		--	%		1.6	%		(494	)		--	%

Total net revenues	$	29,084	$	30,449		100.0	%		100.0	%	$	(1,365	)		(4.5	)%

Casino costs and expenses. The decrease in consolidated casino costs and expenses was primarily attributable to reductions in gaming taxes associated with reduced revenues and cost containment measures at Rising Star. These decreases were partially offset by an increase in complimentaries and gaming taxes associated with increased revenues and marketing changes at Silver Slipper.

Selling, general and administrative costs and expenses. These costs decreased due to a $0.5 million reduction in marketing and other costs at Rising Star, partially offset by a $0.2 million increase at Silver Slipper. These expenses included $38,000 related to the new hotel at Silver Slipper, which is scheduled to open in phases during the second quarter of 2015.

Income tax expense. We had a provision for income taxes in the first quarter of 2015 despite incurring a pre-tax loss. This was due to the effects of the valuation allowance against our deferred tax assets and the recording of a deferred tax expense on the tax amortization of indefinite-lived intangible assets. Our effective income tax rate for continuing operations for the three months ended March 31, 2015 was -14.9%, or an expense of $0.2 million, as compared to an effective tax rate of 32.7%, or a benefit of $0.5 million, for the corresponding prior-year period. In the prior-year period, we recorded a benefit against a pre-tax loss. Subsequently, in the fourth quarter of 2014, we created a valuation reserve against our deferred tax assets due to the uncertainty that such benefits would be realized. We continued the practice of recording a valuation reserve against our deferred tax assets during the first quarter of 2015.

“Adjusted EBITDA” is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, gain (loss) from asset disposals, board and executive transition costs, project development and acquisition costs, and non-cash share based compensation expense. Adjusted EBITDA information is presented solely as a supplemental disclosure to reported U.S. generally accepted accounting principles (“GAAP”) measures because management believes these measures are (1) widely used measures of operating performance in the gaming and hospitality industry, (2) a principal basis for valuation of gaming and hospitality companies, and (3) are utilized in the covenants within our debt agreements, although not necessarily defined in the same way as above. “Adjusted Property EBITDA” is Adjusted EBITDA before corporate related costs and expenses which are not allocated to each property. Adjusted EBITDA and Adjusted Property EBITDA are not, however, a measure of financial performance or liquidity under U.S. generally accepted accounting principles. Accordingly, these measures should be considered supplemental and not a substitute for net income (loss) or cash flows as an indicator of the Company’s operating performance or liquidity.


	Three Months Ended March 31,
	2015			2014
Adjusted EBITDA	$	2,141		$	2,498
Depreciation and amortization		(1,992	)		(2,455	)
Pre-opening		(38	)		--
Write-offs and asset disposals		(84	)		(1	)
Project development & acquisition costs		(4	)		(55	)
Stock compensation		(37	)		(78	)
Operating loss		(14	)		(91	)

Non-operating expenses (income)
Interest expense		1,525			1,517
Other		(12	)		--
		1,513			1,517

Loss before income taxes		(1,527	)		(1,608	)
Income tax expense (benefit)		228			(526	)

Net loss	$	(1,755	)	$	(1,082	)


Three Months Ended March 31, 2015	Operating income (loss)			Depreciation and amortization		Preopening		Write-offs and asset disposals		Project development and acquisition costs		Stock compensation		Adjusted EBITDA

Casino properties
Silver Slipper Casino	$	1,558		$	1,100	$	38	$	--	$	--	$	--	$	2,696
Rising Star Casino Resort		(483	)		688		--		--		--		--		205
Northern Nevada Casinos		83			200		--		80		--		--		363
		1,158			1,988		38		80		--		--		3,264

Other operations
Management fees		--			--		--		--		--		--		--
Project development and acquisition costs		(4	)		--		--		--		4		--		--
Stock compensation		(37	)		--		--		--		--		37		--
Corporate		(1,131	)		4		--		4		--		--		(1,123	)
		(1,172	)		4		--		4		4		37		(1,123	)

	$	(14	)	$	1,992	$	38	$	84	$	4	$	37	$	2,141


Three Months Ended March 31, 2014	Operating income (loss)			Depreciation and amortization		Preopening		Write-offs and asset disposals		Project development and acquisition costs		Stock compensation		Adjusted EBITDA

Casino properties
Silver Slipper Casino	$	750		$	1,386	$	--	$	--	$	--	$	--	$	2,136
Rising Star Casino Resort		(250	)		847		--		1		--		--		598
Northern Nevada Casinos		148			217		--		--		--		--		365
		648			2,450		--		1		--		--		3,099

Other operations
Management fees		494			--		--		--		--		--		494
Project development and acquisition costs		(55	)		--		--		--		55		--		--
Stock compensation		(78	)		--		--		--		--		78		--
Corporate		(1,100	)		5		--		--		--		--		(1,095	)
		(739	)		5		--		--		55		78		(601	)


(Mark One)

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended March 31, 2015
or
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from to


Delaware (State or other jurisdiction of incorporation or organization)		13-3391527 (I.R.S. Employer Identification No.)

4670 S. Fort Apache Road, Ste. 190 Las Vegas, Nevada (Address of principal executive offices)		89147 (Zip Code)

	Large Accelerated Filer o	Accelerated Filer o
	Non Accelerated Filer o (Do not check if a smaller reporting company)	Smaller reporting company þ


	March 31, 2015 (Unaudited)			December 31, 2014
Land and improvements	$	11,670		$	11,670
Buildings and improvements		73,997			73,997
Furniture and equipment		28,097			27,951
Construction in progress		15,712			11,264
		129,476			124,882
Less accumulated depreciation		(31,335	)		(29,842	)
	$	98,141		$	95,040


	March 31, 2015 (Unaudited)		December 31, 2014

Real estate and personal property taxes	$	979	$	1,172
Gaming taxes		206		294
Other taxes		468		495
Gaming related accruals		400		490
Other		842		1,253
	$	2,895	$	3,704


Leased Property		Term / Expiration
Grand Lodge Casino facility		7 years/August 2018
Land lease of Silver Slipper Casino site		54 years/April 2058


	Number of Stock Options		Weighted Average Exercise Price
Options outstanding at January 1, 2015		943,834	$	1.25
Granted		300,000	$	1.37
Exercised		--		--
Canceled/Forfeited		--		--
Options outstanding at March 31, 2015		1,243,834	$	1.28
Options exercisable at March 31, 2015		--	$	1.28

Vesting commencement date:		January 30, 2016
Expected volatility:		60%
Expected dividend yield:		0%
Expected life (in years):		3 years
Weighted average risk free rate:		0.88%


	Three Months Ended March 31, (In Thousands)
	2015			2014
Interest expense (excluding loan fee amortization)	$	1,318		$	1,222
Amortization of loan fees		404			370
Capitalized interest		(197	)		(75	)
Other		(12	)		--
	$	1,513		$	1,517