VARIABLE INTEREST ENTITIES

v2.4.0.6

VARIABLE INTEREST ENTITIES	9 Months Ended
	Sep. 30, 2012
Variable Interest Entities [Abstract]
VARIABLE INTEREST ENTITIES	3. VARIABLE INTEREST ENTITIES   GED. Our investment in unconsolidated joint venture was comprised of a 50% ownership interest in GED, a joint venture between us and Harrington Raceway Inc. (“HRI”). GED had a management agreement through August 31, 2011 with HRI for the management of Harrington Raceway and Casino (“Harrington”) (formerly known as Midway Slots and Simulcast), which is located in Harrington, Delaware. Under the terms of the joint venture agreement, as restructured in 2007, we received the greater of 50% of GED’s member distribution as prescribed under the joint venture agreement, or a 5% growth rate in its 50% share of GED’s prior year member distribution through the expiration of the GED management contract on August 31, 2011. GED was a variable interest entity due to the fact that we had limited exposure to risk of loss. Therefore, we did not consolidate, but accounted for its investment using the equity method.   We sold our interest in GED to HRI during the fourth quarter of 2011 and our investment in GED was $0.0 million as of December 31, 2011.   GED had no non-operating income or expenses, was treated as a partnership for income tax reporting purposes and consequently recognized no federal or state income tax provision. As a result, income from operations for GED is equal to its net income for each period presented, and there were no material differences between GED’s income for financial and tax reporting purposes.   GED CONDENSED STATEMENT OF INCOME INFORMATION   Three Months Ended Nine Months Ended September 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011 Revenues $ -- $ 5,207,935 $ -- $ 21,291,578 Net income -- 752,797 -- 3,507,322   GEM. We directed the day-to-day operational activities of GEM which significantly impacted GEM’s economic performance, prior to the sale of our interest on March 30, 2012, and therefore, we were the primary beneficiary pursuant to the relevant portions of FASB ASC Topic 810 “Consolidation” [ASC 810-10-25 Recognition of Variable Interest Entities, paragraphs 38-39]. As such, the joint venture was a variable interest entity that was consolidated in our financial statements.   Management believed the maximum exposure to loss from our investment in GEM was $8.1 million (before tax impact) as of December 31, 2011, which was composed of our share of contract rights and our equity investment that was eliminated in consolidation. GEM had no debt or long-term liabilities. As of December 31, 2011 GEM’s current assets were $2.5 million and included the FireKeepers management fee receivable. Also as of December 31, 2011, Long-term assets included $7.9 million in contract rights.       An unaudited summary of GEM’s operations follows:   GEM CONDENSED STATEMENT OF INCOME INFORMATION   Three Months Ended Nine Months Ended September 30, 2012 September 30, 2011 September 30, 2012 September 30, 2011 Revenues $ -- $ 6,001,093 $ 5,340,398 $ 18,277,769 Net income -- 5,246,502 4,362,345 15,873,502