TAXES (Tables)

12 Months Ended

Dec. 31, 2013

TAXES

Schedule of income tax provision (benefit)

	Years ended December 31,
	2013			2012		2011
Federal	$	9,640,020		$	4,611,978	$	4,683,711
State	1,375,825			196,073		—
Current tax provision	11,015,845			4,808,051		4,683,711
Federal	107,917			208,812		(1,503,638		)
State	(489,717		)	31,490		—
Deferred tax expense (benefit)	(381,800		)	240,302		(1,503,638		)
Total tax provision	$	10,634,045		$	5,048,353	$	3,180,073

Schedule of income tax provision differs from that computed at the federal statutory rate

	Years ended December 31,
	2013		2012		2011
Federal tax at the statutory rate	35.00	%	35.00	%	35.00	%
State tax (net of federal benefit)	1.33	%	0.98	%	—
Permanent items	0.45	%	3.03	%	0.96	%
Tax credits	(0.77	)%	(1.44	)%	(2.24	)%
Adjustment to base jackpot liability	—		—		2.09	%
Other	1.18	%	(1.41	)%	0.10	%
	37.19	%	36.16	%	35.91	%

Schedule of components of the deferred income tax assets and liabilities

	2013			2012
DEFERRED TAX ASSETS
Stock-based compensation	$	4,621,386		$	4,595,100
Compensation and benefits	759,519			700,194
Bad debt reserves	133,707			255,053
Accrued expenses	1,127,100			1,372,645
Fixed assets and depreciation	—			50,428
Base stock	235			787
NOLs & credit carry-forwards	4,103,032			5,207,805
Deferred income tax asset	$	10,744,979		$	12,182,012
DEFERRED TAX LIABILITIES
Fixed assets and depreciation	$	(105,714	)	$	—
Intangibles and amortization	(3,069,907		)	(4,044,119		)
Prepaid expenses	(906,944		)	(922,736		)
Real estate taxes	(285,497		)	(285,038		)
Federal deduction on deferred state taxes	(118,756		)	(290,158		)
Deferred income tax liability	$	(4,486,818	)	$	(5,542,051	)
NET DEFERRED INCOME TAX ASSET	$	6,258,161		$	6,639,961

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

	2013		2012			2011
Balance — Beginning of year	$	—	$	1,501,206		$	1,501,206
Additions based on tax positions of the current year	—		—			—
Additions based on tax positions of prior years	—		—			—
Reductions for settlements	—		(1,501,206		)	—
Decreases due to lapses in statutes of limitations	—		—			—
Balance — End of year	$	—	$	—		$	1,501,206