10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2013

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                       .

Commission File No.:  0-25244

TRANS WORLD CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Nevada
(State or Other Jurisdiction of
Incorporation or Organization) 13-3738518
(I.R.S. Employer
Identification No.)

545 Fifth Avenue, Suite 940
New York, NY
(Address of Principal Executive Offices) 10017
(Zip Code)

Registrant’s telephone number, including area code: (212) 983-3355

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of 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 x  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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  YES x  NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule12b-2 of the Exchange Act.  (Check one):

Large accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES o NO x

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, as of  November 5, 2013 was 8,825,335.

TRANS WORLD CORPORATION AND SUBSIDIARIES

FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2013

INDEX

PART I — FINANCIAL INFORMATION

		Page
ITEM 1.	FINANCIAL STATEMENTS:
	Condensed Consolidated Balance Sheets as of September 30, 2013 (unaudited) and December 31, 2012	1
	Condensed Consolidated Statements of Operations and Comprehensive Income for the Nine and Three Months Ended September 30, 2013 and 2012 (unaudited)	2
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2013 and 2012 (unaudited)	3
	Notes to Condensed Consolidated Interim Financial Statements (unaudited)	4
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	22
ITEM 4.	CONTROLS AND PROCEDURES	22
PART II — OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	22
ITEM 1A.	RISK FACTORS	22
ITEM 5.	OTHER INFORMATION	23
ITEM 6.	EXHIBITS	23
	SIGNATURES	27

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ITEM 1.                FINANCIAL STATEMENTS

TRANS WORLD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2013 and December 31, 2012

(in thousands, except for share data)

	September 30, 2013			December 31, 2012
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash	$	4,159		$	6,887
Prepaid expenses	301			316
Notes receivable	300			663
Other current assets	273			262
Total current assets	5,033			8,128
PROPERTY AND EQUIPMENT, less accumulated depreciation of $13,305 and $12,877, respectively	35,229			34,067
OTHER ASSETS:
Goodwill	6,381			6,396
Deposits and other assets	2,504			2,439
Total other assets	8,885			8,835
	$	49,147		$	51,030
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Long-term debt, current maturities	$	161		$	1,836
Capital lease, current portion	53			55
Accounts payable	424			804
Interest payable				15
Czech gaming tax accrual	1,803			1,943
Foreign income tax accrual	714			1,480
Accrued expenses and other current liabilities	1,288			1,612
Total current liabilities	4,443			7,745
LONG-TERM LIABILITIES:
Long-term debt, less current maturities	1,255			1,376
Capital lease, less current portion	95			134
Deferred foreign tax liability	579			581
Total long-term liabilities	1,929			2,091
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.001 par value, 4,000,000 shares authorized, none issued
Common stock, $0.001 par value, 20,000,000 shares authorized, 8,825,335 shares in 2013 and 8,836,735 shares in 2012, issued and outstanding	9			9
Additional paid-in capital	52,623			52,454
Accumulated other comprehensive income	7,595			7,562
Accumulated deficit	(17,452		)	(18,831		)
Total stockholders’ equity	42,775			41,194
	$	49,147		$	51,030

See accompanying notes to condensed consolidated interim financial statements.

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TRANS WORLD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

Nine and Three Months Ended September 30, 2013 and 2012

(in thousands, except for share data)

	Nine Months Ended September 30,						Three Months Ended September 30,
	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
REVENUES	$	26,074		$	26,428		$	8,831		$	8,996
COSTS AND EXPENSES:
Cost of revenues	14,326			14,288			4,854			4,306
Depreciation and amortization	1,193			1,301			408			422
Selling, general and administrative	8,505			8,116			2,587			3,122
	24,024			23,705			7,849			7,850
INCOME FROM CONTINUING OPERATIONS, before other expense and foreign income taxes	2,050			2,723			982			1,146
OTHER EXPENSE:
Interest expense, net	(48		)	(209		)	(8		)	(65		)
INCOME FROM CONTINUING OPERATIONS, before income taxes	2,002			2,514			974			1,081
FOREIGN INCOME TAXES	(623		)	(1,267		)	(268		)	(583		)
INCOME FROM CONTINUING OPERATIONS	1,379			1,247			706			498
DISCONTINUED OPERATIONS, gain from operation of discontinued Rozvadov Casino, net of tax				200						306
NET INCOME	1,379			1,447			706			804
Other comprehensive income, foreign currency translation adjustments, net of tax	33			654			2,031			2,224
TOTAL COMPREHENSIVE INCOME	$	1,412		$	2,101		$	2,737		$	3,028
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	8,826,375			8,871,635			8,825,335			8,871,635
Diluted	9,052,827			9,022,346			9,051,787			9,022,346
EARNINGS PER COMMON SHARE:
From continuing operations:
Basic	$	0.16		$	0.14		$	0.08		$	0.06
Diluted	$	0.15		$	0.14		$	0.08		$	0.06
From discontinued operations:
Basic	$	—		$	0.02		$	—		$	0.03
Diluted	$	—		$	0.02		$	—		$	0.03

See accompanying notes to condensed consolidated interim financial statements.

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TRANS WORLD CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2013 and 2012

(in thousands)

	Nine Months Ended September 30,
	2013			2012
	(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,379		$	1,447
Adjustments to reconcile net income to net cash provided by operating activities:
Gain from assets disposal				(351		)
Depreciation and amortization	1,193			1,330
Stock options expense				104
Deferred board fees	10			8
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	3			351
Deposits and other assets	(71		)	940
Accounts payable	(365		)	(426		)
Interest payable	(5		)	(17		)
Czech gaming tax accrual	(132		)	(2,167		)
Foreign income tax accrual	(742		)	1,120
Accrued expenses and other current liabilities	(136		)	(59		)
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,134			2,280
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,370		)	(531		)
Proceeds from assets disposal				1,321
Investment into Hotel Savannah and the Spa	(22		)	(120		)
Repayment on notes receivable	408			64
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(1,984		)	734
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility				5,357
Principal payments on Commerzbank debt	(1,680		)	(6,553		)
Principal payments on Ceska municipal loan	(115		)	(115		)
Share buyback under the Stock Repurchase Program	(29		)
NET CASH USED IN FINANCING ACTIVITIES	(1,824		)	(1,311		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(54		)	(168		)
NET INCREASE (DECREASE) IN CASH	(2,728		)	1,535
CASH:
Beginning of period	6,887			5,636
End of period	$	4,159		$	7,171
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	48		$	208
Cash paid during the period for foreign income taxes	$	1,383		$	138
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Deferred compensation to be paid in common stock	$	188		$	260

See accompanying notes to condensed consolidated interim financial statements.

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TRANS WORLD CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

(all figures in thousands, except for exchange rate and share data)

1.Basis of Presentation and Consolidation.

The accompanying unaudited condensed consolidated interim financial statements of Trans World Corporation and Subsidiaries (collectively, the “Company,” “TWC,” “we,” “our” or “us”) as of September 30, 2013 and December 31, 2012 and for the nine and three months ended September 30, 2013 and 2012 reflect all adjustments of a normal and recurring nature to fairly present the consolidated financial position, results of operations and cash flows for the interim periods. On June 30, 2012, we sold our smallest and underperforming casino, located at Rozvadov, after ceasing all gaming operations there on March 31, 2012.  Thus all operational presentations and discussions here in this report exclude the impact of these discontinued operations for the prior year 2012, and certain prior year amounts have also been reclassified to reflect this impact. (See a further discussion of this matter in “Note 3 Discontinued Operations” below).  The financial statements of all foreign subsidiaries consolidated herein have been converted in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”) for financial presentation purposes. All significant intercompany transactions and account balances have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements have been prepared by the Company according to the instructions of Form 10-Q and pursuant to the U.S. Securities and Exchange Commission’s (“SEC”) accounting and reporting requirements under Regulations S-X and S-K. Pursuant to these instructions, certain financial information and footnote disclosures normally included in such consolidated financial statements have been condensed or omitted.  In presenting the condensed consolidated interim financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates.

In management’s opinion, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with management’s discussion and analysis, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the nine and three months ended September 30, 2013 are not necessarily indicative of the results that may occur for the year ending December 31, 2013.

The condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by US GAAP. All monetary amounts set forth in these financial statements are in United States dollars (“USD” or “$”) unless otherwise stated herein.

2.Nature of Business.

Trans World Corporation, a Nevada corporation, and Subsidiaries are primarily engaged in the gaming and hotel business in the Czech Republic.

The Company owns and operates three casinos in the Czech Republic (“CZ”), all under the registered brand, American Chance Casinos (“ACC”). The Ceska casino (“Ceska”), located in the town of Ceska Kubice, in the western part of the CZ, close to the German border, currently has 15 gaming tables and 100 slot machines.  The Route 55 casino (“Route 55”), located in Dolni Dvoriste, in the southern part of the CZ, close to the Austrian border, has 23 gaming tables and 124 slot machines. The Route 59 casino (“Route 59”), is located in Hate, near Znojmo, in the CZ, and currently has 23 gaming tables and 118 slot machines.

In addition to the above gaming operations, TWC also owns and operates a 77-room, four-star deluxe hotel, the Hotel Savannah, which is physically connected to its Route 59 casino, and a full-service spa, the Spa at Savannah (the “Spa”), which is operated by an independent contractor and is attached to the hotel.  The hotel features eight banquet halls for meetings and special events as well as a full-service restaurant and bar.

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The Company was also the manager, under a 10-year management contract expiring in 2017, of the Grand Casino Lav and Nightclub (collectively known as the “Grand Casino Lav”), located in Podstrana, Croatia, near the resort city of Split. This casino had been operating under difficult conditions in a depressed regional economy.  On January 1, 2012, the casino’s operations were suspended by the owner, Grand Hotel Lav d.o.o. (“GHL”), and beginning March 2013, the property went under bank receivership, pending settlement of all of its debt obligations.  The management contract was effectively terminated upon the signing of this agreement, “Agreement on Settlement of Debts,” with TWC, dated April 30, 2013. See also “Note 4 — Commitments and Contingencies — Notes Receivable” below.

3.Discontinued Operations.

The Company had owned and operated a fourth casino in the western part of CZ, in the town of Rozvadov.  The Company began terminating live game operations at Rozvadov at the end of January 2012, and continued running the unit as a slot-only operation until March 31, 2012, when all gaming operations ceased and the entire property was leased out to a third-party operator.  On July 11, 2012, the lessee exercised its option to buy out the lease by making the full purchase payment of €1,000, or approximately $1,300 to TWC.  The net gain from the sale of the Rozvadov casino and associated buildings, less all related costs, and inclusive of rental income was approximately $306. Rozvadov’s net operating loss for the six months of operation ending June 30, 2012 was $(145).  No write-downs of inventories or furniture, fixtures and equipment (“FF&E”) were incurred because its slot machines were leased, while the Company’s owned FF&E was subsequently rented out and remaining inventories were transferred to other operating units at an immaterial cost.  Employees at Rozvadov received cash severance benefits aggregating approximately $79, with no continuing obligation.

4.Commitments and Contingencies.

Lease Obligations — The Company is obligated under one operating lease, for its corporate office space, expiring in March 2015.  Future aggregate minimum annual rental payments under this lease for the next two years are as follows:

Twelve Months Ending September 30,
2014	$	88
2015	$	44

Rent expense under this lease was approximately $65 and $58 for the nine months ended September 30, 2013 and 2012, respectively.

The Company is also obligated under certain five-year, slot equipment operating leases, the projected costs of which are not included in the table above due to fluctuating inventory, expiring over staggered years, which provide for a monthly fixed rental fee per slot machine, and an option for replacement with different/newer machines during the term of the lease.  In the third quarter of 2013, the Company’s slot lease expense was $619 versus $574 in the comparable quarter in 2012, while in the nine months ending September 30, 2013, the Company’s slot lease expenses were $1,815 versus $1,777 in the comparable period in 2012, due to the addition of 20 slot machines in September 2013.

Employment Agreements — The Company’s July 1, 2005 employment agreement with its Chief Executive Officer (“CEO”), Mr. Rami S. Ramadan, absent the intervention of either party by September 30th of each year, will renew automatically for another calendar year, currently ending December 31, 2014.  In addition to a perpetually renewable employment term of one year absent the intervention of either party, the agreement provides for annual compensation, plus participation in the Company’s benefits programs and equity incentive plans.  As of September 30, 2013, the Company is contractually obligated to pay an aggregate of approximately $563, which includes the annual base salary for the remaining quarter of 2013 and the annual base salary for the full year of 2014.

401(k) and Profit Sharing Plan — The Company maintains a contributory 401(k) plan and a profit sharing plan.  These plans are for the benefit of all eligible corporate employees, who may have up to 16.5% of their salary withheld, not to exceed the maximum federally allowed amount.  The Company makes an employer-matching contribution of 60% of each such employee dollar contributed.

Notes Receivable — In connection with the TWC’s management of the Grand Casino Lav, on January 10, 2007, the Company extended three Euro-denominated loans totaling €967, or then $1,258, to the GHL, the owner of the Grand

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Casino Lav and Nightclub. At September 30, 2013, the balance of approximately €200, or $300 in principal amount, remained receivable, as per the executed payment allocation and pledge of payment agreement related to the existing credit agreement and the 2006 Management Agreement.  In April 2013, GHL, under bank receivership since March 2013, acknowledged the outstanding debt and requested an extension for the repayment of the remaining balance of approximately €472, or then $708, with an initial payment of €72, followed by monthly installments of €50, ending December 31, 2013, which TWC has granted, under the “Agreement on Settlement of Debts,” signed on April 30, 2013.  On October 1, 2013, TWC received the September payment of €50, thereby reducing the outstanding balance to €150, or approximately $225, for the remainder of the term.  TWC still holds eight unexercised demand notes.

Advance Receivable — In August 2009, in pursuit of obtaining a gaming license in Hungary, TWC partnered with Vigotop Limited, a Cyprus-based company (“Vigotop”), to form a Hungarian company, KC Bidding Kft. (“KCB”), in which TWC became holder of a 25% equity interest. Subsequently, TWC extended a three-year, 1.0% interest per annum loan of approximately €930 (or then $1,330) to KCB to form a Hungarian license concession company, SDI Europe Kft. (“SDI”), for the purpose of eventually operating the Class I casino in Hungary. SDI is a wholly-owned subsidiary of KCB. Through SDI’s intermediary, IMT LLC (“IMT”), a Delaware limited liability company, American Chance Casinos (“ACC”), an operations subsidiary of TWC, received a three-year, 2.1505% interest per annum loan of approximately $1,210. TWC expects the full lump sum repayment of the advance receivable, upon maturity, from KCB, to offset its outstanding loan with IMT. In the event KCB defaults in its repayment obligation to TWC with respect to the above mentioned loan, according to a mutual agreement, IMT will cancel the loan obligation from ACC to IMT and ACC will no longer be obligated to pay off the loan balance of approximately €910, or $1,229. In November 2010, the loan agreement between ACC and KCB was amended to change the maturity date to January 31, 2016 from December 31, 2012 and to establish an interest rate of 1% from January 1, 2012 through the new maturity date of the loan. In March 2011, the loan agreement between IMT and ACC was amended to change the maturity date to February 21, 2016 from January 31, 2013, and to establish an interest rate of 1% from January 1, 2012 through the new maturity date of the loan.  On July 23, 2013, ACC and Vigotop agreed to a restructuring of the obligations, whereby IMT assigned its rights to SDI, effectively transferring the loan to SDI, with all other loan terms remaining as-is.  As of September 30, 2013, the principal on the TWC loan to KCB was approximately $1,256 and was included in the Company’s deposits and other assets, while the principal on the SDI loan to TWC was approximately $1,229 and was included in the Company’s long-term debt.

Since January 12, 2011, there have been several lawsuits and countersuits initiated by the Ministry for the National Economy of Hungary (the “MOE”) and by KCB, contesting the cancellation of the concession contract, which was signed on October 9, 2009, and alleged breaches of its terms.  The various court hearings have either been inconclusive or postponed pending further discovery processes.  The next court hearing, in the discovery process, in the case of KCB versus the State of Hungary has been postponed to November 27, 2013, while the case of the MOE versus KCB was postponed to November 6, 2013.  Notwithstanding the foregoing, litigation results are never predictable. Further, by virtue of an existing agreement between Vigotop and TWC, all costs associated with obtaining the casino license were and will be borne by Vigotop. In the opinion of TWC’s management, after consultation with legal counsel, the amount of ultimate liability with respect to these actions, if adversely decided to KCB, will not materially affect the Company’s consolidated financial statements and/or results of operations.

Taxing Jurisdiction—The Czech Republic currently has a number of laws related to various taxes imposed by governmental authorities.  Applicable taxes include corporate income tax, gaming tax, value-added tax (“VAT”), payroll (social) taxes and, until repealed as of January 1, 2012, charity taxes.  Tax declarations, together with other legal compliance areas (e.g. customs and currency control matters) are subject to review and investigation by a number of governmental authorities, which are enabled by law to impose fines, penalties and interest charges, and create tax risks in the Czech Republic.  Management believes that it has adequately provided for all of its Czech tax liabilities.

Effective January 1, 2012, charity taxes were eliminated in lieu of a new overall flat gaming tax (the “New Gaming Tax”) of 20.0% on all live game and slot revenues, as well as a new 19% corporate income tax on adjusted Czech net income.  Additionally, the administration tax and state supervision fee have been eliminated in lieu of a per slot, per diem tax, payable along with the New Gaming Tax.  The New Gaming Tax is payable by the 25th day following the end of each quarter, while the corporate income tax is payable by June 30th of the subsequent year, and, estimated quarterly income tax payments beginning in September 2013. (See also Note 6(k) “Czech Gaming Taxes” and Note 6(l) “Income Taxes” below).

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Legal Proceedings — The Company is often subject to various contingencies, the resolutions of which, its management believes, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.  TWC was not involved in any material litigation during the nine months ended September 30, 2013, or through the date of this filing.

5.Liquidity.

As of September 30, 2013, the Company had a working capital surplus of $590, as compared to the working capital surplus of $383 at December 31, 2012.

The Company’s management believes that its cash resources at September 30, 2013, in addition to the anticipated cash to be provided by existing operations, will be sufficient to meet all current obligations and fund its current operating activities for the next twelve months.

6.Summary of Selected Significant Accounting Policies.

(a)Revenue recognition — Casino revenue is defined as the net win from gaming activities, which is the difference between gaming wagers and the amount paid out to patrons, and is recognized on the day it is earned. Revenues generated from ancillary services, including lodging, sales of food, beverage, cigarettes, and casino logo merchandise are recognized at the time the related services are performed and represent, on an individual basis, less than five percent of total revenues.

(b)Earnings per share — Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share incorporate the dilutive effect of common stock equivalents on an average basis during the period. The Company’s common stock equivalents currently include stock options, warrants and deferred compensation stock. Thus, unexercised stock options to purchase up to 598,750 and 660,850 shares as of September 30, 2013 and September 30, 2012, respectively, were included in the computation of diluted earnings per common share, if such unexercised stock options were “in-the-money” and vested. Warrants to purchase up to 75,000 shares were also included, if they were “in-the-money” and vested.  In addition, 226,441 and 150,698 issuable shares, as of September 30, 2013 and September 30, 2012, respectively, under the Company’s Deferred Compensation Plan were also included in the computation.

A table illustrating the impact of dilution on earnings per share, based on the treasury stock method, is presented below:

	For the Nine Months Ended				For the Three Months Ended
(amounts in thousands, except for	September 30,				September 30,
share information)	2013		2012		2013		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Basic Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Basic earnings per share	$	0.16	$	0.14	$	0.08	$	0.06
Diluted Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Addition due to the effect of dilutive securities:
Stock options and warrants (1)	11		13		11		13
Stock issuable under the Deferred Compensation Plan	226,441		150,698		226,441		150,698
Dilutive potential weighted average common shares	9,052,827		9,022,346		9,051,787		9,022,346
Diluted earnings per share	$	0.15	$	0.14	$	0.08	$	0.06

(1) Per the treasury stock method.

(c)Goodwill — Goodwill represents the excess of the cost of the Company’s Czech subsidiaries over the fair value of their net assets at the date of acquisition, which consisted of the Ceska casino, the Rozvadov casino (which was sold in 2012) and the land in Hate, which is currently the Route 59 Casino. Goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company has allocated the goodwill

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over two reporting units that are components of the operating segment “Czech subsidiaries” and are classified as the “German reporting unit” which consists of the Ceska casino, and the “Austrian reporting unit” which consists of the Route 55 and Route 59 casinos and the Hotel Savannah.  Goodwill impairment tests require the Company to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test.  The Company is not required to calculate the fair value of a reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.  The Company assesses the potential impairment of goodwill annually (as of September 30th) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable.  Upon completion of such review, if impairment is found to have occurred, a corresponding charge will be recorded.

Based on TWC’s own assessment of qualitative factors which included an analysis of macroeconomic conditions, financial performance, and industry and market considerations, the Company concluded that it was not necessary to perform a two-step quantitative goodwill impairment test and that the goodwill of the Company was not impaired as of September 30, 2013, its annual assessment date.

(d)Property and equipment- Property and equipment is stated at cost less accumulated depreciation and amortization.  TWC capitalizes the cost of improvements that extend the life of the asset and expenses maintenance and repair costs as incurred.  The Company provides for depreciation and amortization using the straight-line method over the following estimated useful lives:

Asset	Estimated Useful Life
Building and improvements	5-50 years
Furniture, fixtures and other equipment	4-12 years

At September 30, 2013 and December 31, 2012, property and equipment consisted of the following:

	As of September 30, 2013			As of December 31, 2012
	(Unaudited)
Land	$	2,844		$	2,691
Building and improvements	32,953			31,131
Furniture, fixtures and other equipment	12,737			13,122
	48,534			46,944
Less accumulated depreciation and amortization	(13,305		)	(12,877		)
	$	35,229		$	34,067

(e)Impairment for long-lived assets — The Company periodically evaluates whether current facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may be recoverable.  If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived assets, or the appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists.  If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable market value.  There were no impairment losses for long-lived assets recorded for the nine months ending September 30, 2013 and 2012.

(f)Foreign currency translation — Foreign subsidiaries whose functional currency is the local foreign currency, balance sheet accounts and cash flows are translated at exchange rates in effect at the end of each reporting period and resulting translation adjustments are included in “accumulated other comprehensive income.”  Statement of

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operations accounts are translated by applying the monthly averages of the daily exchange rates of one (1) US dollar (“USD”) to the Czech Koruna (“CZK”) on the respective monthly local Czech statement of operations accounts for the period.

The impact of foreign currency translation on goodwill is presented below:

	Applicable	Goodwill
(UNAUDITED)	Foreign Exchange	German		Austrian
As of September 30, 2013 (in thousands, except FX)	Rate (“FX”)(2)	reporting unit		reporting unit		Total
Residual balance, as of January 1, 2003 (in USD) (1)		USD	3,042	USD	537	USD	3,579
USD residual balance, translated at June 30, 1998 (date of acquisition) FX rate of:	33.8830	CZK	103,072	CZK	18,195	CZK	121,267
2003 CZK balance, translated to USD, at September 30, 2013 FX rate of:	19.0054	USD	5,423	USD	958	USD	6,381
Net increase to Goodwill		USD	2,381	USD	421	USD	2,802

(1)Goodwill was amortized over 15 years until the Company started to comply with revised GAAP requirements, as of January 1, 2002. This balance represents the remaining, unamortized goodwill, after an impairment charge taken prior to January 1, 2003.

(2)FX (interbank) rates taken from www.Oanda.com.

(g)Stock-based compensation — The Company recognizes the fair value of stock-based compensation in the condensed consolidated statement of operations. The fair value of the Company’s stock option awards are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award.  In addition, the calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based awards is amortized over the vesting period of the award. The award expenses for the nine months ended September 30, 2013 and 2012 were $0 and $104, respectively.

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(h)Stock repurchase program —  On November 12, 2012, TWC’s board of directors approved a stock repurchase program (the “program”), in accordance with the retirement method, authorizing the repurchase of up to 500,000 shares of the Company’s Common Stock, over a 12-month period.  The program will expire on its anniversary date and does not obligate the Company to acquire any particular amount of Common Stock.  It can be modified, extended, suspended or discontinued at any time.  Thus, pursuant to the stock repurchase program and through a registered broker-dealer, the Company conducted repurchases on the open market, arriving at an outstanding 8,825,335 shares at September 30, 2013.  The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors.  Repurchases may be conducted in the open market or in privately negotiated transactions.  There was no repurchase activity during the three months ended September 30, 2013.  The repurchase transactions since the inception of the program are listed in the table below:

ISSUER PURCHASES OF EQUITY SECURITIES

Date	TotalNumber of Shares Purchased	AveragePrice Paid per Share		Cumulative Total of Number of SharesPurchased as Part ofPublicly AnnouncedPlan	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program
11/19/2012	4,900	$	2.50	4,900	495,100
12/20/2012	30,000	$	2.65	34,900	465,100
01/16/2013	5,000	$	2.50	39,900	460,100
01/18/2013	900	$	2.50	40,800	459,200
01/25/2013	4,500	$	2.50	45,300	454,700
03/08/2013	100	$	2.54	45,400	454,600
03/25/2013	200	$	2.50	45,600	454,400
03/26/2013	200	$	2.65	45,800	454,200
04/04/2013	250	$	2.65	46,050	453,950
04/09/2013	250	$	2.40	46,300	453,700

(i)Comprehensive income — The Company’s change in the foreign currency translation adjustments is included in other comprehensive income.

(j)Promotional allowances — Promotional allowances primarily consist of food and beverages and, to certain of its valuable players, hotel accommodations, all of which are furnished gratuitously.  For the nine months ended September 30, 2013 and 2012, revenues do not include the retail amount of food and beverages and hotel accommodations of $4,972 and $4,850, respectively, provided at no-charge to customers. The retail value of the food and beverages given away is determined by dividing the food and beverage costs charged to the gaming operation of $1,744 and $1,668 for the respective periods, by the average percentage of cost of food and beverages sold.  The cost of hotel accommodations is either the out-of-pocket expenses paid to other hotels that provide rooms for our players or the retail charge for rooms at the Hotel Savannah and at our VIP hotel rooms at Route 55 and at Ceska.

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The promotional allowances are summarized below:

	For the Nine Months Ended						For the Three Months Ended
	September 30,						September 30,
(dollar amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cost of gratuitous food and beverages (A)	$	1,744		$	1,668		$	598		$	545
Average cost of food and beverages sold (B)	35.4		%	34.6		%	34.0		%	34.2		%
Retail value of food and beverages (A/B)	$	4,927		$	4,821		$	1,759		$	1,594
Retail value of hotel accommodations	45			29			16			13
Total promotional allowances	$	4,972		$	4,850		$	1,775		$	1,607

(k)Czech gaming taxes — Effective January 1, 2012, TWC merged its three Czech slot subsidiary companies, ACC Slot, s.r.o., Hollywood Spin s.r.o. and LMJ Slot s.r.o. into its primary Czech operating entity company, American Chance Casinos a.s., in an effort to eliminate and/or reduce redundancy in operations, maintenance and operating costs.

The new Czech Gaming Tax Law is summarized in the following table:

	New Gaming Tax Law *
	(Effective January 1, 2012)
Live Games	20% Gaming Tax from Win (70% of tax to federal; 30% to local municipality).
Slots	20% Gaming Tax from Win (20% of tax to federal; 80% to local municipality); Fifty five Korunas (or approximately three dollars) Gaming Tax per Slot Machine, per Day.
Net Income	19% corporate income tax on adjusted net income earned in the Czech Republic, net of exemptions (to federal).

*The new Gaming Tax is to be paid quarterly, by the 25th day following the end of a quarter, while the 2012 corporate income tax obligation was paid by June 30, 2013, to be followed by estimated quarterly income tax payments beginning the third quarter ending September 30, 2013.

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TWC’s gaming-related taxes and fees for the nine and three months ended September 30, 2013 and 2012 are summarized in the following table:

	For the Nine Months Ended						For the Three Months Ended
(amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Gaming revenues (live-game and slot only)	$	23,719		$	24,122		$	8,008		$	8,078
Gaming taxes on live games and slots	4,994			5,038			1,689			1,696
Licensing fees (eliminated in 2012) *				283
Total gaming taxes and fees	$	4,994		$	5,321		$	1,689		$	1,696
as % of gaming revenue	21.0		%	22.1		%	21.1		%	21.0		%

*  As the non-refundable, six-month licensing fees effective for January 2012 through June 2012 were paid in October 2011, prior to the passing of New Gaming Tax laws in December 2011, the Company incurred additional taxes for the first six months of 2012.  Excluding the repealed licensing fees, the gaming taxes and fees for the three months and nine months ending September 30, 2012 would have been each 21.0% of gaming revenue.

In conformity with the European Union (“EU”) taxation legislation, when the Czech Republic joined the EU in 2004, its VAT increased from 5% to 22%, from January 2004 through December 2009, and ranged between 9% and 19% for all intra-EU generated purchases. Between January 1, 2010 and December 31, 2012, VAT rates increased to between 10% and 20%, then to 15% and 21%, beginning on January 1, 2013. The applicable VAT rate varies depending on the product or services sold and/or received.  All non-EU generated purchases were impacted by identical VAT increases, beginning in May 2004. The VAT top rate rose to 21% beginning on January 1, 2013. The Company pays its VAT directly to its vendors in connection with any purchases that are subject to this tax. Unlike in other industries, VATs are not recoverable for gaming operations. The recoverable VAT under the Hotel Savannah operation was non-material for the nine and three months ended September 30, 2013 and 2012, respectively.

(l)Income taxes — Deferred income tax assets and liabilities are computed for differences between the financial statement and the tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.  Accounting for income taxes prescribes, among other things, a recognition threshold and measurement attributes for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return. Accounting for income taxes utilizes a two-step approach for evaluating uncertain tax positions. Step One, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step Two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority. The Company is subject to income tax examinations by U.S. and foreign taxing authorities for all tax years subsequent to 2009. The adoption of the provisions of the Financial Accounting Standards Board (“FASB”) standard, “Accounting for Income Taxes” did not have a material impact on the Company’s consolidated financial statements. However, management’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulation and interpretations, thereof.  During the nine months ended September 30, 2013, the Company recognized no adjustments for uncertain tax positions.

Effective January 1, 2012, the Czech government instituted an effective corporate income tax, currently at 19.0%, on gaming net income, which prior to the law changes, gaming revenue was subject only to gaming taxes.  As a result of the new tax laws and due to the materiality of the income tax liability, the Company incurred an estimated foreign income tax expense of $623 and $1,267 for the nine months ended September 30, 2013 and 2012, respectively.  Foreign book tax differences on fixed assets have resulted in a long-term deferred tax liability of $579, which is included in long-term liabilities on the balance sheet.  Corporate income tax for the current year is

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payable by the end of September of the subsequent year, followed by estimated quarterly corporate income tax payments, which began in September 2013.

(m)Recently issued and adopted accounting standards:

In February 2013, the FASB issued guidance to improve the reporting of amounts reclassified out of accumulated other comprehensive income (“AOCI”). The guidance amends the presentation of changes in AOCI and requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the statement of income or as a separate disclosure in the notes. This guidance is effective prospectively for fiscal years beginning after December 15, 2012. The Company adopted the guidance on January 1, 2013, as required. There was no material impact on its consolidated financial statements resulting from the adoption.

(n)New accounting pronouncement:

In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. The guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This guidance is effective prospectively for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. The Company will adopt the guidance on January 1, 2014, as required, and it believes the adoption of this guidance will not have a material impact on its consolidated financial statements.

In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists, which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. This guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however retrospective application is permitted. The Company is in the process of evaluating this guidance and does not expect that it will have a significant impact on its consolidated financial statements.

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Note on Forward-Looking Information

This Form 10-Q contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the use in those statements of terminology such as “may,” “will,” “could,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential,” or “continue,” or the negative of such terms or other comparable terminology. The forward-looking statements included in this Form 10-Q address activities, events or developments that we expect or anticipate will or may occur in the future.

Although we believe the expectations expressed in the forward-looking statements included in this Form 10-Q are based on reasonable assumptions within the bounds of our knowledge of our business at the time the statements are made, a number of factors outside of our control could cause actual results to differ materially from those expressed in any of the forward-looking statements included in this Form 10-Q. Any one or a combination of these factors could materially affect our financial performance, business strategy, business operations, plans, goals and objectives. These factors include but are not limited to:

·the market’s acceptance of our gaming offerings;

·the effect of competition in our markets;

·the political, legislative, and regulatory climates and changes upon our business;

·the impact of fluctuations of currencies on revenue we receive or expenses we incur;

·the weather conditions in the markets that we serve; and

·other factors described in our Form 10-K for the year ended December 31, 2012 under the headings “Risk Factors” and “Quantitative and Qualitative Disclosures About Market Risk.”

Forward-looking statements that we make or that are made by others on our behalf are based on currently available information relating to our business and the environment in which we operate, but because of the factors listed above, actual results may differ significantly from those in forward-looking statements. Consequently, these cautionary statements qualify all of the forward-looking statements we make herein. The results or developments we anticipate may not be realized. Even if substantially realized, those results or developments may not result in the expected consequences for us or affect us, our business or our operations in the ways we expect. We caution readers not to place undue reliance on any of these forward-looking statements in this Form 10-Q, which speak only as of their dates. We assume no obligation to update any of the forward-looking statements.

Nature of Business and Competition

We are engaged in the acquisition, development and management of niche casino operations in Europe, which feature gaming tables and mechanized gaming devices, such as video slot machines, as well as the acquisition, development and the management of midsize hotels, which may include casino facilities.  Our expansion into the hotel industry was founded on management’s belief that hotels in the midsize class are complementary to our casino brand; that opportunities in one of these two industries often lead to, or are tied to, opportunities in the other industry; and that a more diversified portfolio of assets will give us greater stability and make us more attractive to potential investors.  Further, several of our top management executives have extensive experience in the hotel industry.  In this pursuit, we have developed our first hotel, Hotel Savannah, a 77-room, European four-star deluxe hotel, adjoining our Route 59 Casino, which primarily draws customers from the Vienna, Austria regional area.

Currently, we own and operate three casinos and a hotel in the Czech Republic (“CZ”).  Our Ceska casino, located at Ceska Kubice, in the western part of the CZ close to the border of Germany, currently has five competitors.  Our other two Czech casinos are located in the southern part of the CZ, close to the Austrian border.  The larger of these two, “Route 55,” located in Dolni Dvoriste, has two competitors, and our other casino, “Route 59,” is located in Hate,

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near Znojmo, and currently has three competitors.  Our Hotel Savannah features eight banquet halls for meetings and special events as well as a full-service restaurant and bar, and is connected to our Route 59 casino with the joint facility’s main restaurant linking the two buildings.  Along with the hotel operation, we also launched a full-service spa operation, the Spa at Hotel Savannah (the “Spa”), the operations of which are outsourced to a private, independent contractor and are attached to Hotel Savannah.  The Spa, which features Ayurvedic massage therapies and an indoor pool, began operation in March 2009.  Hotel Savannah and the Spa has eight regional competitors, five of which are located in Austria.

On March 31, 2012, due to the depressed economy in the region that it operated, we terminated gaming operations at our smallest casino, “Rozvadov,” located in the town of Rozvadov and leased the casino and staff housing facilities to a local, third-party casino operator under a five-year lease agreement.  On July 11, 2012, pursuant to the exercise of the buyout option included in the provisions of the lease agreement, we sold the property to the lessee for the sum of €1.0 million, or approximately $1.3 million, netting a gain of approximately $306,000, after all related expenses and inclusive of rental income.

On November 23, 2011, we acquired the Ceska casino building and associated land and an adjacent outbuilding and related plot from the town of Ceska Kubice, from which we had been renting the facilities. The combined price was 11.6 million Czech Korunas (“CZK”), or then approximately $581,000 U.S. dollars (“USD” or “$”), for which we made a deposit of CZK 2.6 million, or then approximately $130,000, and began making monthly installment payments on the balance of CZK 9.0 million, or then $469,000, (the “Ceska Municipal Loan”) over a three-year term. The acquisition allowed us to undertake much needed capital improvements to the building, as competition in the Ceska area has increased dramatically in recent years.  We invested approximately CZK 36.0 million, or $1.8 million, for the first phase of the capital improvements, which was to expand the Ceska facility by connecting the existing casino with an annex building, in which five VIP guest rooms, offices, and storage areas are located.  The remaining phase, which, in addition to a soft-renovation of the older part of the casino, includes reconfiguring the slot room area to allow for the addition of 20 slot machines.  The new slot machines were installed on September 1, 2013.  We budgeted approximately CZK 7.5 million, or about $400,000 for the second phase, which is expected to be completed by December 31, 2013.  On June 29, 2013, we held a gala to re-launch the expanded casino to great fanfare and publicity.  We received numerous television news spots and promotions, along with positive newspaper and online reviews.  We expect the enlarged casino to incrementally increase our business volume and firmly re-establish our competitive position in the markets that we serve.

Exchange Rates

Due to the fact that the Company’s operations are located in Europe and principally in the Czech Republic, TWC’s financial results are subject to the influence of fluctuations in foreign currency exchange rates.  The revenue generated by our Czech operations is generally denominated in Euro’s (“EUR” or “€”) and the expenses incurred by these facilities are generally denominated in CZK.  As our primary reporting subsidiary, American Chance Casinos a.s., is a Czech entity, all revenues and expenses, regardless of sources of origin, are recognized in the Czech currency and translated to USD for reporting purposes.  A substantial change in the value of either of these currencies in relation to the value of the USD would have an impact on the results from our operations when translated into USD.  We do not hedge our foreign currency holdings or transactions.

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The actual 2013 and 2012 operating results in local currency for the Czech casino units were converted to USD using the average of the daily exchange rates of each month in the reporting periods.  The monthly average exchange rates for the CZK versus the USD and EUR, respectively, are presented in the following graphical chart.

The consolidated balance sheet totals of the Company’s foreign subsidiaries at September 30, 2013 and December 31, 2012 were converted to USDs using the interbank exchange rates, as reported at www.oanda.com, which are depicted in the following table:

As of	USD	CZK	EUR
September 30, 2013	1.00	19.0054	0.7394
December 31, 2012	1.00	18.9600	0.7565

Critical Accounting Policies

The discussion and analysis of our consolidated financial condition and results of operations are based upon our condensed consolidated financial statements. These condensed consolidated financial statements have been prepared following the US GAAP and Article 10 of Regulation S-X for interim periods and require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.  On an ongoing basis, we evaluate our estimates, including those related to potential impairment of goodwill and share-based compensation expense. As these are condensed consolidated financial statements, the reader should also review expanded information about our critical accounting policies and estimates provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Form 10-K for the year ended December 31, 2012. There have been no material changes to our critical accounting policies and estimates from the information provided in our Form 10-K for the year ended December 31, 2012.

RESULTS OF OPERATIONS

Performance Measures and Indicators

In discussing the consolidated results of operations, we may use or refer to performance measures and indicators that are common to the gaming industry, such as: (i) total live game drop, the dollar value of gaming chips purchased in a given period; (ii) live game drop per head (“DpH”), the per guest average dollar value of gaming chips purchased for cash; (iii) daily income per slot machine; (iv) net win, the difference between gaming wagers and the amount paid out to patrons; (v) win (or hold) percentage (“WP”), the ratio of net win over total drop; (vi) occupancy rate,

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the number of rooms sold divided by the number of rooms available; (vii) average daily rate (“ADR”), the average of room rental rates paid per day; and (viii) revenue per available room for rent (“RevPAR”), revenue generated per available room.  These measures are “non-GAAP financial measures.”

Review of the Condensed Consolidated Interim Results of the Company:

Three Months Ended September 30, 2013 and 2012:

	Three Months Ended September 30,
(in thousands, except per share data)	2013			2012			Variance $		Variance %
	(Unaudited)			(Unaudited)
Total revenues, from continuing operations	$	8,831		$	8,996		(165	)	-1.8	%
Total costs and expenses	(7,857		)	(7,915		)	58		-0.7	%
Income from continuing operations, before income taxes	974			1,081			(107	)	-9.9	%
Foreign income taxes	(268		)	(583		)	315		-54.0	%
Income from continuing operations	706			498			208		41.8	%
Discontinued operations, gain from operations				306			(306	)	-100.0	%
Net income	$	706		$	804		(98	)	-12.2	%
Earnings per common share:
From continuing operations:
Basic	$	0.08		$	0.06
Diluted	$	0.08		$	0.06
From discontinued operations:
Basic	$	—		$	0.03
Diluted	$	—		$	0.03

For the quarter ended September 30, 2013, our total revenues decreased by 1.8%, to $8.8 million, from approximately $9.0 million for the quarter ended September 30, 2012.  The revenue decrease was primarily attributable to relatively higher live game wins by our regular clientele, experienced at all of casinos.  Although live game attendance was down by 8.5% to last year, reflecting the residual economic impact of the widespread flooding experienced in the prior quarter, DpH had actually improved by 9.8% in the comparison. The improvement in DpH, however, was insufficient to cover for the lower hold percentage, which was off by 2.0 percentage point (“ppt”).  Slot revenues, on the other hand, rose by 3.8%, on increased attendance of 17.0%, when compared with the same quarter a year ago.  However, the slot revenue improvement also was insufficient to cover for the live game decline.

Our total costs and expenses decreased by $58,000, or 0.7%, for the comparative quarters, mainly due to lower compensation-related expenses, which served to offset marketing and promotional costs associated with the re-launch of the newly-expanded Ceska casino.

Income from continuing operations, before income taxes, decreased by $107,000, or 9.9%, from the third quarter in 2012, as a result of the lower live game revenues.

For the third quarter, we recognized $268,000 for foreign income taxes, which were substantially lower than the taxes incurred a year ago this quarter.  The reduction was largely due to the partial shifting of tax liability to value-added taxes (“VAT”) on our intercompany management fees, which, in aggregate, effectively lowered our foreign taxable income base.  Thus, our income from continuing operations increased by $208,000, or 41.8%, from a year ago this quarter.

We earned net income of $706,000 for the three months ended September 30, 2013, which was $98,000, or 12.2%, less than the same three months in 2012, which included the one-time gain from the sale of our discontinued operations at Rozvadov.

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Costs and Expenses

Total costs and expenses for the three months ended September 30, 2013 and 2012 are presented below:

	For the Three Months Ended
	September 30,
(amounts in thousands)	2013		2012		Variance $			Variance %
	(Unaudited)		(Unaudited)
Cost of revenues	$	4,854	$	4,306	$	548		12.7	%
Depreciation and amortization	408		422		(14		)	-3.3	%
Selling, general and administrative	2,587		3,122		(535		)	-17.1	%
Other expense	8		65		(57		)	-87.7	%
Total costs and expenses	$	7,857	$	7,915	$	(58	)	-0.7	%

Cost of revenues for the quarter ended September 30, 2013 increased by $548,000, or 12.7%, primarily due to higher gifts and give-aways, complimentary buffets at our casinos, and higher slot rental expenses at our recently expanded Ceska casino, due to the addition of 20 slot machines, on September 1, 2013.  The complimentary F&B and hotel accommodations costs were recognized in the gaming departmental expenses, which totaled approximately $630,000 or 7.6% of gaming revenues for the three months ended September 30, 2013, compared with $566,000 or 6.7% of gaming revenues for the comparable quarter last year.  General gifts and giveaways represented $167,000 or 2.0% of gaming revenues, versus $53,000 or 0.6% of gaming revenues in the same quarter of 2012.  These expenses were also recognized in the gaming departmental expenses.

Depreciation and amortization expense decreased by $14,000, or 3.3%, due to the end of life of certain depreciable assets.

Selling, general and administrative costs decreased by $535,000, or 17.1%, due primarily to lower compensation-related expenses, which more than offset increased marketing and promotional activities surrounding the re-launching of the newly-expanded Ceska casino on June 29, 2013.

Other expense of $8,000 essentially represents interest paid on the Company’s Commerzbank amortized loan, which was early-retired on July 4, 2013, ahead of its maturity date of November 4, 2013.

Nine Months Ended September 30, 2013 and 2012:

	Nine Months Ended September 30,
(in thousands, except per share data)	2013			2012			Variance $		Variance %
	(Unaudited)			(Unaudited)
Total revenues, from continuing operations	$	26,074		$	26,428		(354	)	-1.3	%
Total costs and expenses	(24,072		)	(23,914		)	(158	)	0.7	%
Income from continuing operations, before income taxes	2,002			2,514			(512	)	-20.4	%
Foreign income taxes	(623		)	(1,267		)	644		-50.8	%
Income from continuing operations	1,379			1,247			132		10.6	%
Discontinued operations, gain from operations				200			(200	)	-100.0	%
Net income	$	1,379		$	1,447		(68	)	-4.7	%
Earnings per common share:
From continuing operations:
Basic	$	0.16		$	0.14
Diluted	$	0.15		$	0.14
From discontinued operations:
Basic	$	—		$	0.02
Diluted	$	—		$	0.02

For the nine months ended September 30, 2013, our total revenues decreased by $354,000, or (1.3)%, to approximately $26.1 million, from $26.4 million for the same period ended September 30, 2012, notably due to a 9.7% decline in live game attendance, compounded by large losses to our regular live games players and sizable jackpots paid out during this period.  The decline in attendance was due largely to the severe winter that occurred in the first quarter and in part to the widespread flooding in Europe that occurred in the second quarter of 2013.  Slot game attendance,

18

however, was resilient throughout this period and in fact increased by 21.9%, when compared with the first nine months of the prior year, generating a 3.6% revenue improvement in this comparison.

Our combined hotel rooms, restaurant and banquet operations, and spa revenues totaled 5.1% of the Company’s total consolidated revenue.

Our total costs and expenses increased by $158,000 or 0.7%, mainly from the marketing and promotional expenditures related to the re-launch on June 29, 2013 of the newly-expanded Ceska casino, the benefits of which are expected to materialize in the future, as well as to increased gifts and giveaways and other amenity expenses for our gaming patrons.

As a result of the consolidation of foreign subsidiaries and restructuring of intercompany cost recoveries that became effective in 2013, we were able to effectively reduce our consolidated taxable income base in the Czech Republic.  Thus, our provision for foreign income taxes for the nine months ended September 30, 2013 decreased to $623,000 from approximately $1.3 million a year ago this period.  In related transactions, our VAT expenses on our intercompany management fees for the first nine months of 2013 were $351,000, which were nominal in the same nine months in 2012.

Consequently, we earned income from continuing operations after taxes of approximately $1.4 million versus $1.2 million of the prior year’s same nine month period.

Our net income for the nine months ended September 30, 2013 was $68,000 less than a year ago, due to the absence of a one-time gain in 2012 from the sale of our discontinued operations at Rozvadov.

Costs and Expenses

Total costs and expenses for the nine months ended September 30, 2013 and 2012 are presented below:

	For the Nine Months Ended
	September 30,
(amounts in thousands)	2013		2012		Variance $			Variance %
	(Unaudited)		(Unaudited)
Cost of revenues	$	14,326	$	14,288	$	38		0.3	%
Depreciation and amortization	1,193		1,301		(108		)	-8.3	%
Selling, general and administrative	8,505		8,116		389			4.8	%
Other expense	48		209		(161		)	-77.0	%
Total costs and expenses	$	24,072	$	23,914	$	158		0.7	%

Our cost of revenues for the nine months ended September 30, 2013 nominally increased, when compared with last year, primarily due to higher amenity expenses and increased slot equipment rental expenses, due to the addition of 20 slot machines at the newly-expanded Ceska casino, which, in aggregate, were offset by lower gaming payroll expenses and the absence of the six-month, prepaid slot machine licensing fees payable to the Czech government that were eliminated in 2012.

Our complimentary F&B and hotel accommodations costs were recognized in gaming departmental expenses, which totaled $1.8 million or 7.5% of gaming revenues for the nine months ended September 30, 2013, versus $1.7 million or 7.0%  of gaming revenues for the comparable nine-month period in 2012.  General gifts and giveaways, which were also recognized in gaming departmental expenses, represented $491,000 or 2.0% of gaming revenues for the same nine months in 2013, compared with $451,000 or 1.8% of gaming revenues for the nine months ended September 30, 2012, an increase of $40,000 or 8.9%.

Depreciation and amortization expense decreased by $108,000, or 8.3%, largely due to the end of life of certain depreciable assets.

Our selling, general and administrative costs of $8.5 million for the nine months ended September 30, 2013 increased by $389,000 or 4.8% from the same nine-month period in 2012, principally due to marketing and promotional expenditures related to the re-launch of the newly-expanded Ceska casino.

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ETable of Contents

Other expense of $48,000 essentially represents interest paid on the Company’s maturing Commerzbank amortized loan, which was early-retired on July 4, 2013, in advance of its maturity date of November 4, 2013.

Our Facilities:

Each of our casinos offers a restaurant and a full bar, and in the larger units, lounge areas and multiple bars.  All of our casinos operate under the registered ACC brand.

Ceska

Ceska Casino, which was expanded through a capital improvement program, now has increased its real estate footprint by nearly 60%, to 13,644 square foot of space, or 1,268 square meters.  The primary phase of the expansion and renovation was completed at the end of June 2013, with the casino holding a gala re-launch on June 29, 2013.  The revamped casino includes an improved live game area, an enlarged restaurant and entertainment facility, and the addition of five VIP hotel guestrooms.  The remaining phase of the capital improvement program includes renovation of the internal, older part of the casino, including increasing the size of the slot room and the expansion of the parking lot area.  The remodeled slot room permits the addition of 20 video slot machines, which were added in September 1, 2013.  The last phase of the project is expected to be completed by December 31, 2013.  It currently has 15 gaming tables, including seven card tables, seven roulette tables, a Slingshot multi-win roulette, and 100 video slot machines.

Route 59

Route 59 Casino, which has a 1920’s New Orleans theme, currently includes 23 gaming tables, which consist of 13 card tables, nine roulette tables, a Slingshot multi-win roulette, and 118 video slot machines.

Route 55

Route 55 Casino, our largest casino, features a Miami Beach in the 1950’s theme.  The two-story casino offers 23 tables, including 12 card tables, 10 roulette tables, a Slingshot multi-win roulette, and 124 video slot machines.  On the mezzanine level, the casino offers a full-service Italian restaurant, an open buffet area, a VIP lounge, a VIP gaming room equipped with four gaming tables, which are included in the 23 table count, and since September 2010, three VIP hotel guestrooms.

Hotel Savannah and the Spa at Hotel Savannah

The hotel, which is connected to our Route 59 casino, features banquet halls for conference meetings and special events as well as a restaurant and bar.  To complement the hotel, we also opened a luxury spa operation, the Spa, in April 2009, which is attached to our hotel. The Spa, which is operated by an independent contractor from which we receive revenue-based fees, features a large indoor pool and offers Ayurvedic therapies to all our hotel guests and outside visitors.

Sales and Marketing

We utilize a wide range of media marketing and promotional programs in an effort to secure and enhance our competitive position in the respective markets being served and to differentiate our product from our competitors.  With respect to our Czech casinos, we aggressively target key cities in our media campaigns, most notably Vienna and Linz in Austria, and Regensburg in Germany as well as the areas surrounding these cities, all of which are within driving distance of our casinos.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2013, we had a working capital surplus of $590,000, an increase of $207,000, from the working capital surplus of $383,000 at December 31, 2012.  Net cash provided by operating activities for the nine months ended September 30, 2013 was $1.1 million versus approximately $2.3 million for the same prior year period, largely due to the payment of the 2012 gaming and income tax liabilities.  Net cash used in investing activities was approximately $2.0 million for the nine months ended September 30, 2013, and was primarily due to capital expenditures

20

related to our Ceska casino expansion and renovation project, which, in aggregate, were partially offset by repayments on our notes receivable from GHL.  For the first nine months of 2012, net cash provided by investing activities of $734,000 was due to primarily to a one-time gain of $1.3 million, from the sale of our discontinued operations at Rozvadov, which was partially offset by capital improvement expenditures.  Net cash used in financing activities consisted of principal repayments and the early retirement of the Commerzbank loan as well as principal repayments on the Ceska municipal loan, plus $29,000 in stock repurchases, pursuant to the Company’s Stock Repurchase Program.  In the first nine months of 2012, cash used in financing activities included largely of the drawdowns and repayments of the now-closed line of credit with Commerzbank.  The effect of foreign currency translation on cash was a net loss of $54,000 and a net loss of $168,000, for the nine months ended September 30, 2013 and 2012, respectively.

On July 4, 2013, to reduce our future interest expense, and given our cash availability, we early retired our amortized Commerzbank loan, which was due to mature on November 4, 2013.  Through our participation on a Hungarian project, we have an offsetting loan with a project-related party, SDI, maturing February 21, 2016. The SDI loan is offset by an advance receivable from our partially-owned Hungarian subsidiary, KCB, maturing January 31, 2016.

We believe that our cash resources at September 30, 2013, in addition to the anticipated cash to be provided by existing operations, will be sufficient to meet all of our current obligations and fund our operating activities for the next twelve months.

We are obligated under various contractual commitments over the next five years.  We have no off-balance sheet arrangements.  The following is a five-year summary of our commitments as of September 30, 2013:

(in thousands)			Less than
Contractual Obligations	Total		1 Year		1-3 Years		3-5 Years		Thereafter
Long-term, unsecured debt, foreign (1)	$	1,229	$	—	$	—	$	1,229	$	—
Long-term, secured debt, foreign (2)	187		161		26
Operating and capital leases (3)	293		148		97		48
Employment agreement (4)	563		450		113
Total contractual obligations	$	2,272	$	759	$	236	$	1,277	$	—

(1)Represents the outstanding 6-year loan from IMT, a Hungarian investment-related partner, maturing February 21, 2016.

(2)Represents the remaining balance of the Ceska Municipal Loan, a 3-year, CZK 9.0 million, or then $469,000, term loan maturing on November 23, 2014.

(3)Includes long-term lease for corporate office space, auto and financial leases.

(4)Represents the salary obligation under Mr. Ramadan’s employment agreement.

PLAN OF OPERATIONS

We strive to develop and implement marketing and operational strategies that are designed to increase attendance and revenues at our existing locations in the Czech Republic, while striving to minimize costs, through cost-sharing alliances with non-competing businesses such as food and beverage vendors, where advantageous. We endeavor to find synergy of operations between our Route 59 Casino and our newest operating unit, Hotel Savannah to enhance revenues, while reducing operational redundancies.

Long Range Objective

Our operations are primarily in the gaming industry. Consequently, our senior corporate management, several of whom have extensive experience in the hotel industry, is exploring ways to diversify and expand the Company’s operations through the acquisition and/or development of new, complementary non-gaming business units, such as hotels, while continuing to grow the Company’s existing operations. We will also seek to manage or lease new business units that complement our existing operations. Acquisitions will be based on evaluations of the potential returns of projects that arise and, for certain projects, the availability of financing.

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ITEM 3.                QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting companies.

ITEM 4.                CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures, as defined in the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Exchange Act Rule 13a-15(e), which is designed to provide reasonable assurance that information, which is required to be disclosed in our reports filed pursuant to the Exchange Act, is accumulated and communicated to management in a timely manner. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives and we are required to apply our judgment in evaluating the cost-benefit relationship of possible controls and procedures.  At the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including Mr. Ramadan, our CEO and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b). Based upon that evaluation, Mr. Ramadan concluded that, as of the date of such evaluation, our disclosure controls and procedures were effective, at the reasonable assurance level in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and were effective in ensuring that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.  We made no changes in internal control over financial reporting during the third quarter of 2013 that materially affected, or are likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.                LEGAL PROCEEDINGS

We are often subject to various contingencies, the resolutions of which, our management believes will not have a material adverse effect on our consolidated financial position or results of operations.  We were not involved in any material litigation during the quarter ended September 30, 2013, or through the date of this filing.

ITEM 1A.             RISK FACTORS

There has been no addition of risk factors from the information provided in our Form 10-K for the year ended December 31, 2012.

The risk factors highlighted in our Form 10-K for the year ended December 31, 2012 are not the only risks our Company is facing.  Additional risks and uncertainties not currently known to us or that we deem to be immaterial at this time also may materially adversely impact our business, financial condition and operational results in the future.

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ITEM 5.                OTHER INFORMATION

Share Repurchase

On November 12, 2012, TWC’s board of directors approved a stock repurchase program (the “program”), in accordance with the retirement method, authorizing the repurchase of up to 500,000 shares of the Company’s Common Stock, over a 12-month period.  The program does not obligate the Company to acquire any particular amount of Common Stock, and it could be modified, extended, suspended or discontinued at any time.  Thus, pursuant to the stock repurchase program and through a registered broker-dealer, we conducted repurchases on the open market, arriving at an outstanding 8,825,335 shares at September 30, 2013.  The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors.  Repurchases may be conducted in the open market or in privately negotiated transactions.  There was no repurchase activity during the three months ended September 30, 2013.  The repurchase transactions since the inception of the program are listed in the table below:

ISSUER PURCHASES OF EQUITY SECURITIES

Date	TotalNumber of Shares Purchased	AveragePrice Paid per Share		Cumulative Total of Number of SharesPurchased as Part ofPublicly AnnouncedPlan	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program
11/19/2012	4,900	$	2.50	4,900	495,100
12/20/2012	30,000	$	2.65	34,900	465,100
01/16/2013	5,000	$	2.50	39,900	460,100
01/18/2013	900	$	2.50	40,800	459,200
01/25/2013	4,500	$	2.50	45,300	454,700
03/08/2013	100	$	2.54	45,400	454,600
03/25/2013	200	$	2.50	45,600	454,400
03/26/2013	200	$	2.65	45,800	454,200
04/04/2013	250	$	2.65	46,050	453,950
04/09/2013	250	$	2.40	46,300	453,700

ITEM 6.                EXHIBITS

Reference is made to the Exhibit Index hereinafter contained.

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TRANS WORLD CORPORATION
EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013

Item No	Item	Method of Filing
3.1(a)	Articles of Incorporation	Incorporated by reference to Exhibit 3.1 contained in the registration statement on Form SB-2 (File No. 33-85446-A).
3.1(b)	Certificate of Amendment to Articles of Incorporation	Incorporated by reference to Exhibit 3.1 contained in the Form 10-KSB for the fiscal year ended December 31, 2000 (File No. 0-25244)
3.1 (c)	Certificate of Amendment to Articles of Incorporation	Incorporated by reference to Exhibit 3.1 contained in the Form 10-KSB for the fiscal year ended December 31, 2004 (File No. 0-25244)
3.2	Bylaws	Incorporated by reference to Exhibit 3.2 contained in the registration statement on Form SB-2 (File No. 33-85446-A).
4.1	Specimen Common Stock Certificate	Incorporated by reference to Exhibit 4.1 contained in the registration statement on Form SB-2 (File No. 33-85446-A).
4.2	Indenture dated March 31, 1998, as supplemented on October 29, 1998. October 15, 1999 and September 10, 2001, among the registrant, TWC International U.S. Corporation, TWC Finance Corp. and U.S. Trust Company of Texas, N.A.	Incorporated by reference to Exhibit 4(1) contained in the Form 8-K filed on April 14, 1998 (File No.0-25244).
4.3	Indenture dated March 31, 1998, as supplemented on October 29, 1998, October 15, 1999 and September 10, 2001, between TWC International U.S. Corporation and U.S. Trust Company of Texas, N.A.	Incorporated by reference to Exhibit 4(III) contained in the Form 8-K filed on April 14, 1998 (File No. 0-25244).
4.4	Series A Warrant to Purchase Common Stock dated March 31, 1998	Incorporated by reference to Exhibit 4(VI) contained in the Form 8-K filed on April 14, 1998 (File No. 0-25244)
4.5	Series B Warrant to Purchase Common Stock dated March 31, 1998	Incorporated by reference to Exhibit 4(VII) contained in the Form 8-K filed on April 14, 1998 (File No. 0-25244)
4.6	Series C Warrant to Purchase Common Stock dated March 31, 1998	Incorporated by reference to Exhibit 4(II) contained in the Form 8-K filed on April 14, 1998 (File No. 0-25244)
4.7	Series G Warrant to Purchase Common Stock dated March 31, 1999	Incorporated by reference to Exhibit 10.49 contained in the Form 10-KSB filed on May 30, 2000 (File No. 0-25244)

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4.8	Agreement to Amend Warrants dated March 31, 1998 among the Company and the named Holders	Incorporated by reference to Exhibit 4(VIII) contained in the Form 8-K filed on April 14, 1998 (File No. 0-25244)
10.1	1993 Incentive Stock Option Plan	Incorporated by reference to Exhibit 10.13 contained in the registration statement on Form SB-2 (File No. 33-85446-A).
10.2	Loan Agreement dated June 11, 1997 between the Company and Value Partners	Incorporated by reference to Exhibit 10.36 contained in the Form 8-K filed on June 17, 1997 (File No. 0-25244)
10.3	Loan Agreement dated October 27, 1997, between Value Partners, and the Company	Incorporated by reference to Exhibit 10.39 contained in the Form 10-QSB for the quarter ended September 30, 1997, filed on November 12, 1997 (File No. 0-25244)
10.4	Employment Agreement between the Company and Rami S. Ramadan dated July 12, 1999	Incorporated by reference to Exhibit 10.1 contained in the Form 8-K filed on July 13, 1999 (File No. 0-25244)
10.5	Amendment to Employment Agreement between the Company and Rami S. Ramadan dated July 1, 2002	Incorporated by reference to Exhibit 10.5 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.6	1998 Incentive Stock Option Plan	Incorporated by reference to Exhibit 10.46 contained in the Form 10-KSB filed on May 26, 2000 (File No. 0-25244)
10.7	1999 Non-Employee Director Stock Option Plan	Incorporated by reference to Exhibit 10.47 contained in the Form 10-KSB filed on May 26, 2000 (File No. 0-25244)
10.8	Form 12% Secured Senior Note due March 2005	Incorporated by reference to Exhibit 10.48 contained in the Form 10-KSB filed on May 26, 2000 (File No. 0-25244)
10.9	English Restatement of the Spanish Agreement of Sale of Casino de Zaragoza	Incorporated by reference to Exhibit 99.2 contained in the Form 8-K filed on January 9, 2002 (File No. 0-22544)
10.10	Form of Fourth Supplemental Trust Indenture by and among Trans World Corporation, TWG International U.S. Corp., TWG Finance Corp. and the Bank of New York Trust Company of Florida, N.A. (as Trustee)	Incorporated by reference to Exhibit 10.10 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.11	Waiver and Forbearance of Covenant Violations (Interest) — Primary Indenture	Incorporated by reference to Exhibit 10.11 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.12	Waiver and Forbearance of Covenant Violations (Interest) — Finance Indenture	Incorporated by reference to Exhibit 10.12 contained in the Registration Statement on Form S-4 (File No. 333-101028)

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10.13	Indemnification Agreement by and between Value Partners, Ltd., Trans World Corporation and TWG International U.S. Corporation dated February 12, 2003	Incorporated by reference to Exhibit 10.13 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.14	Agreement and Plan of Recapitalization dated June 25, 2003 between the Company and the named Holders	Incorporated by reference to Exhibit 4.9 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.15	Form of 8% Rate Promissory Note due 2006	Incorporated by reference to Exhibit 4.10 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.16	Form of Variable Rate Promissory Note due 2010	Incorporated by reference to Exhibit 4.11 contained in the Registration Statement on Form S-4 (File No. 333-101028)
10.17	2004 Equity Incentive Plan, as amended	Incorporated by reference to Appendix E contained in the Proxy Statement for the 2004 Annual Meeting, and from the discussion contained at page 12-14 of the proxy statement for the 2005 Annual Meeting, at page 14-15 of the Proxy Statement for the 2006 Annual Meeting, at page 14-15 of the Proxy Statement for the 2007 Annual Meeting, and at page 15 of the Proxy Statement for the 2009 Annual Meeting (File No. 0-25244)
10.18	Renewal and Amendment of Employment Agreement between the Company and Rami S. Ramadan, Effective as of July 1, 2005	Incorporated by reference to Exhibit 10.18 contained in the Form 10-KSB filed on March 17, 2006 (File No. 0-25244)
31.0	Section 302 Certification of Chief Executive Officer and Chief Financial Officer	Filed herewith
32.0	Section 906 Certification of Chief Executive Officer and Chief Financial Officer	Filed herewith
(101)	The following financial information from Trans World Corporation’s Quarterly Report on Form 10-Q for the period ended September 30, 2013, filed with the SEC on November 6, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the nine and three-month periods ended September 30, 2013 and 2012, (ii) the Condensed Consolidated Balance Sheets at September 30, 2013 and December 31, 2012, (iii) the Condensed Consolidated Statement of Cash Flows for the nine-month periods ended September 30, 2013 and 2012, and (iv) Notes to Condensed Consolidated Interim Financial Statements (all of which are unaudited).*

*Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filings.

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SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant has caused this report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

	TRANS WORLD CORPORATION
Date:  November 6, 2013	By:	/s/ Rami S. Ramadan
		President, Chief Executive Officer and Chief Financial Officer
		(Principal Executive and Financial Officer)

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EX-31.0

EXHIBIT 31.0

RULE 13a-14a/15d-14(a) CERTIFICATION OF THE

CHIEF EXECUTIVE OFFICER/CHIEF FINANCIAL OFFICER

I, Rami S. Ramadan, the Chief Executive Officer/Chief Financial Officer of Trans World Corporation, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Trans World Corporation;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and I have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding  the reliability of financial reporting and the preparation of  financial statements for external purposes in accordance with generally accepted  accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any material changes in the registrant’s internal control over financial reporting that occurred during  the registrant’s most recent fiscal quarter (the registrant’s third fiscal quarter in the case of this quarterly report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to  adversely affect the registrant’s ability to record, process, summarize and report financial information;  and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2013	By:	/s/ Rami S. Ramadan
		Chief Executive Officer/Chief Financial Officer

1

EX-32.0

Exhibit 32.0

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER/CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

The undersigned executive officer of Trans World Corporation (the “Registrant”) hereby certifies that the Registrant’s Form 10-Q for the quarter ended September 30, 2013 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: November 6, 2013	By:	/s/ Rami S. Ramadan
		Rami S. Ramadan
		President, Chief Executive Officer, and Chief Financial Officer

This certification is being furnished to the Securities and Exchange Commission as an exhibit to the Form 10-Q and shall not be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Trans World Corporation and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.

1

XML

Commitments and Contingencies. (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 item	Sep. 30, 2012	Sep. 30, 2013 item	Sep. 30, 2012
Commitments and Contingencies.
Number of operating leases			1
Future aggregate minimum annual rental payments under lease for the next two years
2014	$ 88		$ 88
2015	44		44
Operating lease other disclosures
Rent expense			65	58
Slot Equipment
Operating lease other disclosures
Rent expense	$ 619	$ 574	$ 1,815	$ 1,777
Number of slot machines	20		20
Lease term			5 years

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
REVENUES	$ 8,831	$ 8,996	$ 26,074	$ 26,428
COSTS AND EXPENSES:
Cost of revenues	4,854	4,306	14,326	14,288
Depreciation and amortization	408	422	1,193	1,301
Selling, general and administrative	2,587	3,122	8,505	8,116
TOTAL OPERATING EXPENSES	7,849	7,850	24,024	23,705
INCOME FROM CONTINUING OPERATIONS, before other expense and foreign income taxes	982	1,146	2,050	2,723
OTHER EXPENSE:
Interest expense, net	(8)	(65)	(48)	(209)
INCOME FROM CONTINUING OPERATIONS, before income taxes	974	1,081	2,002	2,514
FOREIGN INCOME TAXES	(268)	(583)	(623)	(1,267)
INCOME FROM CONTINUING OPERATIONS	706	498	1,379	1,247
DISCONTINUED OPERATIONS, gain from operation of discontinued Rozvadov Casino, net of tax		306		200
NET INCOME	706	804	1,379	1,447
Other comprehensive income, foreign currency translation adjustments, net of tax	2,031	2,224	33	654
TOTAL COMPREHENSIVE INCOME	$ 2,737	$ 3,028	$ 1,412	$ 2,101
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	8,825,335	8,871,635	8,826,375	8,871,635
Diluted (in shares)	9,051,787	9,022,346	9,052,827	9,022,346
From continuing operations:
Basic (in dollars per share)	$ 0.08	$ 0.06	$ 0.16	$ 0.14
Diluted (in dollars per share)	$ 0.08	$ 0.06	$ 0.15	$ 0.14
From discontinued operations:
Basic (in dollars per share)		$ 0.03		$ 0.02
Diluted (in dollars per share)		$ 0.03		$ 0.02

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Liquidity.

9 Months Ended

Sep. 30, 2013

Liquidity.

Liquidity.

5. Liquidity.

As of September 30, 2013, the Company had a working capital surplus of $590, as compared to the working capital surplus of $383 at December 31, 2012.

The Company’s management believes that its cash resources at September 30, 2013, in addition to the anticipated cash to be provided by existing operations, will be sufficient to meet all current obligations and fund its current operating activities for the next twelve months.

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Summary of Selected Significant Accounting Policies. (Details 3)	0 Months Ended	1 Months Ended	3 Months Ended		9 Months Ended		72 Months Ended	9 Months Ended	0 Months Ended	36 Months Ended	72 Months Ended	0 Months Ended	36 Months Ended	72 Months Ended	9 Months Ended
	Jan. 02, 2012 company	Jan. 31, 2004	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Dec. 31, 2009	Sep. 30, 2013 New Gaming Tax Law (effective January 1, 2012)	Jan. 02, 2013 Minimum	Dec. 31, 2012 Minimum	Dec. 31, 2009 Minimum	Jan. 02, 2013 Maximum	Dec. 31, 2012 Maximum	Dec. 31, 2009 Maximum	Sep. 30, 2013 Live games revenues New Gaming Tax Law (effective January 1, 2012)	Sep. 30, 2013 Slot games revenues New Gaming Tax Law (effective January 1, 2012) USD ($)	Sep. 30, 2013 Slot games revenues New Gaming Tax Law (effective January 1, 2012) CZK
Summary of Selected Significant Accounting Policies
Number of former slot subsidiary companies	3
Tax law change comparisons
Period from end of each quarter to pay new gaming tax			25 days
Gaming Tax from Win (as a percent)															20.00%	20.00%	20.00%
Percentage of gaming tax receipts payable to federal authorities															70.00%	20.00%	20.00%
Percentage of gaming tax receipt payable to local municipality															30.00%	80.00%	80.00%
Gaming Tax per Machine, per Day																$ 3	55
Corporate income tax on adjusted net income (as a percent)								19.00%
Gaming-related taxes and fees
Gaming revenues (live-game and slot only)			8,008,000	8,078,000	23,719,000	24,122,000
Gaming taxes, live games and slots			1,689,000	1,696,000	4,994,000	5,038,000
Licensing fees (eliminated in 2012)						283,000
Total gaming taxes and fees			1,689,000	1,696,000	4,994,000	5,321,000
Total gaming taxes and fees as % of gaming revenue			21.10%	21.00%	21.00%	22.10%
Total gaming taxes excluding non-recurring licensing fees as % of gaming revenue				21.00%		21.00%
VAT before joining EU (as a percent)		5.00%
VAT after joining EU (as a percent)							22.00%
VAT for all intra-EU generated purchases (as a percent)									15.00%	10.00%	9.00%	21.00%	20.00%	19.00%
Income taxes
Adjustments for uncertain tax positions					0
Provision for income tax					623,000	1,267,000
Foreign income tax expense			268,000	583,000	623,000	1,267,000
Long-term deferred tax liability due to foreign book tax differences on fixed assets			$ 579,000		$ 579,000

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Commitments and Contingencies. (Details 2) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013
401(k) and Profit Sharing Plan
401(k) employee contribution, maximum (as a percent)	16.50%
401(k) voluntary employer-matching contribution of each employee dollar contributed	60.00%
Chief Executive Officer [Member]
Commitments and Contingencies
Perpetually renewable employment term	1 year
Annual base salary payable for the remaining quarter of 2013 and for the full year of 2014	$ 563

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Basis of Presentation and Consolidation.

9 Months Ended

Sep. 30, 2013

Basis of Presentation and Consolidation.

Basis of Presentation and Consolidation.

1. Basis of Presentation and Consolidation.

The accompanying unaudited condensed consolidated interim financial statements of Trans World Corporation and Subsidiaries (collectively, the “Company,” “TWC,” “we,” “our” or “us”) as of September 30, 2013 and December 31, 2012 and for the nine and three months ended September 30, 2013 and 2012 reflect all adjustments of a normal and recurring nature to fairly present the consolidated financial position, results of operations and cash flows for the interim periods. On June 30, 2012, we sold our smallest and underperforming casino, located at Rozvadov, after ceasing all gaming operations there on March 31, 2012.  Thus all operational presentations and discussions here in this report exclude the impact of these discontinued operations for the prior year 2012, and certain prior year amounts have also been reclassified to reflect this impact. (See a further discussion of this matter in “Note 3 Discontinued Operations” below).  The financial statements of all foreign subsidiaries consolidated herein have been converted in accordance with accounting principles generally accepted in the United States of America (“US GAAP” or “GAAP”) for financial presentation purposes. All significant intercompany transactions and account balances have been eliminated in consolidation. These unaudited condensed consolidated interim financial statements have been prepared by the Company according to the instructions of Form 10-Q and pursuant to the U.S. Securities and Exchange Commission’s (“SEC”) accounting and reporting requirements under Regulations S-X and S-K. Pursuant to these instructions, certain financial information and footnote disclosures normally included in such consolidated financial statements have been condensed or omitted.  In presenting the condensed consolidated interim financial statements, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates.

In management’s opinion, all adjustments considered necessary for fair presentation of financial position, results of operations and cash flows of the Company have been included. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto, together with management’s discussion and analysis, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the nine and three months ended September 30, 2013 are not necessarily indicative of the results that may occur for the year ending December 31, 2013.

The condensed consolidated balance sheet as of December 31, 2012 was derived from the Company’s audited consolidated financial statements but does not include all disclosures required by US GAAP. All monetary amounts set forth in these financial statements are in United States dollars (“USD” or “$”) unless otherwise stated herein.

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Discontinued Operations.

9 Months Ended

Sep. 30, 2013

Discontinued Operations.

Discontinued Operations.

3. Discontinued Operations.

The Company had owned and operated a fourth casino in the western part of CZ, in the town of Rozvadov.  The Company began terminating live game operations at Rozvadov at the end of January 2012, and continued running the unit as a slot-only operation until March 31, 2012, when all gaming operations ceased and the entire property was leased out to a third-party operator.  On July 11, 2012, the lessee exercised its option to buy out the lease by making the full purchase payment of €1,000, or approximately $1,300 to TWC.  The net gain from the sale of the Rozvadov casino and associated buildings, less all related costs, and inclusive of rental income was approximately $306. Rozvadov’s net operating loss for the six months of operation ending June 30, 2012 was $(145).  No write-downs of inventories or furniture, fixtures and equipment (“FF&E”) were incurred because its slot machines were leased, while the Company’s owned FF&E was subsequently rented out and remaining inventories were transferred to other operating units at an immaterial cost.  Employees at Rozvadov received cash severance benefits aggregating approximately $79, with no continuing obligation.

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Summary of Selected Significant Accounting Policies.

9 Months Ended

Sep. 30, 2013

Summary of Selected Significant Accounting Policies.

Summary of Selected Significant Accounting Policies.

6. Summary of Selected Significant Accounting Policies.

(a) Revenue recognition— Casino revenue is defined as the net win from gaming activities, which is the difference between gaming wagers and the amount paid out to patrons, and is recognized on the day it is earned. Revenues generated from ancillary services, including lodging, sales of food, beverage, cigarettes, and casino logo merchandise are recognized at the time the related services are performed and represent, on an individual basis, less than five percent of total revenues.

(b) Earnings per share— Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share incorporate the dilutive effect of common stock equivalents on an average basis during the period. The Company’s common stock equivalents currently include stock options, warrants and deferred compensation stock. Thus, unexercised stock options to purchase up to 598,750 and 660,850 shares as of September 30, 2013 and September 30, 2012, respectively, were included in the computation of diluted earnings per common share, if such unexercised stock options were “in-the-money” and vested. Warrants to purchase up to 75,000 shares were also included, if they were “in-the-money” and vested.  In addition, 226,441 and 150,698 issuable shares, as of September 30, 2013 and September 30, 2012, respectively, under the Company’s Deferred Compensation Plan were also included in the computation.

A table illustrating the impact of dilution on earnings per share, based on the treasury stock method, is presented below:

	For the Nine Months Ended				For the Three Months Ended
(amounts in thousands, except for	September 30,				September 30,
share information)	2013		2012		2013		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Basic Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Basic earnings per share	$	0.16	$	0.14	$	0.08	$	0.06
Diluted Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Addition due to the effect of dilutive securities:
Stock options and warrants (1)	11		13		11		13
Stock issuable under the Deferred Compensation Plan	226,441		150,698		226,441		150,698
Dilutive potential weighted average common shares	9,052,827		9,022,346		9,051,787		9,022,346
Diluted earnings per share	$	0.15	$	0.14	$	0.08	$	0.06

(1) Per the treasury stock method.

(c) Goodwill— Goodwill represents the excess of the cost of the Company’s Czech subsidiaries over the fair value of their net assets at the date of acquisition, which consisted of the Ceska casino, the Rozvadov casino (which was sold in 2012) and the land in Hate, which is currently the Route 59 Casino. Goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company has allocated the goodwill over two reporting units that are components of the operating segment “Czech subsidiaries” and are classified as the “German reporting unit” which consists of the Ceska casino, and the “Austrian reporting unit” which consists of the Route 55 and Route 59 casinos and the Hotel Savannah.  Goodwill impairment tests require the Company to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test.  The Company is not required to calculate the fair value of a reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.  The Company assesses the potential impairment of goodwill annually (as of September 30th) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable.  Upon completion of such review, if impairment is found to have occurred, a corresponding charge will be recorded.

Based on TWC’s own assessment of qualitative factors which included an analysis of macroeconomic conditions, financial performance, and industry and market considerations, the Company concluded that it was not necessary to perform a two-step quantitative goodwill impairment test and that the goodwill of the Company was not impaired as of September 30, 2013, its annual assessment date.

(d) Property and equipment- Property and equipment is stated at cost less accumulated depreciation and amortization.  TWC capitalizes the cost of improvements that extend the life of the asset and expenses maintenance and repair costs as incurred.  The Company provides for depreciation and amortization using the straight-line method over the following estimated useful lives:

Asset	Estimated Useful Life
Building and improvements	5-50 years
Furniture, fixtures and other equipment	4-12 years

At September 30, 2013 and December 31, 2012, property and equipment consisted of the following:

	As of September 30, 2013			As of December 31, 2012
	(Unaudited)
Land	$	2,844		$	2,691
Building and improvements	32,953			31,131
Furniture, fixtures and other equipment	12,737			13,122
	48,534			46,944
Less accumulated depreciation and amortization	(13,305		)	(12,877		)
	$	35,229		$	34,067

(e) Impairment for long-lived assets— The Company periodically evaluates whether current facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may be recoverable.  If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived assets, or the appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists.  If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable market value.  There were no impairment losses for long-lived assets recorded for the nine months ending September 30, 2013 and 2012.

(f) Foreign currency translation — Foreign subsidiaries whose functional currency is the local foreign currency, balance sheet accounts and cash flows are translated at exchange rates in effect at the end of each reporting period and resulting translation adjustments are included in “accumulated other comprehensive income.”  Statement of operations accounts are translated by applying the monthly averages of the daily exchange rates of one (1) US dollar (“USD”) to the Czech Koruna (“CZK”) on the respective monthly local Czech statement of operations accounts for the period.

The impact of foreign currency translation on goodwill is presented below:

	Applicable	Goodwill
(UNAUDITED)	Foreign Exchange	German		Austrian
As of September 30, 2013 (in thousands, except FX)	Rate (“FX”)(2)	reporting unit		reporting unit		Total
Residual balance, as of January 1, 2003 (in USD) (1)		USD	3,042	USD	537	USD	3,579
USD residual balance, translated at June 30, 1998 (date of acquisition) FX rate of:	33.8830	CZK	103,072	CZK	18,195	CZK	121,267
2003 CZK balance, translated to USD, at September 30, 2013 FX rate of:	19.0054	USD	5,423	USD	958	USD	6,381
Net increase to Goodwill		USD	2,381	USD	421	USD	2,802

(1) Goodwill was amortized over 15 years until the Company started to comply with revised GAAP requirements, as of January 1, 2002. This balance represents the remaining, unamortized goodwill, after an impairment charge taken prior to January 1, 2003.

(2) FX (interbank) rates taken from www.Oanda.com.

(g) Stock-based compensation — The Company recognizes the fair value of stock-based compensation in the condensed consolidated statement of operations. The fair value of the Company’s stock option awards are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award.  In addition, the calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based awards is amortized over the vesting period of the award. The award expenses for the nine months ended September 30, 2013 and 2012 were $0 and $104, respectively.

(h) Stock repurchase program —  On November 12, 2012, TWC’s board of directors approved a stock repurchase program (the “program”), in accordance with the retirement method, authorizing the repurchase of up to 500,000 shares of the Company’s Common Stock, over a 12-month period.  The program will expire on its anniversary date and does not obligate the Company to acquire any particular amount of Common Stock.  It can be modified, extended, suspended or discontinued at any time.  Thus, pursuant to the stock repurchase program and through a registered broker-dealer, the Company conducted repurchases on the open market, arriving at an outstanding 8,825,335 shares at September 30, 2013.  The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors.  Repurchases may be conducted in the open market or in privately negotiated transactions.  There was no repurchase activity during the three months ended September 30, 2013.  The repurchase transactions since the inception of the program are listed in the table below:

ISSUER PURCHASES OF EQUITY SECURITIES

Date	TotalNumber of Shares Purchased	AveragePrice Paid per Share		Cumulative Total of Number of SharesPurchased as Part ofPublicly AnnouncedPlan	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program
11/19/2012	4,900	$	2.50	4,900	495,100
12/20/2012	30,000	$	2.65	34,900	465,100
01/16/2013	5,000	$	2.50	39,900	460,100
01/18/2013	900	$	2.50	40,800	459,200
01/25/2013	4,500	$	2.50	45,300	454,700
03/08/2013	100	$	2.54	45,400	454,600
03/25/2013	200	$	2.50	45,600	454,400
03/26/2013	200	$	2.65	45,800	454,200
04/04/2013	250	$	2.65	46,050	453,950
04/09/2013	250	$	2.40	46,300	453,700

(i) Comprehensive income — The Company’s change in the foreign currency translation adjustments is included in other comprehensive income.

(j) Promotional allowances — Promotional allowances primarily consist of food and beverages and, to certain of its valuable players, hotel accommodations, all of which are furnished gratuitously.  For the nine months ended September 30, 2013 and 2012, revenues do not include the retail amount of food and beverages and hotel accommodations of $4,972 and $4,850, respectively, provided at no-charge to customers. The retail value of the food and beverages given away is determined by dividing the food and beverage costs charged to the gaming operation of $1,744 and $1,668 for the respective periods, by the average percentage of cost of food and beverages sold.  The cost of hotel accommodations is either the out-of-pocket expenses paid to other hotels that provide rooms for our players or the retail charge for rooms at the Hotel Savannah and at our VIP hotel rooms at Route 55 and at Ceska.

The promotional allowances are summarized below:

	For the Nine Months Ended						For the Three Months Ended
	September 30,						September 30,
(dollar amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cost of gratuitous food and beverages (A)	$	1,744		$	1,668		$	598		$	545
Average cost of food and beverages sold (B)	35.4		%	34.6		%	34.0		%	34.2		%
Retail value of food and beverages (A/B)	$	4,927		$	4,821		$	1,759		$	1,594
Retail value of hotel accommodations	45			29			16			13
Total promotional allowances	$	4,972		$	4,850		$	1,775		$	1,607

(k) Czech gaming taxes — Effective January 1, 2012, TWC merged its three Czech slot subsidiary companies, ACC Slot, s.r.o., Hollywood Spin s.r.o. and LMJ Slot s.r.o. into its primary Czech operating entity company, American Chance Casinos a.s., in an effort to eliminate and/or reduce redundancy in operations, maintenance and operating costs.

The new Czech Gaming Tax Law is summarized in the following table:

	New Gaming Tax Law *
	(Effective January 1, 2012)
Live Games	20% Gaming Tax from Win (70% of tax to federal; 30% to local municipality).
Slots	20% Gaming Tax from Win (20% of tax to federal; 80% to local municipality); Fifty five Korunas (or approximately three dollars) Gaming Tax per Slot Machine, per Day.
Net Income	19% corporate income tax on adjusted net income earned in the Czech Republic, net of exemptions (to federal).

* The new Gaming Tax is to be paid quarterly, by the 25th day following the end of a quarter, while the 2012 corporate income tax obligation was paid by June 30, 2013, to be followed by estimated quarterly income tax payments beginning the third quarter ending September 30, 2013.

TWC’s gaming-related taxes and fees for the nine and three months ended September 30, 2013 and 2012 are summarized in the following table:

	For the Nine Months Ended						For the Three Months Ended
(amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Gaming revenues (live-game and slot only)	$	23,719		$	24,122		$	8,008		$	8,078
Gaming taxes on live games and slots	4,994			5,038			1,689			1,696
Licensing fees (eliminated in 2012) *				283
Total gaming taxes and fees	$	4,994		$	5,321		$	1,689		$	1,696
as % of gaming revenue	21.0		%	22.1		%	21.1		%	21.0		%

*  As the non-refundable, six-month licensing fees effective for January 2012 through June 2012 were paid in October 2011, prior to the passing of New Gaming Tax laws in December 2011, the Company incurred additional taxes for the first six months of 2012.  Excluding the repealed licensing fees, the gaming taxes and fees for the three months and nine months ending September 30, 2012 would have been each 21.0% of gaming revenue.

In conformity with the European Union (“EU”) taxation legislation, when the Czech Republic joined the EU in 2004, its VAT increased from 5% to 22%, from January 2004 through December 2009, and ranged between 9% and 19% for all intra-EU generated purchases. Between January 1, 2010 and December 31, 2012, VAT rates increased to between 10% and 20%, then to 15% and 21%, beginning on January 1, 2013. The applicable VAT rate varies depending on the product or services sold and/or received.  All non-EU generated purchases were impacted by identical VAT increases, beginning in May 2004. The VAT top rate rose to 21% beginning on January 1, 2013. The Company pays its VAT directly to its vendors in connection with any purchases that are subject to this tax. Unlike in other industries, VATs are not recoverable for gaming operations. The recoverable VAT under the Hotel Savannah operation was non-material for the nine and three months ended September 30, 2013 and 2012, respectively.

(l) Income taxes — Deferred income tax assets and liabilities are computed for differences between the financial statement and the tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.  Accounting for income taxes prescribes, among other things, a recognition threshold and measurement attributes for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return. Accounting for income taxes utilizes a two-step approach for evaluating uncertain tax positions. Step One, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step Two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority. The Company is subject to income tax examinations by U.S. and foreign taxing authorities for all tax years subsequent to 2009. The adoption of the provisions of the Financial Accounting Standards Board (“FASB”) standard, “Accounting for Income Taxes” did not have a material impact on the Company’s consolidated financial statements. However, management’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulation and interpretations, thereof.  During the nine months ended September 30, 2013, the Company recognized no adjustments for uncertain tax positions.

Effective January 1, 2012, the Czech government instituted an effective corporate income tax, currently at 19.0%, on gaming net income, which prior to the law changes, gaming revenue was subject only to gaming taxes.  As a result of the new tax laws and due to the materiality of the income tax liability, the Company incurred an estimated foreign income tax expense of $623 and $1,267 for the nine months ended September 30, 2013 and 2012, respectively.  Foreign book tax differences on fixed assets have resulted in a long-term deferred tax liability of $579, which is included in long-term liabilities on the balance sheet.  Corporate income tax for the current year is payable by the end of September of the subsequent year, followed by estimated quarterly corporate income tax payments, which began in September 2013.

(m) Recently issued and adopted accounting standards:

In February 2013, the FASB issued guidance to improve the reporting of amounts reclassified out of accumulated other comprehensive income (“AOCI”). The guidance amends the presentation of changes in AOCI and requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the statement of income or as a separate disclosure in the notes. This guidance is effective prospectively for fiscal years beginning after December 15, 2012. The Company adopted the guidance on January 1, 2013, as required. There was no material impact on its consolidated financial statements resulting from the adoption.

(n) New accounting pronouncement:

In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. The guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This guidance is effective prospectively for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. The Company will adopt the guidance on January 1, 2014, as required, and it believes the adoption of this guidance will not have a material impact on its consolidated financial statements.

In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists, which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. This guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however retrospective application is permitted. The Company is in the process of evaluating this guidance and does not expect that it will have a significant impact on its consolidated financial statements.

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Commitments and Contingencies.

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies.

Commitments and Contingencies.

4. Commitments and Contingencies.

Lease Obligations— The Company is obligated under one operating lease, for its corporate office space, expiring in March 2015.  Future aggregate minimum annual rental payments under this lease for the next two years are as follows:

Twelve Months Ending September 30,
2014	$	88
2015	$	44

Rent expense under this lease was approximately $65 and $58 for the nine months ended September 30, 2013 and 2012, respectively.

The Company is also obligated under certain five-year, slot equipment operating leases, the projected costs of which are not included in the table above due to fluctuating inventory, expiring over staggered years, which provide for a monthly fixed rental fee per slot machine, and an option for replacement with different/newer machines during the term of the lease.  In the third quarter of 2013, the Company’s slot lease expense was $619 versus $574 in the comparable quarter in 2012, while in the nine months ending September 30, 2013, the Company’s slot lease expenses were $1,815 versus $1,777 in the comparable period in 2012, due to the addition of 20 slot machines in September 2013.

Employment Agreements— The Company’s July 1, 2005 employment agreement with its Chief Executive Officer (“CEO”), Mr. Rami S. Ramadan, absent the intervention of either party by September 30th of each year, will renew automatically for another calendar year, currently ending December 31, 2014.  In addition to a perpetually renewable employment term of one year absent the intervention of either party, the agreement provides for annual compensation, plus participation in the Company’s benefits programs and equity incentive plans.  As of September 30, 2013, the Company is contractually obligated to pay an aggregate of approximately $563, which includes the annual base salary for the remaining quarter of 2013 and the annual base salary for the full year of 2014.

401(k) and Profit Sharing Plan— The Company maintains a contributory 401(k) plan and a profit sharing plan.  These plans are for the benefit of all eligible corporate employees, who may have up to 16.5% of their salary withheld, not to exceed the maximum federally allowed amount.  The Company makes an employer-matching contribution of 60% of each such employee dollar contributed.

Notes Receivable— In connection with the TWC’s management of the Grand Casino Lav, on January 10, 2007, the Company extended three Euro-denominated loans totaling €967, or then $1,258, to the GHL, the owner of the Grand Casino Lav and Nightclub. At September 30, 2013, the balance of approximately €200, or $300 in principal amount, remained receivable, as per the executed payment allocation and pledge of payment agreement related to the existing credit agreement and the 2006 Management Agreement.  In April 2013, GHL, under bank receivership since March 2013, acknowledged the outstanding debt and requested an extension for the repayment of the remaining balance of approximately €472, or then $708, with an initial payment of €72, followed by monthly installments of €50, ending December 31, 2013, which TWC has granted, under the “Agreement on Settlement of Debts,” signed on April 30, 2013.  On October 1, 2013, TWC received the September payment of €50, thereby reducing the outstanding balance to €150, or approximately $225, for the remainder of the term.  TWC still holds eight unexercised demand notes.

Advance Receivable— In August 2009, in pursuit of obtaining a gaming license in Hungary, TWC partnered with Vigotop Limited, a Cyprus-based company (“Vigotop”), to form a Hungarian company, KC Bidding Kft. (“KCB”), in which TWC became holder of a 25% equity interest. Subsequently, TWC extended a three-year, 1.0% interest per annum loan of approximately €930 (or then $1,330) to KCB to form a Hungarian license concession company, SDI Europe Kft. (“SDI”), for the purpose of eventually operating the Class I casino in Hungary. SDI is a wholly-owned subsidiary of KCB. Through SDI’s intermediary, IMT LLC (“IMT”), a Delaware limited liability company, American Chance Casinos (“ACC”), an operations subsidiary of TWC, received a three-year, 2.1505% interest per annum loan of approximately $1,210. TWC expects the full lump sum repayment of the advance receivable, upon maturity, from KCB, to offset its outstanding loan with IMT. In the event KCB defaults in its repayment obligation to TWC with respect to the above mentioned loan, according to a mutual agreement, IMT will cancel the loan obligation from ACC to IMT and ACC will no longer be obligated to pay off the loan balance of approximately €910, or $1,229. In November 2010, the loan agreement between ACC and KCB was amended to change the maturity date to January 31, 2016 from December 31, 2012 and to establish an interest rate of 1% from January 1, 2012 through the new maturity date of the loan. In March 2011, the loan agreement between IMT and ACC was amended to change the maturity date to February 21, 2016 from January 31, 2013, and to establish an interest rate of 1% from January 1, 2012 through the new maturity date of the loan.  On July 23, 2013, ACC and Vigotop agreed to a restructuring of the obligations, whereby IMT assigned its rights to SDI, effectively transferring the loan to SDI, with all other loan terms remaining as-is.  As of September 30, 2013, the principal on the TWC loan to KCB was approximately $1,256 and was included in the Company’s deposits and other assets, while the principal on the SDI loan to TWC was approximately $1,229 and was included in the Company’s long-term debt.

Since January 12, 2011, there have been several lawsuits and countersuits initiated by the Ministry for the National Economy of Hungary (the “MOE”) and by KCB, contesting the cancellation of the concession contract, which was signed on October 9, 2009, and alleged breaches of its terms.  The various court hearings have either been inconclusive or postponed pending further discovery processes.  The next court hearing, in the discovery process, in the case of KCB versus the State of Hungary has been postponed to November 27, 2013, while the case of the MOE versus KCB was postponed to November 6, 2013.  Notwithstanding the foregoing, litigation results are never predictable. Further, by virtue of an existing agreement between Vigotop and TWC, all costs associated with obtaining the casino license were and will be borne by Vigotop. In the opinion of TWC’s management, after consultation with legal counsel, the amount of ultimate liability with respect to these actions, if adversely decided to KCB, will not materially affect the Company’s consolidated financial statements and/or results of operations.

Taxing Jurisdiction—The Czech Republic currently has a number of laws related to various taxes imposed by governmental authorities.  Applicable taxes include corporate income tax, gaming tax, value-added tax (“VAT”), payroll (social) taxes and, until repealed as of January 1, 2012, charity taxes.  Tax declarations, together with other legal compliance areas (e.g. customs and currency control matters) are subject to review and investigation by a number of governmental authorities, which are enabled by law to impose fines, penalties and interest charges, and create tax risks in the Czech Republic.  Management believes that it has adequately provided for all of its Czech tax liabilities.

Effective January 1, 2012, charity taxes were eliminated in lieu of a new overall flat gaming tax (the “New Gaming Tax”) of 20.0% on all live game and slot revenues, as well as a new 19% corporate income tax on adjusted Czech net income.  Additionally, the administration tax and state supervision fee have been eliminated in lieu of a per slot, per diem tax, payable along with the New Gaming Tax.  The New Gaming Tax is payable by the 25th day following the end of each quarter, while the corporate income tax is payable by June 30th of the subsequent year, and, estimated quarterly income tax payments beginning in September 2013. (See also Note 6(k) “Czech Gaming Taxes” and Note 6(l) “Income Taxes” below).

Legal Proceedings— The Company is often subject to various contingencies, the resolutions of which, its management believes, will not have a material adverse effect on the Company’s consolidated financial position or results of operations.  TWC was not involved in any material litigation during the nine months ended September 30, 2013, or through the date of this filing.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CONDENSED CONSOLIDATED BALANCE SHEETS
PROPERTY AND EQUIPMENT, accumulated depreciation (in dollars)	$ 13,305	$ 12,877
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	4,000,000	4,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,825,335	8,836,735
Common stock, shares outstanding	8,825,335	8,836,735

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Summary of Selected Significant Accounting Policies. (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Selected Significant Accounting Policies.

Schedule of impact of dilution on earnings per share from continuing operations, based on the treasury stock method

	For the Nine Months Ended				For the Three Months Ended
(amounts in thousands, except for	September 30,				September 30,
share information)	2013		2012		2013		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Basic Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Basic earnings per share	$	0.16	$	0.14	$	0.08	$	0.06
Diluted Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Addition due to the effect of dilutive securities:
Stock options and warrants (1)	11		13		11		13
Stock issuable under the Deferred Compensation Plan	226,441		150,698		226,441		150,698
Dilutive potential weighted average common shares	9,052,827		9,022,346		9,051,787		9,022,346
Diluted earnings per share	$	0.15	$	0.14	$	0.08	$	0.06

(1) Per the treasury stock method.

Schedule of estimated useful lives of property and equipment

Asset	Estimated Useful Life
Building and improvements	5-50 years
Furniture, fixtures and other equipment	4-12 years

Schedule of property and equipment

	As of September 30, 2013			As of December 31, 2012
	(Unaudited)
Land	$	2,844		$	2,691
Building and improvements	32,953			31,131
Furniture, fixtures and other equipment	12,737			13,122
	48,534			46,944
Less accumulated depreciation and amortization	(13,305		)	(12,877		)
	$	35,229		$	34,067

Schedule of impact of foreign currency translation on goodwill

	Applicable	Goodwill
(UNAUDITED)	Foreign Exchange	German		Austrian
As of September 30, 2013 (in thousands, except FX)	Rate (“FX”)(2)	reporting unit		reporting unit		Total
Residual balance, as of January 1, 2003 (in USD) (1)		USD	3,042	USD	537	USD	3,579
USD residual balance, translated at June 30, 1998 (date of acquisition) FX rate of:	33.8830	CZK	103,072	CZK	18,195	CZK	121,267
2003 CZK balance, translated to USD, at September 30, 2013 FX rate of:	19.0054	USD	5,423	USD	958	USD	6,381
Net increase to Goodwill		USD	2,381	USD	421	USD	2,802

(1) Goodwill was amortized over 15 years until the Company started to comply with revised GAAP requirements, as of January 1, 2002. This balance represents the remaining, unamortized goodwill, after an impairment charge taken prior to January 1, 2003.

(2) FX (interbank) rates taken from www.Oanda.com.

Schedule of repurchase transactions since the inception of the program

ISSUER PURCHASES OF EQUITY SECURITIES

Date	TotalNumber of Shares Purchased	AveragePrice Paid per Share		Cumulative Total of Number of SharesPurchased as Part ofPublicly AnnouncedPlan	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program
11/19/2012	4,900	$	2.50	4,900	495,100
12/20/2012	30,000	$	2.65	34,900	465,100
01/16/2013	5,000	$	2.50	39,900	460,100
01/18/2013	900	$	2.50	40,800	459,200
01/25/2013	4,500	$	2.50	45,300	454,700
03/08/2013	100	$	2.54	45,400	454,600
03/25/2013	200	$	2.50	45,600	454,400
03/26/2013	200	$	2.65	45,800	454,200
04/04/2013	250	$	2.65	46,050	453,950
04/09/2013	250	$	2.40	46,300	453,700

Schedule of promotional allowances

	For the Nine Months Ended						For the Three Months Ended
	September 30,						September 30,
(dollar amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cost of gratuitous food and beverages (A)	$	1,744		$	1,668		$	598		$	545
Average cost of food and beverages sold (B)	35.4		%	34.6		%	34.0		%	34.2		%
Retail value of food and beverages (A/B)	$	4,927		$	4,821		$	1,759		$	1,594
Retail value of hotel accommodations	45			29			16			13
Total promotional allowances	$	4,972		$	4,850		$	1,775		$	1,607

Summary of changes in gaming tax law

	New Gaming Tax Law *
	(Effective January 1, 2012)
Live Games	20% Gaming Tax from Win (70% of tax to federal; 30% to local municipality).
Slots	20% Gaming Tax from Win (20% of tax to federal; 80% to local municipality); Fifty five Korunas (or approximately three dollars) Gaming Tax per Slot Machine, per Day.
Net Income	19% corporate income tax on adjusted net income earned in the Czech Republic, net of exemptions (to federal).

* The new Gaming Tax is to be paid quarterly, by the 25th day following the end of a quarter, while the 2012 corporate income tax obligation was paid by June 30, 2013, to be followed by estimated quarterly income tax payments beginning the third quarter ending September 30, 2013.

Schedule of gaming-related taxes and fees

	For the Nine Months Ended						For the Three Months Ended
(amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Gaming revenues (live-game and slot only)	$	23,719		$	24,122		$	8,008		$	8,078
Gaming taxes on live games and slots	4,994			5,038			1,689			1,696
Licensing fees (eliminated in 2012) *				283
Total gaming taxes and fees	$	4,994		$	5,321		$	1,689		$	1,696
as % of gaming revenue	21.0		%	22.1		%	21.1		%	21.0		%

*  As the non-refundable, six-month licensing fees effective for January 2012 through June 2012 were paid in October 2011, prior to the passing of New Gaming Tax laws in December 2011, the Company incurred additional taxes for the first six months of 2012.  Excluding the repealed licensing fees, the gaming taxes and fees for the three months and nine months ending September 30, 2012 would have been each 21.0% of gaming revenue.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,379	$ 1,447
Adjustments to reconcile net income to net cash provided by operating activities:
Gain from assets disposal		(351)
Depreciation and amortization	1,193	1,330
Stock options expense		104
Deferred board fees	10	8
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	3	351
Deposits and other assets	(71)	940
Accounts payable	(365)	(426)
Interest payable	(5)	(17)
Czech gaming tax accrual	(132)	(2,167)
Foreign income tax accrual	(742)	1,120
Accrued expenses and other current liabilities	(136)	(59)
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,134	2,280
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,370)	(531)
Proceeds from assets disposal		1,321
Investment into Hotel Savannah and the Spa	(22)	(120)
Repayment on notes receivable	408	64
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	(1,984)	734
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility		5,357
Principal payments on Commerzbank debt	(1,680)	(6,553)
Principal payments on Ceska municipal loan	(115)	(115)
Share buyback under the Stock Repurchase Program	(29)
NET CASH USED IN FINANCING ACTIVITIES	(1,824)	(1,311)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(54)	(168)
NET INCREASE (DECRFASE) IN CASH	(2,728)	1,535
CASH:
Beginning of period	6,887	5,636
End of period	4,159	7,171
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest	48	208
Cash paid during the period for foreign income taxes	1,383	138
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Deferred compensation to be paid in common stock	$ 188	$ 260

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:
Cash	$ 4,159	$ 6,887
Prepaid expenses	301	316
Notes receivable	300	663
Other current assets	273	262
Total current assets	5,033	8,128
PROPERTY AND EQUIPMENT, less accumulated depreciation of $13,305 and $12,877, respectively	35,229	34,067
OTHER ASSETS:
Goodwill	6,381	6,396
Deposits and other assets	2,504	2,439
Total other assets	8,885	8,835
TOTAL ASSETS	49,147	51,030
CURRENT LIABILITIES:
Long-term debt, current maturities	161	1,836
Capital lease, current portion	53	55
Accounts payable	424	804
Interest payable		15
Czech gaming tax accrual	1,803	1,943
Foreign income tax accrual	714	1,480
Accrued expenses and other current liabilities	1,288	1,612
Total current liabilities	4,443	7,745
LONG-TERM LIABILITIES:
Long-term debt, less current maturities	1,255	1,376
Capital lease, less current portion	95	134
Deferred foreign tax liability	579	581
Total long-term liabilities	1,929	2,091
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value, 4,000,000 shares authorized, none issued
Common stock, $0,001 par value, 20,000,000 shares authorized, 8,825,335 shares in 2013 and 8,836,735 shares in 2012, issued and outstanding	9	9
Additional paid-in capital	52,623	52,454
Accumulated other comprehensive income	7,595	7,562
Accumulated deficit	(17,452)	(18,831)
Total stockholders' equity	42,775	41,194
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 49,147	$ 51,030

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Summary of Selected Significant Accounting Policies. (Details 2) In Thousands, except Share data, unless otherwise specified	0 Months Ended												3 Months Ended		9 Months Ended					9 Months Ended			9 Months Ended
	Apr. 09, 2013 USD ($)	Apr. 04, 2013 USD ($)	Mar. 27, 2013 USD ($)	Mar. 25, 2013 USD ($)	Mar. 08, 2013 USD ($)	Jan. 25, 2013 USD ($)	Jan. 18, 2013 USD ($)	Jan. 16, 2013 USD ($)	Dec. 20, 2012 USD ($)	Nov. 19, 2012 USD ($)	Nov. 12, 2012	Jan. 01, 2002	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Dec. 31, 2012	Jan. 01, 2003 USD ($)	Jun. 30, 1998 CZK	Sep. 30, 2013 German reporting unit USD ($)	Jan. 01, 2003 German reporting unit USD ($)	Jun. 30, 1998 German reporting unit CZK	Sep. 30, 2013 Austrian reporting unit USD ($)	Jan. 01, 2003 Austrian reporting unit USD ($)	Jun. 30, 1998 Austrian reporting unit CZK
Impact of foreign currency translation on goodwill
Applicable Foreign Exchange Rate ("FX")													19.0054		19.0054				33.8830
Residual balance													$ 6,381		$ 6,381			$ 3,579	121,267	$ 5,423	$ 3,042	103,072	$ 958	$ 537	18,195
Net increase to Goodwill															2,802					2,381			421
Period over which goodwill was amortized												15 years
Stock-based Compensation
Award expenses															0	104
Stock Repurchase Program
Shares authorized for repurchase											500,000
Period over which shares is authorized to repurchase											12 months
Common stock, shares outstanding													8,825,335		8,825,335		8,836,735
Total Number of Shares Purchased	250	250	200	200	100	4,500	900	5,000	30,000	4,900			0
Average Price Paid per Share (in dollars per share)	$ 2.40	$ 2.65	$ 2.65	$ 2.50	$ 2.54	$ 2.50	$ 2.50	$ 2.50	$ 2.65	$ 2.50
Cumulative Total of Number of Shares Purchased as Part of Publicly Announced Plan	46,300	46,050	45,800	45,600	45,400	45,300	40,800	39,900	34,900	4,900
Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program	453,700	453,950	454,200	454,400	454,600	454,700	459,200	460,100	465,100	495,100
Promotional allowances
Cost of gratuitous food and beverages													598	545	1,744	1,668
Average cost of food and beverages sold (as a percent)													34.00%	34.20%	35.40%	34.60%
Retail value of food and beverages													1,759	1,594	4,927	4,821
Retail value of hotel accommodations													16	13	45	29
Total promotional allowances													$ 1,775	$ 1,607	$ 4,972	$ 4,850

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Commitments and Contingencies. (Tables)

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies.

Schedule of future aggregate minimum annual rental payments

Twelve Months Ending September 30,
2014	$	88
2015	$	44

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Discontinued Operations. (Details) In Thousands, unless otherwise specified	6 Months Ended	9 Months Ended	0 Months Ended		9 Months Ended
	Jun. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Jul. 11, 2012 Rozvadov USD ($)	Jul. 11, 2012 Rozvadov EUR (€)	Sep. 30, 2013 Rozvadov USD ($)
Discontinued Operations
Full purchase payment by under lessee under buy out option			$ 1,300	€ 1,000
Net gain from the sale of casino and associated buildings, less all related costs and inclusive of rental income			306
Net operating loss	(145)
Write-downs of inventories or furniture, fixtures and equipment		0
Cash severance benefits received by employees					$ 79

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Summary of Selected Significant Accounting Policies. (Policies)

9 Months Ended

Sep. 30, 2013

Summary of Selected Significant Accounting Policies.

Revenue recognition

(a) Revenue recognition— Casino revenue is defined as the net win from gaming activities, which is the difference between gaming wagers and the amount paid out to patrons, and is recognized on the day it is earned. Revenues generated from ancillary services, including lodging, sales of food, beverage, cigarettes, and casino logo merchandise are recognized at the time the related services are performed and represent, on an individual basis, less than five percent of total revenues.

Earnings per share

(b) Earnings per share— Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the period.  Diluted earnings per common share incorporate the dilutive effect of common stock equivalents on an average basis during the period. The Company’s common stock equivalents currently include stock options, warrants and deferred compensation stock. Thus, unexercised stock options to purchase up to 598,750 and 660,850 shares as of September 30, 2013 and September 30, 2012, respectively, were included in the computation of diluted earnings per common share, if such unexercised stock options were “in-the-money” and vested. Warrants to purchase up to 75,000 shares were also included, if they were “in-the-money” and vested.  In addition, 226,441 and 150,698 issuable shares, as of September 30, 2013 and September 30, 2012, respectively, under the Company’s Deferred Compensation Plan were also included in the computation.

A table illustrating the impact of dilution on earnings per share, based on the treasury stock method, is presented below:

	For the Nine Months Ended				For the Three Months Ended
(amounts in thousands, except for	September 30,				September 30,
share information)	2013		2012		2013		2012
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Basic Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Basic earnings per share	$	0.16	$	0.14	$	0.08	$	0.06
Diluted Earnings Per Share:
Income from continuing operations	$	1,379	$	1,247	$	706	$	498
Weighted average common shares	8,826,375		8,871,635		8,825,335		8,871,635
Addition due to the effect of dilutive securities:
Stock options and warrants (1)	11		13		11		13
Stock issuable under the Deferred Compensation Plan	226,441		150,698		226,441		150,698
Dilutive potential weighted average common shares	9,052,827		9,022,346		9,051,787		9,022,346
Diluted earnings per share	$	0.15	$	0.14	$	0.08	$	0.06

(1) Per the treasury stock method.

Goodwill

(c) Goodwill— Goodwill represents the excess of the cost of the Company’s Czech subsidiaries over the fair value of their net assets at the date of acquisition, which consisted of the Ceska casino, the Rozvadov casino (which was sold in 2012) and the land in Hate, which is currently the Route 59 Casino. Goodwill is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company has allocated the goodwill over two reporting units that are components of the operating segment “Czech subsidiaries” and are classified as the “German reporting unit” which consists of the Ceska casino, and the “Austrian reporting unit” which consists of the Route 55 and Route 59 casinos and the Hotel Savannah.  Goodwill impairment tests require the Company to first assess qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test.  The Company is not required to calculate the fair value of a reporting unit unless it determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount.  The Company assesses the potential impairment of goodwill annually (as of September 30th) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable.  Upon completion of such review, if impairment is found to have occurred, a corresponding charge will be recorded.

Based on TWC’s own assessment of qualitative factors which included an analysis of macroeconomic conditions, financial performance, and industry and market considerations, the Company concluded that it was not necessary to perform a two-step quantitative goodwill impairment test and that the goodwill of the Company was not impaired as of September 30, 2013, its annual assessment date.

Property and Equipment

(d) Property and equipment- Property and equipment is stated at cost less accumulated depreciation and amortization.  TWC capitalizes the cost of improvements that extend the life of the asset and expenses maintenance and repair costs as incurred.  The Company provides for depreciation and amortization using the straight-line method over the following estimated useful lives:

Asset	Estimated Useful Life
Building and improvements	5-50 years
Furniture, fixtures and other equipment	4-12 years

At September 30, 2013 and December 31, 2012, property and equipment consisted of the following:

	As of September 30, 2013			As of December 31, 2012
	(Unaudited)
Land	$	2,844		$	2,691
Building and improvements	32,953			31,131
Furniture, fixtures and other equipment	12,737			13,122
	48,534			46,944
Less accumulated depreciation and amortization	(13,305		)	(12,877		)
	$	35,229		$	34,067

Impairment for long-lived assets

(e) Impairment for long-lived assets— The Company periodically evaluates whether current facts or circumstances indicate that the carrying value of its depreciable assets to be held and used may be recoverable.  If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived assets, or the appropriate grouping of assets, is compared to the carrying value to determine whether an impairment exists.  If an asset is determined to be impaired, the loss is measured based on the difference between the asset’s fair value and its carrying value. An estimate of the asset’s fair value is based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. The Company reports an asset to be disposed of at the lower of its carrying value or its estimated net realizable market value.  There were no impairment losses for long-lived assets recorded for the nine months ending September 30, 2013 and 2012.

Foreign currency translation

(f) Foreign currency translation — Foreign subsidiaries whose functional currency is the local foreign currency, balance sheet accounts and cash flows are translated at exchange rates in effect at the end of each reporting period and resulting translation adjustments are included in “accumulated other comprehensive income.”  Statement of operations accounts are translated by applying the monthly averages of the daily exchange rates of one (1) US dollar (“USD”) to the Czech Koruna (“CZK”) on the respective monthly local Czech statement of operations accounts for the period.

The impact of foreign currency translation on goodwill is presented below:

	Applicable	Goodwill
(UNAUDITED)	Foreign Exchange	German		Austrian
As of September 30, 2013 (in thousands, except FX)	Rate (“FX”)(2)	reporting unit		reporting unit		Total
Residual balance, as of January 1, 2003 (in USD) (1)		USD	3,042	USD	537	USD	3,579
USD residual balance, translated at June 30, 1998 (date of acquisition) FX rate of:	33.8830	CZK	103,072	CZK	18,195	CZK	121,267
2003 CZK balance, translated to USD, at September 30, 2013 FX rate of:	19.0054	USD	5,423	USD	958	USD	6,381
Net increase to Goodwill		USD	2,381	USD	421	USD	2,802

(1) Goodwill was amortized over 15 years until the Company started to comply with revised GAAP requirements, as of January 1, 2002. This balance represents the remaining, unamortized goodwill, after an impairment charge taken prior to January 1, 2003.

(2) FX (interbank) rates taken from www.Oanda.com.

Stock-based compensation

(g) Stock-based compensation — The Company recognizes the fair value of stock-based compensation in the condensed consolidated statement of operations. The fair value of the Company’s stock option awards are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award.  In addition, the calculation of compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of stock-based awards is amortized over the vesting period of the award. The award expenses for the nine months ended September 30, 2013 and 2012 were $0 and $104, respectively.

Stock Repurchase Program

(h) Stock repurchase program —  On November 12, 2012, TWC’s board of directors approved a stock repurchase program (the “program”), in accordance with the retirement method, authorizing the repurchase of up to 500,000 shares of the Company’s Common Stock, over a 12-month period.  The program will expire on its anniversary date and does not obligate the Company to acquire any particular amount of Common Stock.  It can be modified, extended, suspended or discontinued at any time.  Thus, pursuant to the stock repurchase program and through a registered broker-dealer, the Company conducted repurchases on the open market, arriving at an outstanding 8,825,335 shares at September 30, 2013.  The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors.  Repurchases may be conducted in the open market or in privately negotiated transactions.  There was no repurchase activity during the three months ended September 30, 2013.  The repurchase transactions since the inception of the program are listed in the table below:

ISSUER PURCHASES OF EQUITY SECURITIES

Date	TotalNumber of Shares Purchased	AveragePrice Paid per Share		Cumulative Total of Number of SharesPurchased as Part ofPublicly AnnouncedPlan	Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plan or Program
11/19/2012	4,900	$	2.50	4,900	495,100
12/20/2012	30,000	$	2.65	34,900	465,100
01/16/2013	5,000	$	2.50	39,900	460,100
01/18/2013	900	$	2.50	40,800	459,200
01/25/2013	4,500	$	2.50	45,300	454,700
03/08/2013	100	$	2.54	45,400	454,600
03/25/2013	200	$	2.50	45,600	454,400
03/26/2013	200	$	2.65	45,800	454,200
04/04/2013	250	$	2.65	46,050	453,950
04/09/2013	250	$	2.40	46,300	453,700

Comprehensive income

(i) Comprehensive income — The Company’s change in the foreign currency translation adjustments is included in other comprehensive income.

Promotional allowances

(j) Promotional allowances — Promotional allowances primarily consist of food and beverages and, to certain of its valuable players, hotel accommodations, all of which are furnished gratuitously.  For the nine months ended September 30, 2013 and 2012, revenues do not include the retail amount of food and beverages and hotel accommodations of $4,972 and $4,850, respectively, provided at no-charge to customers. The retail value of the food and beverages given away is determined by dividing the food and beverage costs charged to the gaming operation of $1,744 and $1,668 for the respective periods, by the average percentage of cost of food and beverages sold.  The cost of hotel accommodations is either the out-of-pocket expenses paid to other hotels that provide rooms for our players or the retail charge for rooms at the Hotel Savannah and at our VIP hotel rooms at Route 55 and at Ceska.

The promotional allowances are summarized below:

	For the Nine Months Ended						For the Three Months Ended
	September 30,						September 30,
(dollar amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Cost of gratuitous food and beverages (A)	$	1,744		$	1,668		$	598		$	545
Average cost of food and beverages sold (B)	35.4		%	34.6		%	34.0		%	34.2		%
Retail value of food and beverages (A/B)	$	4,927		$	4,821		$	1,759		$	1,594
Retail value of hotel accommodations	45			29			16			13
Total promotional allowances	$	4,972		$	4,850		$	1,775		$	1,607

Czech gaming taxes

(k) Czech gaming taxes — Effective January 1, 2012, TWC merged its three Czech slot subsidiary companies, ACC Slot, s.r.o., Hollywood Spin s.r.o. and LMJ Slot s.r.o. into its primary Czech operating entity company, American Chance Casinos a.s., in an effort to eliminate and/or reduce redundancy in operations, maintenance and operating costs.

The new Czech Gaming Tax Law is summarized in the following table:

	New Gaming Tax Law *
	(Effective January 1, 2012)
Live Games	20% Gaming Tax from Win (70% of tax to federal; 30% to local municipality).
Slots	20% Gaming Tax from Win (20% of tax to federal; 80% to local municipality); Fifty five Korunas (or approximately three dollars) Gaming Tax per Slot Machine, per Day.
Net Income	19% corporate income tax on adjusted net income earned in the Czech Republic, net of exemptions (to federal).

* The new Gaming Tax is to be paid quarterly, by the 25th day following the end of a quarter, while the 2012 corporate income tax obligation was paid by June 30, 2013, to be followed by estimated quarterly income tax payments beginning the third quarter ending September 30, 2013.

TWC’s gaming-related taxes and fees for the nine and three months ended September 30, 2013 and 2012 are summarized in the following table:

	For the Nine Months Ended						For the Three Months Ended
(amounts in thousands)	2013			2012			2013			2012
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Gaming revenues (live-game and slot only)	$	23,719		$	24,122		$	8,008		$	8,078
Gaming taxes on live games and slots	4,994			5,038			1,689			1,696
Licensing fees (eliminated in 2012) *				283
Total gaming taxes and fees	$	4,994		$	5,321		$	1,689		$	1,696
as % of gaming revenue	21.0		%	22.1		%	21.1		%	21.0		%

*  As the non-refundable, six-month licensing fees effective for January 2012 through June 2012 were paid in October 2011, prior to the passing of New Gaming Tax laws in December 2011, the Company incurred additional taxes for the first six months of 2012.  Excluding the repealed licensing fees, the gaming taxes and fees for the three months and nine months ending September 30, 2012 would have been each 21.0% of gaming revenue.

In conformity with the European Union (“EU”) taxation legislation, when the Czech Republic joined the EU in 2004, its VAT increased from 5% to 22%, from January 2004 through December 2009, and ranged between 9% and 19% for all intra-EU generated purchases. Between January 1, 2010 and December 31, 2012, VAT rates increased to between 10% and 20%, then to 15% and 21%, beginning on January 1, 2013. The applicable VAT rate varies depending on the product or services sold and/or received.  All non-EU generated purchases were impacted by identical VAT increases, beginning in May 2004. The VAT top rate rose to 21% beginning on January 1, 2013. The Company pays its VAT directly to its vendors in connection with any purchases that are subject to this tax. Unlike in other industries, VATs are not recoverable for gaming operations. The recoverable VAT under the Hotel Savannah operation was non-material for the nine and three months ended September 30, 2013 and 2012, respectively.

Income taxes

(l) Income taxes — Deferred income tax assets and liabilities are computed for differences between the financial statement and the tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.  Accounting for income taxes prescribes, among other things, a recognition threshold and measurement attributes for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a company’s income tax return. Accounting for income taxes utilizes a two-step approach for evaluating uncertain tax positions. Step One, or recognition, requires a company to determine if the weight of available evidence indicates a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step Two, or measurement, is based on the largest amount of benefit, which is more likely than not to be realized on settlement with the taxing authority. The Company is subject to income tax examinations by U.S. and foreign taxing authorities for all tax years subsequent to 2009. The adoption of the provisions of the Financial Accounting Standards Board (“FASB”) standard, “Accounting for Income Taxes” did not have a material impact on the Company’s consolidated financial statements. However, management’s conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulation and interpretations, thereof.  During the nine months ended September 30, 2013, the Company recognized no adjustments for uncertain tax positions.

Effective January 1, 2012, the Czech government instituted an effective corporate income tax, currently at 19.0%, on gaming net income, which prior to the law changes, gaming revenue was subject only to gaming taxes.  As a result of the new tax laws and due to the materiality of the income tax liability, the Company incurred an estimated foreign income tax expense of $623 and $1,267 for the nine months ended September 30, 2013 and 2012, respectively.  Foreign book tax differences on fixed assets have resulted in a long-term deferred tax liability of $579, which is included in long-term liabilities on the balance sheet.  Corporate income tax for the current year is payable by the end of September of the subsequent year, followed by estimated quarterly corporate income tax payments, which began in September 2013.

Recently issued and adopted accounting standards

(m) Recently issued and adopted accounting standards:

In February 2013, the FASB issued guidance to improve the reporting of amounts reclassified out of accumulated other comprehensive income (“AOCI”). The guidance amends the presentation of changes in AOCI and requires an entity to disaggregate the total change of each component of other comprehensive income either on the face of the statement of income or as a separate disclosure in the notes. This guidance is effective prospectively for fiscal years beginning after December 15, 2012. The Company adopted the guidance on January 1, 2013, as required. There was no material impact on its consolidated financial statements resulting from the adoption.

New accounting pronouncement

(n) New accounting pronouncement:

In March 2013, the FASB issued guidance on a parent’s accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. The guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This guidance is effective prospectively for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. The Company will adopt the guidance on January 1, 2014, as required, and it believes the adoption of this guidance will not have a material impact on its consolidated financial statements.

In July 2013, the FASB issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists, which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. This guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date; however retrospective application is permitted. The Company is in the process of evaluating this guidance and does not expect that it will have a significant impact on its consolidated financial statements.

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Nature of Business.

9 Months Ended

Sep. 30, 2013

Nature of Business.

Nature of Business.

2. Nature of Business.

Trans World Corporation, a Nevada corporation, and Subsidiaries are primarily engaged in the gaming and hotel business in the Czech Republic.

The Company owns and operates three casinos in the Czech Republic (“CZ”), all under the registered brand, American Chance Casinos (“ACC”). The Ceska casino (“Ceska”), located in the town of Ceska Kubice, in the western part of the CZ, close to the German border, currently has 15 gaming tables and 100 slot machines.  The Route 55 casino (“Route 55”), located in Dolni Dvoriste, in the southern part of the CZ, close to the Austrian border, has 23 gaming tables and 124 slot machines. The Route 59 casino (“Route 59”), is located in Hate, near Znojmo, in the CZ, and currently has 23 gaming tables and 118 slot machines.

In addition to the above gaming operations, TWC also owns and operates a 77-room, four-star deluxe hotel, the Hotel Savannah, which is physically connected to its Route 59 casino, and a full-service spa, the Spa at Savannah (the “Spa”), which is operated by an independent contractor and is attached to the hotel.  The hotel features eight banquet halls for meetings and special events as well as a full-service restaurant and bar.

The Company was also the manager, under a 10-year management contract expiring in 2017, of the Grand Casino Lav and Nightclub (collectively known as the “Grand Casino Lav”), located in Podstrana, Croatia, near the resort city of Split. This casino had been operating under difficult conditions in a depressed regional economy.  On January 1, 2012, the casino’s operations were suspended by the owner, Grand Hotel Lav d.o.o. (“GHL”), and beginning March 2013, the property went under bank receivership, pending settlement of all of its debt obligations.  The management contract was effectively terminated upon the signing of this agreement, “Agreement on Settlement of Debts,” with TWC, dated April 30, 2013. See also “Note 4 — Commitments and Contingencies — Notes Receivable” below.

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Commitments and Contingencies. (Details 3) In Thousands, unless otherwise specified			1 Months Ended			0 Months Ended			1 Months Ended					1 Months Ended				9 Months Ended
	Sep. 30, 2013 USD ($)	Dec. 31, 2012 USD ($)	Aug. 31, 2009 IMT LLC ACC USD ($)	Mar. 31, 2011 IMT LLC ACC As adjusted	Sep. 30, 2013 SDI ACC USD ($)	Oct. 02, 2013 GHL EUR (€)	Jan. 10, 2007 GHL USD ($) item	Jan. 10, 2007 GHL EUR (€)	Apr. 30, 2013 GHL EUR (€)	Oct. 02, 2013 GHL USD ($)	Sep. 30, 2013 GHL USD ($) item	Sep. 30, 2013 GHL EUR (€)	Apr. 30, 2013 GHL USD ($)	Aug. 31, 2009 KCB USD ($)	Aug. 31, 2009 KCB EUR (€)	Sep. 30, 2013 KCB USD ($)	Nov. 30, 2010 KCB ACC As adjusted	Sep. 30, 2013 KCB IMT LLC ACC USD ($)	Sep. 30, 2013 KCB IMT LLC ACC EUR (€)
Notes receivable
Number of Euro-denominated loans							3	3
Notes receivable							$ 1,258	€ 967
Amount of notes receivable from the related party	300	663				150			472	225	300	200	708
Initial payment									72
Monthly installments						50			50
Number of unexercised demand notes											8	8
Equity interest (as a percent)														25.00%	25.00%
Term of loans receivable														3 years	3 years
Loans receivable interest rate (as a percent)														1.00%	1.00%
Advance receivable														1,330	930	1,256
Debt instrument term			3 years
Loans payable interest rate (as a percent)			2.1505%	1.00%													1.00%
Loan payable			1,210		1,229
Loan payable, amount cancelled in the event of related party default																		$ 1,229	€ 910

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Nature of Business. (Details)	9 Months Ended
	Sep. 30, 2013
Nature of Business
Number of casinos owned and operated	3
Ceska
Nature of Business
Number of gaming tables	15
Number of slot machines	100
Route 55
Nature of Business
Number of gaming tables	23
Number of slot machines	124
Route 59
Nature of Business
Number of gaming tables	23
Number of slot machines	118
Hotel Savannah
Nature of Business
Number of rooms	77
Number of banquet halls	8
Grand Casino Lav
Nature of Business
Management contract term	10 years

XML

Summary of Selected Significant Accounting Policies. (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013 item	Sep. 30, 2012	Sep. 30, 2013 item	Sep. 30, 2012	Dec. 31, 2012
Revenue recognition
Maximum revenues generated from ancillary services as a percentage of total revenues			5.00%
Earnings per common share
Maximum outstanding share-based options which could be included in diluted EPS (in shares)	598,750	660,850	598,750	660,850
Maximum outstanding warrants which could be included in diluted EPS (in shares)			75,000	75,000
Basic Earnings Per Share:
Income from continuing operations	$ 706	$ 498	$ 1,379	$ 1,247
Weighted average common shares	8,825,335	8,871,635	8,826,375	8,871,635
Basic earnings per share (in dollars per share)	$ 0.08	$ 0.06	$ 0.16	$ 0.14
Diluted Earnings Per Share:
Income from continuing operations	706	498	1,379	1,247
Weighted average common shares	8,825,335	8,871,635	8,826,375	8,871,635
Addition due to the effect of dilutive securities:
Stock options and warrants (in shares)	11	13	11	13
Stock issuable under the Deferred Compensation Plan (in shares)	226,441	150,698	226,441	150,698
Dilutive potential weighted average common shares	9,051,787	9,022,346	9,052,827	9,022,346
Diluted earnings per share (in dollars per share)	$ 0.08	$ 0.06	$ 0.15	$ 0.14
Goodwill
Number of reporting units over which goodwill has been allocated	2		2
Property and Equipment
Property and equipment, gross	48,534		48,534		46,944
Less accumulated depreciation and amortization	(13,305)		(13,305)		(12,877)
Property and equipment, net	35,229		35,229		34,067
Impairment for long-lived assets
Impairment losses related to long-lived assets			0	0
Land
Property and Equipment
Property and equipment, gross	2,844		2,844		2,691
Building and improvements
Property and Equipment
Property and equipment, gross	32,953		32,953		31,131
Building and improvements | Minimum
Property and Equipment
Estimated Useful Life			5 years
Building and improvements | Maximum
Property and Equipment
Estimated Useful Life			50 years
Furniture, fixtures and other equipment
Property and Equipment
Property and equipment, gross	$ 12,737		$ 12,737		$ 13,122
Furniture, fixtures and other equipment | Minimum
Property and Equipment
Estimated Useful Life			4 years
Furniture, fixtures and other equipment | Maximum
Property and Equipment
Estimated Useful Life			12 years

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Commitments and Contingencies. (Details 4)	3 Months Ended	0 Months Ended
	Sep. 30, 2013	Jan. 02, 2012 Czech Republic
Taxing Jurisdiction
Gaming tax applicable on all live game and slot revenues (as a percent)		20.00%
Corporate income tax on adjusted net income (as a percent)		19.00%
Period from end of each quarter to pay new gaming tax	25 days	25 days

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 05, 2013
Document and Entity Information
Entity Registrant Name	TRANS WORLD CORP
Entity Central Index Key	0000914577
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,825,335
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

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Liquidity. (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Liquidity
Working capital surplus	$ 590	$ 383