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.