Summary of Selected Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Summary of Significant Accounting Policies

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

	For the Six Months Ended				For the Three Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Basic earnings per share:
Net income	$	2,779	$	2,614	$	2,185	$	1,608
Weighted average common shares		8,869,204		8,829,011		8,879,011		8,829,011
Basic earnings per share	$	0.31	$	0.30	$	0.25	$	0.18
Diluted earnings per share:
Net income	$	2,779	$	2,614	$	2,185	$	1,608
Weighted average common shares		8,869,204		8,829,011		8,879,011		8,829,011
Addition due to the effect of dilutive securities using the treasury stock method:
Stock options		308,637		4,797		302,861		8,645
Stock issuable under the Deferred Compensation Plan		720,199		616,053		720,199		616,053
Dilutive potential common shares		9,898,040		9,449,861		9,902,071		9,453,709
Diluted earnings per share	$	0.28	$	0.28	$	0.22	$	0.17

Schedule of estimated useful lives of property and equipment

Asset	Estimated Useful Life
Buildings	30-50  years
Leasehold improvements	5-20  years
Furniture, fixtures and other equipment	4-10  years

Schedule of property and equipment

	As of		As of
	June 30, 2017		December 31, 2016
	(Unaudited)
Land	$	5,024	$	4,576
Buildings and leasehold improvements		49,523		37,580
Furniture, fixtures and other equipment		19,907		13,295
		74,454		55,451
Less accumulated depreciation and amortization		(16,664)		(13,927)
	$	57,790	$	41,524

Schedule of impact of foreign currency translation on goodwill

	Goodwill									Total
(Unaudited)	Casino Segment						Hotel Segment
	Pilsen			South-Moravia			Lower Saxony
As of June 30, 2017 (in thousands, except FX)	reporting unit			reporting unit			reporting unit
Balance in USD ($)	$	3,042	(1)	$	537	(1)	$	131		$	3,710
Balance in EUR (€)							€	119		€	119
Foreign Exchange Rate ("FX") ($ to Kč or € to Kč)		33.883			33.883			27.245
Balance in CZK (Kč)	Kč	103,072	(2)	Kč	18,195	(2)	Kč	3,242	(3)	Kč	124,509
Applicable FX(4)		22.952			22.952			22.952
Balance as of June 30, 2017	$	4,491		$	793		$	141		$	5,425
Net cumulative change to goodwill due to foreign currency translation	$	1,449		$	256		$	10		$	1,715

(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 was taken prior to January 1, 2003.

(2) USD residual balance translated to CZK at June 30, 1998, the date of acquisition of such assets, with the date of acquisition CZK to USD FX rate of 33.883.

(3) EUR balance translated to CZK at June 1, 2015, the date of acquisition of the Hotel Freizeit Auefeld, with the date of acquisition CZK to EUR FX rate of 27.245.

(4) Czech central bank foreign exchange rates at June 30, 2017, taken from www.CNB.CZ.

Summary of the gaming tax law

The gaming taxes are summarized in the following tables (all monetary figures in the immediate three tables below are in actual amounts, not in thousands):

	2017 Gambling Tax Act
(in actual amounts)	(Effective from January 1, 2017)
Live Games	23% gaming tax on revenue earned from live games (70% of tax allocated to the federal government; 30% of tax allocated to the local municipality).
Slot and other technical games	The greater of either: (a) the aggregate amount collected from a 35% gaming tax on revenue earned from slot and other technical games (35% of tax allocated to the federal government; 65% of tax allocated to the local municipality), or (b) a "minimum tax," calculated as the product of the sum of all gambling positions of individual approved terminal devices referred to in the permit for the location of the gambling premises times Kč 9,200 (approximately $401).
Net Income	No change from the 19% corporate income tax noted below.

Prior to the effective date of the Gambling Tax Act, the Company was subject to the following tax regime:

	2016 Gaming Tax Amendment
(in actual amounts)	(Effective from January 1, 2016 to December 31, 2016)
Live Games	23% gaming tax on revenue earned from live games (70% of tax allocated to the federal government; 30% of tax allocated to the local municipality).
Slots	28% gaming tax on revenue earned from slot games (20% of tax allocated to the federal government; 80% of tax allocated to the local municipality); and a per diem fixed fee of Kč 80 (approximately $3.50) per slot machine (allocated to the federal government).
Net Income	No change from the 19% corporate income tax noted below.

Schedule of gaming-related taxes and fees

(amounts in thousands)	For the Six Months Ended						For the Three Months Ended
	2017			2016			2017			2016
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Gaming revenues (excluding ancillary revenues)	$	21,135		$	21,642		$	10,607		$	11,292
Gaming taxes and fees		6,722			5,953			3,364			3,098
Gaming taxes and fees as % of above gaming revenues		31.8	%		27.5	%		31.7	%		27.4	%