Investment In and Advances to Unconsolidated Affiliates

6 Months Ended

Jun. 30, 2012

Investment In and Advances to Unconsolidated Affiliates

Investment In and Advances to Unconsolidated Affiliates

5.  Investment In and Advances to Unconsolidated Affiliates

As of June 30, 2012, investment in and advances to unconsolidated affiliates represents the Company’s 50% interest in Freehold Raceway, its 50% investment in Kansas Entertainment, LLC (“Kansas Entertainment”), which is a joint venture with International Speedway Corporation (“International Speedway”), and its 50% joint venture with MAXXAM, Inc. that owns and operates racetracks in Texas.  Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 for further details of accounting for investments in and advances to unconsolidated affiliates.

Kansas Entertainment

Kansas Entertainment opened its $391 million facility, inclusive of licensing fees, on February 3, 2012. The facility features a 95,000 square foot casino with approximately 2,000 slot machines, 52 table games and 12 poker tables, a 1,253 space parking structure, as well as a variety of dining and entertainment facilities. The Company and International Speedway shared equally in the cost of developing and constructing the facility. The Company’s share of the project is anticipated to be approximately $145 million of which the Company has incurred $135.6 million through June 30, 2012. During the six months ended June 30, 2012, the Company funded $39.1 million for capital expenditures and other operating expenses, as compared to $11.2 million and $21.4 million during the three and six months ended June 30, 2011, respectively.