Note 14.

Income Taxes

The Company recorded income tax expense of approximately $8,000 and $35,000 and $49,000 and $89,000 for the three-month and six-month periods ended June 30, 2013 and 2012, respectively. The Company’s effective income tax rates were (2.0)% and 7.6% and (7.3)% and 6.4% for the three-month and six-month periods ended June 30, 2013 and 2012, respectively. The Company’s EGT Cambodia and Dreamworld Casino (Pailin) operations are tax exempt, paying a fixed monthly tax rather than a tax on income. The change in effective tax rate was mainly due to an increase in consolidated pre-tax loss.

The fixed obligation tax arrangement is subject to annual renewal and negotiation. Earlier this year, the Company renewed the fixed obligation tax arrangement for both EGT Cambodia and Dreamworld Casino (Pailin) for 2013.

The Company has been subjected to income tax examinations by tax authorities in jurisdictions in which it operates. During the years ended December 31, 2011 and 2012, the United States Internal Revenue Service (the “IRS”) conducted an audit of the Company’s 2008 and 2009 tax returns in the United States. On January 23, 2013, the IRS formally notified the Company that it had completed the review of the examination of the above-mentioned years with no changes to the Company’s tax position.

The Company’s 2008 to 2012 Australian income tax returns could be subject to examination by the Australian Taxation Office. The Company’s 2009 to 2012 Cambodian income tax returns could be subject to examination by the General Department of Taxation. The Company’s 2009 to 2012 Philippines income tax returns could be subject to examination by the Philippines Bureau of Internal Revenue.