17. Income Taxes

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

17. Income Taxes

The Company and its subsidiaries file separate tax returns and have not filed income tax returns for the years ended June 30, 2012, 2011, 2010 and 2009 but anticipate no significant income tax expenses as a result of these filings.

On July 1, 2010, as amended, the Company and RBL entered into an agreement to sell 100% of the common stock of Gaming to Catskills Gaming and Development, LLC (Catskill).  As a result, the Company has recorded the deconsolidation of Gaming and recorded a loss of $6,843,246.

As of June 30, 2012, management has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements.

As of June 30, 2012, the Company had net operating loss carryforwards of approximately $14,200,000 to reduce future Federal and state taxable income through 2032.  However, as a result of the changes in the share ownership of the Company, future utilization of the net operating losses may be limited pursuant to Section 382 of the Internal Revenue Code.

As of June 30, 2012, realization of the Company’s deferred tax asset of $11,746,825 was not considered more likely than not and, accordingly, a valuation allowance of $11,746,825 has been provided.  There was an increase of $5,082,000 in the valuation allowance.

As of June 30, 2012 and 2011, components of deferred tax assets were as follows:

	2012			2011
Sale and deconsolidation of RBG	$	-		$	2,669,000
Impairment of intangible asset		3,133,000
Write-off of investment in joint venture, intangible assets and deferred expenses		54,000			28,800
Other		-			225
Net operating loss		1,895,000			2,477,800
		5,082,000			5,175,825
Allowance		(5,082,000	)		(5,175,825	)
	$	None		$	None

For the years ended June 30, 2012 and 2011, deferred income tax expense consisted of the following:

	2012			2011
Sale and deconsolidation of RBG	$	-		$	2,669,000
Impairment of intangible asset		5,760,000
Write-off of investment in joint venture, intangible assets and deferred expenses		375,000			320,600
Other		29,300			29,300
Net operating loss		5,582,525			3,645,925
		11,746,825			6,664,825
Valuation allowance		(11,746,825	)		(6,664,825	)
	$	None		$	None