NOTE 4—INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATE

During March 2012, the Company entered into a 50% joint venture with Delaware North Companies Gaming & Entertainment Inc. (“DNC”) to develop a new harness racetrack and video lottery terminal (“VLT”) gaming facility in Lebanon, Ohio. Through the joint venture agreement, the Company and DNC formed a new company, Miami Valley Gaming, LLC (“MVG”), to manage both the Company’s and DNC’s interests in the development and operation of the racetrack and VLT gaming facility. On December 21, 2012, MVG completed the purchase of the harness racing licenses and certain assets held by Lebanon Trotting Club Inc. and Miami Valley Trotting Inc. ("MVG Sellers") for total consideration of $60.0 million, of which $10.0 million was funded at closing with the remainder funded through a $50.0 million note payable with a six year term effective upon the commencement of gaming operations. In addition, there is a potential contingent consideration payment of $10.0 million based on the financial performance of the facility during the seven year period after gaming operations commence.

On December 12, 2013, the new facility opened in Lebanon, Ohio on a 120-acre site. The facility includes a 5/8-mile harness racing track and a 186,000-square-foot gaming facility with approximately 1,600 VLTs, which the joint venture may increase to 1,800 VLTs, dependent on customer demand. MVG has invested approximately $212.0 million in the new facility, including one-half of a $50.0 million license fee to the Ohio Lottery Commission. The remaining $25 million license fee will be funded during the fourth quarter of 2014. During the three months ended March 31, 2014, the Company funded $6.5 million in capital contributions to the joint venture.

Since both DNC and the Company have participating rights over MVG, and both must consent to MVG's operating, investing and financing decisions, the Company accounts for MVG using the equity method. Summarized financial information for MVG is comprised of the following (in thousands):



	March 31, 2014		December 31, 2013
Assets
Current assets	$	21,638	$	18,002
Property and equipment, net	148,083		151,434
Other assets, net	80,746		80,665
Total assets	$	250,467	$	250,101

Liabilities and Members' Equity
Current liabilities	$	31,785	$	46,966
Long-term debt	39,223		40,758
Other liabilities	75		75
Members' equity	179,384		162,302
Total liabilities and members' equity	$	250,467	$	250,101

The joint venture's long-term debt consists of a $50 million secured note payable from MVG to the MVG Sellers payable quarterly over six years at a 5.0% interest rate.



	Three Months Ended
	March 31, 2014			March 31, 2013
Gaming revenue	$	31,163		$	—
Non-gaming revenue	1,631			1,441
Net revenues	32,794			1,441
Operating and SG&A expenses	24,211			1,553
Depreciation & amortization expenses	3,367			23
Pre-opening expenses	54			460
Operating income (loss)	5,162			(595		)
Interest and other expenses, net	(1,080		)	—
Net income (loss)	$	4,082		$	(595	)

The Company's share of MVG's results have been included in our accompanying condensed consolidated financial statements for the three months ended March 31, 2014 and 2013, as follows (in thousands):



	March 31, 2014		March 31, 2013
Equity in gains (losses) of unconsolidated investments	$	2,041	$	(298	)