NOTE 7—INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES

Miami Valley Gaming Joint Venture

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 an 186,000-square-foot gaming facility with approximately 1,580 VLTs. MVG invested $204.6 million in the new facility, including a $50.0 million license fee to the Ohio Lottery Commission. During the twelve months ended December 30, 2014, the Company funded $14.6 million in capital contributions to the joint venture bringing the Company's total investment to $105.0 million.

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):



	2014		2013
Assets
Current assets	$	24,943	$	18,001
Property and equipment, net	130,868		140,793
Other assets, net	105,059		80,408
Total assets	$	260,870	$	239,202

Liabilities and Members' Equity
Current liabilities	$	16,775	$	36,324
Current portion of long-term debt	8,332		8,471
Long-term debt, excluding current portion	26,584		32,287
Other liabilities	83		75
Members' equity	209,096		162,045
Total liabilities and members' equity	$	260,870	$	239,202

The joint venture's long-term debt consists of a $50 million secured note payable from MVG to the MVG Sellers payable quarterly over 6 years through August 2019 at a 5.0% interest rate.



	Years Ended December 31,
	2014			2013			2012
Casino revenue	$	126,111		$	6,472		$	—
Non-casino revenue	6,257			5,479			109
Net revenues	132,368			11,951			109
Operating and SG&A expenses	97,385			10,815			242
Depreciation & amortization expenses	12,299			935			7
Pre-opening expenses	54			7,240			1,079
Operating income (loss)	22,630			(7,039		)	(1,219		)
Interest and other expenses, net	(4,829		)	(397		)	—
Net income (loss)	$	17,801		$	(7,436	)	$	(1,219	)

The Company's 50% share of MVG's results has been included in the Consolidated Statements of Comprehensive Income for the years ended December 31, 2014, 2013 and 2012 as follows (in thousands):



	Years Ended December 31,
	2014		2013			2012
Equity in gains (losses) of unconsolidated investments	$	8,900	$	(3,718	)	$	(610	)