NOTE 4 — INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATE

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”) casino 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 casino 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 casino 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 casino 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 casino facility with approximately 1,570 VLTs. MVG invested $204.6 million in the new facility, including a $50.0 million license fee to the Ohio Lottery Commission.

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, 2015		December 31, 2014
Assets
Current assets	$	22,466	$	24,943
Property and equipment, net	128,418		130,868
Other assets, net	105,059		105,059
Total assets	$	255,943	$	260,870

Liabilities and Members' Equity
Current liabilities	$	15,231	$	16,775
Current portion of long-term debt	8,332		8,332
Long-term debt, excluding current portion	25,094		26,584
Other liabilities	75		83
Members' equity	207,211		209,096
Total liabilities and members' equity	$	255,943	$	260,870

The joint venture's long-term debt consists of a $50.0 million secured note payable from MVG to the MVG Sellers payable quarterly over 6 years through November 2019 at a 5.0% interest rate for which it has funded $10.4 million in principal repayments. During the three months ended March 31, 2015, the Company received distributions from MVG totaling $3.5 million.



	Three Months Ended March 31,
	2015			2014
Casino revenue	$	32,044		$	31,163
Non-casino revenue	1,957			1,631
Net revenues	34,001			32,794
Operating and SG&A expenses	24,634			24,211
Depreciation & amortization expenses	3,144			3,367
Pre-opening expenses	—			54
Operating income	6,223			5,162
Interest (expense) income, net	(1,108		)	(1,080		)
Net income	$	5,115		$	4,082

The Company's 50% share of MVG's results has been included in our accompanying condensed consolidated financial statements for the three months ended March 31, 2015 and 2014, as follows (in thousands):



	Three Months Ended March 31,
	2015		2014
Equity in gains of unconsolidated investments	$	2,558	$	2,041