NOTE 4 — INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED AFFILIATE

Miami Valley Gaming Joint Venture

The Company's 50% joint venture with Delaware North Companies Gaming & Entertainment Inc. (“DNC”) was established during 2012 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 1,590 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):



	June 30, 2015		December 31, 2014
Assets
Current assets	$	23,382	$	24,943
Property and equipment, net	125,597		130,868
Other assets, net	105,059		105,059
Total assets	$	254,038	$	260,870

Liabilities and Members' Equity
Current liabilities	$	17,110	$	16,775
Current portion of long-term debt	8,332		8,332
Long-term debt, excluding current portion	23,591		26,584
Other liabilities	75		83
Members' equity	204,930		209,096
Total liabilities and members' equity	$	254,038	$	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 $12.5 million in principal repayments. During the three and six months ended June 30, 2015, the Company received distributions from MVG totaling $4.0 million and $7.5 million, respectively.



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Casino revenue	$	33,119		$	33,124		$	65,163		$	64,287
Non-casino revenue	1,879			1,913			3,836			3,544
Net revenues	34,998			35,037			68,999			67,831
Operating and SG&A expenses	25,052			24,777			49,686			48,988
Depreciation & amortization expenses	3,154			3,474			6,298			6,841
Pre-opening expenses	—			—			—			54
Operating income	6,792			6,786			13,015			11,948
Interest (expense) income, net	(1,073		)	(1,194		)	(2,181		)	(2,274		)
Net income	$	5,719		$	5,592		$	10,834		$	9,674

The Company's 50% share of MVG's results has been included in our accompanying condensed consolidated financial statements for the three and six months ended June 30, 2015 and 2014, as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Equity in gains of unconsolidated investments	$	2,859	$	2,796	$	5,417	$	4,837