

	Pinnacle Entertainment, Inc.			100% Owned Guarantor Subsidiaries(a)			100% Owned Non- Guarantor Subsidiaries(b)			Consolidating and Eliminating Entries			Pinnacle Entertainment, Inc. Consolidated
	(Restated)
	(in millions)
For the three months ended June 30, 2011
Statement of Operations
Revenues:
Gaming	$	—		$	255.9		$	—		$	—		$	255.9
Food and beverage	—			19.7			—			—			19.7
Other	—			23.4			—			—			23.4
	—			299.0			—			—			299.0
Expenses:
Gaming	—			148.7			—			—			148.7
Food and beverage	—			19.5			—			—			19.5
General and administrative and other	11.1			65.8			—			—			76.9
Depreciation and amortization	0.8			25.7			—			—			26.5
Write-downs, reserves and recoveries	—			5.9			—			—			5.9
	11.9			265.6			—			—			277.5
Operating income (loss)	(11.9		)	33.4			—			—			21.5
Equity earnings of subsidiaries	7.6			(0.2		)	—			(7.4		)	—
Interest expense and non-operating income, net	(27.0		)	1.4			—			—			(25.6		)
Income (loss) from continuing operations before inter-company activity and income taxes	(31.3		)	34.6			—			(7.4		)	(4.1		)
Management fee & inter-company interest	3.7			(3.7		)	—			—			—
Income tax expense	(1.5		)	—			—			—			(1.5		)
Income (loss) from continuing operations	(29.1		)	30.9			—			(7.4		)	(5.6		)
Income (loss) from discontinued operations, net of taxes	—			(23.3		)	(0.2		)	—			(23.5		)
Net income (loss)	$	(29.1	)	$	7.6		$	(0.2	)	$	(7.4	)	$	(29.1	)



	Pinnacle Entertainment, Inc.			100% Owned Guarantor Subsidiaries(a)			100% Owned Non- Guarantor Subsidiaries(b)		Consolidating and Eliminating Entries			Pinnacle Entertainment, Inc. Consolidated
	(Restated)
	(in millions)
For the six months ended June 30, 2011
Statement of Operations
Revenues:
Gaming	$	—		$	509.8		$	—	$	—		$	509.8
Food and beverage	—			36.1			—		—			36.1
Other	0.1			40.8			—		—			40.9
	0.1			586.7			—		—			586.8
Expenses:
Gaming	—			292.2			—		—			292.2
Food and beverage	—			36.3			—		—			36.3
General and administrative and other	21.3			124.9			—		—			146.2
Depreciation and amortization	1.7			51.5			—		—			53.2
Write-downs, reserves and recoveries	0.5			6.1			—		—			6.6
	23.5			511.0			—		—			534.5
Operating income (loss)	(23.4		)	75.7			—		—			52.3
Equity earnings of subsidiaries	45.3			0.3			—		(45.6		)	—
Interest expense and non-operating income, net	(53.9		)	2.2			—		—			(51.7		)
Income (loss) from continuing operations before inter-company activity and income taxes	(32.0		)	78.2			—		(45.6		)	0.6
Management fee & inter-company interest	6.9			(6.9		)	—		—			—
Income tax expense	(1.6		)	—			—		—			(1.6		)
Income (loss) from continuing operations	(26.7		)	71.3			—		(45.6		)	(1.0		)
Income (loss) from discontinued operations, net of taxes	—			(26.0		)	0.3		—			(25.7		)
Net income (loss)	$	(26.7	)	$	45.3		$	0.3	$	(45.6	)	$	(26.7	)



	Pinnacle Entertainment, Inc.			100% Owned Guarantor Subsidiaries(a)			100% Owned Non- Guarantor Subsidiaries(b)			Consolidating and Eliminating Entries		Pinnacle Entertainment, Inc. Consolidated
	(in millions)
For the three months ended June 30, 2010
Statement of Operations
Revenues:
Gaming	$	—		$	236.1		$	—		$	—	$	236.1
Food and beverage	—			17.8			—			—		17.8
Other	—			19.7			—			—		19.7
	—			273.6			—			—		273.6
Expenses:
Gaming	—			135.6			—			—		135.6
Food and beverage	—			18.1			—			—		18.1
General and administrative and other	12.1			62.6			—			—		74.7
Depreciation and amortization	1.4			27.9			—			—		29.3
Write-downs, reserves and recoveries	0.4			31.6			(0.4		)	—		31.6
	13.9			275.8			(0.4		)	—		289.3
Operating income (loss)	(13.9		)	(2.2		)	0.4			—		(15.7		)
Equity earnings of subsidiaries	(15.0		)	1.0			—			14.0		—
Interest expense and non-operating income, net	(27.3		)	—			—			—		(27.3		)
Loss on early extinguishment of debt	(0.4		)	—			—			—		(0.4		)
Income (loss) from continuing operations before inter-company activity and income taxes	(56.6		)	(1.2		)	0.4			14.0		(43.4		)
Management fee & inter-company interest	4.6			(4.6		)	—			—		—
Income tax benefit	2.7			—			—			—		2.7
Income (loss) from continuing operations	(49.3		)	(5.8		)	0.4			14.0		(40.7		)
Income from discontinued operations, net of taxes	—			(9.5		)	0.9			—		(8.6		)
Net income (loss)	$	(49.3	)	$	(15.3	)	$	1.3		$	14.0	$	(49.3	)



	Pinnacle Entertainment, Inc.			100% Owned Guarantor Subsidiaries(a)			100% Owned Non- Guarantor Subsidiaries(b)			Consolidating and Eliminating Entries			Pinnacle Entertainment, Inc. Consolidated
	(in millions)
For the six months ended June 30, 2010
Statement of Operations
Revenues:
Gaming	$	—		$	466.9		$	—		$	—		$	466.9
Food and beverage	—			33.1			—			—			33.1
Other	—			36.1			—			—			36.1
	—			536.1			—			—			536.1
Expenses:
Gaming	—			265.4			—			—			265.4
Food and beverage	—			33.8			—			—			33.8
General and administrative and other	22.0			126.6			(0.6		)	—			148.0
Depreciation and amortization	2.8			52.3			0.1			—			55.2
Write-downs, reserves and recoveries	(6.1		)	32.1			(0.5		)	—			25.5
	18.7			510.2			(1.0		)	—			527.9
Operating income (loss)	(18.7		)	25.9			1.0			—			8.2
Equity earnings of subsidiaries	48.6			2.1			—			(50.7		)	—
Interest expense and non-operating income, net	(51.6		)	3.4			—			—			(48.2		)
Loss on early extinguishment of debt	(1.9		)	—			—			—			(1.9		)
Income (loss) from continuing operations before inter-company activity and income taxes	(23.6		)	31.4			1.0			(50.7		)	(41.9		)
Management fee & inter-company interest	8.9			(8.9		)	—			—			—
Income tax benefit	2.1			—			—			—			2.1
Income (loss) from continuing operations	(12.6		)	22.5			1.0			(50.7		)	(39.8		)
Income from discontinued operations, net of taxes	—			25.1			2.1			—			27.2
Net income (loss)	$	(12.6	)	$	47.6		$	3.1		$	(50.7	)	$	(12.6	)



	Pinnacle Entertainment, Inc.		100% Owned Guarantor Subsidiaries(a)		100% Owned Non- Guarantor Subsidiaries(b)		Consolidating and Eliminating Entries			Pinnacle Entertainment, Inc. Consolidated
	(in millions)
As of June 30, 2011
Balance Sheet
	(Restated)
Current assets	$	27.5	$	86.3	$	76.9	$	—		$	190.7
Property and equipment, net	18.8		1,480.8		0.5		—			1,500.1
Other non-current assets	56.8		87.2		—		—			144.0
Investment in subsidiaries	1,633.2		—		—		(1,633.2		)	—
Assets of discontinued operations held for sale	—		43.5		—		(0.6		)	42.9
Inter-company	1.2		—		—		(1.2		)	—
	$	1,737.5	$	1,697.8	$	77.4	$	(1,635.0	)	$	1,877.7
Current liabilities	41.9		117.7		0.1		—			159.7
Notes payable, long term	1,186.6		0.6		—		—			1,187.2
Other non-current liabilities	17.8		10.8		—		—			28.6
Liabilities of discontinued operations held for sale	—		10.9		—		—			10.9
Inter-company	—		—		1.2		(1.2		)	—
Equity	491.2		1,557.8		76.1		(1,633.8		)	491.3
	$	1,737.5	$	1,697.8	$	77.4	$	(1,635.0	)	$	1,877.7
As of December 31, 2010
Balance Sheet
Current assets	$	84.0	$	78.1	$	77.2	$	—		$	239.3
Property and equipment, net	13.0		1,460.1		0.5		—			1,473.6
Other non-current assets	59.3		51.4		—		—			110.7
Investment in subsidiaries	1,585.3		—		—		(1,585.3		)	—
Assets of discontinued operations held for sale	—		60.5		0.3		(0.6		)	60.2
Inter-company	1.2		—		—		(1.2		)	—
	$	1,742.8	$	1,650.1	$	78.0	$	(1,587.1	)	$	1,883.8
Current liabilities	45.1		123.4		0.1		—			168.6
Notes payable, long term	1,176.0		0.7		—		—			1,176.7
Other non-current liabilities	14.3		11.4		—		—			25.7
Liabilities of discontinued operations held for sale	—		5.4		—		—			5.4
Inter-company	—		—		1.2		(1.2		)	—
Equity	507.4		1,509.2		76.7		(1,585.9		)	507.4
	$	1,742.8	$	1,650.1	$	78.0	$	(1,587.1	)	$	1,883.8



	Pinnacle Entertainment, Inc.			100% Owned Guarantor Subsidiaries(a)			100% Owned Non- Guarantor Subsidiaries(b)			Consolidating and Eliminating Entries		Pinnacle Entertainment, Inc. Consolidated
	(in millions)
For the six months ended June 30, 2011
	(Restated)
Statement of Cash Flows
Cash provided by (used in) operating activities	$	(66.3	)	$	124.6		$	(0.4	)	$	—	$	57.9
Capital expenditures and other	(8.0		)	(115.7		)	0.4			—		(123.3		)
Cash provided by (used in) investing activities	(8.0		)	(115.7		)	0.4			—		(123.3		)
Change in notes payable and other	12.6			—			—			—		12.6
Cash provided by financing activities	12.6			—			—			—		12.6
Increase (decrease) in cash and cash equivalents	(61.7		)	8.9			—			—		(52.8		)
Cash and cash equivalents, beginning of period	76.9			41.6			76.9			—		195.4
Cash and cash equivalents, end of period	$	15.2		$	50.5		$	76.9		$	—	$	142.6

For the six months ended June 30, 2010
Statement of Cash Flows
Cash provided by (used in) operating activities	$	(59.4	)	$	138.8		$	(29.5	)	$	—	$	49.9
Capital expenditure and other	(1.5		)	(112.9		)	35.5			—		(78.9		)
Cash provided by (used in) investing activities	(1.5		)	(112.9		)	35.5			—		(78.9		)
Change in notes payable	105.8			—			—			—		105.8
Cash provided by financing activities	105.8			—			—			—		105.8
Effect of exchange rate changes on cash	—			—			(0.4		)	—		(0.4		)
Increase in cash and cash equivalents	44.9			25.9			5.6			—		76.4
Cash and cash equivalents, beginning of period	1.5			56.7			71.4			—		129.6
Cash and cash equivalents, end of period	$	46.4		$	82.6		$	77.0		$	—	$	206.0

_______________________

(a)

The following material subsidiaries are identified as guarantors of our senior and senior subordinated notes: Belterra Resort Indiana, LLC; Boomtown, LLC; PNK (RENO), LLC; Louisiana-I Gaming; PNK (LAKE CHARLES), L.L.C.; Casino Magic Corp.; Biloxi Casino Corp.; PNK (BOSSIER CITY), Inc.; Casino One Corporation; PNK (ES), LLC; PNK (ST. LOUIS RE), LLC; AREP Boardwalk Properties LLC; PNK (Baton Rouge) Partnership; PNK (River City), LLC; PNK Development 7, LLC; PNK Development 8, LLC; PNK Development 9, LLC; PNK Development 13, LLC; PNK (Ohio), LLC; PNK (Ohio) II, LLC; PNK (Ohio) III, LLC and ACE Gaming, LLC. In addition, certain other immaterial subsidiaries are also guarantors of our senior and senior subordinated notes.


(b)	PNK Development 11, LLC, which, as of June 30, 2011, held approximately $66.3 million in cash and cash equivalents, is our only material non-guarantor of our senior and senior subordinated notes. Other non-guarantor subsidiaries include, but are not limited to, a subsidiary with $10.5 million in cash and cash equivalents as of June 30, 2011.