Prepaid Expenses and Other Assets

The Company has participated in the New York State Empire Zones real estate tax credit program for over 10 years. Under this program, the Company receives a refund for real estate taxes paid during the year, after the end of New York State's fiscal year. Beginning in 2014, the amount of the tax credit received is reduced by 20% each year until the tax credit ended for the Company at December 31, 2017. For the year ended December 31, 2017, the Company will receive a 20% refund for real estate taxes paid, equal to $272,000, in the Spring of 2019. The amounts of the unreceived real estate tax credits are included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheet at March 31, 2018 and December 31, 2017, and were approximately $272,000 and $814,000, respectively.

The increases in prepaid real estate taxes, advertising, gaming expenses and security deposits are directly related to the opening of the Casino during the current period. Included in prepaid gaming expenses are $570,000 of supplies, such as playing cards, dice and chips.

Prepaid expenses and other current assets, as presented on the balance sheet, are comprised of the following at March 31, 2018 and December 31, 2017:



	3/31/2018		12/31/2017
	(in thousands)

Empire zone real estate tax credit	$	272	$	814
Prepaid real estate taxes	847		443
Prepaid insurance	34		327
Prepaid advertising	552		—
Prepaid gaming expenses	1,014		74
Development escrow and refundable security deposit	1,132		780
Prepaid other	1,286		938
Total prepaid expenses and other current assets	$	5,137	$	3,376