Prepaid Expenses and Other Assets

The Company 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 was reduced by 20% each year until the tax credit ended for the Company on December 31, 2017. For the year ended December 31, 2017, the Company will receive a 20% refund for real estate taxes paid, equal to $269,000 in Spring 2019.

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 nine-month period. Included in prepaid gaming expenses are $863,000 of annual slot machine and table gaming license fees at the Casino, which are amortized to expense on a straight-line basis.

Prepaid expenses and other current assets, as presented on the balance sheet, are comprised of the following at September 30, 2018 and December 31, 2017:



	9/30/2018		12/31/2017
	(in thousands)
Empire Zones real estate tax credit	$	269	$	814
Prepaid real estate taxes	1,082		443
Prepaid insurance	312		327
Prepaid advertising	160		—
Prepaid gaming expenses	1,039		74
Prepaid maintenance contracts	931		476
Development escrow and refundable security deposit	987		780
Prepaid other	839		462
Total prepaid expenses and other current assets	$	5,619	$	3,376