Description Of Business And Basis Of Presentation

12 Months Ended

Dec. 31, 2014

Description Of Business And Basis Of Presentation [Abstract]

Description Of Business And Basis Of Presentation

1.DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Century Casinos, Inc. (“CCI” or the “Company”) is an international casino entertainment company. As of December 31, 2014, the Company owned casino operations in North America, managed cruise ship-based casinos in international and Alaskan waters,held a majority ownership interest in nine casinos throughout Poland, had a management contract to manage the casino in the Radisson Aruba Resort, Casino & Spa, was developing a racetrack and entertainment center (“REC”) in Canada, and had entered into an agreement to provide gaming services in Argentina..  

The Company currently owns, operates and manages the following casinos through wholly-owned subsidiaries in North America:

-   The Century Casino & Hotel in Edmonton, Alberta, Canada;

-   The Century Casino Calgary, Alberta, Canada;

- The Century Casino & Hotel in Central City, Colorado, United States; and

- The Century Casino & Hotel in Cripple Creek, Colorado, United States.

The Company operates 16 ship-based casinos onboard fivecruise lines: Oceania Cruises, TUI Cruises, Windstar Cruises, Regent Seven Seas Cruises, and Nova Star Cruises Ltd.  In addition, in 2014 the Company amended its concessionaire agreement with TUI Cruises to include its operation of the ship-based casino onboard the Mein Schiff 4, which is a new 2,500 passenger ship that is currently being built and is scheduled to commence operations in June 2015. 

In March 2007, the Company’s subsidiary Century Casinos Europe GmbH (“CCE”) acquired 33.3% of the outstanding shares issued by Casinos Poland Ltd (“CPL” or “Casinos Poland”) and the Company accounted for the investment under the equity method. In April 2013, CCE acquired from LOT Polish Airlines an additional 33.3% ownership interest in CPL. As of the date of acquisition; the Company began consolidating its 66.6% ownership of CPL as a majority-owned subsidiary for which it has a controlling financial interest. Polish Airports Company (“Polish Airports”) owns the remaining 33.3% of CPL. The Company accounts  for and reports the 33.3% Polish Airports ownership interest as a non-controlling financial interest. See Note 3 for additional information related to CPL.

In December 2010, the Company entered into a long-term management agreement to direct the operation of the casino at the Radisson Aruba Resort, Casino & Spa. The Company receives a management fee consisting of a fixed fee, plus a percentage of the casino’s earnings before interest, taxes, depreciation and amortization (“EBITDA”).  The Company is not required to invest any amounts under the management agreement.

In November 2012, CCE signed credit and management agreements with United Horsemen of Alberta Inc. dba Century Downs Racetrack and Casino ("CDR" or “Century Downs”) in connection with the development and operation of the REC in Balzac, north metropolitan area of Calgary, Alberta, Canada, which the Company will operate as Century Downs Racetrack and Casino. On November 29, 2013, CCE and CDR amended the credit agreement. Under the amended credit agreement, CCE owns 15% of CDR, controls the CDR board of directors, manages the development of the REC project, and has the right to convert CAD 11 million that the Company has loaned to CDR into an additional 60% ownership interest in CDR.  The Company began consolidating CDR as a minority owned subsidiary for which it has a controlling financial interest on November 29, 2013.  Unaffiliated shareholders own the remaining 85% of CDR and the Company accounts  for and reports  the 85%CDR ownership interest as a non-controlling financial interest. See Note 3 for additional information related to CDR.

On October 31, 2014, CCE entered into an agreement (the “MCE Agreement”) with Gambling and Entertainment LLC and its affiliates, pursuant to which CCE purchased 7.5% of the shares of Mendoza Central Entretenimientos S.A., a company formed in Argentina (“MCE”), for $1 million. Pursuant to the MCE Agreement, CCE will work with MCE to utilize MCE’s exclusive concession agreement with Instituto Provincial de Juegos y Casinos to lease slot machines and provide related services to Mendoza Casino, a casino located in Mendoza, Argentina, and owned by the Province of Mendoza. MCE may also pursue other gaming opportunities. Under the MCE Agreement, CCE has the right to appoint one director to MCE’s board of directors. In addition, CCE has a three-year option to purchase up to 50% of the shares of MCE and to appoint additional directors to MCE’s board of directors based on its ownership percentage of MCE. We report our 7.5% ownership interest in MCE using the cost method of accounting and report the $1.0 million investment on our consolidated balance sheet. On October 31, 2014, CCE and MCE also entered into a Consulting Service Agreement, in which CCE will provide advice on casino matters. Through the Consulting Service Agreement, CCE will receive a service fee consisting of a fixed fee plus a percentage of MCE’s EBITDA.