9.INCOME TAXES

The Company’s pre-tax income (loss), income tax expense (benefit) and effective tax rate by jurisdiction are summarized in the table below:



	For the six months						For the six months
Amounts in thousands	ended June 30, 2015						ended June 30, 2014
	Pre-tax income (loss)		Income tax expense (benefit)		Effective tax rate		Pre-tax income (loss)		Income tax expense (benefit)		Effective tax rate
Canada	$	4,082	$	515		12.6%	$	1,696	$	706		41.6%
United States		(1,348)		107		(7.9%)		(986)		30		(3.0%)
Mauritius*		3,360		90		2.7%		36		1		2.8%
Austria		542		(1,202)		(221.8%)		18		1		5.6%
Poland		2,509		519		20.7%		(605)		(90)		14.9%
Total	$	9,145	$	29		0.3%	$	159	$	648		407.5%

*Ship-based casinos

Income tax expense is recorded relative to the jurisdictions that recognize book earnings. During the six months ended June 30, 2015, the Company recognized income tax expense of less than $0.1 million on pre-tax income of $9.1 million, representing an effective income tax benefit rate of 0.3% compared to an income tax expense of $0.6 million on pre-tax income of $0.2 million, representing an effective income tax rate of 407.5% for the same period in 2014. The estimated effective tax rate for 2015 is 16.98% before discrete items. This estimated effective tax rate is significantly impacted by the reduction of the Austrian valuation allowance discussed below.

The decrease in the effective tax rate compared to the same period in 2014 is primarily the result of the reduction of the Austrian valuation allowance in the second quarter of 2015. The Company analyzed the likelihood of future realization of its deferred tax assets, including recent cumulative earnings by taxing jurisdiction, expectations of future taxable income or loss, the amount of net operating loss carryforwards not subject to limitations, the number of periods it will take to realize the net operating loss carryforwards and other relevant factors. Based on this analysis, the Company concluded that its Austrian operations had attained a sustained level of profitability sufficient to reduce its valuation allowance in that jurisdiction. Based on this conclusion, the valuation allowance against deferred tax assets in Austria was reduced to zero during the second quarter of 2015, resulting in a tax benefit of $1.5 million.

Additionally, there is a lower effective tax rate for the Company’s Canadian operations due to exchange rate benefits and a valuation allowance maintained for Century Downs deferred tax assets. The effective tax rate in Canada also is impacted by the fair value measurement of the interest rate swap agreements for the Company’s Edmonton property. The Company continues to maintain a full valuation allowance on all of its U.S. deferred tax assets and on certain Canadian deferred tax assets.