Jacobs Entertainment 10-K 2007 FY Annual report

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

For the purpose of determining the ratio of earnings to fixed charges, “earnings” consist of income (loss) before income taxes, plus fixed charges and amortization of capitalized interest, less interest capitalized. “Fixed charges” consist of interest expense (including amortization of deferred financing costs, premiums, and discounts), amortization of capitalized expenses related to indebtedness, plus two-thirds of rental expense (this portion is considered to be representative of the interest factor), and are computed as follows:

	As of and for Year Ended December 31, (in thousands)
	2003			2004			2005			2006			2007
Earnings:
Pre-tax income (loss)	$	22		$	3,989		$	(3,475	)	$	(9,951	)	$	4,965
Add: Fixed charges	20,868			20,890			23,863			34,387			30,546
Add: Amortization of capitalized interest	62			65			67			71			75
Less: Interest capitalized	(140		)	(110		)	(106		)	(154		)	(159		)
Total Earnings	$	20,812		$	24,834		$	20,349		$	24,353		$	35,427
Fixed Charges
Interest expense	$	20,135		$	20,074		$	22,838		$	32,653		$	28,412
Interest capitalized	140			110			106			154			159
Estimated interest on rental expense	593			706			919			1,580			1,975
Total Fixed Charges	$	20,868		$	20,890		$	23,863		$	34,387		$	30,546
Ratio of Earnings to Fixed Charges(1)	1.00		x	1.19		x	0.85		x	0.71		x	1.16		x

(1)For the years ended December 31, 2005 and 2006, we had a deficiency of $3,514 and $10,034, respectively, in earnings to fixed charges.