Affinity Gaming 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
DEI [Abstract]
Entity Registrant Name	Affinity Gaming
Entity Central Index Key	1,499,268
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,462,329

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 74,678	$ 157,779
Restricted cash	95,553	608
Accounts receivable, net of reserve of $117 and $147, respectively	2,603	3,217
Income tax receivable	24	16
Prepaid expense	8,682	10,079
Inventory	2,832	2,798
Total current assets	184,372	174,497
Property and equipment, net	245,153	251,908
Other assets, net	3,971	3,530
Intangibles, net	122,791	124,042
Goodwill	48,287	48,287
Total assets	604,574	602,264
Current liabilities
Accounts payable	9,391	13,220
Accrued interest	2,365	2,327
Accrued expense	22,082	24,158
Current maturities of long-term debt	0	11,383
Other current liabilities	8	23
Total current liabilities	33,846	51,111
Long-term debt, less current portion	374,261	364,204
Other liabilities	1,984	1,932
Deferred income taxes	18,764	14,758
Total liabilities	428,855	432,005
Commitments and contingencies (Note 11)
Owners' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized; 20,462,329 and 20,377,247 shares issued and outstanding for 2016 and 2015, respectively	20	20
Additional paid-in-capital	208,805	208,239
Accumulated deficit	(33,106)	(38,000)
Total owners’ equity	175,719	170,259
Total liabilities and owners’ equity	$ 604,574	$ 602,264

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable reserve	$ 117	$ 147
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	200,000,000	200,000,000
Common stock, shares issued (shares)	20,462,329	20,377,247
Common stock, shares outstanding (shares)	20,462,329	20,377,247
Preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (shares)	10,000,000	10,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUE
Casino	$ 69,448	$ 75,505	$ 141,331	$ 150,602
Food and beverage	10,384	12,082	21,208	24,043
Lodging	6,031	7,190	12,429	14,222
Fuel and retail	13,390	15,676	25,530	28,252
Other	3,608	3,268	6,922	6,163
Total revenue	102,861	113,721	207,420	223,282
Promotional allowances	(8,203)	(12,210)	(17,012)	(24,793)
Net revenue	94,658	101,511	190,408	198,489
EXPENSE
Casino	26,181	29,956	53,562	59,690
Food and beverage	10,378	11,800	21,170	23,627
Lodging	4,205	4,197	8,553	8,106
Fuel and retail	9,106	11,675	17,403	20,939
Other	1,956	1,838	3,463	3,368
General and administrative	18,850	19,601	37,563	38,318
Depreciation and amortization	7,312	7,205	14,696	14,368
Corporate	4,932	5,358	9,816	9,295
Write downs, reserves and recoveries	(91)	(204)	(39)	(69)
Total expense	82,829	91,426	166,187	177,642
Operating income	11,829	10,085	24,221	20,847
Other expense
Interest expense, net	(7,656)	(7,653)	(15,321)	(15,258)
Total other expense, net	(7,656)	(7,653)	(15,321)	(15,258)
Income before income tax	4,173	2,432	8,900	5,589
Provision for income taxes	(2,390)	(1,635)	(4,006)	(5,032)
Net income (loss)	$ 1,783	$ 797	$ 4,894	$ 557

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 4,894	$ 557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	14,696	14,368
Amortization of debt costs and discounts	1,587	1,459
Loss (gain) on sale of property and equipment	9	(1)
Share-based compensation	700	667
Deferred income taxes	4,006	5,001
Changes in operating assets and liabilities:
Accounts receivable, net	614	506
Prepaid expense	1,397	1,484
Inventory	(34)	(75)
Other assets	114	100
Accounts payable	(1,967)	836
Accrued interest	38	(26)
Accrued expense	(2,076)	(511)
Income tax receivable	(8)	116
Other liabilities	(27)	(20)
Net cash provided by operating activities	23,943	24,461
Cash flows from investing activities:
Proceeds from sale of property and equipment	18	8
Purchases of property and equipment	(8,601)	(6,718)
Net cash used in investing activities	(8,583)	(6,710)
Cash flows from financing activities:
Restricted cash	(94,945)	0
Payment on capital lease	15	16
Payment on long-term debt	(2,913)	0
Loan origination fees	(515)	0
Repurchases of vested share-based awards	(73)	(47)
Net cash provided by (used in) financing activities	(98,461)	(63)
Net (decrease) increase in cash and cash equivalents	(83,101)	17,688
Cash and cash equivalents:
Beginning of period	157,779	135,175
End of period	74,678	152,863
Supplemental cash flow information:
Cash paid during the period for interest	13,851	13,916
Supplemental schedule of non-cash investing and financing activities:
Purchase of property and equipment financed through accounts payable	706	402
Non-cash loan origination fees	$ 6	$ 0

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements	NOTE 1. ORGANIZATION, CONSOLIDATION AND PRESENTATION OF FINANCIAL STATEMENTS Organization and Business Affinity Gaming (together with its subsidiaries, “Affinity” or “we”) is a Nevada corporation, headquartered in Las Vegas, which owns and operates 11 casinos, five of which are located in Nevada, three in Colorado, two in Missouri and one in Iowa. We also provided consulting services to Hotspur Casinos Nevada, Inc. (“Hotspur”), the operator of the Rampart Casino at the JW Marriott Resort in Las Vegas until the expiration of the related consulting agreement on April 1, 2015. Hotspur previously paid us a fixed annual fee in monthly installments. Consolidation We include all of our subsidiaries in our consolidated financial statements, eliminating all intercompany balances and transactions during consolidation. Basis of Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). While preparing our financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenue and expense during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include the fair values of assets and liabilities related to depreciation and amortization, the estimates used when computing share-based compensation expense, the estimated allowance for doubtful accounts receivable and the estimated cash flows we use in assessing the recoverability of long-lived assets, as well as the estimated fair values of certain assets related to write downs and impairments, contingencies and litigation, and claims and assessments. We prepared the accompanying unaudited Condensed Consolidated Balance Sheet as of June 30, 2016 , with the audited Consolidated Balance Sheet amounts as of December 31, 2015 presented for comparative purposes, and the related unaudited Condensed Consolidated Statements of Operations and Statements of Cash Flows in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X. In compliance with those instructions, we have omitted certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP, though management believes the disclosures made herein are sufficient to ensure that the information presented is not misleading. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate the results we may experience for the remainder of the year or for any other future period. Management believes our unaudited condensed consolidated interim financial statements include all the normal recurring adjustments necessary to fairly present our unaudited Condensed Consolidated Balance Sheet as of June 30, 2016 , our unaudited Condensed Consolidated Statements of Operations and our unaudited Condensed Consolidated Statements of Cash Flows for all periods presented. You should read our unaudited condensed consolidated interim financial statements and footnotes in conjunction with our consolidated financial statements and footnotes included within our 2015 Form 10-K.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We have made no material changes to our significant accounting policies as reported in our 2015 Form 10-K. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. Lessees and lessors are required to apply a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, and early application is permitted. We are currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The amendments in ASU 2014-09 stipulate that an entity should recognize revenue in an amount which reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers, and they provide a five-step process to assist entities with achieving that core principle. The ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. With regard to disclosures, ASU 2014-09 states that entities should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, and it requires qualitative and quantitative disclosures concerning contracts with customers, significant judgments and changes therein, and assets recognized from the costs incurred to obtain or fulfill a contract. The amendments in ASU 2014-09, have been deferred for one year and are effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and they permit either retrospective application to all prior periods or retrospective application with the cumulative effect of application recognized on the initial application date. Early adoption is permitted for annual and interim periods beginning after December 31, 2016. We are currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. We have reviewed all other recently issued accounting pronouncements and, other than those we have disclosed above or in previous filings with the SEC, we do not believe any of such pronouncements will have a material effect on our operations. Reclassifications The unaudited condensed consolidated financial statements and related notes reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. In November 2015, the FASB issued an accounting standards update which changes the presentation of deferred taxes in classified balance sheets. The new guidance requires classification of all deferred tax assets and liabilities as well as applicable valuation allowances as non-current. The effective date for this guidance is for financial statements issued for annual and interim periods beginning after December 15, 2016. Early application is permitted. The guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We have applied the guidance in the accompanying condensed consolidated financial statements with retrospective application for the Consolidated Balance Sheet at December 31, 2015. The effect of the accounting change in the prior year resulted in current deferred income taxes of $1.7 million , previously presented separately in current liabilities, to be added to $13.1 million in long-term deferred income taxes, for a revised $14.8 million in long-term deferred income taxes at December 31, 2015.

Restricted Cash

Restricted Cash	6 Months Ended
	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Restricted Cash	NOTE 3. RESTRICTED CASH Restricted cash balances at June 30, 2016 and December 31, 2015 include cash or certificates of deposit required for gaming activity in certain jurisdictions in which we operate, and for self-insured retention obligations under some of our workers compensation insurance policies. In addition, restricted cash includes $ 94.9 million held at June 30, 2016 in contemplation of the refinancing of our outstanding debt, which was completed on July 1, 2016.

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	NOTE 4. PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following (in thousands, except estimated lives): Estimated Life (Years) June 30, December 31, 2015 Building and improvements 7 - 40 $ 187,106 $ 185,875 Gaming equipment 3 - 10 78,671 75,527 Furniture, fixtures, and equipment 3 - 10 51,475 49,571 Leasehold improvements 7 196 196 Land — 39,513 39,513 Barge 30 15,019 15,019 Construction-in-progress 3,027 3,185 Total property and equipment 375,007 368,886 Less accumulated depreciation (129,854 ) (116,978 ) Total property and equipment, net $ 245,153 $ 251,908

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS We determine the fair value of the indefinite-lived intangible assets other than goodwill using the discounted cash flow method, a form of the income approach. In determining the fair values, we make significant assumptions relating to variables based on past experiences and judgments about future performance. These variables include, but are not limited to: (1) the forecast earnings growth rate of each market, (2) risk-adjusted discount rate, and (3) expected growth rates in perpetuity to estimated terminal values. The following table summarizes intangible assets by category (in thousands): June 30, 2016 December 31, 2015 Gross Amount Accumulated Net Amount Gross Amount Accumulated Net Amount Finite-lived intangible assets Customer loyalty programs $ 12,164 $ (9,583 ) $ 2,581 $ 12,164 $ (8,583 ) $ 3,581 Trademarks 2,982 (2,649 ) 333 2,982 (2,398 ) 584 15,146 $ (12,232 ) 2,914 15,146 $ (10,981 ) 4,165 Indefinite-lived intangible assets Gaming license rights 110,646 110,646 110,646 110,646 Local tradenames 9,231 9,231 9,231 9,231 119,877 119,877 119,877 119,877 Total intangible assets $ 135,023 $ 122,791 $ 135,023 $ 124,042 The following table summarizes the changes in goodwill by reportable segment during the six months ended June 30, 2016 : Nevada Midwest Total Balance at December 31, 2015 $ 33,665 $ 14,622 $ 48,287 Impairment of goodwill — — — Balance at June 30, 2016 $ 33,665 $ 14,622 $ 48,287 We amortize definite-lived intangible assets ratably over their expected lives which, for customer loyalty programs, approximate seven years and, for trademarks, approximate 3.75 years . Overall, we are amortizing definite-lived intangible assets over a weighted-average expected life of approximately 6.5 years . We obtain gaming license rights when we acquire gaming entities that operate in gaming jurisdictions where competition is limited, such as states where the law only allows a certain number of operators. We do not currently amortize gaming license rights and local tradenames because we have determined they have an indefinite useful life.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2016
Other Assets [Abstract]
Other Assets	NOTE 6. OTHER ASSETS , NET Other assets, net consist of the following (in thousands): June 30, December 31, 2015 Long-term deposits $ 2,924 $ 2,919 Other assets 1,047 611 Total $ 3,971 $ 3,530

Accrued Expense

Accrued Expense	6 Months Ended
	Jun. 30, 2016
Accrued Liabilities, Current [Abstract]
Accrued Expense	NOTE 7. ACCRUED EXPENSE Accrued expense consists of the following (in thousands): June 30, December 31, 2015 Progressive jackpot liabilities $ 3,093 $ 2,984 Accrued payroll and related 7,198 7,441 Slot club point liability 2,993 3,213 Litigation reserve 3,100 3,100 Other accrued expense 5,698 7,420 Total $ 22,082 $ 24,158

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	NOTE 8. LONG-TERM DEBT The following table presents long-term debt balances (in thousands): June 30, December 31, 2015 9% Senior Unsecured Notes due 2018 $ 200,000 $ 200,000 Unamortized debt issuance cost, net (2,448 ) (3,028 ) Unamortized discount (684 ) (847 ) 9% Senior Unsecured Notes due 2018, net 196,868 196,125 Term loan due 2017 179,832 182,745 Unamortized debt issuance cost, net (2,439 ) (3,283 ) Term loan due 2017, net 177,393 179,462 Total debt, including current maturities 374,261 375,587 Less: current maturities of long-term debt — (11,383 ) Total long-term debt $ 374,261 $ 364,204 The current maturities of long-term debt at December 31, 2015 , includes the mandatory excess cash flow payment as calculated for the year ended December 31, 2015 on the 2012 Term Loan (defined below). The actual payment required by the lenders was $2.9 million , which was paid in April 2016. On May 9, 2012, we issued $200.0 million of 9.00% senior unsecured notes due 2018 (the “2018 Notes”), and entered into a Credit Agreement, dated May 9, 2012 (the “2012 Credit Agreement”), which provided for a $200.0 million term loan (the “2012 Term Loan”) due in 2017, the entirety of which the lenders disbursed to us on the closing date of the 2012 Credit Agreement, and a $35.0 million revolving credit facility (the “2012 Revolving Credit Facility” and, together with the 2012 Term Loan, the “2012 Credit Facility”) which remained undrawn as of June 30, 2016 . Proceeds from the 2012 Term Loan and the 2018 Notes were used to repay debt then outstanding. On July 22, 2014, we completed the second amendment to the 2012 Credit Agreement (the “Second Amended Credit Agreement”) governing our 2012 Credit Facility. We incur and pay interest on the 2012 Term Loan under the Second Amended Credit Agreement at an uncommitted floating rate of LIBOR plus 4.00% , subject to a LIBOR floor of 1.25% . The Second Amended Credit Agreement also requires us to pay commitment fees related to the Revolving Credit Facility equal to an annualized rate of 0.50% on undrawn amounts when the Total Net Leverage Ratio is greater than 3.50 to 1.00, or equal to an annualized rate of 0.375% on undrawn amounts when the Total Net Leverage Ratio is less than or equal to 3.50 to 1.00. The 2012 Credit Facility provides an accordion feature which allows us to seek additional borrowings of up to $80.0 million subject to certain customary terms and conditions, including pro forma compliance with a maximum leverage ratio, as defined in the Second Amended Credit Agreement. Unamortized debt issuance cost, which we are amortizing over the life of the 2018 Notes and the 2012 Term Loan, totaled $4.9 million at June 30, 2016 . In April 2015, the FASB issued guidance that debt issuance costs should be presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Under the new guidance, effective for annual and interim periods beginning after December 15, 2015, we have reclassified $1.5 million in unamortized debt issuance costs previously presented in other assets to be deducted from the long-term debt balances at December 31, 2015. The Second Amended Credit Agreement contains customary covenants including, but not limited to, a maximum total net leverage ratio, a maximum secured leverage ratio, a minimum interest coverage ratio and maximum total annual capital expenditures. Additionally, the 2012 Term Loan is subject to mandatory annual prepayments based on generation of excess cash flow (as defined), equal to 50% of excess cash flow when the Total Net Leverage Ratio is greater than 4.00 to 1.00, equal to 25% of excess cash flow when the Total Net Leverage Ratio is greater than 3.00 to 1.00, but less than or equal to 4.00 to 1.00, and equal to zero when the Total Net Leverage Ratio is less than or equal to 3.00 to 1.00. At June 30, 2016 , the First Lien Senior Secured Net Leverage Ratio was 1.95 to 1.00, and the Interest Expense Coverage Ratio was 2.57 to 1.00. As of June 30, 2016 , we remained in compliance with all debt covenants. We issued the 2018 Notes pursuant to an indenture dated May 9, 2012 (“2018 Notes Indenture”). Under the 2018 Notes Indenture, the Issuers are entitled to redeem all or a portion of the 2018 Notes upon providing not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on May 15 of the years set forth in the table below. Year Percentage 2015 104.50 % 2016 102.25 % 2017 and thereafter 100.00 % We based the estimated fair value of the 2018 Notes and the 2012 Credit Facility on Level 2 inputs using quoted prices in inactive markets and observable market data for similar, but not identical, instruments. The following table presents the carrying values and estimated fair values of our long-term debt at June 30, 2016 (in thousands): Carrying Value Estimated Fair Value 9% Senior Unsecured Notes due 2018 $ 196,868 $ 201,298 Term loan due 2017 177,393 177,180 Total $ 374,261 $ 378,478 Subsequent to the quarter end, on July 1, 2016, we entered into a Credit Agreement (the “2016 Credit Agreement”) which provides for a $ 300.0 million term loan facility (the “2016 Term Loan”) and a $ 75 million revolving credit facility (the “2016 Revolving Credit Facility” and, together with the 2016 Term Loan, the “2016 Credit Facility”), which remained undrawn on the closing date of the 2016 Credit Agreement. The 2016 Term Loan will be payable in quarterly installments, commencing on September 30, 2016, in an amount equal to 0.25% of the 2016 Term Loan until the maturity date, July 1, 2023, upon which date the remaining balance will come due. Amounts outstanding under the 2016 Revolving Credit Facility will be due and payable on July 1, 2021. The interest rate under the 2016 Term Loan is at a floating rate not less than 5.0% . We used the proceeds of the 2016 Term Loan together with $ 94.9 million in cash from our balance sheet to repay all amounts outstanding under the 2012 Term Loan and redeem the 2018 Notes. The Company is currently determining the impact of this third quarter refinancing on its results of operations.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 9. INCOME TAXES We continually evaluate our deferred tax assets to determine if any portion of those assets would not be realized in a future period. Based on our analysis of all available evidence, which included consideration of our cumulative consolidated pre-tax losses as well as other data, we concluded that it is more likely than not that we will be unable to realize all of our net deferred tax assets and, as a result, we recorded a full valuation allowance against its net deferred tax assets in 2014. For the quarters ended June 30, 2016 and 2015 , our effective income tax rates varied from the federal statutory rate primarily due to the amortization of indefinite-lived intangibles. We recorded a provision for income taxes of $2.4 million and $1.6 million for the quarters ended June 30, 2016 and 2015 , respectively. For the six months ended June 30, 2016 and 2015 , our effective income tax rates varied from the federal statutory rate primarily due to the amortization of indefinite-lived intangibles. We recorded a provision for income taxes of $4.0 million and $5.0 million for the six months ended June 30, 2016 and 2015 , respectively. We have analyzed our filing positions in each jurisdiction where we are required to file income tax returns. We believe our income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments which will result in a material change to our financial position. We filed income tax returns in the United States federal jurisdiction and in several state jurisdictions. Our 2014 United States federal return is currently under examination. No adjustments have been proposed as of June 30, 2016 .

Share-based Compensation

Share-based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	NOTE 10. SHARE-BASED COMPENSATION We designed our share-based compensation arrangements to advance our long-term interests; for example, by allowing us to attract and retain employees and directors by aligning their interests with those of our stockholders. The amount, frequency, and terms of share-based awards may vary based on competitive practices, our operating results, government regulations and availability under our equity incentive plans. Depending upon the form of the share-based award, new shares of our common stock may be issued upon grant, option exercise or vesting of the award. The Affinity Gaming Amended and Restated 2011 Long-Term Incentive Plan (“LTIP”), which the Compensation Committee of our Board of Directors approved, allows us to issue up to 2,000,000 shares of common stock, subject to stock options, or as restricted stock, to employees, officers, directors and consultants. Awards vest upon the passage of time, the attainment of performance criteria, or both. Stock options awarded under the LTIP expire five years from the grant date. Awards granted to management generally vest ratably over three years from the date of the grant and those granted to directors generally vest in two equal tranches, the first upon issuance and the second during January of the calendar year following the year of grant. Holders of restricted stock may vote their shares and receive their proportionate share of any dividends. Restricted stock remains subject to the terms and conditions contained in the applicable award agreement and our LTIP until the recipient vests in the award. The following table summarizes the activity related to our outstanding stock options and non-vested restricted stock for the period ended June 30, 2016 : Stock Options Restricted Stock Outstanding Non-Vested Shares Weighted Average Exercise Price Per Share Shares Weighted Average Fair Value Per Share December 31, 2015 330,605 $ 10.24 82,290 $ 10.54 Granted 272,500 12.00 85,082 12.00 Vested — — (81,660 ) 10.96 Forfeited (36,364 ) 10.00 — — June 30, 2016 566,741 $ 11.10 85,712 $ 11.59 As of June 30, 2016 , awards representing 1,029,070 shares or potential shares of our common stock remained outstanding; therefore, awards representing 970,930 shares or potential shares of our common stock remained available for issuance under our Amended 2011 Long-Term Incentive Plan. We account for stock option awards as liabilities as a result of our past practice of settling stock options for cash. As of June 30, 2016 and December 31, 2015 , we have reported $1.3 million and $1.2 million , respectively, of share-based compensation liability in Other liabilities on the condensed consolidated balance sheet.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 11. COMMITMENTS AND CONTINGENCIES Data Security Events In October 2013, Affinity was contacted by law enforcement regarding fraudulent credit and debit card charges which may have been linked to a data security breach in Affinity’s information technology system. We immediately initiated a thorough investigation, supported by an independent professional forensic investigation firm, to determine the nature and scope of the compromise. In December 2013, we issued a press release advising that our payment processing system had become infected by malware, which resulted in a compromise of credit card and debit card information belonging to individuals who used their cards at restaurants, hotels and gift shops at our facilities between March 14 and October 16, 2013. As of November 14, 2013, our forensics expert advised us that our credit card processing systems were free of functioning malware. We encouraged our patrons to protect against possible identity theft or other financial loss by reviewing account statements for potential fraudulent activity during the period of exposure. In April 2014, we again learned that an unauthorized intrusion and installation of malware compromising the credit card processing environment had occurred. We then hired a different professional forensics investigation firm to conduct a thorough investigation of the more recently discovered event, and the security of our information technology environment as it related to both incidents. As a result of the second investigation, we have reason to believe credit card and debit card information from individuals who used their cards at restaurants, hotels and gift shops at our properties between December 7, 2013 and April 28, 2014, also may have been compromised. In May 2014, we issued another press release and encouraged our patrons to protect against possible identity theft or other financial loss by reviewing account statements for potential fraudulent activity during the period of exposure. We carry insurance coverage of $5.0 million for liability resulting from network security events. As of June 30, 2016 , we have incurred $1.2 million in expense, including deductibles, for the security breaches. We do not expect to incur additional material expenses that are not covered by insurance. However, we cannot estimate the total amount which we will ultimately incur and be reimbursed by insurance carriers because, although the independent forensic investigation has concluded, we have not received all of the monetary assessments and evaluations from the credit card processors and issuing banks seeking to recover the cost of replacement cards and a portion of fraudulent charges, nor have we received any third-party claims as of this date. In addition, several state attorneys general are investigating the data breach events, including how they occurred, their consequences and our responses. We are cooperating in the governmental investigation, and could be subject to fines or other obligations. We have not concluded that a loss from the governmental investigation is probable, however, and therefore have not recorded an accrual for governmental investigation or regulatory action. We will continue to evaluate information as it becomes known and will record an estimate for loss at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. We have commenced a lawsuit in federal court in Nevada against the firm that conducted the initial forensic investigation for recovery of the costs and assessments we incurred as a result of the April 2014 data breach discovery. Litigation In March 2012, the Clarke County Development Corp. (“CCDC”), the local non-profit Iowa licensee for which we manage the Lakeside Hotel & Casino (“Lakeside”) in Osceola, Iowa, filed an action in Iowa state court against Affinity and Lakeside, seeking a declaratory judgment that the management contract between CCDC and Lakeside is non-assignable. We removed the case to federal court and contested CCDC's position even though we had no plans to assign the agreement. CCDC also named Lakeside, Affinity and the Iowa Racing & Gaming Commission (“IRGC”) in a separate petition in Iowa state court seeking judicial review of the IRGC's ruling, in November 2010, which approved our predecessor's creditors to become the owners of Affinity Gaming, LLC, and thereby the indirect owners of Lakeside, prior to our emergence from bankruptcy and notwithstanding CCDC’s objection that an assignment of the management agreement had occurred which required its consent. On July 29, 2013, just two weeks before the hearing on judicial review, CCDC filed a voluntary dismissal without prejudice of the petition for judicial review. On July 30, 2013, CCDC filed a motion to dismiss the federal court action without prejudice, which was granted. CCDC’s dismissal of the state court petition and the federal court action was based upon its filing in Iowa state court on August 5, 2013 of a third lawsuit, since removed to federal court in Iowa, in which it seeks to enforce a settlement agreement it alleges was reached with us during a non-binding mediation held in June 2013. On April 21, 2015, following discovery in the new lawsuit, the District Court for the Southern District of Iowa granted summary judgment in favor of the Company and against CCDC. CCDC appealed the grant of summary judgment to the 8 th Circuit U.S. Court of Appeals, and on June 24, 2016, the Court of Appeals reversed the District Court’s decision and remanded the case for trial. A trial date has not yet been set. In November 2013, Chartwell Advisory Group, Ltd. (“Chartwell”), a professional services firm that facilitated filing refund requests with the Nevada Tax Commission for sales and use tax paid by certain casinos on the cost of complimentary meals for periods beginning in 2004, filed a lawsuit against numerous Nevada casino operators, including one of our subsidiaries, alleging that it is owed a percentage of the tax casinos did not have to pay as a result of a 2012 state tax regulation and related settlement agreement. Our subsidiary had entered into an agreement with this firm prior to the bankruptcy whereby Chartwell would receive a percentage of any refund we received from the state of sales tax previously paid by our subsidiary. We settled this matter in May 2016 for $0.2 million . We are party to certain other claims, legal actions and complaints arising in the ordinary course of business or asserted by way of defense or counterclaim in actions we filed. We believe that our defenses are substantial in each of these matters and that we can successfully defend our legal position without material adverse effect on our consolidated financial statements. Environmental Remediation In 2011, during excavation at the site of our travel center at Whiskey Pete’s Hotel and Casino (“Whiskey Pete’s”) in Primm, Nevada, we encountered several contaminated underground sites which required soil remediation and groundwater testing. Much of the contamination resulted from underground fuel storage tanks related to a gas station operated more than 35 years ago, as well as from abandoned underground fuel lines. We also began testing at the direction of the Nevada Division of Environmental Protection (the “NDEP”) to determine the extent to which the contamination has affected the groundwater, and we have agreed to continue monitoring the groundwater for a period of at least two more years. For the six months ended June 30, 2016 and 2015, we incurred $43 thousand and $0.1 million , respectively, in costs on remediation work at the Whiskey Pete’s site. We have an insurance policy which provides coverage for environmental remediation costs of up to $5.0 million . From the beginning of construction through June 30, 2016 , we have incurred $4.0 million in costs on remediation work and received $2.0 million from our insurer. Insurance proceeds were received in 2015 and prior years. Although we believe that incurring additional cost related to the testing and ongoing monitoring of groundwater for contamination is probable, we cannot reasonably estimate an amount to accrue at this time because the NDEP has not told us what additional work, if any, it will require us to perform. Additionally, we believe some or all of the ongoing monitoring costs will be reimbursed by insurance as part of our initial claim. We also filed suit in Nevada state district court for partial recovery against the environmental consultant that managed the initial remediation. The ultimate cost to us will depend on the extent of contamination found, if any, as a result of our ongoing testing, the amount of remediation we are required to perform, and the amount we are reimbursed. The litigation against the environmental consultant is in the discovery phase. As we complete our ongoing monitoring obligation, we intend to analyze any cost incurred, and we will expense or capitalize it as necessary.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	NOTE 12. SEGMENT INFORMATION The following table presents the components of net revenue by segment (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Gross revenue Nevada $ 61,119 $ 68,704 $ 122,900 $ 133,754 Midwest 32,189 34,473 65,310 67,738 Colorado 9,553 10,544 19,210 21,790 Total gross revenue 102,861 113,721 207,420 223,282 Promotional allowances Nevada (5,786 ) (8,378 ) (11,682 ) (17,166 ) Midwest (1,744 ) (2,629 ) (3,758 ) (5,167 ) Colorado (673 ) (1,203 ) (1,572 ) (2,460 ) Total promotional allowances (8,203 ) (12,210 ) (17,012 ) (24,793 ) Net revenue Nevada 55,333 60,326 111,218 116,588 Midwest 30,445 31,844 61,552 62,571 Colorado 8,880 9,341 17,638 19,330 Total net revenue $ 94,658 $ 101,511 $ 190,408 $ 198,489 We use earnings before interest expense, net; income tax; depreciation and amortization; share-based compensation; pre-opening costs; write offs, reserves and recoveries; loss on extinguishment or modification of debt; loss on impairment of assets; gains or losses on the disposition of assets; and restructuring and reorganization costs (“Adjusted EBITDA”) as a measure of profit and loss to manage the operational performance of our segments. Adjusted EBITDA is a measure which does not conform to generally accepted accounting principles in the United States (“GAAP”). You should not consider this information as an alternative to any measure of performance as promulgated under GAAP, such as operating income and net income. Our calculation of Adjusted EBITDA may be different from the calculations used by other companies; therefore, comparability may be limited. We have included a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, which in our case is operating income. The following table presents Adjusted EBITDA by segment and by corporate and other (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Adjusted EBITDA Nevada $ 12,120 $ 10,915 $ 25,014 $ 21,437 Midwest 10,388 10,560 21,062 20,129 Colorado 1,474 969 2,618 2,875 Corporate and other (4,606 ) (4,853 ) (9,116 ) (8,628 ) Total Adjusted EBITDA $ 19,376 $ 17,591 $ 39,578 $ 35,813 The following tables reconcile Adjusted EBITDA to operating income (in thousands): Quarter Ended June 30, 2016 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 12,120 $ (3,649 ) $ — $ 105 $ 8,576 Midwest 10,388 (2,012 ) — (14 ) 8,362 Colorado 1,474 (1,421 ) — — 53 Corporate and other (4,606 ) (230 ) (326 ) (5,162 ) Total operations $ 19,376 $ (7,312 ) $ (326 ) $ 91 $ 11,829 Quarter Ended June 30, 2015 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 10,915 $ (3,698 ) $ — $ 197 $ 7,414 Midwest 10,560 (1,898 ) — — 8,662 Colorado 969 (1,297 ) — — (328 ) Corporate and other (4,853 ) (312 ) (505 ) 7 (5,663 ) Total operations $ 17,591 $ (7,205 ) $ (505 ) $ 204 $ 10,085 Six Months Ended June 30, 2016 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 25,014 $ (7,300 ) $ — $ 70 $ 17,784 Midwest 21,062 (4,042 ) — (7 ) 17,013 Colorado 2,618 (2,879 ) — — (261 ) Corporate and other (9,116 ) (475 ) (700 ) (24 ) (10,315 ) Total operations $ 39,578 $ (14,696 ) $ (700 ) $ 39 $ 24,221 Six Months Ended June 30, 2015 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 21,437 $ (7,386 ) $ — $ 120 $ 14,171 Midwest 20,129 (3,793 ) — — 16,336 Colorado 2,875 (2,566 ) — (58 ) 251 Corporate and other (8,628 ) (623 ) (667 ) 7 (9,911 ) Total operations $ 35,813 $ (14,368 ) $ (667 ) $ 69 $ 20,847 The following table presents total assets by reportable segment (in thousands): June 30, 2016 December 31, 2015 Total assets by reportable segment Nevada $ 218,749 $ 224,731 Midwest 203,691 207,414 Colorado 55,812 57,242 Reportable segment total assets 478,252 489,387 Corporate and other 126,322 112,877 Total assets $ 604,574 $ 602,264 Total assets in Corporate and other consist primarily of cash at the corporate entity. The following table presents additions to property and equipment by reportable segment (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Cash paid for capital expenditures by reportable segment Nevada $ 2,748 $ 854 $ 5,223 $ 2,999 Midwest 1,178 1,385 1,932 1,829 Colorado 178 1,043 585 1,291 Reportable segment additions 4,104 3,282 7,740 6,119 Corporate 15 311 861 599 Total cash paid for capital expenditures $ 4,119 $ 3,593 $ 8,601 $ 6,718

Condensed Consolidated Guaranto

Condensed Consolidated Guarantor Data	6 Months Ended
	Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidated Guarantor Data	NOTE 13. CONDENSED CONSOLIDATED GUARANTOR DATA All of our current and future domestic subsidiaries which guarantee the 2012 Credit Facility also fully and unconditionally guarantee our payment obligations under the 2018 Notes on a senior unsecured basis (see Note 8 for more information regarding our debt). All of the guarantees are joint and several, and all of the guarantor subsidiaries are wholly-owned by us. We prepared and are presenting the condensed consolidating financial statements in this footnote using the same accounting policies which we used to prepare the financial information located elsewhere in our unaudited condensed consolidated interim financial statements and related footnotes. Although Affinity Gaming Finance Corp. (“AG Finance”), a wholly-owned subsidiary of the Company, is a co-issuer of the 2018 Notes, we present our indebtedness as an obligation of Affinity Gaming only. AG Finance reflects no activity during any period presented, and we did not have any non-guarantor subsidiaries during any period presented. Affinity Gaming Unaudited Condensed Consolidating Balance Sheet June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total ASSETS Cash and cash equivalents $ 25,906 $ — $ 48,772 $ — $ 74,678 Restricted cash 95,414 — 139 — 95,553 Accounts receivable, net 206 — 2,397 — 2,603 Income tax receivable 24 — — — 24 Prepaid expense 1,012 — 7,670 — 8,682 Inventory — — 2,832 — 2,832 Total current assets 122,562 — 61,810 — 184,372 Property and equipment, net 1,262 — 243,891 — 245,153 Intercompany receivables — — 133,862 (133,862 ) — Investment in subsidiaries 564,158 — — (564,158 ) — Other assets, net 2,498 — 1,473 — 3,971 Intangibles, net — — 122,791 — 122,791 Goodwill — — 48,287 — 48,287 Total assets $ 690,480 $ — $ 612,114 $ (698,020 ) $ 604,574 LIABILITIES AND OWNERS’ EQUITY Accounts payable $ 1,162 $ — $ 8,229 $ — $ 9,391 Intercompany payables 133,862 — — (133,862 ) — Accrued interest 2,365 — — — 2,365 Accrued expense 1,253 — 20,829 — 22,082 Other current liabilities — — 8 — 8 Total current liabilities 138,642 — 29,066 (133,862 ) 33,846 Long-term debt, less current portion 374,261 — — — 374,261 Other liabilities 1,431 — 553 — 1,984 Deferred income taxes 427 — 18,337 — 18,764 Total liabilities 514,761 — 47,956 (133,862 ) 428,855 Common stock 20 — — — 20 Other equity 175,699 — 564,158 (564,158 ) 175,699 Total owners’ equity 175,719 — 564,158 (564,158 ) 175,719 Total liabilities and owners’ equity $ 690,480 $ — $ 612,114 $ (698,020 ) $ 604,574 Affinity Gaming Condensed Consolidating Balance Sheet December 31, 2015 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total ASSETS Cash and cash equivalents $ 106,384 $ — $ 51,395 $ — $ 157,779 Restricted cash 469 — 139 — 608 Accounts receivable, net 220 — 2,997 — 3,217 Income tax receivable 16 — — — 16 Prepaid expense 1,813 — 8,266 — 10,079 Inventory — — 2,798 — 2,798 Total current assets 108,902 — 65,595 — 174,497 Property and equipment, net 2,002 — 249,906 — 251,908 Intercompany receivables — — 110,150 (110,150 ) — Investment in subsidiaries 551,953 — — (551,953 ) — Other assets, net 1,974 — 1,556 — 3,530 Intangibles, net — — 124,042 — 124,042 Goodwill — — 48,287 — 48,287 Total assets $ 664,831 $ — $ 599,536 $ (662,103 ) $ 602,264 LIABILITIES AND OWNERS’ EQUITY Accounts payable $ 3,483 $ — $ 9,737 $ — $ 13,220 Intercompany payables 110,150 — — (110,150 ) — Accrued interest 2,327 — — — 2,327 Accrued expense 1,455 — 22,703 — 24,158 Current maturities of long-term debt 11,383 — — — 11,383 Other current liabilities — — 23 — 23 Total current liabilities 128,798 — 32,463 (110,150 ) 51,111 Long-term debt, less current portion 364,204 — — — 364,204 Other liabilities 1,397 — 535 — 1,932 Deferred income taxes 173 — 14,585 — 14,758 Total liabilities 494,572 — 47,583 (110,150 ) 432,005 Common stock 20 — — — 20 Other equity 170,239 — 551,953 (551,953 ) 170,239 Total owners’ equity 170,259 — 551,953 (551,953 ) 170,259 Total liabilities and owners’ equity $ 664,831 $ — $ 599,536 $ (662,103 ) $ 602,264 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Quarter ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 69,448 $ — $ 69,448 Food and beverage — — 10,384 — 10,384 Lodging — — 6,031 — 6,031 Fuel and retail — — 13,390 — 13,390 Other — — 3,608 — 3,608 Total revenue — — 102,861 — 102,861 Promotional allowances — — (8,203 ) — (8,203 ) Net revenue — — 94,658 — 94,658 EXPENSE Casino — — 26,181 — 26,181 Food and beverage — — 10,378 — 10,378 Lodging — — 4,205 — 4,205 Fuel and retail — — 9,106 — 9,106 Other — — 1,956 — 1,956 General and administrative — — 18,850 — 18,850 Depreciation and amortization 230 — 7,082 — 7,312 Corporate 4,932 — — — 4,932 Write downs, reserves and recoveries — — (91 ) — (91 ) Total expense 5,162 — 77,667 — 82,829 Operating income (loss) (5,162 ) — 16,991 — 11,829 Other income (expense) Interest expense, net (7,656 ) — — — (7,656 ) Intercompany interest income 7,727 — — (7,727 ) — Intercompany interest expense — — (7,727 ) 7,727 — Income from equity investments in subsidiaries 5,929 — — (5,929 ) — Total other income (expense), net 6,000 — (7,727 ) (5,929 ) (7,656 ) Income (loss) before income tax 838 — 9,264 (5,929 ) 4,173 Benefit (provision) for income taxes 945 — (3,335 ) — (2,390 ) Net income (loss) $ 1,783 $ — $ 5,929 $ (5,929 ) $ 1,783 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Quarter ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 75,505 $ — $ 75,505 Food and beverage — — 12,082 — 12,082 Lodging — — 7,190 — 7,190 Fuel and retail — — 15,676 — 15,676 Other — — 3,268 — 3,268 Total revenue — — 113,721 — 113,721 Promotional allowances — — (12,210 ) — (12,210 ) Net revenue — — 101,511 — 101,511 EXPENSE Casino — — 29,956 — 29,956 Food and beverage — — 11,800 — 11,800 Lodging — — 4,197 — 4,197 Fuel and retail — — 11,675 — 11,675 Other — — 1,838 — 1,838 General and administrative — — 19,601 — 19,601 Depreciation and amortization 312 — 6,893 — 7,205 Corporate 5,358 — — — 5,358 Write downs, reserves and recoveries (7 ) — (197 ) — (204 ) Total expense 5,663 — 85,763 — 91,426 Operating income (loss) (5,663 ) — 15,748 — 10,085 Other income (expense) Interest expense, net (7,653 ) — — — (7,653 ) Intercompany interest income 7,693 — — (7,693 ) — Intercompany interest expense — — (7,693 ) 7,693 — Income from equity investments in subsidiaries 2,096 — — (2,096 ) — Total other income (expense), net 2,136 — (7,693 ) (2,096 ) (7,653 ) Income (loss) before income tax (3,527 ) — 8,055 (2,096 ) 2,432 Benefit (provision) for income taxes 4,324 — (5,959 ) — (1,635 ) Net income (loss) $ 797 $ — $ 2,096 $ (2,096 ) $ 797 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 141,331 $ — $ 141,331 Food and beverage — — 21,208 — 21,208 Lodging — — 12,429 — 12,429 Fuel and retail — — 25,530 — 25,530 Other — — 6,922 — 6,922 Total revenue — — 207,420 — 207,420 Promotional allowances — — (17,012 ) — (17,012 ) Net revenue — — 190,408 — 190,408 EXPENSE Casino — — 53,562 — 53,562 Food and beverage — — 21,170 — 21,170 Lodging — — 8,553 — 8,553 Fuel and retail — — 17,403 — 17,403 Other — — 3,463 — 3,463 General and administrative — — 37,563 — 37,563 Depreciation and amortization 475 — 14,221 — 14,696 Corporate 9,816 — — — 9,816 Write downs, reserves and recoveries 24 — (63 ) — (39 ) Total expense 10,315 — 155,872 — 166,187 Operating income (loss) (10,315 ) — 34,536 — 24,221 Other income (expense) Interest expense, net (15,321 ) — — — (15,321 ) Intercompany interest income 15,465 — — (15,465 ) — Intercompany interest expense — — (15,465 ) 15,465 — Income from equity investments in subsidiaries 12,205 — — (12,205 ) — Total other income (expense), net 12,349 — (15,465 ) (12,205 ) (15,321 ) Income (loss) before income tax 2,034 — 19,071 (12,205 ) 8,900 Benefit (provision) for income taxes 2,860 — (6,866 ) — (4,006 ) Net income (loss) $ 4,894 $ — $ 12,205 $ (12,205 ) $ 4,894 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 150,602 $ — $ 150,602 Food and beverage — — 24,043 — 24,043 Lodging — — 14,222 — 14,222 Fuel and retail — — 28,252 — 28,252 Other — — 6,163 — 6,163 Total revenue — — 223,282 — 223,282 Promotional allowances — — (24,793 ) — (24,793 ) Net revenue — — 198,489 — 198,489 EXPENSE Casino — — 59,690 — 59,690 Food and beverage — — 23,627 — 23,627 Lodging — — 8,106 — 8,106 Fuel and retail — — 20,939 — 20,939 Other — — 3,368 — 3,368 General and administrative — — 38,318 — 38,318 Depreciation and amortization 623 — 13,745 — 14,368 Corporate 9,295 — — — 9,295 Write downs, reserves and recoveries (7 ) — (62 ) — (69 ) Total expense 9,911 — 167,731 — 177,642 Operating income (loss) (9,911 ) — 30,758 — 20,847 Other income (expense) Interest expense, net (15,258 ) — — — (15,258 ) Intercompany interest income 15,341 — — (15,341 ) — Intercompany interest expense — — (15,341 ) 15,341 — Income from equity investments in subsidiaries 1,536 — — (1,536 ) — Total other income (expense), net 1,619 — (15,341 ) (1,536 ) (15,258 ) Income (loss) before income tax (8,292 ) — 15,417 (1,536 ) 5,589 Benefit (provision) for income taxes 8,849 — (13,881 ) — (5,032 ) Net income (loss) $ 557 $ — $ 1,536 $ (1,536 ) $ 557 Affinity Gaming Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Total Net cash (used in) provided by operating activities $ (20,603 ) $ — $ 44,546 $ 23,943 Cash flows from investing activities: Proceeds from sale of property and equipment — — 18 18 Purchases of property and equipment (861 ) — (7,740 ) (8,601 ) Net cash used in investing activities $ (861 ) $ — $ (7,722 ) $ (8,583 ) Cash flows from financing activities: Restricted cash (94,945 ) — — (94,945 ) Change in intercompany accounts 39,432 — (39,432 ) — Payments on capital lease — — (15 ) (15 ) Payments on long-term debt (2,913 ) — — (2,913 ) Loan origination fees (515 ) — — (515 ) Repurchases of vested share-based awards (73 ) — — (73 ) Net cash provided by (used in) financing activities $ (59,014 ) $ — $ (39,447 ) $ (98,461 ) Net decrease in cash and cash equivalents (80,478 ) — (2,623 ) (83,101 ) Cash and cash equivalents Beginning of year 106,384 — 51,395 157,779 End of period $ 25,906 $ — $ 48,772 $ 74,678 Affinity Gaming Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Total Net cash (used in) provided by operating activities $ (12,095 ) $ — $ 36,556 $ 24,461 Cash flows from investing activities: Proceeds from sale of property and equipment 3 — 5 8 Purchases of property and equipment (599 ) — (6,119 ) (6,718 ) Net cash used in investing activities $ (596 ) $ — $ (6,114 ) $ (6,710 ) Cash flows from financing activities: Change in intercompany accounts 25,248 — (25,248 ) — Payments on capital lease — — (16 ) (16 ) Repurchases of vested share-based awards (47 ) — — (47 ) Net cash provided by (used in) financing activities $ 25,201 $ — $ (25,264 ) $ (63 ) Net increase in cash and cash equivalents 12,510 — 5,178 17,688 Cash and cash equivalents Beginning of year 88,737 — 46,438 135,175 End of period $ 101,247 $ — $ 51,616 $ 152,863

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	NOTE 14. SUBSEQUENT EVENTS On July 29, 2016 the Board of Directors received a non-binding proposal from Z Capital Partners, L.L.C., on behalf of its affiliated investment funds and/or designees (“Z Capital”), in which, among other things, Z Capital proposed to acquire all of the outstanding common shares of the Company that are not already owned by Z Capital at a purchase price of $15.00 per share in cash. On August 9, 2016, Z Capital increased its offer to $17.35 per share in cash. In connection with Z Capital’s non-binding proposal, the Board appointed a Special Committee of independent directors authorized to, among other things, review Z Capital’s proposal as well as other proposals or strategic alternatives that may be available to the Company. The Company entered into a 15-day exclusivity agreement with Z Capital commencing on August 9, 2016.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Consolidation	Consolidation We include all of our subsidiaries in our consolidated financial statements, eliminating all intercompany balances and transactions during consolidation.
Basis of Presentation	Basis of Presentation We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”). While preparing our financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as reported amounts of revenue and expense during the reporting period. Accordingly, actual results could differ from those estimates. Reported amounts that require us to make extensive use of estimates include the fair values of assets and liabilities related to depreciation and amortization, the estimates used when computing share-based compensation expense, the estimated allowance for doubtful accounts receivable and the estimated cash flows we use in assessing the recoverability of long-lived assets, as well as the estimated fair values of certain assets related to write downs and impairments, contingencies and litigation, and claims and assessments. We prepared the accompanying unaudited Condensed Consolidated Balance Sheet as of June 30, 2016 , with the audited Consolidated Balance Sheet amounts as of December 31, 2015 presented for comparative purposes, and the related unaudited Condensed Consolidated Statements of Operations and Statements of Cash Flows in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X. In compliance with those instructions, we have omitted certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP, though management believes the disclosures made herein are sufficient to ensure that the information presented is not misleading. Our results of operations and our cash flows as of the end of the interim periods reported herein do not necessarily indicate the results we may experience for the remainder of the year or for any other future period. Management believes our unaudited condensed consolidated interim financial statements include all the normal recurring adjustments necessary to fairly present our unaudited Condensed Consolidated Balance Sheet as of June 30, 2016 , our unaudited Condensed Consolidated Statements of Operations and our unaudited Condensed Consolidated Statements of Cash Flows for all periods presented. You should read our unaudited condensed consolidated interim financial statements and footnotes in conjunction with our consolidated financial statements and footnotes included within our 2015 Form 10-K.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases , that changes the accounting for leases and requires expanded disclosures about leasing activities. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Lessor accounting will remain largely unchanged, other than certain targeted improvements intended to align lessor accounting with the lessee accounting model and with the updated revenue recognition guidance issued in 2014. Lessees and lessors are required to apply a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. Any leases that expire before the initial application date will not require any accounting adjustment. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, and early application is permitted. We are currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The amendments in ASU 2014-09 stipulate that an entity should recognize revenue in an amount which reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to customers, and they provide a five-step process to assist entities with achieving that core principle. The ASU also specifies the accounting for some costs to obtain or fulfill a contract with a customer. With regard to disclosures, ASU 2014-09 states that entities should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, and it requires qualitative and quantitative disclosures concerning contracts with customers, significant judgments and changes therein, and assets recognized from the costs incurred to obtain or fulfill a contract. The amendments in ASU 2014-09, have been deferred for one year and are effective for annual reporting periods beginning after December 15, 2017, including interim periods therein, and they permit either retrospective application to all prior periods or retrospective application with the cumulative effect of application recognized on the initial application date. Early adoption is permitted for annual and interim periods beginning after December 31, 2016. We are currently evaluating the impact this guidance will have on its financial condition, results of operations, cash flows or the reporting thereof. We have reviewed all other recently issued accounting pronouncements and, other than those we have disclosed above or in previous filings with the SEC, we do not believe any of such pronouncements will have a material effect on our operations. Reclassifications The unaudited condensed consolidated financial statements and related notes reflect certain reclassifications to prior year amounts in order to conform with current year presentation. The reclassifications have no effect on previously reported net income. In November 2015, the FASB issued an accounting standards update which changes the presentation of deferred taxes in classified balance sheets. The new guidance requires classification of all deferred tax assets and liabilities as well as applicable valuation allowances as non-current. The effective date for this guidance is for financial statements issued for annual and interim periods beginning after December 15, 2016. Early application is permitted. The guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We have applied the guidance in the accompanying condensed consolidated financial statements with retrospective application for the Consolidated Balance Sheet at December 31, 2015. The effect of the accounting change in the prior year resulted in current deferred income taxes of $1.7 million , previously presented separately in current liabilities, to be added to $13.1 million in long-term deferred income taxes, for a revised $14.8 million in long-term deferred income taxes at December 31, 2015.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net consist of the following (in thousands, except estimated lives): Estimated Life (Years) June 30, December 31, 2015 Building and improvements 7 - 40 $ 187,106 $ 185,875 Gaming equipment 3 - 10 78,671 75,527 Furniture, fixtures, and equipment 3 - 10 51,475 49,571 Leasehold improvements 7 196 196 Land — 39,513 39,513 Barge 30 15,019 15,019 Construction-in-progress 3,027 3,185 Total property and equipment 375,007 368,886 Less accumulated depreciation (129,854 ) (116,978 ) Total property and equipment, net $ 245,153 $ 251,908

Goodwill and Other Intangible22

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets	The following table summarizes intangible assets by category (in thousands): June 30, 2016 December 31, 2015 Gross Amount Accumulated Net Amount Gross Amount Accumulated Net Amount Finite-lived intangible assets Customer loyalty programs $ 12,164 $ (9,583 ) $ 2,581 $ 12,164 $ (8,583 ) $ 3,581 Trademarks 2,982 (2,649 ) 333 2,982 (2,398 ) 584 15,146 $ (12,232 ) 2,914 15,146 $ (10,981 ) 4,165 Indefinite-lived intangible assets Gaming license rights 110,646 110,646 110,646 110,646 Local tradenames 9,231 9,231 9,231 9,231 119,877 119,877 119,877 119,877 Total intangible assets $ 135,023 $ 122,791 $ 135,023 $ 124,042
Schedule of goodwill by segment	The following table summarizes the changes in goodwill by reportable segment during the six months ended June 30, 2016 : Nevada Midwest Total Balance at December 31, 2015 $ 33,665 $ 14,622 $ 48,287 Impairment of goodwill — — — Balance at June 30, 2016 $ 33,665 $ 14,622 $ 48,287

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Other Assets [Abstract]
Other assets disclosure	Other assets, net consist of the following (in thousands): June 30, December 31, 2015 Long-term deposits $ 2,924 $ 2,919 Other assets 1,047 611 Total $ 3,971 $ 3,530

Accrued Expense (Tables)

Accrued Expense (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Liabilities, Current [Abstract]
Schedule of accrued expense	Accrued expense consists of the following (in thousands): June 30, December 31, 2015 Progressive jackpot liabilities $ 3,093 $ 2,984 Accrued payroll and related 7,198 7,441 Slot club point liability 2,993 3,213 Litigation reserve 3,100 3,100 Other accrued expense 5,698 7,420 Total $ 22,082 $ 24,158

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt balances	The following table presents long-term debt balances (in thousands): June 30, December 31, 2015 9% Senior Unsecured Notes due 2018 $ 200,000 $ 200,000 Unamortized debt issuance cost, net (2,448 ) (3,028 ) Unamortized discount (684 ) (847 ) 9% Senior Unsecured Notes due 2018, net 196,868 196,125 Term loan due 2017 179,832 182,745 Unamortized debt issuance cost, net (2,439 ) (3,283 ) Term loan due 2017, net 177,393 179,462 Total debt, including current maturities 374,261 375,587 Less: current maturities of long-term debt — (11,383 ) Total long-term debt $ 374,261 $ 364,204
Schedule of redemption price percentage for notes	We issued the 2018 Notes pursuant to an indenture dated May 9, 2012 (“2018 Notes Indenture”). Under the 2018 Notes Indenture, the Issuers are entitled to redeem all or a portion of the 2018 Notes upon providing not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on May 15 of the years set forth in the table below. Year Percentage 2015 104.50 % 2016 102.25 % 2017 and thereafter 100.00 %
Schedule of carrying values and estimated fair values of debt instruments	The following table presents the carrying values and estimated fair values of our long-term debt at June 30, 2016 (in thousands): Carrying Value Estimated Fair Value 9% Senior Unsecured Notes due 2018 $ 196,868 $ 201,298 Term loan due 2017 177,393 177,180 Total $ 374,261 $ 378,478 Subsequent to the quarter end, on July 1, 2016, we entered into a Credit Agreement (the “2016 Credit Agreement”) which provides for a $ 300.0 million term loan facility (the “2016 Term Loan”) and a $ 75 million revolving credit facility (the “2016 Revolving Credit Facility” and, together with the 2016 Term Loan, the “2016 Credit Facility”), which remained undrawn on the closing date of the 2016 Credit Agreement. The 2016 Term Loan will be payable in quarterly installments, commencing on September 30, 2016, in an amount equal to 0.25% of the 2016 Term Loan until the maturity date, July 1, 2023, upon which date the remaining balance will come due. Amounts outstanding under the 2016 Revolving Credit Facility will be due and payable on July 1, 2021. The interest rate under the 2016 Term Loan is at a floating rate not less than 5.0% . We used the proceeds of the 2016 Term Loan together with $ 94.9 million in cash from our balance sheet to repay all amounts outstanding under the 2012 Term Loan and redeem the 2018 Notes. The Company is currently determining the impact of this third quarter refinancing on its results of operations.

Share-based Compensation (Table

Share-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of outstanding and non-vested options activity	The following table summarizes the activity related to our outstanding stock options and non-vested restricted stock for the period ended June 30, 2016 : Stock Options Restricted Stock Outstanding Non-Vested Shares Weighted Average Exercise Price Per Share Shares Weighted Average Fair Value Per Share December 31, 2015 330,605 $ 10.24 82,290 $ 10.54 Granted 272,500 12.00 85,082 12.00 Vested — — (81,660 ) 10.96 Forfeited (36,364 ) 10.00 — — June 30, 2016 566,741 $ 11.10 85,712 $ 11.59

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of segment classification of properties	The following table presents Adjusted EBITDA by segment and by corporate and other (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Adjusted EBITDA Nevada $ 12,120 $ 10,915 $ 25,014 $ 21,437 Midwest 10,388 10,560 21,062 20,129 Colorado 1,474 969 2,618 2,875 Corporate and other (4,606 ) (4,853 ) (9,116 ) (8,628 ) Total Adjusted EBITDA $ 19,376 $ 17,591 $ 39,578 $ 35,813 The following table presents the components of net revenue by segment (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Gross revenue Nevada $ 61,119 $ 68,704 $ 122,900 $ 133,754 Midwest 32,189 34,473 65,310 67,738 Colorado 9,553 10,544 19,210 21,790 Total gross revenue 102,861 113,721 207,420 223,282 Promotional allowances Nevada (5,786 ) (8,378 ) (11,682 ) (17,166 ) Midwest (1,744 ) (2,629 ) (3,758 ) (5,167 ) Colorado (673 ) (1,203 ) (1,572 ) (2,460 ) Total promotional allowances (8,203 ) (12,210 ) (17,012 ) (24,793 ) Net revenue Nevada 55,333 60,326 111,218 116,588 Midwest 30,445 31,844 61,552 62,571 Colorado 8,880 9,341 17,638 19,330 Total net revenue $ 94,658 $ 101,511 $ 190,408 $ 198,489
Schedule of reconciliation of Adjusted EBITDA to operating income	The following tables reconcile Adjusted EBITDA to operating income (in thousands): Quarter Ended June 30, 2016 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 12,120 $ (3,649 ) $ — $ 105 $ 8,576 Midwest 10,388 (2,012 ) — (14 ) 8,362 Colorado 1,474 (1,421 ) — — 53 Corporate and other (4,606 ) (230 ) (326 ) (5,162 ) Total operations $ 19,376 $ (7,312 ) $ (326 ) $ 91 $ 11,829 Quarter Ended June 30, 2015 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 10,915 $ (3,698 ) $ — $ 197 $ 7,414 Midwest 10,560 (1,898 ) — — 8,662 Colorado 969 (1,297 ) — — (328 ) Corporate and other (4,853 ) (312 ) (505 ) 7 (5,663 ) Total operations $ 17,591 $ (7,205 ) $ (505 ) $ 204 $ 10,085 Six Months Ended June 30, 2016 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 25,014 $ (7,300 ) $ — $ 70 $ 17,784 Midwest 21,062 (4,042 ) — (7 ) 17,013 Colorado 2,618 (2,879 ) — — (261 ) Corporate and other (9,116 ) (475 ) (700 ) (24 ) (10,315 ) Total operations $ 39,578 $ (14,696 ) $ (700 ) $ 39 $ 24,221 Six Months Ended June 30, 2015 Adjusted EBITDA Depreciation and Amortization Share-Based Compensation Write Downs, Reserves and Recoveries Operating Income Nevada $ 21,437 $ (7,386 ) $ — $ 120 $ 14,171 Midwest 20,129 (3,793 ) — — 16,336 Colorado 2,875 (2,566 ) — (58 ) 251 Corporate and other (8,628 ) (623 ) (667 ) 7 (9,911 ) Total operations $ 35,813 $ (14,368 ) $ (667 ) $ 69 $ 20,847
Reconciliation of assets by reportable segment to consolidated	The following table presents total assets by reportable segment (in thousands): June 30, 2016 December 31, 2015 Total assets by reportable segment Nevada $ 218,749 $ 224,731 Midwest 203,691 207,414 Colorado 55,812 57,242 Reportable segment total assets 478,252 489,387 Corporate and other 126,322 112,877 Total assets $ 604,574 $ 602,264
Reconciliation of capital expenditures by reportable segments to consolidated	The following table presents additions to property and equipment by reportable segment (in thousands): Quarter Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Cash paid for capital expenditures by reportable segment Nevada $ 2,748 $ 854 $ 5,223 $ 2,999 Midwest 1,178 1,385 1,932 1,829 Colorado 178 1,043 585 1,291 Reportable segment additions 4,104 3,282 7,740 6,119 Corporate 15 311 861 599 Total cash paid for capital expenditures $ 4,119 $ 3,593 $ 8,601 $ 6,718

Condensed Consolidated Guaran28

Condensed Consolidated Guarantor Data (Tables)	6 Months Ended
	Jun. 30, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Balance Sheet	Affinity Gaming Unaudited Condensed Consolidating Balance Sheet June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total ASSETS Cash and cash equivalents $ 25,906 $ — $ 48,772 $ — $ 74,678 Restricted cash 95,414 — 139 — 95,553 Accounts receivable, net 206 — 2,397 — 2,603 Income tax receivable 24 — — — 24 Prepaid expense 1,012 — 7,670 — 8,682 Inventory — — 2,832 — 2,832 Total current assets 122,562 — 61,810 — 184,372 Property and equipment, net 1,262 — 243,891 — 245,153 Intercompany receivables — — 133,862 (133,862 ) — Investment in subsidiaries 564,158 — — (564,158 ) — Other assets, net 2,498 — 1,473 — 3,971 Intangibles, net — — 122,791 — 122,791 Goodwill — — 48,287 — 48,287 Total assets $ 690,480 $ — $ 612,114 $ (698,020 ) $ 604,574 LIABILITIES AND OWNERS’ EQUITY Accounts payable $ 1,162 $ — $ 8,229 $ — $ 9,391 Intercompany payables 133,862 — — (133,862 ) — Accrued interest 2,365 — — — 2,365 Accrued expense 1,253 — 20,829 — 22,082 Other current liabilities — — 8 — 8 Total current liabilities 138,642 — 29,066 (133,862 ) 33,846 Long-term debt, less current portion 374,261 — — — 374,261 Other liabilities 1,431 — 553 — 1,984 Deferred income taxes 427 — 18,337 — 18,764 Total liabilities 514,761 — 47,956 (133,862 ) 428,855 Common stock 20 — — — 20 Other equity 175,699 — 564,158 (564,158 ) 175,699 Total owners’ equity 175,719 — 564,158 (564,158 ) 175,719 Total liabilities and owners’ equity $ 690,480 $ — $ 612,114 $ (698,020 ) $ 604,574 Affinity Gaming Condensed Consolidating Balance Sheet December 31, 2015 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total ASSETS Cash and cash equivalents $ 106,384 $ — $ 51,395 $ — $ 157,779 Restricted cash 469 — 139 — 608 Accounts receivable, net 220 — 2,997 — 3,217 Income tax receivable 16 — — — 16 Prepaid expense 1,813 — 8,266 — 10,079 Inventory — — 2,798 — 2,798 Total current assets 108,902 — 65,595 — 174,497 Property and equipment, net 2,002 — 249,906 — 251,908 Intercompany receivables — — 110,150 (110,150 ) — Investment in subsidiaries 551,953 — — (551,953 ) — Other assets, net 1,974 — 1,556 — 3,530 Intangibles, net — — 124,042 — 124,042 Goodwill — — 48,287 — 48,287 Total assets $ 664,831 $ — $ 599,536 $ (662,103 ) $ 602,264 LIABILITIES AND OWNERS’ EQUITY Accounts payable $ 3,483 $ — $ 9,737 $ — $ 13,220 Intercompany payables 110,150 — — (110,150 ) — Accrued interest 2,327 — — — 2,327 Accrued expense 1,455 — 22,703 — 24,158 Current maturities of long-term debt 11,383 — — — 11,383 Other current liabilities — — 23 — 23 Total current liabilities 128,798 — 32,463 (110,150 ) 51,111 Long-term debt, less current portion 364,204 — — — 364,204 Other liabilities 1,397 — 535 — 1,932 Deferred income taxes 173 — 14,585 — 14,758 Total liabilities 494,572 — 47,583 (110,150 ) 432,005 Common stock 20 — — — 20 Other equity 170,239 — 551,953 (551,953 ) 170,239 Total owners’ equity 170,259 — 551,953 (551,953 ) 170,259 Total liabilities and owners’ equity $ 664,831 $ — $ 599,536 $ (662,103 ) $ 602,264
Condensed Consolidating Statement of Operations	Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Quarter ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 69,448 $ — $ 69,448 Food and beverage — — 10,384 — 10,384 Lodging — — 6,031 — 6,031 Fuel and retail — — 13,390 — 13,390 Other — — 3,608 — 3,608 Total revenue — — 102,861 — 102,861 Promotional allowances — — (8,203 ) — (8,203 ) Net revenue — — 94,658 — 94,658 EXPENSE Casino — — 26,181 — 26,181 Food and beverage — — 10,378 — 10,378 Lodging — — 4,205 — 4,205 Fuel and retail — — 9,106 — 9,106 Other — — 1,956 — 1,956 General and administrative — — 18,850 — 18,850 Depreciation and amortization 230 — 7,082 — 7,312 Corporate 4,932 — — — 4,932 Write downs, reserves and recoveries — — (91 ) — (91 ) Total expense 5,162 — 77,667 — 82,829 Operating income (loss) (5,162 ) — 16,991 — 11,829 Other income (expense) Interest expense, net (7,656 ) — — — (7,656 ) Intercompany interest income 7,727 — — (7,727 ) — Intercompany interest expense — — (7,727 ) 7,727 — Income from equity investments in subsidiaries 5,929 — — (5,929 ) — Total other income (expense), net 6,000 — (7,727 ) (5,929 ) (7,656 ) Income (loss) before income tax 838 — 9,264 (5,929 ) 4,173 Benefit (provision) for income taxes 945 — (3,335 ) — (2,390 ) Net income (loss) $ 1,783 $ — $ 5,929 $ (5,929 ) $ 1,783 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Quarter ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 75,505 $ — $ 75,505 Food and beverage — — 12,082 — 12,082 Lodging — — 7,190 — 7,190 Fuel and retail — — 15,676 — 15,676 Other — — 3,268 — 3,268 Total revenue — — 113,721 — 113,721 Promotional allowances — — (12,210 ) — (12,210 ) Net revenue — — 101,511 — 101,511 EXPENSE Casino — — 29,956 — 29,956 Food and beverage — — 11,800 — 11,800 Lodging — — 4,197 — 4,197 Fuel and retail — — 11,675 — 11,675 Other — — 1,838 — 1,838 General and administrative — — 19,601 — 19,601 Depreciation and amortization 312 — 6,893 — 7,205 Corporate 5,358 — — — 5,358 Write downs, reserves and recoveries (7 ) — (197 ) — (204 ) Total expense 5,663 — 85,763 — 91,426 Operating income (loss) (5,663 ) — 15,748 — 10,085 Other income (expense) Interest expense, net (7,653 ) — — — (7,653 ) Intercompany interest income 7,693 — — (7,693 ) — Intercompany interest expense — — (7,693 ) 7,693 — Income from equity investments in subsidiaries 2,096 — — (2,096 ) — Total other income (expense), net 2,136 — (7,693 ) (2,096 ) (7,653 ) Income (loss) before income tax (3,527 ) — 8,055 (2,096 ) 2,432 Benefit (provision) for income taxes 4,324 — (5,959 ) — (1,635 ) Net income (loss) $ 797 $ — $ 2,096 $ (2,096 ) $ 797 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 141,331 $ — $ 141,331 Food and beverage — — 21,208 — 21,208 Lodging — — 12,429 — 12,429 Fuel and retail — — 25,530 — 25,530 Other — — 6,922 — 6,922 Total revenue — — 207,420 — 207,420 Promotional allowances — — (17,012 ) — (17,012 ) Net revenue — — 190,408 — 190,408 EXPENSE Casino — — 53,562 — 53,562 Food and beverage — — 21,170 — 21,170 Lodging — — 8,553 — 8,553 Fuel and retail — — 17,403 — 17,403 Other — — 3,463 — 3,463 General and administrative — — 37,563 — 37,563 Depreciation and amortization 475 — 14,221 — 14,696 Corporate 9,816 — — — 9,816 Write downs, reserves and recoveries 24 — (63 ) — (39 ) Total expense 10,315 — 155,872 — 166,187 Operating income (loss) (10,315 ) — 34,536 — 24,221 Other income (expense) Interest expense, net (15,321 ) — — — (15,321 ) Intercompany interest income 15,465 — — (15,465 ) — Intercompany interest expense — — (15,465 ) 15,465 — Income from equity investments in subsidiaries 12,205 — — (12,205 ) — Total other income (expense), net 12,349 — (15,465 ) (12,205 ) (15,321 ) Income (loss) before income tax 2,034 — 19,071 (12,205 ) 8,900 Benefit (provision) for income taxes 2,860 — (6,866 ) — (4,006 ) Net income (loss) $ 4,894 $ — $ 12,205 $ (12,205 ) $ 4,894 Affinity Gaming Unaudited Condensed Consolidating Statement of Operations Six Months Ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Eliminating Total REVENUE Casino $ — $ — $ 150,602 $ — $ 150,602 Food and beverage — — 24,043 — 24,043 Lodging — — 14,222 — 14,222 Fuel and retail — — 28,252 — 28,252 Other — — 6,163 — 6,163 Total revenue — — 223,282 — 223,282 Promotional allowances — — (24,793 ) — (24,793 ) Net revenue — — 198,489 — 198,489 EXPENSE Casino — — 59,690 — 59,690 Food and beverage — — 23,627 — 23,627 Lodging — — 8,106 — 8,106 Fuel and retail — — 20,939 — 20,939 Other — — 3,368 — 3,368 General and administrative — — 38,318 — 38,318 Depreciation and amortization 623 — 13,745 — 14,368 Corporate 9,295 — — — 9,295 Write downs, reserves and recoveries (7 ) — (62 ) — (69 ) Total expense 9,911 — 167,731 — 177,642 Operating income (loss) (9,911 ) — 30,758 — 20,847 Other income (expense) Interest expense, net (15,258 ) — — — (15,258 ) Intercompany interest income 15,341 — — (15,341 ) — Intercompany interest expense — — (15,341 ) 15,341 — Income from equity investments in subsidiaries 1,536 — — (1,536 ) — Total other income (expense), net 1,619 — (15,341 ) (1,536 ) (15,258 ) Income (loss) before income tax (8,292 ) — 15,417 (1,536 ) 5,589 Benefit (provision) for income taxes 8,849 — (13,881 ) — (5,032 ) Net income (loss) $ 557 $ — $ 1,536 $ (1,536 ) $ 557
Condensed Consolidating Statement of Cash Flows	Affinity Gaming Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 (in thousands) Affinity Gaming (Co-Issuer) AG Finance (Co-Issuer) Guarantor Total Net cash (used in) provided by operating activities $ (20,603 ) $ — $ 44,546 $ 23,943 Cash flows from investing activities: Proceeds from sale of property and equipment — — 18 18 Purchases of property and equipment (861 ) — (7,740 ) (8,601 ) Net cash used in investing activities $ (861 ) $ — $ (7,722 ) $ (8,583 ) Cash flows from financing activities: Restricted cash (94,945 ) — — (94,945 ) Change in intercompany accounts 39,432 — (39,432 ) — Payments on capital lease — — (15 ) (15 ) Payments on long-term debt (2,913 ) — — (2,913 ) Loan origination fees (515 ) — — (515 ) Repurchases of vested share-based awards (73 ) — — (73 ) Net cash provided by (used in) financing activities $ (59,014 ) $ — $ (39,447 ) $ (98,461 ) Net decrease in cash and cash equivalents (80,478 ) — (2,623 ) (83,101 ) Cash and cash equivalents Beginning of year 106,384 — 51,395 157,779 End of period $ 25,906 $ — $ 48,772 $ 74,678 Affinity Gaming Unaudited Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 (in thousands) Affinity Gaming AG Finance (Co-Issuer) Guarantor Total Net cash (used in) provided by operating activities $ (12,095 ) $ — $ 36,556 $ 24,461 Cash flows from investing activities: Proceeds from sale of property and equipment 3 — 5 8 Purchases of property and equipment (599 ) — (6,119 ) (6,718 ) Net cash used in investing activities $ (596 ) $ — $ (6,114 ) $ (6,710 ) Cash flows from financing activities: Change in intercompany accounts 25,248 — (25,248 ) — Payments on capital lease — — (16 ) (16 ) Repurchases of vested share-based awards (47 ) — — (47 ) Net cash provided by (used in) financing activities $ 25,201 $ — $ (25,264 ) $ (63 ) Net increase in cash and cash equivalents 12,510 — 5,178 17,688 Cash and cash equivalents Beginning of year 88,737 — 46,438 135,175 End of period $ 101,247 $ — $ 51,616 $ 152,863

Organization, Consolidation a29

Organization, Consolidation and Presentation of Financial Statements (Details)	6 Months Ended
	Jun. 30, 2016casino
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of casinos (casinos)	11
Nevada
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of casinos (casinos)	5
Colorado
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of casinos (casinos)	3
Missouri
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of casinos (casinos)	2
Iowa
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of casinos (casinos)	1

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Long-term deferred income taxes	$ 18,764	$ 14,758
Adjustments for New Accounting Principle, Early Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Current deferred income taxes		1,700
Long-term deferred income taxes		$ 13,100

Restricted Cash (Details)

Restricted Cash (Details) $ in Millions	Jun. 30, 2016USD ($)
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 94.9

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Property and equipment
Gross	$ 375,007	$ 368,886
Less accumulated depreciation	(129,854)	(116,978)
Total property and equipment, net	245,153	251,908
Building and improvements
Property and equipment
Gross	$ 187,106	185,875
Building and improvements | Minimum
Property and equipment
Estimated Life (Years)	7 years
Building and improvements | Maximum
Property and equipment
Estimated Life (Years)	40 years
Gaming equipment
Property and equipment
Gross	$ 78,671	75,527
Gaming equipment | Minimum
Property and equipment
Estimated Life (Years)	3 years
Gaming equipment | Maximum
Property and equipment
Estimated Life (Years)	10 years
Furniture, fixtures, and equipment
Property and equipment
Gross	$ 51,475	49,571
Furniture, fixtures, and equipment | Minimum
Property and equipment
Estimated Life (Years)	3 years
Furniture, fixtures, and equipment | Maximum
Property and equipment
Estimated Life (Years)	10 years
Leasehold improvements
Property and equipment
Estimated Life (Years)	7 years
Gross	$ 196	196
Land
Property and equipment
Gross	$ 39,513	39,513
Barge
Property and equipment
Estimated Life (Years)	30 years
Gross	$ 15,019	15,019
Construction-in-progress
Property and equipment
Gross	$ 3,027	$ 3,185

Goodwill and Other Intangible33

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Gross carrying amount	$ 15,146	$ 15,146
Accumulated Amortization	(12,232)	(10,981)
Finite-Lived Intangible Assets, Net	2,914	4,165
Indefinite-lived intangible assets	119,877	119,877
Intangibles, Gross Carrying Amount	135,023	135,023
Intangibles, net	122,791	124,042
Gaming license rights
Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items]
Indefinite-lived intangible assets	110,646	110,646
Local tradenames
Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items]
Indefinite-lived intangible assets	9,231	9,231
Customer loyalty programs
Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Gross carrying amount	12,164	12,164
Accumulated Amortization	(9,583)	(8,583)
Finite-Lived Intangible Assets, Net	2,581	3,581
Trademarks
Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Gross carrying amount	2,982	2,982
Accumulated Amortization	(2,649)	(2,398)
Finite-Lived Intangible Assets, Net	$ 333	$ 584

Goodwill and Other Intangible34

Goodwill and Other Intangible Assets - Summary of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 48,287
Impairment of goodwill	0
Goodwill, ending balance	48,287
Nevada
Goodwill [Roll Forward]
Goodwill, beginning balance	33,665
Impairment of goodwill	0
Goodwill, ending balance	33,665
Midwest
Goodwill [Roll Forward]
Goodwill, beginning balance	14,622
Impairment of goodwill	0
Goodwill, ending balance	$ 14,622

Goodwill and Other Intangible35

Goodwill and Other Intangible Assets - Narrative (Details)	6 Months Ended
	Jun. 30, 2016
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	6 years 6 months
Customer loyalty programs
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	7 years
Trademarks
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	3 years 9 months

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Other Assets [Abstract]
Long-term deposits	$ 2,924	$ 2,919
Other assets	1,047	611
Total	$ 3,971	$ 3,530

Accrued Expense (Details)

Accrued Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Liabilities, Current [Abstract]
Progressive jackpot liabilities	$ 3,093	$ 2,984
Accrued payroll and related	7,198	7,441
Slot club point liability	2,993	3,213
Litigation reserve	3,100	3,100
Other accrued expense	5,698	7,420
Total	$ 22,082	$ 24,158

Long-Term Debt - Summary of deb

Long-Term Debt - Summary of debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Payments on long-term debt	$ 2,913	$ 0
Total debt, including current maturities	374,261		$ 375,587
Less: current maturities of long-term debt	0		(11,383)
Long-term debt, less current portion	374,261		364,204
9% Senior Unsecured Notes Due 2018 | Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	200,000		200,000
Unamortized debt issuance cost, net	(2,448)		(3,028)
Unamortized discount	(684)		(847)
Total debt, including current maturities	196,868		196,125
Term Loan Due 2017 | Senior Notes
Debt Instrument [Line Items]
Long-term debt, gross	179,832		182,745
Unamortized debt issuance cost, net	(2,439)		(3,283)
Total debt, including current maturities	$ 177,393		$ 179,462

Long-Term Debt (Details)

Long-Term Debt (Details)	Jul. 01, 2016USD ($)	May 09, 2012USD ($)	Apr. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Long Term Debt Textuals [Abstract]
Actual payment required by the lenders			$ 2,900,000
Payments on long-term debt				$ 2,913,000	$ 0
Additional borrowing capacity, accordion feature				80,000,000
Debt instrument unamortized loan fees				$ 4,900,000
First lien senior secured net leverage ratio				1.95
Interest coverage ratio				2.57
Carrying Value
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 374,261,000
Estimated Fair Value
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 378,478,000
Senior Notes | Between first and second year after closing
Long Term Debt Textuals [Abstract]
Redemption price as percentage of principal amount				104.50%
Senior Notes | Between second and third year after closing
Long Term Debt Textuals [Abstract]
Redemption price as percentage of principal amount				102.25%
Senior Notes | Twelve months commencing on May 2017 and thereafter
Long Term Debt Textuals [Abstract]
Redemption price as percentage of principal amount				100.00%
Senior Notes | Maximum
Long Term Debt Textuals [Abstract]
Debt instrument redemption as percentage of original principal notice period				60 days
Senior Notes | Minimum
Long Term Debt Textuals [Abstract]
Debt instrument redemption as percentage of original principal notice period				30 days
Senior Notes | 9% Senior Unsecured Notes Due 2018
Long Term Debt Textuals [Abstract]
Proceeds from issuance of debt		$ 200,000,000
Interest rate (percent)		9.00%
Senior Notes | 9% Senior Unsecured Notes Due 2018 | Carrying Value | Level 2
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 196,868,000
Senior Notes | 9% Senior Unsecured Notes Due 2018 | Estimated Fair Value | Level 2
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 201,298,000
Senior Notes | Term Loan Due 2017
Long Term Debt Textuals [Abstract]
Proceeds from issuance of debt		$ 200,000,000
Senior Notes | Term Loan Due 2017 | LIBOR
Long Term Debt Textuals [Abstract]
Interest margin (percent)				4.00%
Senior Notes | Term Loan Due 2017 | Minimum
Long Term Debt Textuals [Abstract]
Interest rate (percent)				1.25%
Senior Notes | Term Loan Due 2017 | Carrying Value
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 177,393,000
Senior Notes | Term Loan Due 2017 | Estimated Fair Value
Long Term Debt Textuals [Abstract]
Long-term debt, fair value				$ 177,180,000
Senior Notes | Term Loan Due 2017 | Total net leverage ratio greater than 4.00 to 1.00
Long Term Debt Textuals [Abstract]
Mandatory prepayments as a percentage of entity's excess cash flow				50.00%
Senior Notes | Term Loan Due 2017 | Total net leverage ratio greater than 4.00 to 1.00 | Minimum
Long Term Debt Textuals [Abstract]
Total net leverage ratio				4
Senior Notes | Term Loan Due 2017 | Total net leverage ratio greater than 3.00 to 1.00 but less than or equal to 4.00 to 1.00
Long Term Debt Textuals [Abstract]
Mandatory prepayments as a percentage of entity's excess cash flow				25.00%
Senior Notes | Term Loan Due 2017 | Total net leverage ratio greater than 3.00 to 1.00 but less than or equal to 4.00 to 1.00 | Maximum
Long Term Debt Textuals [Abstract]
Total net leverage ratio				4
Senior Notes | Term Loan Due 2017 | Total net leverage ratio greater than 3.00 to 1.00 but less than or equal to 4.00 to 1.00 | Minimum
Long Term Debt Textuals [Abstract]
Total net leverage ratio				3
Senior Notes | Term Loan Due 2017 | Total net leverage ratio less than or equal to 3.00 to 1.00
Long Term Debt Textuals [Abstract]
Mandatory prepayments as a percentage of entity's excess cash flow				0.00%
Revolving Credit Facility
Long Term Debt Textuals [Abstract]
Remaining borrowing capacity				$ 35,000,000
Revolving Credit Facility | Total net leverage ratio greater than 3.50 to 1.00
Long Term Debt Textuals [Abstract]
Unused capacity commitment fee percentage				0.50%
Revolving Credit Facility | Total net leverage ratio greater than 3.50 to 1.00 | Maximum
Long Term Debt Textuals [Abstract]
Total net leverage ratio				3.50
Revolving Credit Facility | Total net leverage ratio less than or Equal to 3.50 to 1.00
Long Term Debt Textuals [Abstract]
Unused capacity commitment fee percentage				0.375%
Revolving Credit Facility | Total net leverage ratio less than or Equal to 3.50 to 1.00 | Minimum
Long Term Debt Textuals [Abstract]
Total net leverage ratio				3.50
Subsequent Event
Long Term Debt Textuals [Abstract]
Payments on long-term debt	$ 94,900,000
Subsequent Event | Term Loan Facility | 2016 Credit Facility
Long Term Debt Textuals [Abstract]
Borrowing capacity	$ 300,000,000
Quarterly repayment (percent)	0.25%
Subsequent Event | Term Loan Facility | 2016 Credit Facility | Minimum
Long Term Debt Textuals [Abstract]
Minimum floating rate (percent)	5.00%
Adjustments for New Accounting Pronouncement | Other Assets
Long Term Debt Textuals [Abstract]
Deferred Finance Costs, Net						$ 1,500,000
Adjustments for New Accounting Pronouncement | Long-term Debt
Long Term Debt Textuals [Abstract]
Deferred Finance Costs, Net						$ 1,500,000
Revolving Credit Facility | Subsequent Event | 2016 Credit Facility
Long Term Debt Textuals [Abstract]
Borrowing capacity	$ 75,000,000

Income Taxes-Narrative (Details

Income Taxes-Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Benefit (provision) for income taxes	$ (2,390)	$ (1,635)	$ (4,006)	$ (5,032)

Share-based Compensation (Detai

Share-based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Equity-based compensation
Number of shares available for issuance	2,000,000
Outstanding and Non-Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share)
Common stock shares or potential shares outstanding	1,029,070
Shares available for future issuance	970,930
Share-based compensation liability	$ 1.3	$ 1.2
Stock Options
Outstanding, Shares
Balance at the beginning of the period (shares)	330,605
Granted (shares)	272,500
Vested (shares)	0
Forfeited (shares)	(36,364)
Balance at the end of the period (shares)	566,741
Outstanding, Weighted Average Exercise Price Per Share (in dollars per share)
Balance at the beginning of the period (usd per share)	$ 10.24
Granted (usd per share)	12
Vested (usd per share)	0
Forfeited (usd per share)	10
Balance at the end of the period (usd per share)	$ 11.10
Restricted Stock
Outstanding and Non-Vested, Shares
Balance at the beginning of the period (shares)	82,290
Granted (shares)	85,082
Vested (shares)	(81,660)
Forfeited (shares)	0
Balance at the end of the period (shares)	85,712
Outstanding and Non-Vested, Weighted Average Grant Date Fair Value Per Share (in dollars per share)
Balance at the beginning of the period (usd per share)	$ 10.54
Granted (usd per share)	12
Vested (usd per share)	10.96
Forfeited (usd per share)	0
Balance at the end of the period (usd per share)	$ 11.59

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Commitments and contingencies
Network liability coverage	$ 5
Expense related to network security breach	1.2
Chartwell Advisory Group, Ltd v Flamingo Gaming LLC
Commitments and contingencies
Estimate of possible loss	$ 0.2

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies - Environmental Remediation (Details) - USD ($) $ in Thousands	6 Months Ended		58 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Number of years ago that the gas station contaminated the soil	35 years
Environmental remediation expense	$ 43	$ 100	$ 4,000
Insurance recoveries			$ 2,000
Amount of coverage	$ 5,000

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gross revenue	$ 102,861	$ 113,721	$ 207,420	$ 223,282
Promotional allowances	(8,203)	(12,210)	(17,012)	(24,793)
Net revenue	94,658	101,511	190,408	198,489
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Adjusted EBITDA	19,376	17,591	39,578	35,813
Depreciation and Amortization	(7,312)	(7,205)	(14,696)	(14,368)
Share-Based Compensation	(326)	(505)	(700)	(667)
Write Downs, Reserves and Recoveries	91	204	39	69
Operating income	11,829	10,085	24,221	20,847
Total assets by reportable segment	604,574		604,574		$ 602,264
Cash paid for capital expenditures by reportable segment	4,119	3,593	8,601	6,718
Operating Segments
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Total assets by reportable segment	478,252		478,252		489,387
Cash paid for capital expenditures by reportable segment	4,104	3,282	7,740	6,119
Nevada
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gross revenue	61,119	68,704	122,900	133,754
Promotional allowances	(5,786)	(8,378)	(11,682)	(17,166)
Net revenue	55,333	60,326	111,218	116,588
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Adjusted EBITDA	12,120	10,915	25,014	21,437
Depreciation and Amortization	(3,649)	(3,698)	(7,300)	(7,386)
Share-Based Compensation	0	0	0	0
Write Downs, Reserves and Recoveries	105	197	70	120
Operating income	8,576	7,414	17,784	14,171
Total assets by reportable segment	218,749		218,749		224,731
Cash paid for capital expenditures by reportable segment	2,748	854	5,223	2,999
Midwest
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gross revenue	32,189	34,473	65,310	67,738
Promotional allowances	(1,744)	(2,629)	(3,758)	(5,167)
Net revenue	30,445	31,844	61,552	62,571
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Adjusted EBITDA	10,388	10,560	21,062	20,129
Depreciation and Amortization	(2,012)	(1,898)	(4,042)	(3,793)
Share-Based Compensation	0	0	0	0
Write Downs, Reserves and Recoveries	(14)	0	(7)	0
Operating income	8,362	8,662	17,013	16,336
Total assets by reportable segment	203,691		203,691		207,414
Cash paid for capital expenditures by reportable segment	1,178	1,385	1,932	1,829
Colorado
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Gross revenue	9,553	10,544	19,210	21,790
Promotional allowances	(673)	(1,203)	(1,572)	(2,460)
Net revenue	8,880	9,341	17,638	19,330
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Adjusted EBITDA	1,474	969	2,618	2,875
Depreciation and Amortization	(1,421)	(1,297)	(2,879)	(2,566)
Share-Based Compensation	0	0	0	0
Write Downs, Reserves and Recoveries	0	0	0	(58)
Operating income	53	(328)	(261)	251
Total assets by reportable segment	55,812		55,812		57,242
Cash paid for capital expenditures by reportable segment	178	1,043	585	1,291
Corporate and other
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]
Adjusted EBITDA	(4,606)	(4,853)	(9,116)	(8,628)
Depreciation and Amortization	(230)	(312)	(475)	(623)
Share-Based Compensation	(326)	(505)	(700)	(667)
Write Downs, Reserves and Recoveries		7	(24)	7
Operating income	(5,162)	(5,663)	(10,315)	(9,911)
Total assets by reportable segment	126,322		126,322		$ 112,877
Cash paid for capital expenditures by reportable segment	$ 15	$ 311	$ 861	$ 599

Condensed Consolidated Guaran45

Condensed Consolidated Guarantor Data - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 74,678	$ 157,779	$ 152,863	$ 135,175
Restricted cash	95,553	608
Accounts receivable, net	2,603	3,217
Income tax receivable	24	16
Prepaid expense	8,682	10,079
Inventory	2,832	2,798
Total current assets	184,372	174,497
Property and equipment, net	245,153	251,908
Intercompany receivables	0	0
Investment in subsidiaries	0	0
Other assets, net	3,971	3,530
Intangibles, net	122,791	124,042
Goodwill	48,287	48,287
Total assets	604,574	602,264
LIABILITIES AND OWNERS’ EQUITY
Accounts payable	9,391	13,220
Intercompany payables	0	0
Accrued interest	2,365	2,327
Accrued expense	22,082	24,158
Current maturities of long-term debt	0	11,383
Other current liabilities	8	23
Total current liabilities	33,846	51,111
Long-term debt, less current portion	374,261	364,204
Other liabilities	1,984	1,932
Deferred income taxes	18,764	14,758
Total liabilities	428,855	432,005
Owners' equity
Common stock	20	20
Other equity	175,699	170,239
Total owners’ equity	175,719	170,259
Total liabilities and owners’ equity	604,574	602,264
Eliminating Entries
Current assets
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable, net	0	0
Income tax receivable	0	0
Prepaid expense	0	0
Inventory	0	0
Total current assets	0	0
Property and equipment, net	0	0
Intercompany receivables	(133,862)	(110,150)
Investment in subsidiaries	(564,158)	(551,953)
Other assets, net	0	0
Intangibles, net	0	0
Goodwill	0	0
Total assets	(698,020)	(662,103)
LIABILITIES AND OWNERS’ EQUITY
Accounts payable	0	0
Intercompany payables	(133,862)	(110,150)
Accrued interest	0	0
Accrued expense	0	0
Current maturities of long-term debt		0
Other current liabilities	0	0
Total current liabilities	(133,862)	(110,150)
Long-term debt, less current portion	0	0
Other liabilities	0	0
Deferred income taxes	0	0
Total liabilities	(133,862)	(110,150)
Owners' equity
Common stock	0	0
Other equity	(564,158)	(551,953)
Total owners’ equity	(564,158)	(551,953)
Total liabilities and owners’ equity	(698,020)	(662,103)
Affinity Gaming (Co-Issuer)
Current assets
Cash and cash equivalents	25,906	106,384	101,247	88,737
Restricted cash	95,414	469
Accounts receivable, net	206	220
Income tax receivable	24	16
Prepaid expense	1,012	1,813
Inventory	0	0
Total current assets	122,562	108,902
Property and equipment, net	1,262	2,002
Intercompany receivables	0	0
Investment in subsidiaries	564,158	551,953
Other assets, net	2,498	1,974
Intangibles, net	0	0
Goodwill	0	0
Total assets	690,480	664,831
LIABILITIES AND OWNERS’ EQUITY
Accounts payable	1,162	3,483
Intercompany payables	133,862	110,150
Accrued interest	2,365	2,327
Accrued expense	1,253	1,455
Current maturities of long-term debt		11,383
Other current liabilities	0	0
Total current liabilities	138,642	128,798
Long-term debt, less current portion	374,261	364,204
Other liabilities	1,431	1,397
Deferred income taxes	427	173
Total liabilities	514,761	494,572
Owners' equity
Common stock	20	20
Other equity	175,699	170,239
Total owners’ equity	175,719	170,259
Total liabilities and owners’ equity	690,480	664,831
AG Finance (Co-Issuer)
Current assets
Cash and cash equivalents	0	0	0	0
Restricted cash	0	0
Accounts receivable, net	0	0
Income tax receivable	0	0
Prepaid expense	0	0
Inventory	0	0
Total current assets	0	0
Property and equipment, net	0	0
Intercompany receivables	0	0
Investment in subsidiaries	0	0
Other assets, net	0	0
Intangibles, net	0	0
Goodwill	0	0
Total assets	0	0
LIABILITIES AND OWNERS’ EQUITY
Accounts payable	0	0
Intercompany payables	0	0
Accrued interest	0	0
Accrued expense	0	0
Current maturities of long-term debt		0
Other current liabilities	0	0
Total current liabilities	0	0
Long-term debt, less current portion	0	0
Other liabilities	0	0
Deferred income taxes	0	0
Total liabilities	0	0
Owners' equity
Common stock	0	0
Other equity	0	0
Total owners’ equity	0	0
Total liabilities and owners’ equity	0	0
Guarantor Subsidiaries
Current assets
Cash and cash equivalents	48,772	51,395	$ 51,616	$ 46,438
Restricted cash	139	139
Accounts receivable, net	2,397	2,997
Income tax receivable	0	0
Prepaid expense	7,670	8,266
Inventory	2,832	2,798
Total current assets	61,810	65,595
Property and equipment, net	243,891	249,906
Intercompany receivables	133,862	110,150
Investment in subsidiaries	0	0
Other assets, net	1,473	1,556
Intangibles, net	122,791	124,042
Goodwill	48,287	48,287
Total assets	612,114	599,536
LIABILITIES AND OWNERS’ EQUITY
Accounts payable	8,229	9,737
Intercompany payables	0	0
Accrued interest	0	0
Accrued expense	20,829	22,703
Current maturities of long-term debt		0
Other current liabilities	8	23
Total current liabilities	29,066	32,463
Long-term debt, less current portion	0	0
Other liabilities	553	535
Deferred income taxes	18,337	14,585
Total liabilities	47,956	47,583
Owners' equity
Common stock	0	0
Other equity	564,158	551,953
Total owners’ equity	564,158	551,953
Total liabilities and owners’ equity	$ 612,114	$ 599,536

Condensed Consolidated Guaran46

Condensed Consolidated Guarantor Data - Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUE
Casino	$ 69,448	$ 75,505	$ 141,331	$ 150,602
Food and beverage	10,384	12,082	21,208	24,043
Lodging	6,031	7,190	12,429	14,222
Fuel and retail	13,390	15,676	25,530	28,252
Other	3,608	3,268	6,922	6,163
Total revenue	102,861	113,721	207,420	223,282
Promotional allowances	(8,203)	(12,210)	(17,012)	(24,793)
Net revenue	94,658	101,511	190,408	198,489
EXPENSE
Casino	26,181	29,956	53,562	59,690
Food and beverage	10,378	11,800	21,170	23,627
Lodging	4,205	4,197	8,553	8,106
Fuel and retail	9,106	11,675	17,403	20,939
Other	1,956	1,838	3,463	3,368
General and administrative	18,850	19,601	37,563	38,318
Depreciation and amortization	7,312	7,205	14,696	14,368
Corporate	4,932	5,358	9,816	9,295
Write downs, reserves and recoveries	(91)	(204)	(39)	(69)
Total expense	82,829	91,426	166,187	177,642
Operating income	11,829	10,085	24,221	20,847
Other income (expense)
Interest expense, net	(7,656)	(7,653)	(15,321)	(15,258)
Intercompany interest income	0	0	0	0
Intercompany interest expense	0	0	0	0
Income from equity investments in subsidiaries	0	0	0	0
Total other expense, net	(7,656)	(7,653)	(15,321)	(15,258)
Income before income tax	4,173	2,432	8,900	5,589
Benefit (provision) for income taxes	(2,390)	(1,635)	(4,006)	(5,032)
Net income (loss)	1,783	797	4,894	557
Eliminating Entries
REVENUE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
Total revenue	0	0	0	0
Promotional allowances	0	0	0	0
Net revenue	0	0	0	0
EXPENSE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
General and administrative	0	0	0	0
Depreciation and amortization	0	0	0	0
Corporate	0	0	0	0
Write downs, reserves and recoveries	0	0	0	0
Total expense	0	0	0	0
Operating income	0	0	0	0
Other income (expense)
Interest expense, net	0	0	0	0
Intercompany interest income	(7,727)	(7,693)	(15,465)	(15,341)
Intercompany interest expense	7,727	7,693	15,465	15,341
Income from equity investments in subsidiaries	(5,929)	(2,096)	(12,205)	(1,536)
Total other expense, net	(5,929)	(2,096)	(12,205)	(1,536)
Income before income tax	(5,929)	(2,096)	(12,205)	(1,536)
Benefit (provision) for income taxes	0	0	0	0
Net income (loss)	(5,929)	(2,096)	(12,205)	(1,536)
Affinity Gaming (Co-Issuer)
REVENUE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
Total revenue	0	0	0	0
Promotional allowances	0	0	0	0
Net revenue	0	0	0	0
EXPENSE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
General and administrative	0	0	0	0
Depreciation and amortization	230	312	475	623
Corporate	4,932	5,358	9,816	9,295
Write downs, reserves and recoveries	0	(7)	24	(7)
Total expense	5,162	5,663	10,315	9,911
Operating income	(5,162)	(5,663)	(10,315)	(9,911)
Other income (expense)
Interest expense, net	(7,656)	(7,653)	(15,321)	(15,258)
Intercompany interest income	7,727	7,693	15,465	15,341
Intercompany interest expense	0	0	0	0
Income from equity investments in subsidiaries	5,929	2,096	12,205	1,536
Total other expense, net	6,000	2,136	12,349	1,619
Income before income tax	838	(3,527)	2,034	(8,292)
Benefit (provision) for income taxes	945	4,324	2,860	8,849
Net income (loss)	1,783	797	4,894	557
AG Finance (Co-Issuer)
REVENUE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
Total revenue	0	0	0	0
Promotional allowances	0	0	0	0
Net revenue	0	0	0	0
EXPENSE
Casino	0	0	0	0
Food and beverage	0	0	0	0
Lodging	0	0	0	0
Fuel and retail	0	0	0	0
Other	0	0	0	0
General and administrative	0	0	0	0
Depreciation and amortization	0	0	0	0
Corporate	0	0	0	0
Write downs, reserves and recoveries	0	0	0	0
Total expense	0	0	0	0
Operating income	0	0	0	0
Other income (expense)
Interest expense, net	0	0	0	0
Intercompany interest income	0	0	0	0
Intercompany interest expense	0	0	0	0
Income from equity investments in subsidiaries	0	0	0	0
Total other expense, net	0	0	0	0
Income before income tax	0	0	0	0
Benefit (provision) for income taxes	0	0	0	0
Net income (loss)	0	0	0	0
Guarantor Subsidiaries
REVENUE
Casino	69,448	75,505	141,331	150,602
Food and beverage	10,384	12,082	21,208	24,043
Lodging	6,031	7,190	12,429	14,222
Fuel and retail	13,390	15,676	25,530	28,252
Other	3,608	3,268	6,922	6,163
Total revenue	102,861	113,721	207,420	223,282
Promotional allowances	(8,203)	(12,210)	(17,012)	(24,793)
Net revenue	94,658	101,511	190,408	198,489
EXPENSE
Casino	26,181	29,956	53,562	59,690
Food and beverage	10,378	11,800	21,170	23,627
Lodging	4,205	4,197	8,553	8,106
Fuel and retail	9,106	11,675	17,403	20,939
Other	1,956	1,838	3,463	3,368
General and administrative	18,850	19,601	37,563	38,318
Depreciation and amortization	7,082	6,893	14,221	13,745
Corporate	0	0	0	0
Write downs, reserves and recoveries	(91)	(197)	(63)	(62)
Total expense	77,667	85,763	155,872	167,731
Operating income	16,991	15,748	34,536	30,758
Other income (expense)
Interest expense, net	0	0	0	0
Intercompany interest income	0	0	0	0
Intercompany interest expense	(7,727)	(7,693)	(15,465)	(15,341)
Income from equity investments in subsidiaries	0	0	0	0
Total other expense, net	(7,727)	(7,693)	(15,465)	(15,341)
Income before income tax	9,264	8,055	19,071	15,417
Benefit (provision) for income taxes	(3,335)	(5,959)	(6,866)	(13,881)
Net income (loss)	$ 5,929	$ 2,096	$ 12,205	$ 1,536

Condensed Consolidated Guaran47

Condensed Consolidated Guarantor Data - Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Guarantor Obligations [Line Items]
Net cash (used in) provided by operating activities	$ 23,943	$ 24,461
Cash flows from investing activities:
Proceeds from sale of property and equipment	18	8
Purchases of property and equipment	(8,601)	(6,718)
Net cash used in investing activities	(8,583)	(6,710)
Cash flows from financing activities:
Restricted cash	(94,945)	0
Change in intercompany accounts	0	0
Payments on capital lease	(15)	(16)
Payment on long-term debt	(2,913)	0
Loan origination fees	(515)	0
Repurchases of vested share-based awards	(73)	(47)
Net cash provided by (used in) financing activities	(98,461)	(63)
Net (decrease) increase in cash and cash equivalents	(83,101)	17,688
Beginning of period	157,779	135,175
End of period	74,678	152,863
Affinity Gaming (Co-Issuer)
Guarantor Obligations [Line Items]
Net cash (used in) provided by operating activities	(20,603)	(12,095)
Cash flows from investing activities:
Proceeds from sale of property and equipment	0	3
Purchases of property and equipment	(861)	(599)
Net cash used in investing activities	(861)	(596)
Cash flows from financing activities:
Restricted cash	(94,945)
Change in intercompany accounts	39,432	25,248
Payments on capital lease	0	0
Payment on long-term debt	(2,913)
Loan origination fees	(515)
Repurchases of vested share-based awards	(73)	(47)
Net cash provided by (used in) financing activities	(59,014)	25,201
Net (decrease) increase in cash and cash equivalents	(80,478)	12,510
Beginning of period	106,384	88,737
End of period	25,906	101,247
AG Finance (Co-Issuer)
Guarantor Obligations [Line Items]
Net cash (used in) provided by operating activities	0	0
Cash flows from investing activities:
Proceeds from sale of property and equipment	0	0
Purchases of property and equipment	0	0
Net cash used in investing activities	0	0
Cash flows from financing activities:
Restricted cash	0
Change in intercompany accounts	0	0
Payments on capital lease	0	0
Payment on long-term debt	0
Loan origination fees	0
Repurchases of vested share-based awards	0	0
Net cash provided by (used in) financing activities	0	0
Net (decrease) increase in cash and cash equivalents	0	0
Beginning of period	0	0
End of period	0	0
Guarantor Subsidiaries
Guarantor Obligations [Line Items]
Net cash (used in) provided by operating activities	44,546	36,556
Cash flows from investing activities:
Proceeds from sale of property and equipment	18	5
Purchases of property and equipment	(7,740)	(6,119)
Net cash used in investing activities	(7,722)	(6,114)
Cash flows from financing activities:
Restricted cash	0
Change in intercompany accounts	(39,432)	(25,248)
Payments on capital lease	(15)	(16)
Payment on long-term debt	0
Loan origination fees	0
Repurchases of vested share-based awards	0	0
Net cash provided by (used in) financing activities	(39,447)	(25,264)
Net (decrease) increase in cash and cash equivalents	(2,623)	5,178
Beginning of period	51,395	46,438
End of period	$ 48,772	$ 51,616

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Aug. 09, 2016	Aug. 08, 2016
Z Capital Partners, L.L.C. | Subsequent Event
Subsequent Event [Line Items]
Purchase price per share (usd per share)	$ 17.35	$ 15