Monarch Casino & Resort (MCRI) 10-K 11 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 05, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	MONARCH CASINO & RESORT INC
Entity Central Index Key	907,242
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 330.9
Entity Common Stock, Shares Outstanding		16,827,047
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Casino	$ 156,843	$ 145,134	$ 149,916
Food and beverage	56,500	52,314	49,642
Hotel	22,629	21,733	22,679
Other	11,198	10,394	9,680
Gross revenues	247,170	229,575	231,917
Less promotional allowances	(44,925)	(41,808)	(43,168)
Net revenues	202,245	187,767	188,749
Operating expenses
Casino	65,970	61,583	59,646
Food and beverage	22,249	21,410	20,077
Hotel	6,787	5,992	6,241
Other	3,963	3,545	3,260
Selling, general and administrative	54,779	52,987	52,256
Depreciation and amortization	15,933	17,824	16,638
Loss on disposition of assets	9	343	176
Colorado ballot initiative costs		1,864
Total operating expenses	169,690	165,548	158,294
Income from operations	32,555	22,219	30,455
Other expenses
Interest expense, net of amounts capitalized	(679)	(1,104)	(1,860)
Total other expense	(679)	(1,104)	(1,860)
Income before income taxes	31,876	21,115	28,595
Provision for income taxes	(11,217)	(6,930)	(10,634)
Net income	$ 20,659	$ 14,185	$ 17,961
Net income
Basic (in dollars per share)	$ 1.22	$ 0.85	$ 1.10
Diluted (in dollars per share)	$ 1.19	$ 0.83	$ 1.06
Weighted average number of common shares and potential common shares outstanding
Basic (in shares)	16,948	16,734	16,302
Diluted (in shares)	17,335	17,107	16,944

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 21,164	$ 21,583
Receivables, net	3,729	3,047
Income taxes receivable	611	1,139
Inventories	2,881	2,846
Prepaid expenses	3,402	4,021
Deferred income taxes		1,626
Total current assets	31,787	34,262
Property and equipment
Land	29,549	29,415
Land improvements	6,701	6,701
Buildings	150,966	150,821
Building improvements	23,255	18,142
Furniture and equipment	134,704	125,671
Construction in progress	37,424	15,672
Leasehold improvements	1,347	1,347
Gross property and equipment	383,946	347,769
Less accumulated depreciation and amortization	(180,792)	(167,498)
Net property and equipment	203,154	180,271
Other assets
Goodwill	25,111	25,111
Intangible assets, net	6,200	7,366
Deferred income taxes	7,415	4,682
Other assets, net	1,179	609
Total other assets	39,905	37,768
Total assets	274,846	252,301
Current liabilities
Current portion of long-term debt	40,900
Accounts payable	6,747	7,933
Construction accounts payable	1,407	1,790
Accrued expenses	21,873	19,327
Total current liabilities	70,927	29,050
Long-term debt		46,300
Total liabilities	$ 70,927	$ 75,350
Stockholders' equity
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued
Common stock, $.01 par value, 30,000,000 shares authorized; 19,096,300 shares issued; 17,202,699 outstanding at December 31, 2015; 16,812,794 outstanding at December 31, 2014	$ 191	$ 191
Additional paid-in capital	22,728	22,985
Treasury stock, 1,893,601 shares at December 31, 2015; 2,283,506 shares at December 31, 2014	(26,404)	(32,970)
Retained earnings	207,404	186,745
Total stockholders' equity	203,919	176,951
Total liabilities and stockholders' equity	$ 274,846	$ 252,301

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	19,096,300	19,096,300
Common stock, shares outstanding	17,202,699	16,812,794
Treasury stock, shares	1,893,601	2,283,506

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2012	$ 191	$ 34,364	$ 154,599	$ (48,306)	$ 140,848
Balance (in shares) at Dec. 31, 2012	16,147,324
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		(5,071)		8,509	3,438
Exercise of stock options (in shares)	335,444
Excess tax benefit from stock-based compensation		413			413
Stock based compensation expense		1,220			1,220
Net income			17,961		17,961
Balance at Dec. 31, 2013	$ 191	30,926	172,560	(39,797)	163,880
Balance (in shares) at Dec. 31, 2013	16,482,768
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		(9,553)		6,827	(2,726)
Exercise of stock options (in shares)	330,026
Excess tax benefit from stock-based compensation		386			386
Stock based compensation expense		1,226			1,226
Net income			14,185		14,185
Balance at Dec. 31, 2014	$ 191	22,985	186,745	(32,970)	$ 176,951
Balance (in shares) at Dec. 31, 2014	16,812,794				16,812,794
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		(2,666)		6,566	$ 3,900
Exercise of stock options (in shares)	389,905
Excess tax benefit from stock-based compensation		865			865
Stock based compensation expense		1,544			1,544
Net income			20,659		20,659
Balance at Dec. 31, 2015	$ 191	$ 22,728	$ 207,404	$ (26,404)	$ 203,919
Balance (in shares) at Dec. 31, 2015	17,202,699				17,202,699

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 20,659	$ 14,185	$ 17,961
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,933	17,824	16,638
Amortization of deferred loan costs	338	305	305
Stock-based compensation	1,544	1,226	1,220
Excess tax benefit from stock-based compensation	(865)	(1,079)	(413)
Provision (recoveries) for bad debts	240	51	(230)
(Gain) loss on disposition of assets	(9)	343	176
Deferred income taxes	(241)	336	795
Changes in operating assets and liabilities:
Receivables	(922)	(470)	59
Inventories	(35)	(171)	(293)
Prepaid expenses	(289)	(1,191)	(194)
Accounts payable	(1,186)	(733)	604
Accrued expenses	2,546	1,150	342
Income taxes receivable	528	(531)	(882)
Net cash provided by operating activities	38,241	31,245	36,088
Cash flows from investing activities:
Proceeds from sale of assets	34	84	48
Change in construction payable	(383)	1,790
Acquisition of property and equipment	(37,676)	(21,719)	(12,400)
Net cash used in investing activities	(38,025)	(19,845)	(12,352)
Cash flows from financing activities:
Net exercise of stock options	3,900	(2,726)	3,438
Excess tax benefit from stock-based compensation	865	1,079	413
Principal payments on long-term debt	(5,400)	(7,500)	(27,300)
Net cash used in financing activities	(635)	(9,147)	(23,449)
Net (decrease) increase in cash	(419)	2,253	287
Cash and cash equivalents at beginning of period	21,583	19,330	19,043
Cash and cash equivalents at end of period	21,164	21,583	19,330
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	374	853	1,472
Cash paid for income taxes	10,930	$ 7,300	$ 10,690
Conversion of short term deposit to long term deposit	$ 908

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Monarch Casino & Resort, Inc., was incorporated in 1993 and through its wholly-owned subsidiary, Golden Road Motor Inn, Inc. (“Golden Road”), owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada (the “Atlantis”). Monarch’s wholly owned subsidiaries, High Desert Sunshine, Inc. (“High Desert”), Golden East, Inc. (“Golden East”) and Golden North, Inc. (“Golden North”), each own separate parcels of land located proximate to the Atlantis. Monarch’s wholly owned subsidiary Monarch Growth Inc. (“Monarch Growth”), formed in 2011, acquired Riviera Black Hawk, Inc., owner of the Riviera Black Hawk Casino on April 26, 2012. Riviera Black Hawk, Inc. was renamed Monarch Black Hawk, Inc. and Riviera Black Hawk Casino was renamed Monarch Casino Black Hawk in October 2013. Monarch Growth also owns a parcel of land in Black Hawk, Colorado contiguous to the Monarch Casino Black Hawk. In addition to owning the Monarch Casino Black Hawk, Monarch Black Hawk, Inc. also wholly owns Chicago Dogs Eatery, Inc. and Monarch Promotional Association both of which were formed related to extended licensure for extended hours of liquor operation in Black Hawk. The Company has included the results of Monarch Black Hawk, Inc. in its consolidated financial statements since the date of acquisition. Monarch’s wholly owned subsidiary Monarch Interactive, Inc. (“Monarch Interactive”) received approval from the Nevada Gaming Commission on August 23, 2012, which approval was extended three times, each for an additional six-month period, for a license as an operator of interactive gaming. The Company has decided to allow the current approval to lapse pending a change in market conditions that would support the Company’s investment in this line of business. Monarch Interactive is not currently engaged in any operating activities. In Nevada, legal interactive gaming is currently limited to intrastate poker. The consolidated financial statements include the accounts of Monarch and its subsidiaries. Intercompany balances and transactions are eliminated. Certain amounts in the consolidated financial statements for the previous periods have been reclassified to be consistent with the current period presentation. These reclassifications had no effect on the previously reported net income. Reference to the number of square feet or acreage are unaudited and considered outside the scope of our independent registered public accounting firm’s audit of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. Unless otherwise indicated, “Monarch,” “Company,” “we,” “our” and “us” refer to Monarch Casino & Resort, Inc. and its subsidiaries. Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the year. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, as well as investments purchased with an original maturity of 90 days or less. Allowance for Doubtful Accounts The Company extends short-term credit to its gaming customers. Such credit is non-interest bearing and is due on demand. In addition, the Company also has receivables due from hotel guests which are primarily secured with a credit card at the time a customer checks in. An allowance for doubtful accounts is set up for all Company receivables based upon the Company’s historical collection and write-off experience, unless situations warrant a specific identification of a necessary reserve related to certain receivables. The Company charges off its uncollectible receivables once all efforts have been made to collect such receivables. The book value of receivables approximates fair value due to the short-term nature of the receivables. In December 2013, the Company recorded an adjustment to reduce its reserve for casino accounts receivable based on the results of historical collection patterns and current collection trends. For the year ended December 31, 2013, this adjustment benefitted income from operations by $0.3 million and net income by $0.2 million (or $0.01 per share on a fully diluted basis). No material adjustments were made during the years ended December 31, 2014 and 2015. Casino Jackpots The Company does not accrue a liability for base jackpots because it has the ability to avoid such payment as gaming devices can legally be removed from the gaming floor without payment of the base amount. When the Company is unable to avoid payment of a jackpot such as the incremental jackpot amounts of progressive-type slot machines, due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated commensurate with a corresponding reduction in casino revenue. Inventories Inventories, consisting primarily of food, beverages, and retail merchandise, are stated at the lower of cost or market. Cost is determined based on the weighted average, which approximates a first-in, first out method. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment is depreciated principally on a straight line basis over the estimated useful lives as follows: Land improvements 15-40 years Buildings 30-40 years Building improvements 5-40 years Furniture 5-10 years Equipment 3-20 years The Company evaluates property and equipment and other long-lived assets for impairment in accordance with the guidance for accounting for the impairment or disposal of long-lived assets. For assets to be disposed of, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs of disposal. Fair value for assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For assets to be held and used, the Company reviews fixed assets for impairment annually during the fourth quarter of each year or whenever indicators of impairment exist. If an indicator of impairment exists, we compare the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparables, when available. For the years ended December 31, 2015, 2014 and 2013, there were no impairment charges. Change in Accounting Estimate of Depreciable Life of Monarch Casino Black Hawk Parking Structure In December 2013, the Company began construction of a new parking facility at the Monarch Casino Black Hawk. Upon completion of that new structure, the Company plans to demolish the existing parking structure. At December 31, 2013, the existing parking structure had a net book value of approximately $4.8 million and a remaining depreciable life of approximately 37 years. The new parking facility was estimated to be completed on March 31, 2015. In accordance with ASC 250-10-45-17, effective January 1, 2014, the Company modified the estimated depreciable life of the existing parking structure to 15 months; the period from January 1, 2014 through the estimated demolition commencement date of March 31, 2015. As a result of this modification to the estimated depreciable life, depreciation expense of the existing parking structure increased by approximately $0.3 million per month (approximately $0.2 million net of tax). In July 2014, because of a delayed construction schedule, the Company revised the new parking facility completion date to December 31, 2015. At this time, the existing parking structure had a net book value of approximately $2.9 million. The Company modified the estimated depreciable life of the existing parking structure to 18 months; the period from July 1, 2014 through the revised estimated demolition commencement date of December 31, 2015. In October 2015, the general contractor notified the Company that further delay is expected and completion is now expected in the second quarter of 2016 at which time demolition of the existing structure will commence. At September 30, 2015, the existing parking structure had a net book value of approximately $0.4 million. Beginning in October 2015, the Company reduced the monthly depreciation expense to $0.04 million to reflect the revised depreciable life of the existing parking structure. For the twelve months ended December 31, 2015, the effect of the change in estimate was an increase of depreciation expense by $1.4 million, a decrease of net income by $0.9 million and a decrease of basic and diluted earnings per share by $0.05. For the twelve months ended December 31, 2014, the effect of the change in estimate was an increase of depreciation expense by $2.9 million, a decrease of net income by $1.9 million and a decrease of basic and diluted earnings per share by $0.11. Goodwill The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”). ASC Topic 350 gives companies the option to perform a qualitative assessment that may allow them to skip the annual two-step test as appropriate. The Company tests its goodwill for impairment annually during the fourth quarter of each year, or whenever events or circumstances make it more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit. We perform qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount by assessing the relevant events and circumstances. If that is the case, the Company utilizes two-step testing process. In the first step, the estimated fair value of each reporting unit is compared with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its estimated fair value, then the goodwill of the reporting unit is considered to be impaired, and impairment is measured in the second step of the process. In the second step, the Company estimates the implied fair value of the reporting unit’s goodwill by allocating the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit, as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. Goodwill consists of the excess of the acquisition cost over the fair value of the net assets acquired in business combinations in April 2012. As of December 31, 2015 and 2014, we had goodwill totaling $25.1 million related to the purchase of Black Hawk, Inc. (see NOTE 3). Finite-Lived Intangible Assets The Company’s finite-lived intangible assets include assets related to its customer relationships which are amortized over its estimated useful life using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The customer relationship intangible asset represents the value associated with Monarch Casino Black Hawk’s rated casino guests. The initial fair value of the customer relationship intangible asset was estimated based on the projected net cash flows associated with these casino guests. The recoverability of the Company’s customer relationship intangible asset could be affected by, among other things, increased competition within the gaming industry, a downturn in the economy, declines in customer spending which would impact the expected future cash flows associated with the rated casino guests, declines in the number of visitations which could impact the expected attrition rate of the rated casino guests, and erosion of operating margins associated with rated casino guests. Should events or changes in circumstances cause the carrying value of the customer relationship intangible asset to exceed its estimated fair value, an impairment charge in the amount of the excess would be recognized. As of December 31, 2015 and December 31, 2014, the customer relationships net intangible asset balance was $6.2 million and $7.4 million, respectively. The trade name, related to the Riviera Black Hawk name was fully amortized by October 2013 when Riviera Black Hawk was renamed Monarch Casino Black Hawk. Fair Value Measurement ASC 820 establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for various valuation techniques e.g. market value, income approach and cost approach. The levels of the hierarchy are described below: · Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities; · Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and · Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The fair value measurements relating to the acquired assets of Monarch Casino Black Hawk were determined using inputs within Level 2 and Level 3 of ASC 820’s hierarchy. Segment Reporting The accounting guidance for disclosures about segments of an enterprise and related information requires separate financial information to be disclosed for all operating segments of a business. The Company determined that two of the Company’s operating segments, Atlantis and Monarch Casino Black Hawk, meet all of the aggregation criteria stipulated by ASC 280-10-50-11. The Company views each property as an operating segment and the two operating segments have been aggregated into one reporting segment. The December 31, 2013 financial information has been reclassified to be consistent with the current year presentation. Self-insurance Reserves We are currently self-insured up to certain stop loss amounts for Atlantis workers’ compensation and certain medical benefit costs provided to all of our employees. As required by the state of Colorado, we are fully-insured for Monarch Casino Black Hawk workers’ compensation costs. The Company reviews self-insurance reserves at least quarterly. The reserve is determined by reviewing the actual expenditures for the previous twelve-month period and reports prepared by the third party plan administrator for any significant unpaid claims. The company engages a third party actuarial at least once per year for a more precise reserves review and calculation. The reserve is an amount estimated to pay both reported and unreported claims as of the balance sheet date, which management believes is adequate. Capitalized Interest The Company capitalizes interest costs associated with debt incurred in connection with major construction projects. When no debt is specifically identified as being incurred in connection with a construction project, the Company capitalizes interest on amounts expended on the project at the Company’s average borrowing cost. Interest capitalization is ceased when the project is substantially complete. The Company capitalized $533 thousand and $152 thousand of interest during the years ended December 31, 2015 and 2014, respectively. There was no capitalized interest recorded in 2013. Revenue Recognition Casino revenues represent the net win from gaming activity, which is the difference between wins and losses. Additionally, net win is reduced by a provision for anticipated payouts on slot participation fees, progressive jackpots and any pre-arranged marker discounts. Food and beverage, hotel, and other operating revenues are recognized as products are delivered or services are performed. Promotional Allowances The Company’s player program allows members, through the frequency of their play at the Company’s casino, to earn and accumulate points which may be redeemed for a variety of goods and services. Points may be applied toward room stays at the hotel, food and beverage consumption at the food outlets, gift shop items as well as goods and services at the spa and beauty salon and for cash at our Monarch Casino Black Hawk property. Points earned may also be applied toward off-property events such as concerts, shows and sporting events. The retail value of hotel, food and beverage services provided to customers without charge is included in gross revenue and deducted as promotional allowances. The estimated departmental costs of providing such promotional allowances are primarily included in casino operating expenses and are as follows (in thousands): Years ended December 31, 2015 2014 2013 Food and beverage $ $ $ Hotel Other $ $ $ Advertising Costs All advertising costs are expensed as incurred. Advertising expense, which is included in selling, general and administrative expense, was $5.2 million, $5.2 million and $5.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Income Taxes Income taxes are recorded in accordance with the liability method pursuant to authoritative guidance. Under the asset and liability approach for financial accounting and reporting for income taxes, the following basic principles are applied in accounting for income taxes at the date of the financial statements: (a) a current liability or asset is recognized for the estimated taxes payable or refundable on taxes for the current year; (b) a deferred income tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and carryforwards; (c) the measurement of current and deferred tax liabilities and assets is based on the provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated; and (d) the measurement of deferred income taxes is reduced, if necessary, by the amount of any tax benefits that, based upon available evidence, are not expected to be realized. Under the accounting guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50.0% likelihood of being realized upon ultimate settlement. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods and disclosure. Gaming Taxes The Company is subject to taxes based on gross gaming revenue in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are an assessment on the Company’s gaming revenue and are recorded as casino expense in the accompanying Consolidated Statements of Income. These taxes totaled $18.2 million, $16.0 million and $16.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Stock-based Compensation The Company accounts for stock-based compensation in accordance with the authoritative guidance requiring that compensation cost relating to stock-based payment transactions be recognized in the Company’s consolidated statements of income. The cost is measured at the grant date, based on the calculated fair value of the award using the Black-Scholes option pricing model for stock options, and based on the closing share price of the Company’s stock on the grant date for restricted stock awards. The cost is recognized as an expense over the employee’s requisite service period (the vesting period of the equity award). The Company’s stock-based employee compensation plan is more fully discussed in NOTE 9. Earnings Per Share Basic earnings per share are computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (in thousands, except per share data): Years ended December 31, 2015 2014 2013 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic $ $ $ Effect of dilutive stock options ) ) ) Diluted $ $ $ The following options were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the December 31, 2015 closing market price of the common shares and their inclusion would be antidilutive: Years ended December 31, 2015 2014 2013 Options to purchase shares of common stock 115,536 563,633 418,071 Exercise prices $23.09-$29.00 $16.66-$29.00 $21.65-$29.00 Expiration dates (month/year) 05/16-12/25 05/15-11/24 05/16-10/23 Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments has been determined by the Company, using available market information and valuation methodologies. However, considerable judgment is required to develop the estimates of fair value; thus, the estimates provided herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying amounts of cash, account receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. Additionally, the carrying value of our long-term debt approximates fair value due to the variable nature of applicable interest rates and relative short-term maturity. Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of bank deposits and trade receivables. The Company maintains its surplus cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base. The Company believes it is not exposed to any significant credit risk on cash and accounts receivable. Accounts are written off when management determines that an account is uncollectible. Recoveries of accounts previously written off are recorded when received. An allowance for doubtful accounts is determined to reduce the Company’s receivables to their carrying value, which approximates fair value. The allowance is estimated based on historical collection experience, specific review of individual customer accounts, and current economic and business conditions. Historically, the Company has not incurred any significant credit-related losses. Certain Risks and Uncertainties The Company’s operations are dependent on its continued licensing by the Nevada and Colorado gaming regulatory bodies. The loss of a license could have a material adverse effect on future results of operations. The Company is dependent on the northern Nevada and Denver, Colorado markets for a significant number of its patrons and revenues. If economic conditions in these areas deteriorate or additional gaming licenses are awarded, the Company’s results of operations could be adversely affected. The Company is dependent on the U.S. economy in general, and any deterioration in the national economic, energy, credit and capital markets could have a material adverse effect on future results of operations. The Company is dependent upon a stable gaming and admission tax structure in the locations in which it operates. Any change in the tax structure could have a material adverse effect on future results of operations. Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that amends the FASB Accounting Standards Codification and creates a new topic for Revenue from Contracts with Customers. The new guidance is expected to clarify the principles for revenue recognition and to develop a common revenue standard for U.S. GAAP applicable to revenue transactions. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This guidance also provides substantial revision of interim and annual disclosures. The update allows for either full retrospective adoption, meaning the guidance is applied for all periods presented, or modified retrospective adoption, meaning the guidance is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the guidance recognized at the date of initial application. In July 2015, FASB voted to delay the effective date of the new revenue standard by one year. The new effective date is for the annual and interim periods beginning after December 15, 2017. Reporting entities may choose to adopt the standard as of the original effective date. The Company plans to adopt this standard effective January 1, 2018. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. In August 2014, FASB issued an accounting standard update that requires management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Substantial doubt about an entity’s ability to continue as a going concern exist when relevant conditions and events, consolidated and aggregated, indicate that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that the financial statement are issued. Currently, there is no guidance in U.S. GAAP for management’s responsibility to perform an evaluation. Under the update, management’s evaluation is to be performed when preparing financial statements for each annual and interim reporting period and based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The effective date for this update is for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted. The Company will adopt this standard effective January 1, 2017. The adoption of this standard is not expected to not have a material impact on our Consolidated Financial Statements. In April 2015, FASB issued an accounting standards update that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015, FASB issued an accounting standards update which clarifies that the guidance issued in April 2015 does not apply to line-of-credit arrangements. According to the additional guidance, line-of-credit arrangements will continue to present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the arrangement. The effective date for this update is for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. The Company will adopt this standard effective January 1, 2016. The adoption of this standard is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, FASB issued an accounting standards update which changes the measurement principle for inventories valued under the first-in, first-out or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The effective date for this guidance is for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. In November 2015, the FASB issued an accounting standards update which will require entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. Noncurrent balance sheet presentation of all deferred taxes eliminates the requirement to allocate a valuation allowance on a pro rata basis between gross current and noncurrent deferred tax assets. The new guidance may be applied either on prospective or retrospective basis. The effective date for this update was for the annual and interim periods beginning after December 15, 2016 with early adoption permitted. The Company elected to early adopt this guidance during the fourth quarter of 2015 and it did not have a material impact on our Consolidated Financial Statements. We elected to apply the guidance on a prospective basis. Thus, the Consolidated Balance Sheet as of December 31, 2014 was not retrospectively adjusted. In February 2016, the FASB issued an accounting standards update which addresses the recognition and measurement of leases. Under the new guidance, for all leases (with the exception of short-term leases), at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Further, the new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and liabilities, which no longer provides a source for off-balance sheet financing. The effective date for this update is for the annual and interim periods beginning after December 15, 2018 with early adoption permitted. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, the implementation of any such proposed or revised standards would have on the Company’s consolidated financial statements.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2015
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	NOTE 2. ACCOUNTS RECEIVABLE Accounts receivable consist of the following (in thousands): December 31, 2015 2014 Casino $ $ Hotel Other Less allowance for doubtful accounts ) ) $ $ The Company calculates an allowance for doubtful accounts by applying a percentage, estimated by management based on historical aging experience, to the accounts receivable balance. The Company recorded bad debt expense of $240 thousand and $51 thousand in 2015 and 2014, respectively. The Company did not record bad debt expense in 2013 because of the allowance for doubtful accounts percentage resulted in a reduction of the allowance.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	NOTE 3. GOODWILL AND INTANGIBLE ASSETS Goodwill of $25.1 million at December 31, 2015 represents the excess of total acquisition costs over the fair market value of net assets acquired and liabilities assumed in a business combination. To assist in the Company’s determination of the purchase price allocation for the Monarch Casino Black Hawk, the Company engaged a third-party valuation firm regarding the assets acquired and liabilities assumed in its acquisition. Intangible assets consist of the following at December 31, (in thousands except years): 2015 2014 Customer list $ $ Trade name Total intangible assets Less accumulated amortization: Customer list ) ) Trade name ) ) Total accumulated amortization ) ) Intangible assets, net $ $ Weighted-average life in years Amortization expense of $1.2 million and $1.2 million was recognized for the years ended December 31, 2015 and 2014, respectively. Estimated amortization expense for the years ending December 31, 2016 through 2020 and thereafter is as follows (in thousands): Year Expense 2016 $ 2017 2018 2019 2020 Thereafter Total $ In connection with business combination accounting, the Company recognized $1.6 million in a trade name related to the Riviera name. The trade name intangible asset was fully amortized by October 2013 at which time the Company renamed Riviera Black Hawk Casino to Monarch Casino Black Hawk. Customer lists were valued at $10.5 million, representing the value associated with the future potential customer revenue production and are being amortized on a straight-line basis over nine years. Intangible assets were valued using the income approach. The Multi-Period Excess Earning Method was used to value the customer list by capitalizing the future cash flows attributable to the customers based upon their expected future mortality dispersion function. The expected revenue from the existing client was estimated by applying a 24.0% attrition rate. To calculate excess earnings attributable to the customer list, the required return on other contributory assets such as tangible assets and identified intangible assets were deducted to estimate income associated with the customer list. The future excess earnings were discounted to the present value by a risk-adjusted discount rate of 12.0%, in order to determine the fair value of the customer list. The Relief-from-Royalty Method was used to determine the fair value of the trade name. Considering comparable companies and the Company’s operation, a 1.0% royalty rate was applied in order to calculate the expected revenue attributable to the trade name. The future cash flows were discounted to the present value by a risk-adjusted discount rate of 11.0% in order to determine the fair value of the trade name. All goodwill and intangible assets relate to our Black Hawk property. Upon completion of the preliminary purchase price allocation for the Company’s acquisition of Monarch Casino Black Hawk, the Company decreased goodwill by $1.4 million related primarily to modification to the value of certain deferred tax assets in 2012. No changes were made to the carrying amount of goodwill during 2013 and thereafter.

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES.
ACCRUED EXPENSES	NOTE 4. ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Accrued salaries, wages and related benefits $ $ Progressive slot machine and other gaming accruals Accrued gaming taxes Accrued interest Other accrued liabilities $ $

LEASE COMMITMENTS

LEASE COMMITMENTS	12 Months Ended
	Dec. 31, 2015
LEASE COMMITMENTS
LEASE COMMITMENTS	NOTE 5. LEASE COMMITMENTS A driveway (the “Driveway Project”) was completed and opened on September 30, 2004, that is being shared between the Atlantis and the Shopping Center, directly adjacent to the Atlantis. The shopping Center is controlled by the Biggest Little Investments, L.P. (“BLI”). John Farahi and Bob Farahi, Co-Chairmen of the Board and executive officers of the Company, and Ben Farahi are the three largest stockholders of Monarch and each also beneficially own limited partnership interests in BLI. Maxum LLC is the sole general partner of BLI, and Ben Farahi is the sole managing member of Maxum LLC. Neither John Farahi nor Bob Farahi has any management or operational control over BLI or the Shopping Center. Until May 2006, Ben Farahi formerly held positions of Co-Chairman of the Board, Secretary, Treasurer and Chief Financial Officer of the Company. As part of the Driveway Project, in January 2004, we leased a 37,368 square-foot corner section of the Shopping Center for a minimum lease term of 15 years at an annual rent of $300 thousand, subject to a cost of living increase on each five year anniversary of the driveway lease. The annual rent for the years 2015, 2014 and 2013 was $377 thousand, $350 thousand and $340 thousand, respectively. In addition, we paid $84 thousand, $119 thousand and $159 thousands respectively for operating expenses to this lease. In August 2015, we exercised our option to extend the lease for three individual five-year terms in addition to the 15 year initial term. At the end of the extension periods, we have the option to purchase the leased section of the Shopping Center at a price to be determined based on an MAI Appraisal. The leased space is being used by us for pedestrian and vehicle access to the Atlantis, and we may use a portion of the parking spaces at the Shopping Center. The total cost of the improvements was $2.0 million of which $1.35 million was paid by the Company. The cost of the driveway improvements is being depreciated over the 15-year expected economic life of the asset; some components of the driveway are being depreciated over a shorter period of time. On August 28, 2015, the Company, through its subsidiary Golden Road, entered into a 20-year lease (the “Parking Lot Lease) with BLI, L.P. with respect to a portion of the Shopping Center. This lease gives the Atlantis the right to use a parcel, approximately 4.2 acres, comprised of commercial building and surrounding land adjacent to the Atlantis. The primary purpose of the Parking Lot Lease is to provide additional, convenient, Atlantis surface parking. We have demolished the commercial building and are in the process of converting the now vacant land into approximately 300 additional surface parking spaces for the Atlantis. The minimum annual rent under the Parking Lot Lease is $695 thousand, commencing on November 17, 2015. The minimum annual rent is subject to a cost of living adjustment increase on each five year anniversary. We have an option to extend the Parking Lot Lease for an additional 10-year term. If we elect not to exercise the renewal option, we will be obligated to pay BLI $1.6 million. The Company accounts for its rental expense using the straight-line method over the original lease term. Rental increases based on the change in the CPI are contingent and accounted for prospectively. Following is a summary of future minimum payments under operating leases that have initial or remaining non-cancelable lease terms for the next five years (in thousands): Operating Leases Year ending December 31, 2016 $ 2017 2018 2019 2020 Total minimum lease payments $ Rental expense for operating leases amounted to $1,039 thousand, $889 thousand and $907 thousand in 2015, 2014 and 2013, respectively, as reported in selling, general and administrative expenses in the Consolidated Statements of Income.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2015
LONG-TERM DEBT
LONG-TERM DEBT	NOTE 6. LONG-TERM DEBT On November 15, 2011, we amended and restated our $60.0 million Credit Facility with a new facility (as amended, the “Credit Facility”). We utilized the Credit Facility to finance the acquisition of the Monarch Casino Black Hawk and the Credit Facility is available to be used for working capital needs, general corporate purposes and for ongoing capital expenditure requirements. Borrowings are secured by liens on substantially all of the Company’s real and personal property. The Credit Facility contains customary covenants for a facility of this nature, including, but not limited to, covenants requiring the preservation and maintenance of the Company’s assets and covenants restricting our ability to merge, transfer ownership of Monarch, incur additional indebtedness, encumber assets and make certain investments. The Credit Facility contains covenants requiring that the Company maintain certain financial ratios and achieves a minimum level of Earnings-Before-Interest-Taxes-Depreciation and Amortization and other non-cash charges (“Adjusted EBITDA”) on a trailing four-quarter basis. It also contains provisions that restrict cash transfers between Monarch and its affiliates and contains provisions requiring the achievement of certain financial ratios before the Company can repurchase common stock or pay dividends. Management does not consider the covenants to restrict normal functioning of day-to-day operations. In addition to other customary covenants for a facility of this nature, as of December 31, 2015, we are required to maintain a leverage ratio, defined as consolidated debt divided by Adjusted EBITDA, of no more than 2.0:1 and a fixed charge coverage ratio (Adjusted EBITDA divided by fixed charges, as defined) of at least 1.15:1. As of December 31, 2015, the Company’s leverage ratio and fixed charge coverage ratios were 0.8:1 and 42.0:1, respectively. The Credit Facility is structured to reduce the maximum principal available by $1.5 million each quarter. The Credit Facility also allows us to permanently reduce the maximum principal available at any time so long as the amount of such reduction is at least $0.5 million and a multiple of $50,000. During the second quarter of 2015 we exercised this option and permanently reduced the amount available under the credit facility by $20 million and in the fourth quarter of 2015 by an additional $15 million. As of December 31, 2015 the maximum principle available under the credit facility is $48.5 million. The maturity date of the Credit Facility is November 15, 2016. As such, the entire amount outstanding under the credit facility at December 31, 2015 of $40.9 million is classified as a current liability in the Consolidated Balance Sheet as of December 31, 2015. At December 31, 2014, our leverage ratio was such that pricing for borrowings under the Credit Facility was LIBOR plus 1.5%. At December 31, 2014, the one-month LIBOR interest rate was 0.17%. The carrying value of the debt outstanding under the Credit Facility approximates fair value because the interest fluctuates with the lender’s prime rate or other market rates of interest. Subject to entering into a new or amended credit facility with sufficient borrowing capacity to refinance the outstanding balance and to complete the Black Hawk Expansion Plan, we believe, based on the relationship with our current lenders and our recent and projected financial performance, that our existing cash balances, cash flow from operations and borrowings available under the existing, amended or new Credit Facility will provide us with sufficient resources to fund our operations, meet our debt obligations, and fulfill our capital expenditure plans over the next twelve months; however, our operations are subject to financial, economic, competitive, regulatory, and other factors, many of which are beyond our control. If we are unable to generate sufficient cash flow, we could be required to adopt one or more alternatives, such as reducing, delaying or eliminating planned capital expenditures, selling assets, restructuring debt or obtaining additional equity capital.

TAXES

TAXES	12 Months Ended
	Dec. 31, 2015
TAXES.
TAXES	NOTE 7. TAXES Income Taxes The Company’s income tax provision (benefit) consists of the following (in thousands): Years ended December 31, 2015 2014 2013 Federal $ $ $ State Current tax provision Federal ) ) State ) Deferred tax (benefit) provision ) ) Total tax provision $ $ $ The income tax provision differs from that computed at the federal statutory rate as follows: Years ended December 31, 2015 2014 2013 Federal tax at the statutory rate % % % State tax (net of federal benefit) % )% % Permanent items % % % Tax credits )% )% )% Other )% )% % % % % The effective tax rate increased in 2015 compared to 2014 because of the effect of tax planning strategies implemented in 2014. Tax planning strategies implemented during 2014 resulted in an decrease of the effective tax rate when compared to 2013. The Company recorded $865 thousand, $386 thousand and $413 thousand as increases to contributed capital from certain tax benefits for employee stock-based compensation for the years ended December 31, 2015, 2014 and 2013, respectively. The components of the deferred income tax assets and liabilities at December 31, 2015 and 2014, as presented in the consolidated balance sheets, are as follows (in thousands): 2015 2014 DEFERRED TAX ASSETS Stock-based compensation $ $ Compensation and benefits Bad debt reserves Accrued expenses Fixed assets and depreciation Base stock State Taxes — NOLs & credit carry-forwards Deferred income tax asset $ $ DEFERRED TAX LIABILITIES Intangibles and amortization $ ) $ ) Prepaid expenses ) ) Real estate taxes ) ) Other Reserves ) ) Federal deduction on deferred state taxes ) ) Deferred income tax liability $ ) $ ) NET DEFERRED INCOME TAX ASSET $ $ The Company early adopted ASU No. 2015-17, at December 31, 2015 which simplifies presentation of the deferred tax assets and liabilities by allowing all such balances to be treated as noncurrent. The Company reclassified $2.8 million of current net deferred tax asset as noncurrent. The 2014 deferred tax assets have not been reclassified to conform to this presentation. As of December 31, 2015 the Company had $7.4 million of federal net operating loss (“NOL”) carryforwards, general business credit (“GBC”) carryforwards of $0.3 million and $19.5 million of state NOL carryforwards, acquired as part of the Monarch Casino Black Hawk (formerly Rivera Black Hawk) acquisition. The federal NOL carryforwards expire in 2020 through 2031. The federal GBC carryforwards expire in 2022 through 2031. The state NOL carryforwards expire in 2022 through 2032. The acquired federal and state NOL and federal GBC carryforwards are subject to Internal Revenue Code change of ownership limitations. Accordingly, future utilization of the carryforwards is subject to an annual base limitation of $1.25 million that can be applied against future taxable income. The Company acquired NOLs of Monarch Black Hawk generated in tax years 2000 through 2012. The statute of limitation for assessment for these NOL years is determined by reference to the year the NOL is used to reduce taxable income. Consequently, the separate returns that included Monarch Black Hawk remain subject to examination by the Internal Revenue Service (the “IRS”). The Company’s income tax returns from 2012 forward are subject to examination by the IRS. Accounting standards require that tax positions be assessed for recognition using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. The Company’s policy regarding interest and penalties associated with uncertain tax positions is to classify such amounts as income tax expense. No uncertain tax positions were recorded as of December 31, 2015, 2014 and 2013. No change in uncertain tax positions is anticipated over the next twelve months. No interest expense or penalties for uncertain tax positions were recorded for years ended December 31, 2015, 2014 and 2013. Sales and Use Tax on Complimentary Meals On March 27, 2008, the Nevada Supreme Court issued a decision in Sparks Nugget, Inc. vs. The State of Nevada Department of Taxation (the “Department”), holding that food purchased for subsequent use in the provision of complimentary and/or employee meals were exempt from use tax. As a result of this decision, refund claims were filed for use taxes paid over the period April 1997 through March 2000 and the period February 2005 through June 2008, on food purchased for subsequent use in complimentary and employee meals at our Nevada casino property. We requested refunds totaling approximately $1.6 million, excluding interest (“the Refunds”). We have not recognized any of these amounts. In February 2012, the Department issued a policy directive, requesting that affected taxpayers begin collecting and remitting sales tax on complimentary meals and employee meals effective February 2012 and on June 25, 2012, the Nevada Tax Commission adopted regulations providing for a similar requirement. Subject to these regulations we accrued $0.6 million through June 2013 related to this directive. The Department policy directive was challenged by several affected parties and in June 2013, the Nevada Tax Commission issued a ruling that complimentary and employee meals were no longer subject to sales taxation. Associated with the ruling, the Nevada hotel-casino industry, including the Company, agreed to forego and cause to be withdrawn certain pending use tax refund requests. Pursuant to that agreement, we withdrew our request for the Refunds. As a result of the ruling, we reversed the accumulated sales tax expense accrual totaling $0.6 million in the second quarter of 2013.

BENEFIT PLANS

BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
BENEFIT PLANS
BENEFIT PLANS	NOTE 8. BENEFIT PLANS Savings Plan - Effective November 1, 1995, the Company adopted a savings plan, which qualifies under Section 401(k) of the Internal Revenue Code. Under the plan, participating employees may defer up to 100% of their pre-tax compensation, but not more than statutory limits. The Company’s matching contributions were approximately $318 thousand, $283 thousand, and $283 thousand for years ended December 31, 2015, 2014 and 2013, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2015
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE 9. STOCK-BASED COMPENSATION On May 21, 2014, we adopted the 2014 Equity Incentive Plan (the “2014 Plan”). The purposes of the 2014 Plan are to attract and retain the best available personnel, to provide additional incentives to employees, directors and consultants and to promote the success of the Company’s business. The 2014 Plan is an “omnibus plan” under which stock options, stock appreciation rights, performance awards, dividend equivalents, restricted stock, and restricted stock units can be awarded to employees, directors and consultants of the Company. The 2014 Plan serves as the successor to our 1993 Employee Stock Option Plan, 1993 Executive Long-Term Incentive Plan and 1993 Directors’ Stock Option Plan (which plan terminated on June 13, 2013) (the “Predecessor Plans”). The 2014 Plan became effective as of May 21, 2014 and the remaining two Predecessor Plans terminated on that date (except with respect to awards previously granted under the Predecessor Plans that remain outstanding). The share reserve under the 2014 Plan includes 1,000,000 new shares and the shares available for grant or subject to outstanding awards under the Predecessor Plans, for an aggregate amount of up to 2,453,506 common shares as of December 31, 2015. By its terms, the 2014 Plan will expire in May 2024 after which no options may be granted unless the 2014 Plan is amended or replaced. Pursuant to the terms of the 2014 Plan, either the Board or a committee designated by the Board is authorized to administer the plan. The administrator has the authority, in its discretion, to select employees, consultants and directors to whom awards under the 2014 Plan may be granted from time to time, to determine whether and to what extent awards are granted, to determine the number of shares or the amount of other consideration to be covered by each award (subject to certain limitations), to approve award agreements for use under the 2014 Plan, to determine the terms and conditions of any award (including the vesting schedule applicable to the award), to amend the terms of any outstanding award granted under the 2014 Plan (subject to certain limitations), to construe and interpret the terms of the 2014 Plan and awards granted, and to take such other action not inconsistent with the terms of the 2014 Plan as the administrator deems appropriate. A summary of the stock option activity as of and for the year ended December 31, 2015 is presented below: Weighted Average Options Shares Exercise Price Remaining Contractual Term Aggregate Intrinsic Value Outstanding at beginning of period $ — — Granted — — Exercised ) — — Forfeited ) — — Expired — — — — Outstanding at end of period $ 7.1 yrs. $ Exercisable at end of period $ 4.8 yrs. $ A summary of the status of the Company’s nonvested shares as of, and for the year ended, December 31, 2015 is presented below: Nonvested Shares Shares Weighted-Average Grant Date Fair Value Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) Nonvested at December 31, 2015 $ Expense Measurement and Recognition: The Company recognizes stock-based compensation for all current award grants and for the unvested portion of previous award grants based on grant date fair values. Unrecognized costs related to all stock-based awards outstanding at December 31, 2015 totaled approximately $4.2 million and is expected to be recognized over a weighted average period of 2.6 years. The Company uses historical data and projections to estimate expected employee, executive and director behaviors related to option exercises and forfeitures. The Company estimates the fair value of each stock option award on the grant date using the Black-Scholes valuation model incorporating the assumptions noted in the following table. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimate. Option valuation assumptions for options granted during each year were as follows (in thousands, except per share amounts and percentages): Years ended December 31, 2015 2014 2013 Expected volatility % % % Expected dividends — — — Expected life (in years) Directors’ plan Executives plan Employees plan Weighted average risk free rate % % % Weighted average grant date fair value per share of options granted $ $ $ Total fair value of shares vested $ $ $ Total intrinsic value of options exercised $ $ $ Cash received for all stock option exercises $ $ $ Tax benefit realized from stock awards exercised $ $ $ The risk-free interest rate is based on the U.S. treasury security rate in effect as of the date of grant. The expected lives of options are based on historical data of the Company. The Company has determined that an implied volatility is more reflective of market conditions and a better indicator of expected volatility as compared to the Company’s experience. Reported stock-based compensation expense was classified as follows (in thousands): For the years ended December 31, 2015 2014 2013 Casino $ $ $ Food and beverage Hotel Selling, general and administrative Total stock-based compensation, before taxes Tax benefit ) ) ) Total stock-based compensation, net of tax $ $ $

STOCK REPURCHASE PLAN

STOCK REPURCHASE PLAN	12 Months Ended
	Dec. 31, 2015
STOCK REPURCHASE PLAN
STOCK REPURCHASE PLAN	NOTE 10: STOCK REPURCHASE PLAN On October 22, 2014, the board of directors authorized a stock repurchase plan (the “Repurchase Plan”). Under the Repurchase Plan, the board of directors authorized a program to repurchase up to 3,000,000 shares of the Company’s common stock in the open market or in privately negotiated transactions from time to time, in compliance with Rule 10b-18 of the Securities and Exchange Act of 1934, subject to market conditions, applicable legal requirements and other factors. The Repurchase Plan does not obligate the Company to acquire any particular amount of common stock and the plan may be suspended at any time at our discretion, and it will continue until exhausted. The actual timing, number and value of shares repurchased under the Repurchase Program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s stock, general market economic conditions and applicable legal requirements. The Company has made no purchases under the Repurchase Plan.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11. COMMITMENTS AND CONTINGENCIES Self-Insurance : The Company is self-insured for health care claims for eligible active employees. Benefit plan administrators assist the Company in determining its liability for self-insured claims, and such claims are not discounted. Black Hawk’s health plan has stop-loss insurance whereby the Company retains the first $250,000 of liability for individual health care claims. The Company’s liability on the Atlantis health plan is limited to the first $250,000 of claims plus 10% of claims above $250,000. The Company is also self-insured for Atlantis workers’ compensation. The maximum liability for workers’ compensation under the Atlantis stop-loss agreement is $500,000 per claim. The Company is fully-insured for Monarch Casino Black Hawk workers compensation claims. We are party to other claims that arise in the normal course of business. Management believes that the outcomes of such claims will not have a material adverse impact on our financial condition, cash flows or results of operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 12. RELATED PARTY TRANSACTIONS The shopping center adjacent to the Atlantis (the “Shopping Center”) is owned by Biggest Little Investments, L.P. (“BLI”). John Farahi and Bob Farahi, Co-Chairmen of the Board and executive officers of the Company, and Ben Farahi are the three largest stockholders (“Farahi Family Stockholders”) of Monarch and each also beneficially own limited partnership interests in BLI. Maxum LLC is the sole general partner of BLI, and Ben Farahi is the sole managing member of Maxum LLC. Neither John Farahi nor Bob Farahi has any management or operational control over BLI or the Shopping Center. Until May 2006, Ben Farahi formerly held positions of Co-Chairman of the Board, Secretary, Treasurer and Chief Financial Officer of the Company. On August 28, 2015, Monarch, through its subsidiary Golden Road, entered into a 20-year lease agreement with BLI for a portion of the Shopping Center (the “Parking Lot Lease”) consisting of an approximate 46,000 square-foot commercial building on approximately 4.15 acres of land adjacent to the Atlantis (the “Leased Property”). We have demolished the building and are in the process of converting the now vacant land into approximately 300 additional surface parking spaces for the Atlantis. The minimum annual rent under the Parking Lot Lease is $695 thousand commencing on November 17, 2015. The minimum annual rent is subject to a cost of living adjustment increase on each five year anniversary. In addition, we are responsible for payment of property taxes, utilities and maintenance expenses related to the Leased Property. We have an option to renew the Parking Lot Lease for an additional 10-year term. If we elect not to exercise its renewal option, we will be obligated to pay BLI $1.6 million. For the years ended December 31, 2015, the Company paid $85 thousand in rent, plus $12 thousand for operating expenses to this lease. In addition, we share a driveway with and lease approximately 37,000 square-feet from BLI (the “Driveway Lease”) for an initial lease term of 15 years, which commenced on September 30, 2004, at an original annual rent of $300 thousand plus common area expenses. The annual rent is subject to a cost of living adjustment increase on each five year anniversary of the Driveway Lease. Effective August 28, 2015, in connection with the Parking Lot Lease, the Driveway Lease was amended to: (i) make the Company solely responsible for the operation and maintenance costs of the shared driveway (including the fountains thereon); (ii) eliminate the Company’s obligation to reimburse the Shopping Center for its proportionate share of common area expenses; and (iii) exercise the three successive five-year renewal terms beyond the initial 15 year term in the existing Driveway Lease Agreement. At the end of the renewal terms, we have the option to purchase the leased driveway section of the Shopping Center. As of December 31, 2015, the annual rent is $377 thousand. For the years ended December 31, 2015, 2014 and 2013, the Company paid $377 thousand, $350 thousand and $340 thousands respectively in rent, plus $84 thousand, $119 thousand and $159 thousands respectively for operating expenses to this lease. We occasionally lease billboard advertising, storage space and parking lot space from affiliates controlled by Farahi Family Stockholders and paid $142 thousand, $125 thousand and $123 thousand for the years ended December 31, 2015, 2014 and 2013, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13. SUBSEQUENT EVENTS The Company evaluated all subsequent events through the date that the consolidated financial statements were issued. No material subsequent events have occurred since December 31, 2015 that required recognition or disclosure in the consolidated financial statements.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2015
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE 14. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents selected quarterly financial information for 2015 and 2014 (in thousands, except per share amounts): 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Net revenues $ $ $ $ $ Operating expenses Income from operations Net income Income per share of common stock Basic $ $ $ $ $ Diluted $ $ $ $ $ 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Net revenues $ $ $ $ $ Operating expenses Income from operations Net income Income per share of common stock Basic $ $ $ $ $ Diluted $ $ $ $ $

Schedule II. - VALUATION AND QU

Schedule II. - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2015
Schedule II. - VALUATION AND QUALIFYING ACCOUNTS
Schedule II. - VALUATION AND QUALIFYING ACCOUNTS	Schedule II. - VALUATION AND QUALIFYING ACCOUNTS Year ended December 31, Balance at beginning of year Charged to costs and expenses (F1) Deductions (F1) Other Balance at end of year 2013 Allowance for doubtful accounts $ $ ) $ ) $ — $ 2014 Allowance for doubtful accounts $ $ $ ) $ — $ 2015 Allowance for doubtful accounts $ $ $ ) $ — $ (F1) The Company reviews receivables monthly and, accordingly, adjusts the allowance for doubtful accounts monthly. The Company records write-offs annually. The amount charged to costs and expenses reflects the bad debt expense recorded in the consolidated statements of income, while the amount recorded for deductions reflects the adjustment to actual allowance for doubtful accounts reserve at the end of the period.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation Monarch Casino & Resort, Inc., was incorporated in 1993 and through its wholly-owned subsidiary, Golden Road Motor Inn, Inc. (“Golden Road”), owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada (the “Atlantis”). Monarch’s wholly owned subsidiaries, High Desert Sunshine, Inc. (“High Desert”), Golden East, Inc. (“Golden East”) and Golden North, Inc. (“Golden North”), each own separate parcels of land located proximate to the Atlantis. Monarch’s wholly owned subsidiary Monarch Growth Inc. (“Monarch Growth”), formed in 2011, acquired Riviera Black Hawk, Inc., owner of the Riviera Black Hawk Casino on April 26, 2012. Riviera Black Hawk, Inc. was renamed Monarch Black Hawk, Inc. and Riviera Black Hawk Casino was renamed Monarch Casino Black Hawk in October 2013. Monarch Growth also owns a parcel of land in Black Hawk, Colorado contiguous to the Monarch Casino Black Hawk. In addition to owning the Monarch Casino Black Hawk, Monarch Black Hawk, Inc. also wholly owns Chicago Dogs Eatery, Inc. and Monarch Promotional Association both of which were formed related to extended licensure for extended hours of liquor operation in Black Hawk. The Company has included the results of Monarch Black Hawk, Inc. in its consolidated financial statements since the date of acquisition. Monarch’s wholly owned subsidiary Monarch Interactive, Inc. (“Monarch Interactive”) received approval from the Nevada Gaming Commission on August 23, 2012, which approval was extended three times, each for an additional six-month period, for a license as an operator of interactive gaming. The Company has decided to allow the current approval to lapse pending a change in market conditions that would support the Company’s investment in this line of business. Monarch Interactive is not currently engaged in any operating activities. In Nevada, legal interactive gaming is currently limited to intrastate poker. The consolidated financial statements include the accounts of Monarch and its subsidiaries. Intercompany balances and transactions are eliminated. Certain amounts in the consolidated financial statements for the previous periods have been reclassified to be consistent with the current period presentation. These reclassifications had no effect on the previously reported net income. Reference to the number of square feet or acreage are unaudited and considered outside the scope of our independent registered public accounting firm’s audit of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. Unless otherwise indicated, “Monarch,” “Company,” “we,” “our” and “us” refer to Monarch Casino & Resort, Inc. and its subsidiaries.
Use of Estimates	Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the year. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, as well as investments purchased with an original maturity of 90 days or less.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company extends short-term credit to its gaming customers. Such credit is non-interest bearing and is due on demand. In addition, the Company also has receivables due from hotel guests which are primarily secured with a credit card at the time a customer checks in. An allowance for doubtful accounts is set up for all Company receivables based upon the Company’s historical collection and write-off experience, unless situations warrant a specific identification of a necessary reserve related to certain receivables. The Company charges off its uncollectible receivables once all efforts have been made to collect such receivables. The book value of receivables approximates fair value due to the short-term nature of the receivables. In December 2013, the Company recorded an adjustment to reduce its reserve for casino accounts receivable based on the results of historical collection patterns and current collection trends. For the year ended December 31, 2013, this adjustment benefitted income from operations by $0.3 million and net income by $0.2 million (or $0.01 per share on a fully diluted basis). No material adjustments were made during the years ended December 31, 2014 and 2015.
Casino Jackpots	Casino Jackpots The Company does not accrue a liability for base jackpots because it has the ability to avoid such payment as gaming devices can legally be removed from the gaming floor without payment of the base amount. When the Company is unable to avoid payment of a jackpot such as the incremental jackpot amounts of progressive-type slot machines, due to legal requirements, the jackpot is accrued as the obligation becomes unavoidable. This liability is accrued over the time period in which the incremental progressive jackpot amount is generated commensurate with a corresponding reduction in casino revenue.
Inventories	Inventories Inventories, consisting primarily of food, beverages, and retail merchandise, are stated at the lower of cost or market. Cost is determined based on the weighted average, which approximates a first-in, first out method.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Property and equipment is depreciated principally on a straight line basis over the estimated useful lives as follows: Land improvements 15-40 years Buildings 30-40 years Building improvements 5-40 years Furniture 5-10 years Equipment 3-20 years The Company evaluates property and equipment and other long-lived assets for impairment in accordance with the guidance for accounting for the impairment or disposal of long-lived assets. For assets to be disposed of, the Company recognizes the asset to be sold at the lower of carrying value or fair value less costs of disposal. Fair value for assets to be disposed of is generally estimated based on comparable asset sales, solicited offers or a discounted cash flow model. For assets to be held and used, the Company reviews fixed assets for impairment annually during the fourth quarter of each year or whenever indicators of impairment exist. If an indicator of impairment exists, we compare the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then an impairment is measured based on fair value compared to carrying value, with fair value typically based on a discounted cash flow model or market comparables, when available. For the years ended December 31, 2015, 2014 and 2013, there were no impairment charges.
Change in Accounting Estimate of Depreciable Life of Monarch Casino Black Hawk Parking Structure	Change in Accounting Estimate of Depreciable Life of Monarch Casino Black Hawk Parking Structure In December 2013, the Company began construction of a new parking facility at the Monarch Casino Black Hawk. Upon completion of that new structure, the Company plans to demolish the existing parking structure. At December 31, 2013, the existing parking structure had a net book value of approximately $4.8 million and a remaining depreciable life of approximately 37 years. The new parking facility was estimated to be completed on March 31, 2015. In accordance with ASC 250-10-45-17, effective January 1, 2014, the Company modified the estimated depreciable life of the existing parking structure to 15 months; the period from January 1, 2014 through the estimated demolition commencement date of March 31, 2015. As a result of this modification to the estimated depreciable life, depreciation expense of the existing parking structure increased by approximately $0.3 million per month (approximately $0.2 million net of tax). In July 2014, because of a delayed construction schedule, the Company revised the new parking facility completion date to December 31, 2015. At this time, the existing parking structure had a net book value of approximately $2.9 million. The Company modified the estimated depreciable life of the existing parking structure to 18 months; the period from July 1, 2014 through the revised estimated demolition commencement date of December 31, 2015. In October 2015, the general contractor notified the Company that further delay is expected and completion is now expected in the second quarter of 2016 at which time demolition of the existing structure will commence. At September 30, 2015, the existing parking structure had a net book value of approximately $0.4 million. Beginning in October 2015, the Company reduced the monthly depreciation expense to $0.04 million to reflect the revised depreciable life of the existing parking structure. For the twelve months ended December 31, 2015, the effect of the change in estimate was an increase of depreciation expense by $1.4 million, a decrease of net income by $0.9 million and a decrease of basic and diluted earnings per share by $0.05. For the twelve months ended December 31, 2014, the effect of the change in estimate was an increase of depreciation expense by $2.9 million, a decrease of net income by $1.9 million and a decrease of basic and diluted earnings per share by $0.11.
Goodwill	Goodwill The Company accounts for goodwill in accordance with ASC Topic 350, Intangibles-Goodwill and Other (“ASC Topic 350”). ASC Topic 350 gives companies the option to perform a qualitative assessment that may allow them to skip the annual two-step test as appropriate. The Company tests its goodwill for impairment annually during the fourth quarter of each year, or whenever events or circumstances make it more likely than not that impairment may have occurred. Impairment testing for goodwill is performed at the reporting unit level, and each of the Company’s casino properties is considered to be a reporting unit. We perform qualitative analysis to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount by assessing the relevant events and circumstances. If that is the case, the Company utilizes two-step testing process. In the first step, the estimated fair value of each reporting unit is compared with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its estimated fair value, then the goodwill of the reporting unit is considered to be impaired, and impairment is measured in the second step of the process. In the second step, the Company estimates the implied fair value of the reporting unit’s goodwill by allocating the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit, as if the reporting unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. Goodwill consists of the excess of the acquisition cost over the fair value of the net assets acquired in business combinations in April 2012. As of December 31, 2015 and 2014, we had goodwill totaling $25.1 million related to the purchase of Black Hawk, Inc. (see NOTE 3).
Finite-Lived Intangible Assets	Finite-Lived Intangible Assets The Company’s finite-lived intangible assets include assets related to its customer relationships which are amortized over its estimated useful life using the straight-line method. The Company periodically evaluates the remaining useful lives of its finite-lived intangible assets to determine whether events and circumstances warrant a revision to the remaining period of amortization. The customer relationship intangible asset represents the value associated with Monarch Casino Black Hawk’s rated casino guests. The initial fair value of the customer relationship intangible asset was estimated based on the projected net cash flows associated with these casino guests. The recoverability of the Company’s customer relationship intangible asset could be affected by, among other things, increased competition within the gaming industry, a downturn in the economy, declines in customer spending which would impact the expected future cash flows associated with the rated casino guests, declines in the number of visitations which could impact the expected attrition rate of the rated casino guests, and erosion of operating margins associated with rated casino guests. Should events or changes in circumstances cause the carrying value of the customer relationship intangible asset to exceed its estimated fair value, an impairment charge in the amount of the excess would be recognized. As of December 31, 2015 and December 31, 2014, the customer relationships net intangible asset balance was $6.2 million and $7.4 million, respectively. The trade name, related to the Riviera Black Hawk name was fully amortized by October 2013 when Riviera Black Hawk was renamed Monarch Casino Black Hawk.
Fair Value Measurement	Fair Value Measurement ASC 820 establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for various valuation techniques e.g. market value, income approach and cost approach. The levels of the hierarchy are described below: · Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities; · Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and · Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. The fair value measurements relating to the acquired assets of Monarch Casino Black Hawk were determined using inputs within Level 2 and Level 3 of ASC 820’s hierarchy.
Segment Reporting	Segment Reporting The accounting guidance for disclosures about segments of an enterprise and related information requires separate financial information to be disclosed for all operating segments of a business. The Company determined that two of the Company’s operating segments, Atlantis and Monarch Casino Black Hawk, meet all of the aggregation criteria stipulated by ASC 280-10-50-11. The Company views each property as an operating segment and the two operating segments have been aggregated into one reporting segment. The December 31, 2013 financial information has been reclassified to be consistent with the current year presentation.
Self-insurance Reserves	Self-insurance Reserves We are currently self-insured up to certain stop loss amounts for Atlantis workers’ compensation and certain medical benefit costs provided to all of our employees. As required by the state of Colorado, we are fully-insured for Monarch Casino Black Hawk workers’ compensation costs. The Company reviews self-insurance reserves at least quarterly. The reserve is determined by reviewing the actual expenditures for the previous twelve-month period and reports prepared by the third party plan administrator for any significant unpaid claims. The company engages a third party actuarial at least once per year for a more precise reserves review and calculation. The reserve is an amount estimated to pay both reported and unreported claims as of the balance sheet date, which management believes is adequate.
Capitalized Interest	Capitalized Interest The Company capitalizes interest costs associated with debt incurred in connection with major construction projects. When no debt is specifically identified as being incurred in connection with a construction project, the Company capitalizes interest on amounts expended on the project at the Company’s average borrowing cost. Interest capitalization is ceased when the project is substantially complete. The Company capitalized $533 thousand and $152 thousand of interest during the years ended December 31, 2015 and 2014, respectively. There was no capitalized interest recorded in 2013.
Revenue Recognition	Revenue Recognition Casino revenues represent the net win from gaming activity, which is the difference between wins and losses. Additionally, net win is reduced by a provision for anticipated payouts on slot participation fees, progressive jackpots and any pre-arranged marker discounts. Food and beverage, hotel, and other operating revenues are recognized as products are delivered or services are performed.
Promotional Allowances	Promotional Allowances The Company’s player program allows members, through the frequency of their play at the Company’s casino, to earn and accumulate points which may be redeemed for a variety of goods and services. Points may be applied toward room stays at the hotel, food and beverage consumption at the food outlets, gift shop items as well as goods and services at the spa and beauty salon and for cash at our Monarch Casino Black Hawk property. Points earned may also be applied toward off-property events such as concerts, shows and sporting events. The retail value of hotel, food and beverage services provided to customers without charge is included in gross revenue and deducted as promotional allowances. The estimated departmental costs of providing such promotional allowances are primarily included in casino operating expenses and are as follows (in thousands): Years ended December 31, 2015 2014 2013 Food and beverage $ $ $ Hotel Other $ $ $
Advertising Costs	Advertising Costs All advertising costs are expensed as incurred. Advertising expense, which is included in selling, general and administrative expense, was $5.2 million, $5.2 million and $5.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Income Taxes	Income Taxes Income taxes are recorded in accordance with the liability method pursuant to authoritative guidance. Under the asset and liability approach for financial accounting and reporting for income taxes, the following basic principles are applied in accounting for income taxes at the date of the financial statements: (a) a current liability or asset is recognized for the estimated taxes payable or refundable on taxes for the current year; (b) a deferred income tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and carryforwards; (c) the measurement of current and deferred tax liabilities and assets is based on the provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated; and (d) the measurement of deferred income taxes is reduced, if necessary, by the amount of any tax benefits that, based upon available evidence, are not expected to be realized. Under the accounting guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50.0% likelihood of being realized upon ultimate settlement. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods and disclosure.
Gaming Taxes	Gaming Taxes The Company is subject to taxes based on gross gaming revenue in the jurisdictions in which it operates, subject to applicable jurisdictional adjustments. These gaming taxes are an assessment on the Company’s gaming revenue and are recorded as casino expense in the accompanying Consolidated Statements of Income. These taxes totaled $18.2 million, $16.0 million and $16.1 million for the years ended December 31, 2015, 2014 and 2013, respectively.
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation in accordance with the authoritative guidance requiring that compensation cost relating to stock-based payment transactions be recognized in the Company’s consolidated statements of income. The cost is measured at the grant date, based on the calculated fair value of the award using the Black-Scholes option pricing model for stock options, and based on the closing share price of the Company’s stock on the grant date for restricted stock awards. The cost is recognized as an expense over the employee’s requisite service period (the vesting period of the equity award). The Company’s stock-based employee compensation plan is more fully discussed in NOTE 9.
Earnings Per Share	Earnings Per Share Basic earnings per share are computed by dividing reported net earnings by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional dilution for all potentially dilutive securities such as stock options. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (in thousands, except per share data): Years ended December 31, 2015 2014 2013 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic $ $ $ Effect of dilutive stock options ) ) ) Diluted $ $ $ The following options were not included in the computation of diluted earnings per share because the options’ exercise prices were greater than the December 31, 2015 closing market price of the common shares and their inclusion would be antidilutive: Years ended December 31, 2015 2014 2013 Options to purchase shares of common stock 115,536 563,633 418,071 Exercise prices $23.09-$29.00 $16.66-$29.00 $21.65-$29.00 Expiration dates (month/year) 05/16-12/25 05/15-11/24 05/16-10/23
Fair Value of Financial Instruments:	Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments has been determined by the Company, using available market information and valuation methodologies. However, considerable judgment is required to develop the estimates of fair value; thus, the estimates provided herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The carrying amounts of cash, account receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these instruments. Additionally, the carrying value of our long-term debt approximates fair value due to the variable nature of applicable interest rates and relative short-term maturity.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of bank deposits and trade receivables. The Company maintains its surplus cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer base. The Company believes it is not exposed to any significant credit risk on cash and accounts receivable. Accounts are written off when management determines that an account is uncollectible. Recoveries of accounts previously written off are recorded when received. An allowance for doubtful accounts is determined to reduce the Company’s receivables to their carrying value, which approximates fair value. The allowance is estimated based on historical collection experience, specific review of individual customer accounts, and current economic and business conditions. Historically, the Company has not incurred any significant credit-related losses.
Certain Risks and Uncertainties	Certain Risks and Uncertainties The Company’s operations are dependent on its continued licensing by the Nevada and Colorado gaming regulatory bodies. The loss of a license could have a material adverse effect on future results of operations. The Company is dependent on the northern Nevada and Denver, Colorado markets for a significant number of its patrons and revenues. If economic conditions in these areas deteriorate or additional gaming licenses are awarded, the Company’s results of operations could be adversely affected. The Company is dependent on the U.S. economy in general, and any deterioration in the national economic, energy, credit and capital markets could have a material adverse effect on future results of operations. The Company is dependent upon a stable gaming and admission tax structure in the locations in which it operates. Any change in the tax structure could have a material adverse effect on future results of operations.
Impact of Recently Issued Accounting Standards	Impact of Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that amends the FASB Accounting Standards Codification and creates a new topic for Revenue from Contracts with Customers. The new guidance is expected to clarify the principles for revenue recognition and to develop a common revenue standard for U.S. GAAP applicable to revenue transactions. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This guidance also provides substantial revision of interim and annual disclosures. The update allows for either full retrospective adoption, meaning the guidance is applied for all periods presented, or modified retrospective adoption, meaning the guidance is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the guidance recognized at the date of initial application. In July 2015, FASB voted to delay the effective date of the new revenue standard by one year. The new effective date is for the annual and interim periods beginning after December 15, 2017. Reporting entities may choose to adopt the standard as of the original effective date. The Company plans to adopt this standard effective January 1, 2018. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. In August 2014, FASB issued an accounting standard update that requires management to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. Substantial doubt about an entity’s ability to continue as a going concern exist when relevant conditions and events, consolidated and aggregated, indicate that it is probable that an entity will be unable to meet its obligations as they become due within one year after the date that the financial statement are issued. Currently, there is no guidance in U.S. GAAP for management’s responsibility to perform an evaluation. Under the update, management’s evaluation is to be performed when preparing financial statements for each annual and interim reporting period and based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. The effective date for this update is for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is permitted. The Company will adopt this standard effective January 1, 2017. The adoption of this standard is not expected to not have a material impact on our Consolidated Financial Statements. In April 2015, FASB issued an accounting standards update that requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015, FASB issued an accounting standards update which clarifies that the guidance issued in April 2015 does not apply to line-of-credit arrangements. According to the additional guidance, line-of-credit arrangements will continue to present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the arrangement. The effective date for this update is for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. The Company will adopt this standard effective January 1, 2016. The adoption of this standard is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, FASB issued an accounting standards update which changes the measurement principle for inventories valued under the first-in, first-out or weighted-average methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined by FASB as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The effective date for this guidance is for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. In November 2015, the FASB issued an accounting standards update which will require entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. Noncurrent balance sheet presentation of all deferred taxes eliminates the requirement to allocate a valuation allowance on a pro rata basis between gross current and noncurrent deferred tax assets. The new guidance may be applied either on prospective or retrospective basis. The effective date for this update was for the annual and interim periods beginning after December 15, 2016 with early adoption permitted. The Company elected to early adopt this guidance during the fourth quarter of 2015 and it did not have a material impact on our Consolidated Financial Statements. We elected to apply the guidance on a prospective basis. Thus, the Consolidated Balance Sheet as of December 31, 2014 was not retrospectively adjusted. In February 2016, the FASB issued an accounting standards update which addresses the recognition and measurement of leases. Under the new guidance, for all leases (with the exception of short-term leases), at the commencement date, lessees will be required to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Further, the new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and liabilities, which no longer provides a source for off-balance sheet financing. The effective date for this update is for the annual and interim periods beginning after December 15, 2018 with early adoption permitted. Lessees and lessors must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact the adoption of this standard will have on its Consolidated Financial Statements. A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, we have not yet determined the effect, if any, the implementation of any such proposed or revised standards would have on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of property and equipment stated at cost, less accumulated depreciation and amortization	Land improvements 15-40 years Buildings 30-40 years Building improvements 5-40 years Furniture 5-10 years Equipment 3-20 years
Schedule of promotional allowance included in casino operating expenses	The estimated departmental costs of providing such promotional allowances are primarily included in casino operating expenses and are as follows (in thousands): Years ended December 31, 2015 2014 2013 Food and beverage $ $ $ Hotel Other $ $ $
Schedule of reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations	The following is a reconciliation of the number of shares (denominator) used in the basic and diluted earnings per share computations (in thousands, except per share data): Years ended December 31, 2015 2014 2013 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic $ $ $ Effect of dilutive stock options ) ) ) Diluted $ $ $
Schedule of options, not included in the computation of diluted earnings per share	Years ended December 31, 2015 2014 2013 Options to purchase shares of common stock 115,536 563,633 418,071 Exercise prices $23.09-$29.00 $16.66-$29.00 $21.65-$29.00 Expiration dates (month/year) 05/16-12/25 05/15-11/24 05/16-10/23

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS RECEIVABLE
Schedule of accounts receivable	Accounts receivable consist of the following (in thousands): December 31, 2015 2014 Casino $ $ Hotel Other Less allowance for doubtful accounts ) ) $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
GOODWILL AND INTANGIBLE ASSETS
Schedule of intangible assets	Intangible assets consist of the following at December 31, (in thousands except years): 2015 2014 Customer list $ $ Trade name Total intangible assets Less accumulated amortization: Customer list ) ) Trade name ) ) Total accumulated amortization ) ) Intangible assets, net $ $ Weighted-average life in years
Schedule of estimated amortization expense	Estimated amortization expense for the years ending December 31, 2016 through 2020 and thereafter is as follows (in thousands): Year Expense 2016 $ 2017 2018 2019 2020 Thereafter Total $

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES.
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Accrued salaries, wages and related benefits $ $ Progressive slot machine and other gaming accruals Accrued gaming taxes Accrued interest Other accrued liabilities $ $

LEASE COMMITMENTS (Tables)

LEASE COMMITMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
LEASE COMMITMENTS
Summary of future minimum payments under operating leases	Following is a summary of future minimum payments under operating leases that have initial or remaining non-cancelable lease terms for the next five years (in thousands): Operating Leases Year ending December 31, 2016 $ 2017 2018 2019 2020 Total minimum lease payments $

TAXES (Tables)

TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
TAXES.
Schedule of income tax provision (benefit)	The Company’s income tax provision (benefit) consists of the following (in thousands): Years ended December 31, 2015 2014 2013 Federal $ $ $ State Current tax provision Federal ) ) State ) Deferred tax (benefit) provision ) ) Total tax provision $ $ $
Schedule of income tax provision that differs from that computed at the federal statutory rate	Years ended December 31, 2015 2014 2013 Federal tax at the statutory rate % % % State tax (net of federal benefit) % )% % Permanent items % % % Tax credits )% )% )% Other )% )% % % % %
Schedule of components of the deferred income tax assets and liabilities	The components of the deferred income tax assets and liabilities at December 31, 2015 and 2014, as presented in the consolidated balance sheets, are as follows (in thousands): 2015 2014 DEFERRED TAX ASSETS Stock-based compensation $ $ Compensation and benefits Bad debt reserves Accrued expenses Fixed assets and depreciation Base stock State Taxes — NOLs & credit carry-forwards Deferred income tax asset $ $ DEFERRED TAX LIABILITIES Intangibles and amortization $ ) $ ) Prepaid expenses ) ) Real estate taxes ) ) Other Reserves ) ) Federal deduction on deferred state taxes ) ) Deferred income tax liability $ ) $ ) NET DEFERRED INCOME TAX ASSET $ $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2015
STOCK-BASED COMPENSATION
Summary of stock option activity	A summary of the stock option activity as of and for the year ended December 31, 2015 is presented below: Weighted Average Options Shares Exercise Price Remaining Contractual Term Aggregate Intrinsic Value Outstanding at beginning of period $ — — Granted — — Exercised ) — — Forfeited ) — — Expired — — — — Outstanding at end of period $ 7.1 yrs. $ Exercisable at end of period $ 4.8 yrs. $
Summary of status of the Company's nonvested shares	Nonvested Shares Shares Weighted-Average Grant Date Fair Value Nonvested at January 1, 2015 $ Granted Vested ) Forfeited ) Nonvested at December 31, 2015 $
Schedule of option valuation assumptions for options granted	Option valuation assumptions for options granted during each year were as follows (in thousands, except per share amounts and percentages): Years ended December 31, 2015 2014 2013 Expected volatility % % % Expected dividends — — — Expected life (in years) Directors’ plan Executives plan Employees plan Weighted average risk free rate % % % Weighted average grant date fair value per share of options granted $ $ $ Total fair value of shares vested $ $ $ Total intrinsic value of options exercised $ $ $ Cash received for all stock option exercises $ $ $ Tax benefit realized from stock awards exercised $ $ $
Schedule of stock-based compensation expense	Reported stock-based compensation expense was classified as follows (in thousands): For the years ended December 31, 2015 2014 2013 Casino $ $ $ Food and beverage Hotel Selling, general and administrative Total stock-based compensation, before taxes Tax benefit ) ) ) Total stock-based compensation, net of tax $ $ $

SELECTED QUARTERLY FINANCIAL 30

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2015
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Schedule of selected quarterly financial data (unaudited)	The following table presents selected quarterly financial information for 2015 and 2014 (in thousands, except per share amounts): 2015 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Net revenues $ $ $ $ $ Operating expenses Income from operations Net income Income per share of common stock Basic $ $ $ $ $ Diluted $ $ $ $ $ 2014 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Net revenues $ $ $ $ $ Operating expenses Income from operations Net income Income per share of common stock Basic $ $ $ $ $ Diluted $ $ $ $ $

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation (Details)	Aug. 23, 2012
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of times that approval of interactive gaming license has been extended	3
Additional period for which the license was extended	6 months

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Doubtful Accounts (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts
Income from operations	$ 7,987	$ 10,049	$ 8,048	$ 6,471	$ 4,754	$ 6,666	$ 5,468	$ 5,331	$ 32,555	$ 22,219	$ 30,455
Net income	$ 5,123	$ 6,394	$ 5,099	$ 4,043	$ 3,811	$ 4,074	$ 3,024	$ 3,276	$ 20,659	$ 14,185	$ 17,961
Diluted (in dollars per share)	$ 0.29	$ 0.37	$ 0.29	$ 0.24	$ 0.22	$ 0.24	$ 0.18	$ 0.19	$ 1.19	$ 0.83	$ 1.06
Restatement of opening retained earnings | Uncollectible Receivables
Allowance for doubtful accounts
Income from operations											$ 300
Net income											$ 200
Diluted (in dollars per share)											$ 0.01

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and Equipment
Impairment charge	$ 0	$ 0	$ 0
Site improvements | Minimum
Property and Equipment
Estimated useful life	15 years
Site improvements | Maximum
Property and Equipment
Estimated useful life	40 years
Buildings | Minimum
Property and Equipment
Estimated useful life	30 years
Buildings | Maximum
Property and Equipment
Estimated useful life	40 years
Building improvements | Minimum
Property and Equipment
Estimated useful life	5 years
Building improvements | Maximum
Property and Equipment
Estimated useful life	40 years
Furniture | Minimum
Property and Equipment
Estimated useful life	5 years
Furniture | Maximum
Property and Equipment
Estimated useful life	10 years
Equipment | Minimum
Property and Equipment
Estimated useful life	3 years
Equipment | Maximum
Property and Equipment
Estimated useful life	20 years

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Change in Accounting Estimate and Goodwill (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended								12 Months Ended			15 Months Ended	18 Months Ended
	Oct. 31, 2015	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2015	Dec. 31, 2015	Jul. 31, 2014
Change in Accounting Estimate
Net book value		$ 203,154				$ 180,271				$ 203,154	$ 180,271			$ 203,154
Net income		5,123	$ 6,394	$ 5,099	$ 4,043	3,811	$ 4,074	$ 3,024	$ 3,276	20,659	14,185	$ 17,961
Amount of goodwill recorded		25,111				$ 25,111				25,111	25,111			25,111
Monarch Black Hawk
Change in Accounting Estimate
Amount of goodwill recorded		$ 25,100								25,100				$ 25,100
Monarch Black Hawk Parking Structure
Change in Accounting Estimate
Net book value												$ 4,800
Estimated depreciable life												P37Y
Monarch Black Hawk Parking Structure | Service Life
Change in Accounting Estimate
Net book value			$ 400												$ 2,900
Estimated depreciable life													P15M	P18M
Depreciation expense per month	$ 40										300
Depreciation expense net of tax per month											200
Depreciation expense										1,400	2,900
Net income										$ (900)	$ (1,900)
Basic and diluted earnings per share (in dollars per share)										$ (0.05)	$ (0.11)

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets, Segment Reporting, Insurance Reserves and Capitalized Interest (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Segment Reporting
Number of operating segments | item	2
Number of reportable segments | item	1
Self-insurance Reserves
Period for reviewing actual expenditure to determine self-insurance reserve	12 months
Capitalized Interest
Capitalized interest costs | $	$ 533	$ 152	$ 0
Customer Relationships
Finite-lived intangible assets
Net intangible asset | $	$ 6,200	$ 7,400

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Promotional Allowances, Advertising Costs and Gaming Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Promotional Allowances
Estimated departmental costs of providing promotional allowances	$ 44,925	$ 41,808	$ 43,168
Advertising Costs
Advertising expense	5,200	5,200	5,200
Gaming Taxes
Total gaming taxes	18,200	16,000	16,100
Food and beverage
Promotional Allowances
Estimated departmental costs of providing promotional allowances	23,761	22,855	21,713
Hotel
Promotional Allowances
Estimated departmental costs of providing promotional allowances	3,157	2,893	2,622
Other
Promotional Allowances
Estimated departmental costs of providing promotional allowances	2,070	1,732	1,777
Promotional allowances
Promotional Allowances
Estimated departmental costs of providing promotional allowances	$ 28,988	$ 27,480	$ 26,112

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - $ / shares shares in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Basic (in shares)									16,948	16,734	16,302
Effect of dilutive stock options (in shares)									387	373	642
Diluted (in shares)									17,335	17,107	16,944
Per Share Amount
Basic (in dollars per share)	$ 0.30	$ 0.38	$ 0.30	$ 0.24	$ 0.23	$ 0.24	$ 0.18	$ 0.20	$ 1.22	$ 0.85	$ 1.10
Effect of dilutive stock options (in dollars per share)									(0.03)	(0.02)	(0.04)
Diluted (in dollars per share)	$ 0.29	$ 0.37	$ 0.29	$ 0.24	$ 0.22	$ 0.24	$ 0.18	$ 0.19	$ 1.19	$ 0.83	$ 1.06
Stock options
Anti-dilutive securities
Options to purchase shares of common stock									115,536	563,633	418,071
Exercise prices, low end of range (in dollars per share)									$ 23.09	$ 16.66	$ 21.65
Exercise prices, high end of range (in dollars per share)									$ 29	$ 29	$ 29

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounts receivable
Accounts receivable, gross	$ 4,180	$ 3,364
Less allowance for doubtful accounts	(451)	(317)
Accounts receivable, net	3,729	3,047
Bad debt expense	240	51	$ (230)
Casino
Accounts receivable
Accounts receivable, gross	3,317	2,034
Hotel
Accounts receivable
Accounts receivable, gross	599	476
Other
Accounts receivable
Accounts receivable, gross	$ 264	$ 854

GOODWILL AND INTANGIBLE ASSET39

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Apr. 26, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
Intangible assets
Amount of goodwill recorded		$ 25,111	$ 25,111	$ 25,111
Monarch Black Hawk
Intangible assets
Amount of goodwill recorded		25,100		25,100
Total intangible assets		12,080	12,080	12,080
Total accumulated amortization		(5,880)	(4,714)	(5,880)
Intangible assets, net		$ 6,200	$ 7,366	6,200
Weighted-average life		5 years 3 months 18 days	6 years 3 months 18 days
Amortization expense		$ 1,200	$ 1,200
Estimated amortization expense
2,015		1,165		1,165
2,016		1,165		1,165
2,017		1,165		1,165
2,018		1,165		1,165
2,019		1,165		1,165
Thereafter		375		375
Intangible assets, net		6,200	7,366	6,200
Fair value inputs
Decrease in goodwill upon completion of the purchase price allocation related primarily to modification to the value of certain deferred tax assets			1,400
Changes to carrying amount of goodwill				0
Customer list | Monarch Black Hawk
Intangible assets
Total intangible assets		10,490	10,490	10,490
Total accumulated amortization		$ (4,290)	(3,124)	(4,290)
Useful life of finite-lived intangible assets	9 years
Fair value inputs
Attrition rate (as a percent)		24.00%
Risk-adjusted discount rate (as a percent)		12.00%
Trade Name | Monarch Black Hawk
Intangible assets
Total intangible assets		$ 1,590	1,590	1,590
Total accumulated amortization		$ (1,590)	$ (1,590)	$ (1,590)
Fair value inputs
Risk-adjusted discount rate (as a percent)		11.00%
Royalty rate (as a percent)		1.00%

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCRUED EXPENSES.
Accrued salaries, wages and related benefits	$ 7,756	$ 5,813
Progressive slot machine and other gaming accruals	9,654	8,457
Accrued gaming taxes	2,396	2,198
Accrued interest	2	2
Other accrued liabilities	2,065	2,857
Accrued expenses	$ 21,873	$ 19,327

LEASE COMMITMENTS - Driveway an

LEASE COMMITMENTS - Driveway and Parking Lot Leases(Details) $ in Thousands	Aug. 28, 2015USD ($)aft²item	Sep. 30, 2004USD ($)	Aug. 31, 2015item	Dec. 31, 2015USD ($)ft²item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Members of Management Holding Noncontrolling Interests | BLI Driveway Project
LEASE COMMITMENTS
Lease term under each renewal				5 years
Area of property leased (in square feet) | ft²				37,368
Minimum lease term				15 years
Original annual rent expense		$ 300
Annual rent				$ 377	$ 350	$ 340
Number of terms for which the lease can be renewed | item			3	3
Lease rent paid				$ 377	350	340
Operating expenses related to lease				84	119	159
Total cost of improvements				2,000
Portion of total cost of project for which company was responsible				$ 1,350
Estimated useful life				15 years
Affiliates of Controlling Stockholders
LEASE COMMITMENTS
Lease rent paid				$ 142	$ 125	$ 123
Golden Road | Members of Management Holding Noncontrolling Interests | BLI Parking Lot Lease
LEASE COMMITMENTS
Lease term	20 years
Area of property leased (in acres) | a	4.15
Area of building being demolished (in square feet) | ft²	46,000
Number of parking spaces | item	300
Minimum annual rent	$ 695
Anniversary years subject to cost of living adjustment rent increase	5 years
Lease term under each renewal	10 years
Amount due to related party if lease is not renewed	$ 1,600
Lease rent paid				85
Operating expenses related to lease				$ 12

LEASE COMMITMENTS - Future Mini

LEASE COMMITMENTS - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Future minimum payments under operating leases
2,016	$ 1,071
2,017	1,071
2,018	1,071
2,019	1,071
2,020	1,071
Total minimum lease payments	5,355
Rental expense for operating leases	$ 1,039	$ 889	$ 907

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details)	3 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014	Sep. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Nov. 15, 2011USD ($)
Long-term debt
Current portion of long-term debt	$ 40,900,000		$ 40,900,000
Credit Facility
Long-term debt
Maximum borrowing capacity	48,500,000		$ 48,500,000
Number of trailing quarters during which certain financial ratios are to be maintained and minimum level of EBITDA is to be achieved (in months)			12 months
Amount in which the maximum borrowing capacity was permanently reduced	15,000,000	$ 20,000,000
Reduction in maximum borrowing capacity	1,500,000	$ 1,500,000	$ 1,500,000		$ 1,500,000	$ 1,500,000
Multiple which may be used to permanently reduce the maximum borrowing capacity under the credit facility			50,000
Current portion of long-term debt	$ 40,900,000		$ 40,900,000
Variable interest rate base				LIBOR
Percentage points added to the reference rate				1.50%
One-month LIBOR interest rate (as a percent)				0.17%
Credit Facility | Actual
Long-term debt
Leverage ratio			0.8
Fixed charge coverage ratio			42
Credit Facility | Minimum
Long-term debt
Amount in which the maximum borrowing capacity was permanently reduced			$ 500,000
Credit Facility | Minimum | Requirement
Long-term debt
Fixed charge coverage ratio			1.15
Credit Facility | Maximum | Requirement
Long-term debt
Leverage ratio			2
Old Credit Facility
Long-term debt
Maximum borrowing capacity							$ 60,000,000

TAXES - Income Tax Expense and

TAXES - Income Tax Expense and Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective tax rate (as a percent)	35.19%	32.82%	37.19%
Colorado ballot initiative costs		$ 1,864
Income Tax Expense (Benefit), Continuing Operations
Federal	$ 11,968	6,935	$ 9,856
State	359	46	396
Current tax provision	12,327	6,981	10,252
Federal	(1,117)	637	(108)
State	7	(688)	490
Deferred tax (benefit) provision	(1,110)	(51)	382
Total tax provision	$ 11,217	$ 6,930	$ 10,634
Income tax provision differs from that computed at the federal statutory rate
Federal tax at the statutory rate (as a percent)	35.00%	35.00%	35.00%
State tax (net of federal benefits) (as a percent)	0.72%	(1.84%)	1.33%
Permanent items	0.34%	3.49%	0.45%
Tax credits	(0.73%)	(1.03%)	(0.77%)
Other (as a percent)	(0.14%)	(2.80%)	1.18%
Provision for income taxes as a percentage of pre-tax earnings	35.19%	32.82%	37.19%
Increase in capital from tax benefits for the employee stock-based compensation	$ 865	$ 386	$ 413
DEFERRED TAX ASSETS
Stock-based compensation	2,039	2,156
Compensation and benefits	1,033	744
Bad debt reserves	163	114
Accrued expenses	1,695	1,663
Fixed assets and depreciation	2,626	1,615
Base stock	10	1
State Taxes	133
NOLs & credit carry-forwards	3,831	4,322
Deferred income tax asset	11,530	10,615
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	7,415	4,682
DEFERRED TAX LIABILITIES
Intangibles and amortization	(2,235)	(2,649)
Prepaid expenses	(1,279)	(984)
Real estate taxes	(150)	(290)
Other Reserves	(95)	(24)
Federal deduction on deferred state taxes	(356)	(360)
Deferred income tax liability	(4,115)	(4,307)
NET DEFERRED INCOME TAX ASSET	7,415	$ 6,308
Adoption of ASU 2015-17 | New Accounting Pronouncement, Early Adoption, Effect
DEFERRED TAX ASSETS
Deferred Tax Assets, Net of Valuation Allowance, Current	2,800
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	$ 2,800

TAXES - NOL and GBC Carryforwar

TAXES - NOL and GBC Carryforwards (Details) - Monarch Black Hawk $ in Thousands	Dec. 31, 2015USD ($)
Tax Credit Carryforwards
General business credit (GBC) carryforwards	$ 300
Carryforwards subject to an annual base limitation	1,250
IRS
Tax Credit Carryforwards
NOL carryforwards	7,400
State of Nevada
Tax Credit Carryforwards
NOL carryforwards	$ 19,500

TAXES - Unrecognized Tax Benefi

TAXES - Unrecognized Tax Benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
TAXES.
Liability related to uncertain tax positions which is recorded as a current liability	$ 0	$ 0	$ 0
Accrued interest expense or penalties, related to unrecognized tax benefits	$ 0	$ 0	$ 0

TAXES - Sales and Use Tax (Deta

TAXES - Sales and Use Tax (Details) $ in Millions	3 Months Ended
	Jun. 30, 2013USD ($)
Unrecognized tax benefits and settlements with tax authorities
Reversal of previously accrued sales tax	$ 0.6
State of Nevada
Unrecognized tax benefits and settlements with tax authorities
Amount of requested refund, excluding interest	1.6
Accrued sales tax	$ 0.6

BENEFIT PLANS (Details)

BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
BENEFIT PLANS
Maximum percentage of pre-tax compensation that participating employees may defer under the plan	100.00%
Company's matching contributions	$ 318	$ 283	$ 283

STOCK-BASED COMPENSATION - Bene

STOCK-BASED COMPENSATION - Benefit Plans, Activity and Expense Measurement and Recognition (Details)	May. 21, 2014item	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / shares
Option valuation assumptions for options granted
Cash received for all stock option exercises | $		$ 3,900,000	$ (2,726,000)	$ 3,438,000
Tax benefit realized from stock awards exercised | $		$ 865,000	$ 1,079,000	$ 413,000
Stock options
STOCK-BASED COMPENSATION
Number of stock option plans | item	2
Number of common shares authorized to be purchased		1,000,000
Options
Outstanding at beginning of period (in shares)		2,002,203
Granted (in shares)		492,957
Exercised (in shares)		(389,905)
Forfeited (in shares)		(66,668)
Outstanding at end of period (in shares)		2,038,587	2,002,203
Exercisable at end of period (in shares)		798,583
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share) | $ / shares		$ 13.73
Granted (in dollars per share) | $ / shares		18.94
Exercised (in dollars per share) | $ / shares		10
Forfeited (in dollars per share) | $ / shares		14.81
Outstanding at end of period (in dollars per share) | $ / shares		15.66	$ 13.73
Exercisable at end of period (in dollars per share) | $ / shares		$ 14.08
Weighted Average Remaining Contractual Term
Outstanding at end of period		7 years 1 month 6 days
Exercisable at end of period		4 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding at end of period (in dollars) | $		$ 15,080,254
Exercisable at end of period (in dollars) | $		$ 7,592,610
Nonvested Shares
Nonvested at the beginning of the period (in shares)		1,173,143
Granted (in shares)		492,957
Vested (in shares)		(359,428)
Forfeited (in shares)		(66,668)
Nonvested at the end of the period (in shares)		1,240,004	1,173,143
Weighted-Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares		$ 3.91
Granted (in dollars per share) | $ / shares		5.87
Vested (in dollars per share) | $ / shares		2.90
Forfeited (in dollars per share) | $ / shares		4.05
Nonvested at the end of the period (in dollars per share) | $ / shares		$ 4.97	$ 3.91
Unrecognized costs
Unrecognized costs related to all share-based awards outstanding | $		$ 4,200,000
Weighted average period for recognition of unrecognized compensation costs		2 years 7 months 6 days
Option valuation assumptions for options granted
Expected volatility (as a percent)		39.10%	34.95%	37.03%
Weighted average risk free rate (as a percent)		1.14%	1.06%	0.85%
Weighted average grant date fair value per share of options granted (in dollars per share) | $ / shares		$ 5.90	$ 4.02	$ 5.38
Total fair value of shares vested | $		$ 1,041,000	$ 913,000	$ 1,123,000
Total intrinsic value of options exercised | $		4,321,000	8,921,000	2,737,000
Cash received for all stock option exercises | $		3,900,000	12,595,000	3,438,000
Tax benefit realized from stock awards exercised | $		$ 1,512,000	$ 3,122,000	$ 958,000
Stock options | Maximum
STOCK-BASED COMPENSATION
Number of common shares authorized to be purchased		2,453,506
Stock options | Directors' Plan
Option valuation assumptions for options granted
Expected life		3 years 11 months 19 days	3 years 7 months 2 days	3 years 3 months 26 days
Stock options | Executive Plan
Option valuation assumptions for options granted
Expected life		4 years 3 months 11 days	4 years 3 months 22 days	4 years 5 months 23 days
Stock options | Employee Plan
Option valuation assumptions for options granted
Expected life		3 years 11 months 19 days	3 years 7 months 2 days	3 years 3 months 26 days

STOCK-BASED COMPENSATION - Clas

STOCK-BASED COMPENSATION - Classification of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock-based compensation expense
Total stock-based compensation, before taxes	$ 1,544	$ 1,226	$ 1,220
Tax benefit	(540)	(429)	(427)
Total stock-based compensation, net of tax	1,004	797	793
Casino
Stock-based compensation expense
Total stock-based compensation, before taxes	58	45	20
Food and beverage
Stock-based compensation expense
Total stock-based compensation, before taxes	85	68	33
Hotel
Stock-based compensation expense
Total stock-based compensation, before taxes	21	11	3
Selling, general and administrative
Stock-based compensation expense
Total stock-based compensation, before taxes	$ 1,380	$ 1,102	$ 1,164

STOCK REPURCHASE PLAN (Details)

STOCK REPURCHASE PLAN (Details) - shares	Dec. 31, 2015	Oct. 22, 2014
Purchases of treasury stock	0
Maximum
Authorized repurchase of Company's common stock		3,000,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - Self Insurance	12 Months Ended
	Dec. 31, 2015USD ($)
COMMITMENTS AND CONTINGENCIES
Liability retention for self-insured individual health care claims	$ 250,000
Maximum annual liability per insured	250,000
Minimum amount of claims for computation of variable portion of maximum liability for health plan per insured per year	$ 250,000
Variable portion of maximum annual liability per insured (as a percent)	10.00%
Maximum liability for workers' compensation under stop-loss agreement per claim	$ 500,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	Aug. 28, 2015USD ($)aft²item	Sep. 30, 2004USD ($)	Aug. 31, 2015item	Dec. 31, 2015USD ($)ft²item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Members of Management Holding Noncontrolling Interests | BLI Driveway Project
LEASE COMMITMENTS
Lease term under each renewal				5 years
Area of property leased (in square feet) | ft²				37,368
Minimum lease term				15 years
Original annual rent expense		$ 300
Annual rent				$ 377	$ 350	$ 340
Number of terms for which the lease can be renewed | item			3	3
Lease rent paid				$ 377	350	340
Operating expenses related to lease				84	119	159
Affiliates of Controlling Stockholders
LEASE COMMITMENTS
Lease rent paid				142	$ 125	$ 123
Golden Road | Members of Management Holding Noncontrolling Interests | BLI Parking Lot Lease
LEASE COMMITMENTS
Lease term	20 years
Area of property leased (in acres) | a	4.15
Area of building being demolished (in square feet) | ft²	46,000
Number of parking spaces | item	300
Minimum annual rent	$ 695
Anniversary years subject to cost of living adjustment rent increase	5 years
Lease term under each renewal	10 years
Amount due to related party if lease is not renewed	$ 1,600
Lease rent paid				85
Operating expenses related to lease				$ 12

SELECTED QUARTERLY FINANCIAL 54

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
Net Revenues	$ 51,485	$ 53,576	$ 50,013	$ 47,171	$ 45,859	$ 48,597	$ 47,803	$ 45,508	$ 202,245	$ 187,767	$ 188,749
Operating expenses	43,498	43,527	41,965	40,700	41,105	41,931	42,335	40,177	169,690	165,548	158,294
Income from operations	7,987	10,049	8,048	6,471	4,754	6,666	5,468	5,331	32,555	22,219	30,455
Net income	$ 5,123	$ 6,394	$ 5,099	$ 4,043	$ 3,811	$ 4,074	$ 3,024	$ 3,276	$ 20,659	$ 14,185	$ 17,961
Income per share of common stock
Basic (in dollars per share)	$ 0.30	$ 0.38	$ 0.30	$ 0.24	$ 0.23	$ 0.24	$ 0.18	$ 0.20	$ 1.22	$ 0.85	$ 1.10
Diluted (in dollars per share)	$ 0.29	$ 0.37	$ 0.29	$ 0.24	$ 0.22	$ 0.24	$ 0.18	$ 0.19	$ 1.19	$ 0.83	$ 1.06

Schedule II. - VALUATION AND 55

Schedule II. - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation and Qualifying Accounts
Balance at beginning of year	$ 317	$ 371	$ 729
Charged to cost and expenses	240	51	(230)
Deduction	(106)	(105)	(128)
Balance at end of year	$ 451	$ 317	$ 371