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Promotional Allowances
6 Months Ended
Jun. 30, 2011
Promotional Allowances  
Promotional Allowances

5.           PROMOTIONAL ALLOWANCES

 

Hotel accommodations and food and beverage furnished without charge to customers are included in gross revenue at a value which approximates retail and are then deducted as complimentary services to arrive at net operating revenue.

 

The Company issues coupons for the purpose of generating future revenue. The cost of the coupons redeemed is applied against the revenue generated on the day of the redemption. In addition, members of the Company's casinos' player clubs earn points based on, among other things, their volume of play at the Company's casinos. Players can accumulate points over time that they may redeem at their discretion under the terms of the program. Points can be redeemed for cash and/or various amenities at the casino, such as meals, hotel stays and gift shop items. The cost of the points is offset against the revenue in the period in which the revenue generated the points. The value of unused or unredeemed points is included in accounts payable and accrued liabilities on the Company's consolidated balance sheets. The expiration of unused points results in a reduction of the liability.

 

Promotional allowances presented in the condensed consolidated statement of earnings include the following:

 

 

 

 

For the three months 

 

 

For the six months 

 

 

 

 

 ended June 30,

 

 

 ended June 30,

 

 

 

 

2011

 

 

2010

 

 

2011

 

 

2010

 

 

Amounts in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel, Bowling, Food & Beverage

 

$

909

 

 

$

764

 

 

$

1,741

 

 

$

1,495

 

 

Free Plays or Coupons

 

 

502

 

 

 

539

 

 

 

947

 

 

 

1,108

 

 

Player Points

 

 

660

 

 

 

522

 

 

 

1,271

 

 

 

1,011

 

 

Total Promotional Allowances

 

$

2,071

 

 

$

1,825

 

 

$

3,959

 

 

$

3,614