7.INCOME TAXES

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



	For the six months					For the six months
Amounts in thousands	ended June 30, 2014					ended June 30, 2013
		Pre-tax income (loss)		Income tax expense (benefit)	Effective tax rate		Pre-tax income		Income tax expense (benefit)	Effective tax rate
Canada	$	1,696	$	706	41.6%	$	2,773	$	521	18.8%
United States		(986)		30	(3.0%)		393		6	1.5%
Mauritius*		36		1	2.8%		193		6	3.1%
Austria		18		1	5.6%		238		(1)	(0.4%)
Poland		(605)		(90)	14.9%		2,441		21	0.9%
Total	$	159	$	648	407.5%	$	6,038	$	553	9.2%

*Ship-based casinos

During the six months ended June 30, 2014, the Company recognized income tax expense of $0.7 million on pre-tax income of $0.2 million, representing an effective income tax benefit rate of 407.5% compared to an income tax expense of $0.6 million on pre-tax income of $6.0 million, representing an effective income tax rate of 9.2% for the same period in 2013.

The increase in the effective tax rate compared to the same period in 2013 is primarily the result of a pre-tax loss in the United States and lower pre-tax income in Austria and Poland for the second quarter of 2014. Since the Company maintains a full valuation allowance on all of its U.S. and Austrian deferred tax assets, income tax expense is recorded relative to the jurisdictions that recognize book earnings. In addition, the movement of exchange rates for intercompany loans denominated in U.S. dollars further impacts the Company’s effective income tax rate. Therefore, the Company’s overall effective income tax rate can be significantly impacted by foreign currency gains or losses.