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 nine months						For the nine months
Amounts in thousands	ended September 30, 2014						ended September 30, 2013
	Pre-tax income (loss)		Income tax expense (benefit)		Effective tax rate		Pre-tax income		Income tax expense (benefit)		Effective tax rate
Canada	$	2,434	$	943		38.7%	$	3,771	$	831		22.0%
United States		(1,157)		56		(4.8%)		592		0		0.0%
Mauritius*		140		12		8.6%		271		8		3.0%
Austria		81		1		1.2%		301		(1)		(0.3%)
Poland		(1,121)		(226)		20.2%		2,340		(153)		(6.5%)
Total	$	377	$	786		208.5%	$	7,275	$	685		9.4%

*Ship-based casinos

During the nine months ended September 30, 2014, the Company recognized income tax expense of $0.8 million on pre-tax income of $0.4 million, representing an effective income tax benefit rate of 208.5% compared to an income tax expense of $0.7 million on pre-tax income of $7.3 million, representing an effective income tax rate of 9.4% 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 third 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.