Lakes Entertainment is the financial backer of the Jamul Casino project.The net unrealized gains in the third quarter of 2009 consisted of $0.7 million related to the project with the Jamul Indian Village ("Jamul Tribe") near San Diego, California and $0.2 million related to the project with the Iowa Tribe of Oklahoma near Oklahoma City, Oklahoma due primarily to improvements in the credit markets. Lakes also recognized impairment losses of $0.6 million during the third quarter of 2009 due primarily to continued uncertainty surrounding the completion of the Jamul project. Unrealized gains in the prior year period related primarily to the notes receivable related to the Red Hawk Casino project due to the recognition of a gain associated with the continued progress toward a fourth quarter 2008 opening of the Red Hawk Casino, partially offset by unrealized losses associated with a decrease in probability of opening the casino project for the Jamul Tribe.
...The net unrealized gains in 2009 consisted of $2.8 million related to the project with the Jamul Indian Village and $0.4 million related to the project with the Iowa Tribe of Oklahoma due primarily to improvements in the credit markets. Lakes also recognized an impairment on long-term assets in the amount of $2.9 million during the nine months ended September 27, 2009 due primarily to continued uncertainty surrounding the completion of the Jamul project. Unrealized gains in the prior year period related primarily to the notes receivable related to the Red Hawk Casino project with the Shingle Springs Band of Miwok Indians near Sacramento, California due to the recognition of a gain associated with the continued progress toward a fourth quarter 2008 opening of the Red Hawk Casino, partially offset by unrealized losses associated with a decrease in probability of opening the casino project for the Jamul Tribe.
Translated into plain English, the above essentially says that Lakes Entertainment is continuing to lose a significant amount of money on its investment in the Jamul Casino project. At some point, they'll say “enough is enough” and pull the plug on the whole thing...
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