Gulfport Casino Hotel Project (Hemingway Resort and Casino)

3 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Gulfport Casino Hotel Project (Hemingway Resort and Casino)

5. GULFPORT CASINO HOTEL PROJECT (HEMINGWAY RESORT AND CASINO)

Pursuant to the new regulatory requirements imposed by the Mississippi Gaming Commission, the Company amended its project plans to a 250,000 square-foot land-based casino featuring gaming, restaurants, bars, and support space, as well as an adjacent 300-room four-star hotel. Subject to obtaining the necessary financing (Note 15), the Company expects the completion and grand opening of the Project in fall 2016. When completed, the $170 million project will feature:

	●	Casino – approximately 53,000 square feet of gaming space, including 1,388 slot machines, 33 table games, including blackjack, craps, roulette, and pai-gow;

	●	Hotel – a 300-room four star hotel including 40 suites and 260 traditional rooms;

	●	Food and Beverage – 3 distinctive and diverse dining options, including a 120-seat steakhouse, a 240-seat buffet, and a casual dining café;

	●	Bars – 3 bars, including a Hemingway Bar featuring views of the marina and outdoor seating; and

	●	Parking – a parking garage and lot that can accommodate approximately 1,200 vehicles.

On November 12, 2014, the Company entered into an exclusive engagement agreement with a financial advisor for the seeking, arranging, negotiating and general advising of the Company with respect to the placement, in one or a series of transactions, of debt and/or equity securities for the purpose of funding the development of the Hemingway Resort and Casino. Consideration for the services under this agreement include a contingent placement fee equal to 3% of the principal amount of any first lien debt and 6% of any subordinated debt or equity like portion.

The financing of this $170 million project is contemplated to include:

	●	$115,000,000 of Senior Secured Notes

	●	$25,000,000 of Vendor Finance

	●	$25,000,000 of New Rotate Black, Inc. Equity

	●	$5,000,000 Equity invested to Date

Rotate Black, Inc.’s equity investment is contemplated to come from the sale of $25.8 Million of Rotate Black, Inc. Senior Notes. (Note 15)

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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ROTATE BLACK INC 10-Q