Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - ROTATE BLACK INCFinancial_Report.xls
10-Q - QUARTERLY REPORT - ROTATE BLACK INCrobk_10q.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR7.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR1.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR3.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR5.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR2.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR8.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR9.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR4.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR18.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR15.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR17.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR12.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR21.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR24.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR13.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR16.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR20.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR10.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR23.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR14.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR11.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR19.htm
XML - IDEA: XBRL DOCUMENT - ROTATE BLACK INCR22.htm
EX-31.2 - CERTIFICATION - ROTATE BLACK INCrobk_ex312.htm
EX-32.2 - CERTIFICATION - ROTATE BLACK INCrobk_ex322.htm
EX-32.1 - CERTIFICATION - ROTATE BLACK INCrobk_ex321.htm
EX-31.1 - CERTIFICATION - ROTATE BLACK INCrobk_ex311.htm
v2.4.0.6
1. Organization and Operations
9 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
1. Organization and Operations

Rotate Black, Inc. (Company) was incorporated in Nevada on August 2, 2006 to be the successor by merger of BevSystems International, Inc. and BevSystems International Ltd. (BevSystems).

 

The Company develops, operates and manages gaming and related properties. On April 1, 2010, the Company commenced operations under the Gulfport Project management agreement and was no longer a development stage company. (Note 6)

 

Gulfport Project

 

On May 28, 2010, the Company, Rotate Black, LLC (RBL), an entity under common control with the Company, and an officer of the Company formed Rotate Black MS, LLC (RBMS), a Mississippi limited liability company, to own, develop and manage the operations of a casino resort to be located in the property adjacent to the Gulfport, MS marina.  RBMS’s initial strategy was to secure an existing gaming vessel, move the vessel to the Gulfport site, and build land assets on that site to support the gaming vessel.  Subsequently, RBMS changed its strategy to an entirely land-based casino. In August 2012, the Company entered into an Indicative Summary of Terms and Conditions with debt and equity investors related to a proposed financing for the Gulfport Casino Hotel Project to be developed by RBMS (Borrower).  The proposed financing is for up to $101,800,000 for the development, design, construction, financing, ownership, operation and maintenance of an approximately 191,000 square foot land based, four star casino, including gaming, restaurant, bar and support space and an adjacent 205-room hotel in Gulfport, Mississippi.

 

Terms of the proposed financing call for senior secured term loans up to an aggregate of $80,900,000 to be provided in one tranche on the closing date, advanced at the rate of 94% of the principal.  Full repayment is expected to be October 2017.  Interest on the outstanding balance will be equal to the sum of the LIBOR rate applicable to the interest period, subject to a floor of 2%, and the applicable margin of 10.5%.

 

The equity investors shall fund the equity contribution to RBMS prior to the closing pursuant to the terms of an equity contribution agreement to be entered into by the equity investors, RBMS, and the Collateral Agent in the aggregate amount of $20,900,000.

 

Rotate Black Gaming

 

In October 2008, the Company acquired 75% of the outstanding common stock of Rotate Black Gaming, Inc., (Gaming), from RBL. Gaming is under contract to develop and manage a world-class destination casino resort in Sullivan County, New York. Gaming had acquired the property and completed all design layouts (Note 10).

 

Other Projects

 

On December 13, 2011, the Company formed a wholly-owned subsidiary, SlotOne, Inc., to provide slot machines on a participation basis in certain casino locations where the replacement of old equipment can enhance earnings for the gaming location and Rotate Black, Inc.

 

On January 11, 2011, the Company entered into a management agreement whereby a new to-be-formed wholly-owned subsidiary of the Company would act as manager for a proposed casino and entertainment destination on the Louis Bull Indian Reserve near Edmonton, Canada (Note 11).

 

In connection with the acquisition of Gaming, the Company also acquired the Dayton Project, a casino development project in Dayton, Nevada. The Dayton Project was cancelled as of June 30, 2009, and the Company had written-off the deferred expenses of $233,960 (Note 18).

 

Also in connection with the acquisition of Gaming, the Company acquired a 50% joint venture interest in Rotate Black India Pvt Ltd. (India), formed to develop a project in India. This project was cancelled as of December 31, 2009, and the Company had written-off the deferred expenses of $139,782