The second quarter 2009 year-to-date discussion in this report focuses on the Company's results of continuing operations which is comprised of the Company's Entertainment segment's charitable bingo operations in four states: Texas, South Carolina, Alabama and Florida. In April 2009, the Company disposed of Premiere Tents & Events (PTE) thereby strategically aligning its focus on its Entertainment business.

The disposition of PTE is the final transaction in the disposition of the Company's Hospitality segment which had included units engaged in catering and party rentals. The disposition of the PTE business unit's assets resulted in a gain of approximately $404,000.

The Company achieved a record level of revenue from continuing operations which increased 19% over the comparable prior year period. Income from continuing operations was approximately $60,000, up approximately $674,000 over the prior year period. Excluding the notable items described below, income from continuing operations was approximately $1,117,000, up approximately $584,000 over the prior year period.

The Q2 2009 YTD results include approximately $1,057,000 of notable items:
$635,000 of expense associated with the start-up of new halls and re-openings at halls in Texas, $260,000 of legal expense for South Carolina, Florida, Texas and its Furtney litigation, $8,000 other asset disposals and $154,000 for non-cash stock-based compensation. The Company is working to reduce the negative impact of the Texas start-up operations and its legal fees should be more manageable with the recently reported South Carolina settlement. The Company expects the Furtney litigation to conclude this calendar year.

The Q2 2008 earnings included approximately $1,148,000 of notable items:
$748,000 of expense from Texas start-ups and re-openings, $374,000 from legal expense related to South Carolina, Texas and Furtney litigation and $26,000 for non-cash stock-based compensation expense.

Revenues



The following table sets forth the Company's revenues from continuing operations
the six months ended June 30, 2009 and 2008:



                                2009         2008       Change     % Change
           Total Revenues    $5,204,000   $4,361,000   $ 843,000     19%
           Entertainment      5,164,000    4,314,000     850,000     20%
           Texas              2,644,000    2,534,000     110,000      4%
           South Carolina     1,629,000      878,000     751,000     86%
           Alabama / Florida    891,000      902,000    (11,000)     (1%)
           Other               $ 40,000     $ 47,000   ($ 7,000)      NM

During the first six months of 2009, total revenues for the Company increased 19% from 2008. Entertainment revenue increased 20% and was favorably affected by the contribution of revenue from a net of seven halls acquired since the beginning of last year in South Carolina and Florida; a total of nine halls were acquired and two under-performing halls were closed. The first quarter is typically the strongest quarter especially in South Carolina.

By state, Entertainment revenues for Texas, South Carolina and Alabama were 51%, 32% and 17% of total Entertainment revenue respectively compared to 59%, 20% and 21% in 2008. Other revenue includes other ancillary services and miscellaneous revenue not reported as segment revenue.

Gross profit and Costs and Expenses

The table below summarizes the Company's gross profit from continuing operations for the six months ended June 30, 2009 and 2008. Gross profit percent (gross profit as a percent of sales) increased to 34% from 25% in 2008.

                                 2009         2008       Change     % Change
           Total Gross Profit $1,746,000   $1,087,000    $659,000     61%
           Entertainment       1,706,000    1,040,000     666,000     64%
           Other                $ 40,000     $ 47,000   ($ 7,000)      NM

Overall, total cost of services increased 6% over the comparable six-month prior year period mainly as a result of higher rent costs associated with new bingo halls.

Direct salaries and other compensation were up approximately $40,000 or 10% above the prior year reflecting the addition of staffing to support the acquired halls.

Rent and utilities in 2009 rose approximately $369,000 or 31% over 2008, largely due to the addition of our new halls in South Carolina and Florida. In 2009 and 2008, we did not recognize lease costs on a straight-line basis as provided in SFAS 13, paragraph 15 and FTB 85-3. Instead, lease costs were recognized based on payments made or accrued during each month. If the Company had recognized lease expense on a straight-line basis in 2009 and 2008, total lease costs would not have materially changed the Company's financial results. In general, the Company enters into long term leases underlying its operations. At the same time, the Company generally enters into agreements which are renewed annually with its customers. This permits the Company to adjust its customer agreements in response to general price increases and limits the effect of lease escalation clauses. Generally, the Company's leases require payments of rent and a pro-rata share of real estate maintenance, taxes and insurance.

Other direct operating costs in 2009 declined approximately $273,000 or 20% from the prior year, mainly resulting from lower costs such as advertising, promotions and development expenses associated with start-ups, re-openings and closures of certain halls in Texas.

Depreciation and amortization expense totaled approximately $411,000 ($354,000 Cost of Services plus $57,000 G&A) in 2009 versus $362,000 in the prior year. The increase in depreciation is mainly attributed to hall renovations last year.

General and administrative expenses, excluding related depreciation expense, the noted legal fees and stock-based compensation totaled approximately $527,000 in 2009, compared to approximately $514,000 in 2008, an increase of about $13,000. The increase mainly related to a staff reduction offset by certain compensation adjustments.

Other income and expense was an expense of approximately $94,000 for 2009, compared to approximately $132,000 in 2008. The difference mainly stems from lower interest expense from the refinancing of legal settlements and certain notes payable during 2008 and lower interest rates.

Our income tax expense for 2009 was approximately $53,000 compared to $44,000 in 2008, all of which is related to the expected effective tax rate for state income taxes. As of December 31, 2008, the Company had a net operating loss available for carryover on its federal income taxes of approximately $9,200,000.

Income from continuing operations

During the first six months of 2009, income from continuing operations was approximately $60,000; $0.00 per basic share and $0.00 per fully diluted share. The Company incurred a loss from continuing operations of approximately $614,000 for the first six months of 2008; a loss of ($0.04) per basic share and ($0.04) per fully diluted share. The weighted average number of basic Common Stock shares outstanding totaled 17,135,938 in 2009 compared to14,238,166 in 2008. The increase in shares outstanding mainly represents the sale of 5,190,568 shares of common stock on March 27, 2008.

The Q2 2009 YTD results include approximately $1,057,000 of notable items:
$635,000 of expense associated with the start-up of new halls and re-openings at halls in Texas, $260,000 of legal expense for South Carolina, Florida, Texas and its Furtney litigation and $154,000 for non-cash stock-based compensation. The Company is working to reduce the negative impact of the Texas start-up operations and its legal fees should be more manageable with the recently reported South Carolina settlement. The Company expects the Furtney litigation to conclude this calendar year.

The Q2 2008 earnings included approximately $1,148,000 of notable items:
$748,000 of expense from Texas start-ups and re-openings, $374,000 from legal expense related to South Carolina, Texas and Furtney litigation and $26,000 for non-cash stock-based compensation expense.

Adjusted for the noted items above, the adjusted income from continuing operations during the first six months of 2009 was approximately $1,117,000 and basic earnings per share were $0.07 per share in 2009 versus an adjusted net income of approximately $533,000 and basic earnings per share of $0.04 last year.

Liquidity and Capital Resources

Cash and cash equivalents at June 30, 2009, totaled approximately $3,957,000 and represented 21% of total assets of approximately $18,956,000. Current assets totaled approximately $4,789,000. Current liabilities totaled $1,932,000. Working capital was approximately $2,857,000 with a current ratio of 2.5 to 1 compared to approximately 1.9 to 1 in December 2008.

Cash provided by operating activities for the six months ended June 30, 2009 totaled approximately $432,000 compared to cash used of $226,000 during 2008. Cash flows from operating activities in 2009 were increased by net income of approximately $331,000 and provided by non-cash depreciation expense of approximately $464,000, stock based compensation of approximately $154,000 and partially offset by a gain on asset sale of $404,000 and other net changes in asset and liability accounts of $113,000.

Net cash used in investing activities totaled approximately $137,000 for capital expenditures mainly for bingo hall renovations, leasehold improvements and the acquisition of a hall in South Carolina during the six months ended June 30, 2009 partially offset by $300,000 from the sale of the PTE business unit. This compared to net cash used in investing activities of approximately $1,567,000 in 2008 for the purchase of capital assets and an acquisition.

Cash used in financing activities in 2009 totaled approximately $763,000, compared to net cash provided by financing activities in 2008 of approximately $6,843,000. During the first six months of 2009, approximately $500,000 was used in the final payoff of a note related to the purchase of six halls in South Carolina last year to realize a $300,000 reduction in purchase price and approximately $263,000 was used for the payment of notes payable and legal settlement obligations. In 2008, approximately $7,000,000 of cash proceeds were obtained through the sale of common stock, approximately $34,000 was provided by exercised options and $191,000 was used for the payment of notes payable and legal settlement obligations.

At June 30, 2009, we had approximately $18,956,000 in total assets with total liabilities of approximately $5,039,000 and approximately $13,917,000 of shareholders' equity. Total assets include approximately $3,957,000 in cash, $504,000 of net accounts receivable, other current assets of $328,000, $7,338,000 of net property and equipment, $6,150,000 of intangible assets, $417,000 note related to the sale of PTE and $262,000 of other assets. Total liabilities primarily consist of accounts payable of approximately $102,000 and notes payable obligations of approximately $3,288,000, legal settlement related obligations of $257,000 and accrued and related-party liabilities of $1,308,000 and $84,000 respectively.

In 2009, we plan to continue to use our cash generated from operations to make leasehold improvements and renovations in our bingo operations. We also plan to use advantageous combinations of bank financing, seller financing, treasury stock, and cash on hand to acquire new bingo halls when favorable terms can be obtained.

Financial Risk Management

Off-Balance Sheet Arrangements. We have no off-balance sheet debt.

Market Risk. In the normal course of business, we employ established procedures to manage our exposure to changes in the market value of our investments. There were no significant investments in marketable securities at June 30, 2009 or 2008. The Company holds its funds in cash and certificates of deposit generally insured by the FDIC with uninsured amounts setting off loans payable.

Recently Issued Accounting Pronouncements

In December 2007, the FASB issued SFAS 141(R), Business Combinations-a replacement of FASB Statement No. 141, which significantly changes the principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree. The statement also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement is effective prospectively, except for certain retrospective adjustments to deferred tax balances, for fiscal years beginning after December 15, 2008. The adoption of SFAS 141(R) did not have a significant impact on our financial position or results of operations.

In April 2008, the FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible Assets. FSP FAS 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS 142, Goodwill and Other Intangible Assets. The intent of the position is to improve the consistency between the useful life of a recognized intangible asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141R, Business Combinations , and other U.S. generally accepted accounting principles. The

In May 2009, the FASB issued SFAS No. 165, Subsequent Events ("SFAS 165"), which provides guidance to establish general standards of accounting for and disclosures of events that occur after balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 is effective for interim or fiscal periods ending after June 15, 2009. The adoption of SFAS 165 did not have a material impact on our consolidated financial position or results of operations.

In June 2009, the FASB issued SFAS No. 168, TheFASB Accounting Standards CodificationTMand the Hierarchy of Generally Accepted Accounting Principles-a replacement of FASB Statement No. 162 ("SFAS 168"), by which the FASB Accounting Standards CodificationTM (Codification) will become the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. This Statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009. Management is currently evaluating the impact of the adoption of SFAS 168 but does not expect the adoption to have a material impact on our consolidated financial position or results of operations.