1171079--3/30/2006--CIRCUS_&_ELDORADO_JOINT_VENTURE

related topics
{competitive, industry, competition}
{debt, indebtedness, cash}
{operation, natural, condition}
{personnel, key, retain}
{stock, price, operating}
{cost, regulation, environmental}
{regulation, change, law}
{condition, economic, financial}
{interest, director, officer}
Risks Related to our Business We face substantial competition in the hotel and casino industry. Native American gaming in California could have a material adverse effect on the Reno market, in general, and on our operations, in particular. The terrorist attacks of September 11, 2001 have adversely impacted our operations and these attacks, as well as any security alerts and/or similar attacks that may occur, could have a material adverse effect on our future operations. Our substantial indebtedness could adversely affect our financial results and prevent us from fulfilling our obligations, including our obligations under our 10 1 / 8 % mortgage notes. Our senior secured credit facility and the indenture governing the notes contain covenants that restrict our ability to engage in certain transactions. Servicing our debt requires a significant amount of cash, and our ability to generate sufficient cash depends on many factors, some of which are beyond our control. Because we are entirely dependent upon the Silver Legacy Resort Casino for all of our cash flow, we are subject to greater risks than a gaming company that is geographically or otherwise diversified. Our operations may be negatively affected by general economic conditions. The hotel-casinos in the Reno market are highly dependent on surrounding market areas. The hotel-casinos in the Reno market have been subject to seasonal variations and quarterly fluctuations in operating results. Significant conflicts of interest may arise in the performance of the duties of the members of our executive committee and our executive officers. Our partnership agreement contains a buy-sell provision which, if exercised by either of our partners, could adversely affect our management and operations. We are subject to extensive state and local regulation, and licensing and gaming authorities have significant control over our operations, which could have an adverse effect on our business. Because we own real property, we are subject to extensive environmental regulation, which creates uncertainty regarding future environmental expenditures and liabilities. An earthquake could adversely affect our business. We rely on our key personnel. We may face difficulties in attracting and retaining qualified employees for our casino.

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