1288924--3/30/2006--River_Rock_Entertainment

related topics

{debt, indebtedness, cash}

{competitive, industry, competition}

{operation, natural, condition}

{cost, regulation, environmental}

{regulation, change, law}

{customer, product, revenue}

{personnel, key, retain}

{product, liability, claim}

Risks Related to Our Business We have a substantial amount of indebtedness that could adversely affect our financial condition and prevent us from fulfilling our obligations under the Outstanding Notes. We will require a significant amount of cash to service our indebtedness and fund our gaming operations. Our ability to generate cash depends on many factors beyond our control. Since we depend on operations in a single location, certain events that we cannot control may adversely affect the business performance of our gaming facility. We have experienced landslides and may not be insured against damage resulting from landslides. Recent highway and bridge construction projects may impact the length of travel to our Casino by certain customers. We face competition from other California Indian casinos, casinos located in Nevada and elsewhere and other forms of gaming. Although we have applied to obtain a license to sell alcohol, we do not have one to date. We could face difficulties in attracting and retaining qualified employees, and are currently conducting a search for a new Chief Executive Officer and General Manager. Restrictive covenants in the Indenture may limit our ability to expand our operations and to pursue our business strategies. Risks related to environmental matters could have an adverse effect on us. Our business and assets could become liable for claims asserted against the Tribe if the Tribe waives its sovereign immunity with respect to our business or assets or if tribal law intended to limit such liability is ineffective. Risks Relating to the Indian Gaming Industry Our gaming operations are extensively regulated by federal laws and the Compact, and non-compliance with these laws or the Compact by us or the Tribe, as well as changes in the laws or future interpretations of the laws or the Compact, could have a material adverse effect on our gaming operations. Tribal-state compacts are renegotiable and the outcome of any renegotiation may negatively impact our competitive position or otherwise adversely affect our financial condition, results of operations or cash flows. A change in our current non-taxable status could have a material adverse effect on our cash flow and ability to fulfill our obligations under the Outstanding Notes.

Full 10-K form ▸

1288924--3/30/2006--River_Rock_Entertainment_Authority