1288924--4/14/2008--River_Rock_Entertainment

related topics

{operation, natural, condition}

{debt, indebtedness, cash}

{competitive, industry, competition}

{cost, regulation, environmental}

{regulation, change, law}

{personnel, key, retain}

{financial, litigation, operation}

{customer, product, revenue}

{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. 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. 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. Our business is subject to contingencies beyond our control, including the aftermath of terrorist acts and wars, which may significantly and adversely affect our business, financial condition, results of operations and ability to make payments on the Notes. Acts of terrorism may negatively impact our future profits. A variety of uncontrollable events and natural disasters may reduce demand for our Casino. Highway and bridge construction projects have impacted the length of travel to our Casino by certain customers. We may face difficulties in recruiting, training and retaining qualified management employees. The loss of management and other key personnel could significantly harm our business. A recent federal court decision could lead to unionization in the tribal gaming industry . The market data relied on by us may be inaccurate or incomplete and is subject to change. Energy price increases may adversely affect our costs of operations and our revenues. 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.

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1288924--4/14/2008--River_Rock_Entertainment_Authority