##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.


Form 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|          
|           |  | For the quarterly period ended September 30, 2005                                           
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from            to                                            

Commission File Number: 333-118149


American Casino & Entertainment
Properties LLC


(Exact name of registrant as specified in its charter)


|                                                                                         |  |                                         
|---------------------------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                                                 |  | 20-0573058                              
|(State or other jurisdiction of
    incorporation or organization)                       |  | (I.R.S. Employer
    Identification No.)
|                                                                                        
|2000 Las Vegas Boulevard South
    Las Vegas, NV(Address of principal executive offices) |  | 89104(Zip Code)                         

(702) 380-7777


(Registrants telephone number, including area code)


þ o


o þ


o þ










---










TABLE OF CONTENTS


|                       |  |                                                                                                                                         |  |      |    | 
|---------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                       |  |                                                                                                                                         |  | Page |   
|                       |  |                                                                                                                                         |  |      |   
|Part I                 |  | FINANCIAL INFORMATION                                                                                                                   |  |      |    | 
|                       |  | Item 1.  Unaudited
    Condensed Consolidated Financial Statements                                                                      |  |      |    | 
|                       |  | Condensed Consolidated Balance Sheets as of
    September 30, 2005 (unaudited) and December 31,
    2004                                |  |      | 2  | 
|                       |  | Condensed Consolidated Statements of Income
    for the three months ended September 30, 2005 and
    September 30, 2004 (unaudited)    |  |      | 3  | 
|                       |  | Condensed Consolidated Statements of Income
    for the nine months ended September 30, 2005 and
    September 30, 2004 (unaudited)     |  |      | 4  | 
|                       |  | Condensed Consolidated Statements of Cash
    Flows for the nine months ended September 30, 2005 and
    September 30, 2004 (unaudited) |  |      | 5  | 
|                       |  | Notes to Condensed Consolidated Financial
    Statements (unaudited)                                                                    |  |      | 6  | 
|                       |  | Item 2.  Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations                                  |  |      | 8  | 
|                       |  | Item 3.  Quantitative and
    Qualitative Disclosures about Market Risk                                                                 |  |      | 13 | 
|                       |  | Item 4.  Controls and
    Procedures                                                                                                    |  |      | 13 | 
|Part II                |  | OTHER INFORMATION                                                                                                                       |  |      |    | 
|                       |  | Item 6.  Exhibits                                                                                                                       |  |      | 14 | 
|EX-31.1: CERTIFICATION
|EX-31.2: CERTIFICATION



1



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##### Table of Contents






PART I.     FINANCIAL
INFORMATION







|        |                                                          
|------- | ---------------------------------------------------------
|ITEM 1. | Unaudited Condensed Consolidated Financial
    Statements

AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC





CONDENSED CONSOLIDATED BALANCE SHEETS


|                                                |                                                 |                    |         |         |                   |   |         |         | 
|----------------------------------------------- | ----------------------------------------------- | ------------------ | ------- | ------- | ----------------- | - | ------- | ------- | 
|                                                |                                                 | As of              |         |         | As of             |  
|                                                |                                                 | September 30, 2005 |         |         | December 31, 2004 |  
|                                                |                                                 |                    |         |         |                   |  
|                                                |                                                 | (Unaudited)        |         |         |                  
|                                                |                                                 | (In thousands)     |        
|ASSETS                                         
|Current Assets:                                 |                                                 |                    |         |         |                   |   |         |        
|                                                | Cash and cash equivalents                       |                    | $       | 98,204  |                   |   | $       | 75,161  | 
|                                                | Cash and cash equivalents-restricted            |                    |         | 502     |                   |   |         | 448     | 
|                                                | Investments-restricted                          |                    |         | 2,828   |                   |   |         | 2,546   | 
|                                                | Accounts receivable, net                        |                    |         | 4,168   |                   |   |         | 3,942   | 
|                                                | Related party receivables                       |                    |         | 1,111   |                   |   |         | 388     | 
|                                                | Deferred income taxes                           |                    |         | 2,685   |                   |   |         | 2,685   | 
|                                                | Other current assets                            |                    |         | 10,162  |                   |   |         | 10,311  | 
|                                                |                                                 |                    |         |         |                   |  
|Total Current Assets                            |                                                 |                    | 119,660 |         |                   |   | 95,481  |        
|                                                |                                                 |                    |         |         |                   |  
|Property and equipment, net                     |                                                 |                    | 318,390 |         |                   |   | 314,609 |        
|                                                |                                                 |                    |         |         |                   |  
|Debt issuance and deferred financing costs, net |                                                 |                    | 6,660   |         |                   |   | 7,447   |        
|Lessee incentive                                |                                                 |                    |        |         |                   |   | 367     |        
|Deferred income taxes                           |                                                 |                    | 38,263  |         |                   |   | 46,437  |        
|                                                |                                                 |                    |         |         |                   |  
|Total Other Assets                              |                                                 |                    | 44,923  |         |                   |   | 54,251  |        
|                                                |                                                 |                    |         |         |                   |  
|Total Assets                                    |                                                 | $                  | 482,973 |         |                   | $ | 464,341 |        
|                                                |                                                 |                    |         |         |                   |  
|                                               
|LIABILITIES AND MEMBERS EQUITY                
|Current Liabilities:                            |                                                 |                    |         |         |                   |   |         |        
|                                                | Accounts payable-trade                          |                    | $       | 4,614   |                   |   | $       | 5,234   | 
|                                                | Accrued expenses                                |                    |         | 19,341  |                   |   |         | 22,759  | 
|                                                | Accrued payroll and related expenses            |                    |         | 9,014   |                   |   |         | 10,779  | 
|                                                | Current portion of capital lease obligation     |                    |         | 467     |                   |   |         | 450     | 
|                                                |                                                 |                    |         |         |                   |  
|Total Current Liabilities                       |                                                 |                    | 33,436  |         |                   |   | 39,222  |        
|                                                |                                                 |                    |         |         |                   |  
|Long-Term Liabilities:                          |                                                 |                    |         |         |                   |   |         |        
|                                                | Notes payable                                   |                    |         | 215,000 |                   |   |         | 215,000 | 
|                                                | Accrued lessee incentive                        |                    |         | 40      |                   |   |         | 568     | 
|                                                | Capital lease obligations, less current portion |                    |         | 2,946   |                   |   |         | 3,298   | 
|                                                | Other                                           |                    |         | 5,257   |                   |   |         | 5,257   | 
|                                                |                                                 |                    |         |         |                   |  
|Total Long-Term Liabilities                     |                                                 |                    | 223,243 |         |                   |   | 224,123 |        
|                                                |                                                 |                    |         |         |                   |  
|Total Liabilities                               |                                                 |                    | 256,679 |         |                   |   | 263,345 |        
|                                                |                                                 |                    |         |         |                   |  
|Commitments and Contingencies                   |                                                 |                    |         |         |                   |   |         |        
|Members Equity:                                |                                                 |                    |         |         |                   |   |         |        
|Members Equity                                 |                                                 |                    | 226,294 |         |                   |   | 200,996 |        
|                                                |                                                 |                    |         |         |                   |  
|                                                | Total Members Equity                           |                    |         | 226,294 |                   |   |         | 200,996 | 
|                                                |                                                 |                    |         |         |                   |  
|Total Liabilities and Members Equity           |                                                 | $                  | 482,973 |         |                   | $ | 464,341 |        
|                                                |                                                 |                    |         |         |                   |  



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AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC





CONDENSED CONSOLIDATED STATEMENTS OF INCOME


|                           |                                     |                          |        |        |                    |   |        |        |        |  
|-------------------------- | ----------------------------------- | ------------------------ | ------ | ------ | ------------------ | - | ------ | ------ | ------ | -
|                           |                                     | Three Months             |        |        | Three Months       |  
|                           |                                     | Ended                    |        |        | Ended              |  
|                           |                                     | September 30, 2005       |        |        | September 30, 2004 |  
|                           |                                     |                          |        |        |                    |  
|                           |                                     | (Unaudited)              |       
|                           |                                     | (In thousands)           |       
|Revenues:                  |                                     |                          |        |        |                    |   |        |       
|                           | Casino                              |                          | $      | 45,195 |                    |   | $      | 42,188 |       
|                           | Hotel                               |                          |        | 14,976 |                    |   |        | 12,893 |       
|                           | Food and beverage                   |                          |        | 17,524 |                    |   |        | 16,705 |       
|                           | Tower, retail and other             |                          |        | 9,360  |                    |   |        | 9,169  |       
|                           |                                     |                          |        |        |                    |  
|                           |                                     | Gross Revenues           |        |        | 87,055             |   |        |        | 80,955 |  
|                           | Less promotional allowances         |                          |        | 5,274  |                    |   |        | 5,816  |       
|                           |                                     |                          |        |        |                    |  
|                           |                                     | Net Revenues             |        |        | 81,781             |   |        |        | 75,139 |  
|                           |                                     |                          |        |        |                    |  
|Costs and Expenses:        |                                     |                          |        |        |                    |   |        |       
|                           | Casino                              |                          |        | 15,856 |                    |   |        | 15,386 |       
|                           | Hotel                               |                          |        | 7,183  |                    |   |        | 6,509  |       
|                           | Food and beverage                   |                          |        | 13,489 |                    |   |        | 12,292 |       
|                           | Other operating expenses            |                          |        | 3,913  |                    |   |        | 3,890  |       
|                           | Selling, general and administrative |                          |        | 21,268 |                    |   |        | 20,926 |       
|                           | Depreciation and amortization       |                          |        | 6,021  |                    |   |        | 5,594  |       
|                           | (Gain) loss on sale of assets       |                          |        | (3     | )                  |   |        | 125    |       
|                           |                                     |                          |        |        |                    |  
|                           |                                     | Total Costs and Expenses |        |        | 67,727             |   |        |        | 64,722 |  
|                           |                                     |                          |        |        |                    |  
|Income From Operations     |                                     |                          | 14,054 |        |                    |   | 10,417 |       
|                           |                                     |                          |        |        |                    |  
|Other Income (Expense):    |                                     |                          |        |        |                    |   |        |       
|                           | Interest income                     |                          |        | 469    |                    |   |        | 37     |       
|                           | Interest expense                    |                          |        | (4,559 | )                  |   |        | (4,592 | )     
|                           |                                     |                          |        |        |                    |  
|                           |                                     | Total Other Expense, net |        |        | (4,090             | ) |        |        | (4,555 | )
|                           |                                     |                          |        |        |                    |  
|Income Before Income Taxes |                                     |                          | 9,964  |        |                    |   | 5,862  |       
|Provision for income taxes |                                     |                          | 3,438  |        |                    |   | 1,661  |       
|                           |                                     |                          |        |        |                    |  
|Net Income                 |                                     | $                        | 6,526  |        |                    | $ | 4,201  |       
|                           |                                     |                          |        |        |                    |  



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AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC





CONDENSED CONSOLIDATED STATEMENTS OF INCOME


|                           |                                     |                          |        |         |                    |   |        |         |         |  
|-------------------------- | ----------------------------------- | ------------------------ | ------ | ------- | ------------------ | - | ------ | ------- | ------- | -
|                           |                                     | Nine Months              |        |         | Nine Months        |  
|                           |                                     | Ended                    |        |         | Ended              |  
|                           |                                     | September 30, 2005       |        |         | September 30, 2004 |  
|                           |                                     |                          |        |         |                    |  
|                           |                                     | (Unaudited)              |       
|                           |                                     | (In thousands)           |       
|Revenues:                  |                                     |                          |        |         |                    |   |        |        
|                           | Casino                              |                          | $      | 136,715 |                    |   | $      | 124,579 |        
|                           | Hotel                               |                          |        | 46,481  |                    |   |        | 40,616  |        
|                           | Food and beverage                   |                          |        | 52,492  |                    |   |        | 50,125  |        
|                           | Tower, retail and other             |                          |        | 26,785  |                    |   |        | 25,749  |        
|                           |                                     |                          |        |         |                    |  
|                           |                                     | Gross Revenues           |        |         | 262,473            |   |        |         | 241,069 |  
|                           | Less promotional allowances         |                          |        | 16,345  |                    |   |        | 17,561  |        
|                           |                                     |                          |        |         |                    |  
|                           |                                     | Net Revenues             |        |         | 246,128            |   |        |         | 223,508 |  
|                           |                                     |                          |        |         |                    |  
|Costs and Expenses:        |                                     |                          |        |         |                    |   |        |        
|                           | Casino                              |                          |        | 47,156  |                    |   |        | 46,568  |        
|                           | Hotel                               |                          |        | 20,050  |                    |   |        | 18,045  |        
|                           | Food and beverage                   |                          |        | 38,823  |                    |   |        | 35,956  |        
|                           | Other operating expenses            |                          |        | 11,625  |                    |   |        | 10,456  |        
|                           | Selling, general and administrative |                          |        | 59,953  |                    |   |        | 58,253  |        
|                           | Depreciation and amortization       |                          |        | 17,194  |                    |   |        | 17,908  |        
|                           | Gain on sale of assets              |                          |        | (24     | )                  |   |        | (19     | )      
|                           |                                     |                          |        |         |                    |  
|                           |                                     | Total Costs and Expenses |        |         | 194,777            |   |        |         | 187,167 |  
|                           |                                     |                          |        |         |                    |  
|Income From Operations     |                                     |                          | 51,351 |         |                    |   | 36,341 |        
|                           |                                     |                          |        |         |                    |  
|Other Income (Expense):    |                                     |                          |        |         |                    |   |        |        
|                           | Interest income                     |                          |        | 992     |                    |   |        | 992     |        
|                           | Interest expense                    |                          |        | (13,659 | )                  |   |        | (14,339 | )      
|                           |                                     |                          |        |         |                    |  
|                           |                                     | Total other expense, net |        |         | (12,667            | ) |        |         | (13,347 | )
|                           |                                     |                          |        |         |                    |  
|Income Before Income Taxes |                                     |                          | 38,684 |         |                    |   | 22,994 |        
|Provision for income taxes |                                     |                          | 13,386 |         |                    |   | 7,605  |        
|                           |                                     |                          |        |         |                    |  
|Net Income                 |                                     | $                        | 25,298 |         |                    | $ | 15,389 |        
|                           |                                     |                          |        |         |                    |  



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AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                  |                                                                                       |                                              |                          |         |                    |        |         |          |        |        |  
|------------------------------------------------- | ------------------------------------------------------------------------------------- | -------------------------------------------- | ------------------------ | ------- | ------------------ | ------ | ------- | -------- | ------ | ------ | -
|                                                  |                                                                                       | Nine Months                                  |                          |         | Nine Months        |       
|                                                  |                                                                                       | Ended                                        |                          |         | Ended              |       
|                                                  |                                                                                       | September 30, 2005                           |                          |         | September 30, 2004 |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|                                                  |                                                                                       | (Unaudited)                                  |                         
|                                                  |                                                                                       | (In thousands)                               |                         
|Cash Flows From Operating Activities:             |                                                                                       |                                              |                          |         |                    |        |         |         
|                                                  | Net income                                                                            |                                              | $                        | 25,298  |                    |        | $       | 15,389   |       
|                                                  | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                              |                          |         |                    |        |         |          |       
|                                                  |                                                                                       | Depreciation and amortization                |                          |         | 17,194             |        |         |          | 17,908 |       
|                                                  |                                                                                       | Gain on sale or disposal of assets           |                          |         | (24                | )      |         |          | (19    | )     
|                                                  |                                                                                       | Provision for deferred income taxes          |                          |         | 8,174              |        |         |          | 2,830  |       
|                                                  |                                                                                       | Changes in operating assets and liabilities: |                          |         |                    |        |         |          |        |       
|                                                  |                                                                                       |                                              | Restricted cash          |         |                    | (54    | )       |          |        | (447   | )
|                                                  |                                                                                       |                                              | Accounts receivable, net |         |                    | (226   | )       |          |        | 86     |  
|                                                  |                                                                                       |                                              | Other assets             |         |                    | 1,303  |         |          |        | 458    |  
|                                                  |                                                                                       |                                              | Accounts payable  trade |         |                    | (620   | )       |          |        | (2,104 | )
|                                                  |                                                                                       |                                              | Accrued expenses         |         |                    | (5,711 | )       |          |        | 1,890  |  
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Net Cash Provided By Operating Activities         |                                                                                       |                                              | 45,334                   |         |                    |        | 35,991  |         
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Cash Flows From Investing Activities:             |                                                                                       |                                              |                          |         |                    |        |         |         
|                                                  | (Increase) decrease in investments  restricted                                       |                                              |                          | (282    | )                  |        |         | 427      |       
|                                                  | Sale of marketable securities                                                         |                                              |                          |        |                    |        |         | 4,200    |       
|                                                  | Acquisition of property and equipment                                                 |                                              |                          | (20,993 | )                  |        |         | (12,320  | )     
|                                                  | Related party receivables                                                             |                                              |                          | (723    | )                  |        |         | (121     | )     
|                                                  | Proceeds from sale of property and equipment                                          |                                              |                          | 42      |                    |        |         | 399      |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Net Cash Used in Investing Activities             |                                                                                       |                                              | (21,956                  | )       |                    |        | (7,415  | )       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Cash Flows From Financing Activities:             |                                                                                       |                                              |                          |         |                    |        |         |         
|                                                  | Debt issuance and deferred financing costs                                            |                                              |                          |        |                    |        |         | (1,363   | )     
|                                                  | Proceeds from notes payable                                                           |                                              |                          |        |                    |        |         | 215,000  |       
|                                                  | Member contribution                                                                   |                                              |                          |        |                    |        |         | 28,219   |       
|                                                  | Capital distribution                                                                  |                                              |                          |        |                    |        |         | (187,816 | )     
|                                                  | Payments on related party notes payable                                               |                                              |                          |        |                    |        |         | (101,252 | )     
|                                                  | Payments on capital lease obligation                                                  |                                              |                          | (335    | )                  |        |         | (134     | )     
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Net Cash Used in Financing Activities             |                                                                                       |                                              | (335                     | )       |                    |        | (47,346 | )       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|                                                  | Net increase (decrease) in cash and cash equivalents                                  |                                              |                          | 23,043  |                    |        |         | (18,770  | )     
|                                                  | Cash and cash equivalents  beginning of period                                       |                                              |                          | 75,161  |                    |        |         | 77,258   |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Cash and Cash Equivalents  end of period         |                                                                                       | $                                            | 98,204                   |         |                    | $      | 58,488  |         
|                                                  |                                                                                       |                                              |                          |         |                    |       
|Supplemental Disclosure of Cash Flow Information: |                                                                                       |                                              |                          |         |                    |        |         |         
|                                                  | Cash paid during the period for interest                                              |                                              | $                        | 17,113  |                    |        | $       | 10,966   |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|                                                  | Cash paid during the period for income taxes                                          |                                              | $                        | 4,000   |                    |        | $       | 1,850    |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|                                                  | Net assets contributed by parent                                                      |                                              | $                        |        |                    |        | $       | 6,886    |       
|                                                  |                                                                                       |                                              |                          |         |                    |       
|                                                  | Change in tax asset related to acquisition                                            |                                              | $                        |        |                    |        | $       | 12,721   |       
|                                                  |                                                                                       |                                              |                          |         |                    |       



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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




|        |            
|------- | -----------
|Note 1. | The Company







|        |                      
|------- | ---------------------
|Note 2. | Basis of Presentation





Principles of Consolidation






|        |                           
|------- | --------------------------
|Note 3. | Related Party Transactions





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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)  (Continued)






Note 4. Non-guarantor Subsidiaries




Note 5. Legal Proceedings




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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations





Overview








|                          |  |         |        |  |           |  |       |        |  |  |             |  |  |  |    | 
|------------------------- |  | ------- | ------ |  | --------- |  | ----- | ------ |  |  | ----------- |  |  |  | -- | 
|                          |  | Casino  |        |  | Number of |  |       | Number |  |  | Number      | 
|                          |  | Square  |        |  | Hotel     |  |       | of     |  |  | of          | 
|                          |  | Footage |        |  | Rooms     |  |       | Slots  |  |  | Table Games | 
|                          |  |         |        |  |           |  |       |        |  |  |             | 
|Stratosphere              |  |         | 80,000 |  |           |  | 2,444 |        |  |  | 1,408       |  |  |  | 48 | 
|Arizona Charlies Decatur |  |         | 52,000 |  |           |  | 258   |        |  |  | 1,500       |  |  |  | 15 | 
|Arizona Charlies Boulder |  |         | 41,000 |  |           |  | 303   |        |  |  | 849         |  |  |  | 14 | 



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Results of Operations




| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | Three Months Ended September 30, 2005 Compared to
    Three Months Ended September 30, 2004

|                            |                                     |                          |      |      |      |   |      |          |      |  |      |      |     |  
|--------------------------- | ----------------------------------- | ------------------------ | ---- | ---- | ---- | - | ---- | -------- | ---- |  | ---- | ---- | --- | -
|                            |                                     | Three Months Ended       |     
|                            |                                     | September 30,            |     
|                            |                                     |                          |     
|                            |                                     | 2005                     |      |      | 2004 |   |      | % Change |     
|                            |                                     |                          |      |      |      |   |      |          |     
|                            |                                     | (In millions)            |     
|INCOME STATEMENT DATA:      |                                     |                          |      |      |      |   |      |          |      |  |      |     
|Revenues:                   |                                     |                          |      |      |      |   |      |          |      |  |      |     
|                            | Casino                              |                          | $    | 45.2 |      |   | $    | 42.2     |      |  |      | 7.1  | %  
|                            | Hotel                               |                          |      | 15.0 |      |   |      | 12.9     |      |  |      | 16.3 | %  
|                            | Food and beverage                   |                          |      | 17.5 |      |   |      | 16.7     |      |  |      | 4.8  | %  
|                            | Tower, retail and other             |                          |      | 9.4  |      |   |      | 9.2      |      |  |      | 2.2  | %  
|                            |                                     |                          |      |      |      |   |      |          |     
|                            |                                     | Gross revenues           |      |      | 87.1 |   |      |          | 81.0 |  |      |      | 7.5 | %
|Less promotional allowances |                                     |                          | 5.3  |      |      |   | 5.8  |          |      |  | (8.6 | )%  
|                            |                                     |                          |      |      |      |   |      |          |     
|                            |                                     | Net revenues             |      |      | 81.8 |   |      |          | 75.2 |  |      |      | 8.8 | %
|Costs and expenses:         |                                     |                          |      |      |      |   |      |          |      |  |      |     
|                            | Casino                              |                          |      | 15.9 |      |   |      | 15.4     |      |  |      | 3.2  | %  
|                            | Hotel                               |                          |      | 7.2  |      |   |      | 6.5      |      |  |      | 10.8 | %  
|                            | Food and beverage                   |                          |      | 13.5 |      |   |      | 12.3     |      |  |      | 9.8  | %  
|                            | Other operating expenses            |                          |      | 3.9  |      |   |      | 3.9      |      |  |      | 0.0  | %  
|                            | Selling, general and administrative |                          |      | 21.3 |      |   |      | 21.0     |      |  |      | 1.4  | %  
|                            | Depreciation and amortization       |                          |      | 6.0  |      |   |      | 5.6      |      |  |      | 7.1  | %  
|                            |                                     |                          |      |      |      |   |      |          |     
|                            |                                     | Total costs and expenses |      |      | 67.8 |   |      |          | 64.7 |  |      |      | 4.8 | %
|                            |                                     |                          |      |      |      |   |      |          |     
|Income from operations      |                                     | $                        | 14.0 |      |      | $ | 10.5 |          |      |  | 33.3 | %   
|                            |                                     |                          |      |      |      |   |      |          |     



| |               
| | --------------
| | Gross Revenues





| |                
| | ---------------
| | Casino Revenues





| |                    
| | -------------------
| | Non-Casino Revenues



9



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| |                       
| | ----------------------
| | Promotional Allowances





| |                   
| | ------------------
| | Operating Expenses







| |                 
| | ----------------
| | Interest Expense





| |                                                                                          
| | -----------------------------------------------------------------------------------------
| | Nine Months Ended September 30, 2005 Compared to Nine
    Months Ended September 30, 2004

|                            |                                     |                          |      |       |       |   |      |          |       |  |      |      |      |  
|--------------------------- | ----------------------------------- | ------------------------ | ---- | ----- | ----- | - | ---- | -------- | ----- |  | ---- | ---- | ---- | -
|                            |                                     | Nine Months Ended        |     
|                            |                                     | September 30,            |     
|                            |                                     |                          |     
|                            |                                     | 2005                     |      |       | 2004  |   |      | % Change |      
|                            |                                     |                          |      |       |       |   |      |          |      
|                            |                                     | (In millions)            |     
|INCOME STATEMENT DATA:      |                                     |                          |      |       |       |   |      |          |       |  |      |     
|Revenues:                   |                                     |                          |      |       |       |   |      |          |       |  |      |     
|                            | Casino                              |                          | $    | 136.7 |       |   | $    | 124.6    |       |  |      | 9.7  | %   
|                            | Hotel                               |                          |      | 46.5  |       |   |      | 40.6     |       |  |      | 14.5 | %   
|                            | Food and beverage                   |                          |      | 52.5  |       |   |      | 50.1     |       |  |      | 4.8  | %   
|                            | Tower, retail and other             |                          |      | 26.8  |       |   |      | 25.8     |       |  |      | 3.9  | %   
|                            |                                     |                          |      |       |       |   |      |          |      
|                            |                                     | Gross revenues           |      |       | 262.5 |   |      |          | 241.1 |  |      |      | 8.9  | %
|Less promotional allowances |                                     |                          | 16.4 |       |       |   | 17.6 |          |       |  | (6.8 | )%  
|                            |                                     |                          |      |       |       |   |      |          |      
|                            |                                     | Net revenues             |      |       | 246.1 |   |      |          | 223.5 |  |      |      | 10.1 | %
|Costs and expenses:         |                                     |                          |      |       |       |   |      |          |       |  |      |     
|                            | Casino                              |                          |      | 47.2  |       |   |      | 46.6     |       |  |      | 1.3  | %   
|                            | Hotel                               |                          |      | 20.1  |       |   |      | 18.0     |       |  |      | 11.7 | %   
|                            | Food and beverage                   |                          |      | 38.8  |       |   |      | 36.0     |       |  |      | 7.8  | %   
|                            | Other operating expenses            |                          |      | 11.6  |       |   |      | 10.5     |       |  |      | 10.5 | %   
|                            | Selling, general and administrative |                          |      | 59.9  |       |   |      | 58.2     |       |  |      | 2.9  | %   
|                            | Depreciation and amortization       |                          |      | 17.2  |       |   |      | 17.9     |       |  |      | (3.9 | )%  
|                            |                                     |                          |      |       |       |   |      |          |      
|                            |                                     | Total costs and expenses |      |       | 194.8 |   |      |          | 187.2 |  |      |      | 4.1  | %
|                            |                                     |                          |      |       |       |   |      |          |      
|Income from operations      |                                     | $                        | 51.3 |       |       | $ | 36.3 |          |       |  | 41.3 | %   
|                            |                                     |                          |      |       |       |   |      |          |      

10



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##### Table of Contents





| |               
| | --------------
| | Gross Revenues





| |                
| | ---------------
| | Casino Revenues





| |                    
| | -------------------
| | Non-Casino Revenues



Promotional
Allowances






| |                   
| | ------------------
| | Operating Expenses









| |                 
| | ----------------
| | Interest Expense



Financial Condition




| |                                
| | -------------------------------
| | Liquidity and Capital Resources



11



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##### Table of Contents













12



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##### Table of Contents





Forward-Looking Statements




We warn you that forward-looking statements are only
predictions. Actual events or results may differ as a result of
risks that we face. Forward-looking statements speak only as of
the date they were made and we undertake no obligation to update
them.







|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk












|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures







13



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##### Table of Contents






PART II. OTHER INFORMATION







|        |         
|------- | --------
|Item 6. | Exhibits

|            |    |             |  |                                                                                                               
|----------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 31 | .1          |  | Certification of Principal Executive Officer pursuant to
    Section 302(a) of the Sarbanes-Oxley Act of 2002.
|            | 31 | .2          |  | Certification of Principal Financial Officer pursuant to
    Section 302(a) of the Sarbanes-Oxley Act of 2002.

14



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##### Table of Contents



SIGNATURES






| |                                                   
| | --------------------------------------------------
| | American Casino &
    Entertainment Properties LLC



| |     |                  
| | --- | -----------------
| | By: | /s/ Denise Barton

| |                                                
| | -----------------------------------------------
| |                                                
| | Denise Barton                                  
| | Senior Vice President, Chief Financial Officer,
| | Treasurer and Secretary                        
| | (Principal Financial and Accounting Officer)   



15



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##### Table of Contents






Exhibits Index


|            |    |             |  |                                                                                                               
|----------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------
|Exhibit No. |    | Description
|            |    |            
|            | 31 | .1          |  | Certification of Principal Executive Officer pursuant to
    Section 302(a) of the Sarbanes-Oxley Act of 2002.
|            | 31 | .2          |  | Certification of Principal Financial Officer pursuant to
    Section 302(a) of the Sarbanes-Oxley Act of 2002.