I don't know if the saloon is in Pine Valley, but David has her in the back room.
I don't think he's playing a game with her. so far he's been up front by telling her she has bone fragments in her legs or somewhere and she needs an operation if she expects to walk. Of course the surgery could kill her, but it's up to her.
Greenlee doesn't want Ryan to see her unless she can walk so she's opting for the surgery, and doesn't want to call Ryan yet. Of course Ryan and Erica are getting closer.
<-----I'M TOTES ROLLING MY EYES