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Green light for Kansas Speedway casino
KANSAS CITY, KANSAS (December 2) - Kansas Entertainment, LLC, (“Kansas
Entertainment”) a 50/50 joint venture of Penn Hollywood Kansas, Inc, a
subsidiary of Penn National Gaming, Inc. (PENN: Nasdaq) and Kansas Speedway
Development Corporation, a wholly owned subsidiary of International Speedway
Corporation (ISCA: Nasdaq; ISCB: OTC Bulletin Board) (“ISC”), was selected
on Tuesday by the Kansas Lottery Gaming Facility Review Board to develop and
operate a Hollywood-themed entertainment destination facility overlooking
Turn 2 at Kansas Speedway in the North East Gaming Zone in Wyandotte County,
Kansas. Based on its selection, and subject to background investigations and
licensing by the Kansas Racing and Gaming Commission which are expected to
be completed in early 2010, Kansas Entertainment would begin construction of
the Hollywood-themed and branded entertainment destination facility in the
second half of 2010 with a planned opening in the first quarter of 2012.
The initial phase of the new facility, budgeted at $386 million, would
include a 100,000-square-foot casino floor with capacity for 2,300 slot
machines and 86 table games, a high-energy lounge and a variety of dining
and entertainment options. Additional project phases including a hotel,
expanded gaming space, a spa, convention center and entertainment retail
district, have been master planned and will be developed based on market
demand. Penn National Gaming and International Speedway Corporation will
equally share the full development cost and future cash requirements which
are expected to approximate $290 million and be comprised of project
financing, gaming equipment lease financing and owner equity contributions.
Peter M. Carlino, Chief Executive Officer of Penn National commented, “We
are grateful for the Kansas Lottery Gaming Facility Review Board’s selection
of Kansas Entertainment to develop a distinctive entertainment facility in
Wyandotte County and are excited to bring new jobs, tax revenues and
sustainable economic benefits to the region. Both Penn National Gaming and
International Speedway Corporation are committed to the long-term success of
our planned first-class destination resort and to the long-term economic
success of this project in Wyandotte County and the state of Kansas.
“International Speedway Corporation is an ideal partner to work with on this
exciting project as we can bring to bear Penn National’s demonstrated
success in developing premier regional entertainment and gaming facilities
with the strong appeal of NASCAR® racing that ISC cultivates on a daily
basis across their network of thirteen tracks and entertainment facilities.
With facility openings over the next two years in Maryland, Ohio and Kansas,
Penn National is strategically expanding and diversifying its operating base
to meet our goal of building long-term shareholder value.”
“We are delighted to have been chosen to bring this unique facility to
Kansas Speedway,” said Lesa France Kennedy, International Speedway
Corporation Chief Executive Officer. “International Speedway Corporation is
committed to creating a world-class sports and leisure destination at Kansas
Speedway and we believe this effort will enable us to bring a second NASCAR
Sprint Cup series date to the speedway. Partnering with Penn National Gaming
on this project will allow us to develop a property that will be
well-positioned to maximize tourism, drive additional tax revenue, attract
national media attention for the state of Kansas and our host community,
Wyandotte County, and ultimately create value for our shareholders.”
“We’re pleased with today’s decision by the Kansas Lottery Gaming Facility
Review Board,” said Kansas Speedway President Jeff Boerger. “This exciting
decision will allow us to petition NASCAR to bring a second NASCAR Sprint
Cup Series date to Kansas Speedway and continue to make Kansas Speedway one
of the top motorsports facilities in the country. We look forward to
continuing our great relationship with the state of Kansas and the Kansas
Lottery throughout this project.”
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with a
focus on slot machine entertainment. The Company presently operates nineteen
facilities in fifteen jurisdictions, including Colorado, Florida, Illinois,
Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New
Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn
National’s operated facilities feature over 26,300 gaming machines,
approximately 400 table games, over 2,000 hotel rooms and over 959,000
square feet of gaming floor space.
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Actual results may
vary materially from expectations. Although Penn National Gaming, Inc. and
its subsidiaries (collectively, the “Company”) believe that our expectations
are based on reasonable assumptions within the bounds of our knowledge of
our business and operations, there can be no assurance that actual results
will not differ materially from our expectations. Meaningful factors that
could cause actual results to differ from expectations include, but are not
limited to, risks related to the following: our ability to maintain
regulatory approvals for our existing businesses and to receive regulatory
approvals for our new businesses; the passage of state, federal or local
legislation that would expand, restrict, further tax, prevent or negatively
impact operations (such as a smoking ban at any of our facilities) in the
jurisdictions in which we do business; the activities of our competitors and
the emergence of new competitors; construction factors, including delays and
increased cost of labor and materials; the costs and risks involved in the
pursuit of those development opportunities; the availability and cost of
financing; the effects of local and national economic, credit, capital
market, housing, energy conditions on the economy in general and on the
gaming and lodging industries in particular; and other factors as discussed
in the Company’s Annual Report on Form 10-K for the year ended December 31,
2008, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form
8-K as filed with the SEC. The Company does not intend to update publicly
any forward-looking statements except as required by law.
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