Entertainment to quit Oregon dog track
- Magna Entertainment Corp. said on Thursday it will not
renew its lease at an Oregon greyhound track, citing in
part stiffer competition from Native Indian-owned casinos.
Canadian firm said the lease on Multnomah
Greyhound Park in Portland, Oregon expires Dec. 31
and will not be renewed.
pinned the retreat on a more difficult competitive environment
than when it arrived on the scene three years ago. That
includes a rise in the number of Native-run casinos in
the state which Magna Entertainment said is cutting into
the market share of the wagering industry.
said recent news that more casinos may crop up in the
area means the competition will become even more fierce
in the years to come.
Entertainment, which owns the famed Santa
Anita and Pimlico
racetracks, also cited declines in the off-track betting
network business. It said that was mainly due to account
wagering providers who take bets from state residents
over the telephone and Internet.
at this point we don't believe the Oregon industry can
support both greyhound racing and horse racing,"
Jim McAlpine, Magna Entertainment's chief executive, said.
anticipate that by closing Multnomah
and focusing the industry's resources and energy on Portland
Meadows we can help bring about enough change to make
Oregon's horse racing industry economically viable."
in Magna Entertainment, spun off from autoparts giant
Magna International (MGsva.TO: Quote, Profile, Research)
, fell 29 Canadian cents, or 3.67 percent, to C$7.61 on
the Toronto Stock Exchange. In New York, the stock was
off 18 cents, or 2.84 percent, to $6.15.
Entertainment bought the operating rights for the track
in 2001. The company also operates the Portland
Meadows horse racetrack and that lease will continue,
the company said.
Entertainment, Inc. Signs Consulting Agreement and Management
Agreement with the Kickapoo Traditional Tribe of Texas
Entertainment, Inc. announced today that it has signed
a consulting agreement and a management contract with
the Kickapoo Traditional Tribe of Texas.
Tribe recently opened the expanded Lucky
Eagle Casino in Eagle Pass, Texas located approximately
140 miles southwest of San Antonio. The casino
currently consists of approximately 1,000 Class II type
gaming devices, a variety of Class II table games including
poker, two restaurant outlets and a multi-functional outlet
that seats over 2,000 customers.
Berman, Chairman and CEO of Lakes commented, "The
Kickapoo Traditional Tribe have created a tremendous opportunity
for themselves with the gaming facility they have opened.
We look forward to creating an even better destination
resort that will provide an exciting and first class experience
for the casino guests. Initial plans include expanding
the casino space to include approximately 2,000 Class
II type gaming devices, a new buffet restaurant with approximately
400 seats, a new steakhouse restaurant and the development
of a new road for better access to the casino
site. Additional plans would eventually include approximately
400 hotel rooms, a child care and kids arcade facility,
additional restaurants, a new event and entertainment
center, golf course, water park and travel plaza."
Berman continued, "We appreciate the help of Kevin
Kean who introduced our company to the Tribe"
Juan Garza, Jr. of the Traditional Council stated, "We
look forward to a long term relationship with Lakes. Through
their assistance with our casino resort project our Tribal
members will be able to realize new and greater benefits
for themselves and the community in which they live."
its consulting and development services, Lakes will receive
a one time development fee equal to two million dollars
($2,000,000) and twelve percent (12%) of any adjusted
gross revenue in excess of thirty million dollars ($30,000,000)
per year for a period of seven (7) years, subject to regulatory
approval. These fees will be earned but not paid to Lakes
during the first twelve (12) months of the agreement.
In the event the NIGC approves the management contract
between Lakes and the Tribe within the first twelve (12)
months, Lakes will waive the consulting and development
fees described above and will only operate and be paid
under the approved management agreement. The management
agreement shall continue for a term of seven (7) years
from the first day that Lakes is able to commence management
of the gaming operations under all legal and regulatory
requirements. As compensation for Lakes' management services,
Lakes shall receive approximately thirty percent (30%)
of total net profits in excess of twelve million dollars
($12,000,000) for each twelve (12) month period, subject
to regulatory approval.
Cope, President of Lakes indicated, "We look forward
to being able to immediately help the Tribe by providing
them advice on their new development plans. As soon as
our management agreement is approved by the NIGC, we will
be able to provide additional help to the Tribe by assuming
management of the casino operations utilizing our gaming
experience and expertise in a variety of ways."
Entertainment, Inc. currently has development and management
agreements with three separate Tribes for one new casino
operation in Michigan and two in California. Lakes also
has agreements for the development of an additional casino
on Indian-owned land in California through a joint venture
with MRD Gaming, which is currently being disputed by
the Tribe. Additionally, the Company owns approximately
64% of WPT Enterprises, Inc. a separate publicly held
media and entertainment company principally engaged in
the development, production and marketing of gaming themed
televised programming including the World Poker Tour television
series, the licensing and sale of branded products and
the sale of corporate sponsorships.