Issue 249
June 20 - June 26, 2005
Volume 5
page 1
 

This Issue

Gaming News

Nambe Pueblo Signs Casino Management Agreement With Full House Resorts

MGM Mirage finalizes deal to develop, manage N.Y. casino

Century Casinos Announces Letter of Intent for Second South African Casino

MGM Mirage's project in Macau under way

Gala Bingo Launches Using Parlay Entertainment's Bingo Software

Show Time John Cafferty performs at Mohegan Sun.

Column Joe's Yard Games Is the Perfect Summertime Slot By Pam Droog.

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Nambe Pueblo Signs Casino Management Agreement With Full House Resorts

Press Release

LAS VEGAS, Nevada - Full House Resorts, Inc. announced today that the Nambe Pueblo Gaming Enterprise Board, which was recently appointed by the Nambe Pueblo Tribal Council to oversee its gaming operations, and the Tribe's Governor, have signed a Gaming Management Agreement with Full House, subject to the approval of the National Indian Gaming Commission in accordance with federal law.

The Management Agreement provides for a management fee of 30% of net revenue, payable to Full House over seven years from the opening of the gaming facility. Net revenue is a measurement of profitability that is defined by the National Indian Gaming Commission. First year gross revenues from the project are forecasted to be $36 million.

Greg Violette, Chief Operating Officer of Full House, stated "The team at Full House is looking forward to working with the Tribe and its Gaming Enterprise Board to make a reality of the vision that these leaders have to achieve economic prosperity for their people. Full House will assist the tribe with the implementation of all phases of its economic development plan, so that we can share in a mutually beneficial relationship."
Andre Hilliou, Chief Executive Officer of Full House, stated, "We are pleased to report this agreement to our shareholders. We have promised to grow the company and this project will provide additional management fee revenues to the company and be accretive to earnings."

Full House has proposed a multi-phased Master Plan of Economic Development for the Tribe. The first phase development of a full-scale casino will include a 50,000 square foot facility with 500 slot machines, twelve table games, three food outlets, gift shop, entertainment lounge and other amenities. An indoor amusement park to allow for family entertainment is also planned for the first phase. Plans for subsequent phases of development include a hotel, convention center and events center. Other future development that has been discussed for the tribe's 1,800 acre site on Highway 84/285 fifteen miles north of Santa Fe includes retail outlets, a movie theatre, restaurants and housing.

DCSW Architects of Albuquerque was selected as the project architect. DCSW, headed by Marc Schiff, brings over 28 years' experience in the planning, design, development and construction supervision of hotels, restaurants, cultural centers, public buildings and other commercial developments.

Tom Talache, Jr., Governor of the Nambe Pueblo Tribe, stated, "Full House Resorts has shown itself to be a worthy partner in our economic development plan. They have worked with us for the past fourteen months to formulate a plan that respects our history and culture and will be exciting and entertaining to the public. We appreciate the efforts to date of both Full House and DCSW, which has shown great vision in its preliminary design work. We anticipate great things from this economic development process and look forward to long-lasting gains. I am especially excited about being affiliated with Mr. Lee Iacocca. He has been an inspiration to me in the pursuit of my professional goals, since I first read his autobiography while I was serving in the U.S. Navy."

Brenda McKenna, Chairperson of the Nambe Pueblo Gaming Enterprise Board, stated "I am looking forward to a successful partnership with Full House and the beginning of a new business, political and social era for Nambe Oweenge."



MGM Mirage finalizes deal to develop, manage N.Y. casino
As reported by the Las Vegas Sun

QUEENS, New York - MGM Mirage said it has signed a definitive agreement to develop and manage a $170 million casino at the Aqueduct horse racing track in Queens, N.Y., and expects to open the casino by mid-2006.

MGM Mirage announced the deal more than two years ago, but several developments have hampered the project.

An appeals court in 2004 struck down a 2001 law allowing slot revenue to go to horse breeders and purses. In April, New York Gov. George Pataki approved a bill paving the way for slots to be installed at New York racetracks and a method by which slot revenue would be divvied up between tracks, horsemen, breeders and the state.

In 2003, federal prosecutors charged New York Racing Association officials with conspiring to evade taxes on $19 million in bets. NYRA is the nonprofit operator of the Aqueduct and other New York tracks. MGM Mirage, which had signed a contract with NYRA earlier that year, abruptly halted work on the casino amid rumors of the indictments.

Prosecutors allege NYRA track tellers skimmed money from bettors, leaving them short. NYRA then deducted the differences from employees' pay and treated it as a business expense, they said. NYRA avoided prosecution by paying $3 million in fines and agreeing to reforms as well as oversight from an independent monitor.

Since then, track owners, breeders and horse owners have been squabbling over how much of the slot revenue they will receive once the state gets its cut. MGM Mirage also raised the cost of the project by about $70 million.

The state tax rate at Aqueduct is expected to be about 75 percent, leaving relatively little for operators, Deutsche Bank stock analyst Mark Falcone said in a research note to investors.

The casino will have 4,500 video lottery terminals, which are essentially slot machines with centralized computer systems. State regulators still need to approve the casino deal, MGM Mirage said today.
Falcone said he expects the casino to generate from $10 million to $15 million per year in cash flow for MGM Mirage, translating into annual earnings per share of 2 cents to 3 cents.

MGM Mirage would still be able to operate the casino even if NYRA is stripped of its state franchise to operate Aqueduct, a contract that expires in December 2007, Falcone said.

"We look forward to being a positive factor in the state of New York and New York City for years to come," MGM Mirage Chief Executive Terry Lanni said in a statement.

In a separate research note, Susquehanna Financial Group stock analyst Eric Hausler said the casino is expected to be a slot machine facility with limited amenities and will "drain some day trip business" from nearby Atlantic City for slot players looking for something more convenient.

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