Magna Entertainment to quit Oregon dog track

Toronto - 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.

The Canadian firm said the lease on Multnomah Greyhound Park in Portland, Oregon expires Dec. 31 and will not be renewed.

It 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.

It 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.

Magna 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.

"Unfortunately, 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.

"We 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."

Shares 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.

Magna 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.

 

Lakes Entertainment, Inc. Signs Consulting Agreement and Management Agreement with the Kickapoo Traditional Tribe of Texas

MINNEAPOLIS - Lakes Entertainment, Inc. announced today that it has signed a consulting agreement and a management contract with the Kickapoo Traditional Tribe of Texas.

The 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.

Lyle 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"

Chairman 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."

For 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.

Tim 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."

Lakes 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.