ISC and Penn National Gaming Bringing Hollywood Themed Facility to Kansas Speedway
International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) (“ISC”) today announced that Penn National Gaming, Inc. (NASDAQ: PENN) (“Penn”) is replacing The Cordish Company (“Cordish”) in its 50/50 joint venture, Kansas Entertainment, LLC (“KJV”), to be considered as a Lottery Gaming Facility Manager in Wyandotte County, Kansas.
Cordish has elected to sell its interest in KJV to Penn in order to focus on its other projects. KJV is seeking the consent of the Kansas Lottery Commission and the Unified Government of Wyandotte County for the transfer. Upon securing consents from the Unified Government of Wyandotte County and the Kansas Lottery Commission to proceed as a managing member of KJV, Penn National Gaming intends to withdraw the application of its subsidiary, Penn Hollywood Kansas, to be considered as a Lottery Gaming Facility Manager of a venue at an alternate site. ISC and Penn are currently finalizing certain operating and economic terms of their partnership and intend to provide additional disclosure about financial and project terms once they are completed.
Both ISC and Penn acknowledge Cordish's role in advancing the project to its current state of readiness including its vision for integrating a casino entertainment destination facility with a world-class motorsports speedway to bring tremendous benefits to the host community, customers, other constituents and the developers.
Commenting on the announcement, Lesa France Kennedy, ISC Chief Executive Officer, stated, “We are extremely pleased to be joining forces with Penn National to develop a premier Hollywood-themed casino and entertainment destination facility at Kansas Speedway. Adding Penn and its extremely solid financial position should substantiate our ability to deliver a world-class casino for the state of Kansas. We both are absolutely committed to providing additional economic benefit to the taxpayers of Kansas.”
KJV also reiterated its commitment to donate an additional one percent of its gaming revenues to the Unified Government of Wyandotte County/Kansas City, Kansas for use in charitable and civic causes as well as its financial commitment to non-host area school districts. Such contributions are in addition to the statutory taxes payable to the State and local governments.
Additionally, as previously committed, if awarded the management contract, ISC will petition NASCAR to realign a second Sprint Cup series date to the facility by no later than 2011. Further, Kansas Speedway is committed to building a road racing course in the infield of the facility and ISC will promote a Grand-Am Road Racing sports car race at the speedway. Kansas Speedway has also committed two free track-side billboards to the state of Kansas to promote tourism. The 20-foot-by-60-foot billboards are estimated to provide approximately $1.5 million in annual economic benefit to the state of Kansas.
“We are committed to bringing a world-class destination casino to Wyandotte County and Kansas Speedway,” said Kansas Speedway President Jeff Boerger. “Our project is uniquely capable of maximizing tourism, tax dollars and national and international media attention for both the state of Kansas and Wyandotte County.”
In closing, Ms. France Kennedy, stated, “In addition to the economic benefit the state of Kansas will receive from a premier Hollywood Casino and Hotel at Kansas Speedway, will be the long-term value we are creating for our shareholders.”