KANSAS ENTERTAINMENT, LLC SELECTED TO DEVELOP HOLLYWOOD-THEMED DESTINATION GAMING FACILITY AT KANSAS SPEEDWAY
KANSAS ENTERTAINMENT, LLC SELECTED BY KANSAS LOTTERY GAMING FACILITY REVIEW BOARD TO DEVELOP HOLLYWOOD-THEMED
DESTINATION GAMING FACILITY AT KANSAS SPEEDWAY
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 today 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.”