KANSAS ENTERTAINMENT, LLC RECEIVES FINAL APPROVAL
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 Global Select Market; ISCB: OTC Bulletin Board) (“ISC”), today announced that it has received the final approval under the Kansas Expanded Lottery Act along with its gaming license from the Kansas Racing and Gaming Commission to proceed with the development of the Hollywood-themed destination casino overlooking Turn 2 at Kansas Speedway. In 2009 the Unified Government of Kansas City and Wyandotte County endorsed the project and Kansas Entertainment, which successfully negotiated a management agreement with the Kansas Lottery Commission. That agreement was subsequently approved by the Lottery Gaming Facility Review Board. Kansas Entertainment plans to begin construction of the facility early in the second half of 2010 with a planned opening in the first half of 2012.
Peter M. Carlino, Chief Executive Officer of Penn National commented, “Today’s approval formally cements our role in the Wyandotte County community and we are excited to begin working alongside our partner, International Speedway Corporation, and with local businesses to construct a distinctive, first-class entertainment facility and destination resort. Kansas Entertainment is committed to the long-term economic growth of Wyandotte County and the state of Kansas and we believe the Hollywood Casino at Kansas Speedway will be a growth engine bringing over 1,700 construction jobs, over 1,000 full time jobs and significant additional economic benefits to the Kansas City region.
“We are grateful to the Unified Government of Kansas City and Wyandotte County, the Kansas Lottery Commission, the Lottery Gaming Facility Review Board and the Kansas Racing and Gaming Commission, for their assistance and their support of our plans as we embark on the creation of Hollywood Casino at Kansas Speedway,” said Lesa France Kennedy, International Speedway Corporation Chief Executive Officer.
“International Speedway Corporation is also excited to partner with Penn National Gaming on a project that will elevate the status of Kansas Speedway to a world-class sports, entertainment and leisure destination. In addition, we believe our partnership with Penn National will result in a property that drives increased tourism and tax revenue for the local community and further improves the scope of our business. The casino is just a starting point of all the good things to come as we fulfill our commitment to seek a second NASCAR Sprint Cup Series race, build a road course and host a Grand-Am race and allocate one percent of the casino’s revenue in support of the various organizations that make up the fabric of our community.”
“We’re excited to start this project and look forward to bringing a second NASCAR Sprint Cup Series race, road course and Grand-AM race to Kansas Speedway and Kansas City, Kansas,” said Kansas Speedway President Jeff Boerger. “The Hollywood Casino at Kansas Speedway will be a world-class destination and provide race fans an additional entertainment option during our events.”
The $386 million phase one development of Hollywood Casino at Kansas Speedway includes 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. Kansas Entertainment’s plans include additional phases, which will bring a hotel, expanded gaming space, a spa, convention center and an entertainment retail district to Kansas Speedway, pending market demands. Pursuant to the terms of the joint venture, Kansas Speedway Development Corporation contributed 101 acres at Kansas Speedway for the development of the new facility. Penn National Gaming and International Speedway Corporation will equally share the full project development costs.