Kansas Entertainment, LLC, (“Kansas Entertainment”) today announced that it has presented the Unified Government of Wyandotte County with a check totaling $335,782, representing the first two months of advance payments on gaming revenue committed to the local community in connection with the development of Hollywood Casino at Kansas Speedway. 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”), plans to break ground for construction of the facility overlooking Turn 2 at Kansas Speedway on April 30 with a planned opening in the first half of 2012.
The initial phase of Hollywood Casino at Kansas Speedway includes a 100,000-square-foot casino floor with capacity for 2,300 slot machines, 61 table games and 25 poker tables, a high-energy lounge and a variety of dining and entertainment options. The long-term development plans include additional phases, which, based on market demand, could bring a hotel, expanded gaming space, a spa, convention center and an entertainment retail district to Kansas Speedway. 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 and Penn Hollywood Kansas and Kansas Speedway Development Corporation will equally share the full project development costs.
Kansas Entertainment has agreed to commit 1% (or approximately $2.2 million) of gaming revenue annually to the Unified Government of Wyandotte County for unrestricted civic use, plus annual contributions of $500,000 per year to non-host school districts, $500,000 per year to community services and charitable causes, $100,000 to Unified Government Parks & Recreation, $25,000 to Conventions & Visitors Bureau and $10,000 per year to local Chambers of Commerce. Kansas Entertainment also plans to provide two free billboards at Kansas Speedway to the State of Kansas for the promotion of tourism. In addition, ISC will seek a second NASCAR Sprint Cup Series race for Kansas Speedway and plans to build a new road course for a Grand-Am race at the track. These commitments, contributions and plans for expanded activities at the track are in addition to the 24% State and 3% local tax on gaming revenues generated by Hollywood Casino at Kansas Speedway, which will add to State and local revenues, with further annual contributions commencing following the facility’s opening.
Timothy Wilmott, President and Chief Operating Officer of Penn National, commented, “As we indicated in our earliest proposals, our goal is to maximize the long-term economic growth of Wyandotte County and our initial payments to the Unified Government are evidence of that financial commitment. We believe the Hollywood Casino at Kansas Speedway represents a major economic growth engine for the region and Kansas Entertainment is pleased to provide an immediate financial boost to the local community in advance of the start of construction. In addition to this financial commitment, we are proud that the project will bring a substantial base of new jobs to Wyandotte County, including over 1,700 construction jobs in the next two years and, once the facility is completed and open, over 1,000 full time jobs at Hollywood Casino at Kansas Speedway.”
Jeff Boerger, President of Kansas Speedway Development Corporation, added, “Hollywood Casino at Kansas Speedway will play an important role in transitioning the Speedway into a world-class sports, entertainment and leisure destination that will draw increased tourism to the area while driving higher tax revenue for the local and regional communities. International Speedway Corporation is committed to the long-term success of Wyandotte County, Kansas City and the State of Kansas and we believe this initial payment is a clear indication of our plans to drive economic growth in the community.”
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates nineteen facilities in fifteen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and Ontario. In aggregate, Penn National’s operated facilities feature over 26,300 gaming machines, approximately 400 table games, over 2,000 hotel rooms and over 959,000 square feet of gaming floor space.
In the second half of 2010, the Company plans to add table games to its facilities in West Virginia and Pennsylvania and expects to open the first video lottery terminal facility in the state of Maryland in Cecil County. Through a joint venture, Penn National is developing a full casino at Kansas Speedway in Kansas City, which is anticipated to open in early 2012, and is also developing casinos in Toledo and Columbus, Ohio, with openings targeted for the second half of 2012. The Company recently announced its planned acquisition of Beulah Park in Ohio in a transaction expected to close in the second quarter of 2010.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from expectations. Although Penn National Gaming, Inc. and its subsidiaries (collectively “Penn National”) believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, there can be no assurance that actual results will not differ materially from our expectations. Meaningful factors that could cause Penn National’s actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to maintain regulatory approvals for our existing businesses and to receive regulatory approvals for our new businesses; the passage of state, federal or local legislation that would expand, restrict, further tax, prevent or negatively impact operations (such as a smoking ban at any of our facilities) in the jurisdictions in which we do business or seek to do business; the activities of our competitors and the emergence of new competitors; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; the costs and risks involved in the pursuit of those development opportunities; the availability and cost of financing; the effects of local and national economic, credit, capital market, housing, energy conditions on the economy in general and on the gaming and lodging industries in particular; and other factors as discussed in Penn National’s Annual Report on Form 10-K for the year ended December 31, 2008, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. Penn National does not intend to update publicly any forward-looking statements except as required by law.
About International Speedway Corporation
International Speedway Corporation is a leading promoter of motorsports activities, currently promoting more than 100 racing events annually as well as numerous other motorsports-related activities. The Company owns and/or operates 13 of the nation’s major motorsports entertainment facilities, including Daytona International Speedway® in Florida (home of the Daytona 500®); Talladega Superspeedway® in Alabama; Michigan International Speedway® located outside Detroit; Richmond International Raceway® in Virginia; Auto Club Speedway of Southern CaliforniaSM near Los Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix International Raceway® in Arizona; Chicagoland Speedway® and Route 66 RacewaySM near Chicago, Illinois; Homestead-Miami SpeedwaySM in Florida; Martinsville Speedway® in Virginia; Darlington Raceway® in South Carolina; and Watkins Glen International® in New York. In addition, ISC promotes major motorsports activities in Montreal, Quebec, through its wholly owned subsidiary, Stock-Car Montreal.
The Company also owns and operates MRN® Radio, the nation's largest independent sports radio network; the Daytona 500 ExperienceSM, the “Ultimate Motorsports Attraction” in Daytona Beach, Florida, and official attraction of NASCAR®; and Americrown Service CorporationSM, a subsidiary that provides catering services, food and beverage concessions, and produces and markets motorsports-related merchandise. In addition, ISC has an indirect 50 percent interest in Motorsports Authentics®, which markets and distributes motorsports-related merchandise licensed by certain competitors in NASCAR racing. For more information, visit the Company's Web site at www.iscmotorsports.com.
Statements made in this release that express International Speedway Corporation’s or management's beliefs or expectations and which are not historical facts or which are applied prospectively are forward-looking statements. It is important to note that International Speedway’s actual results could differ materially from those contained in or implied by such forward-looking statements. International Speedway’s results could be impacted by risk factors, including, but not limited to, weather surrounding racing events, government regulations, economic conditions, consumer and corporate spending, military actions, air travel and national or local catastrophic events. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in International Speedway’s SEC filings including, but not limited to, the 10-K and subsequent 10-Qs. Copies of those filings are available from International Speedway Corporation and the SEC. International Speedway Corporation undertakes no obligation to release publicly any revisions to these forward-looking statements that may be needed to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by International Speedway or any other person that the events or circumstances described in such statement are material.