Century Casinos Announces Racing Entertainment Centre and Race Track Project
in Calgary, Alberta, Canada
COLORADO SPRINGS, Colo., Dec. 3, 2012 /CNW/ - Century Casinos, Inc. (NASDAQ
Capital Market® and Vienna Stock Exchange: CNTY) announced today that its
subsidiary Century Casinos Europe GmbH ("CCE") signed credit and management
agreements with United Horsemen of Alberta Inc. ("UHA") in connection with the
development of a proposed race track and entertainment center in Balzac, north
metropolitan area of Calgary, Alberta, Canada.
The proposed project would be the only horse race track in the Calgary area
and would consist of a 5.5 furlongs (0.7 miles) race track and a Racing
Entertainment Centre, including a gaming floor proposing 625 gaming machines,
a bar, a lounge, restaurant facilities, an off-track-betting area and an
entertainment area. This Racing Entertainment Centre license is the only
license still available in any metropolitan area of Alberta. This particular
license application pre-dates the AGLC recently approved three-year moratorium
on new Casinos and Racing Entertainment Centers, with an option to extend the
moratorium for an additional two years.
CCE has agreed to loan to UHA up to CAD 13 million (approximately USD 13
million based on the exchange rate in effect on December 3, 2012) for the
exclusive use of developing the proposed project. The loan has an interest
rate of LIBOR plus 800 bps, a term of five years and is convertible by CCE
into a 60% ownership position in UHA. The Company intends to provide the loan
to UHA with borrowings under the Company's Bank of Montreal Credit Agreement.
Once the project is developed and operational and for as long as CCE has not
converted the loan into a majority ownership position in UHA, CCE will receive
60% of UHA's net profit before tax as a management fee.
Both the credit and management agreements are subject to development approvals
and licensing from the AGLC. UHA and CCE have submitted the relevant
applications already, but there is no assurance that the needed approvals will
be obtained or as to the timing of such approvals. Horse Racing Alberta, the
governing authority for horse racing in Alberta, has already approved the
project and issued a license.
The proposed project would be located less than one mile north of the city
limits of Calgary and 4.5 miles from the Calgary International Airport. The
location is ideally positioned exiting off the Queen Elizabeth II Highway,
which is the main corridor between Calgary and Edmonton and one of the most
heavily used highways in Western Canada, next to the CrossIron Mills shopping
mall, a major regional attraction, and would capture both the north and the
northwest Calgary markets, which do not currently have a casino. The Company
anticipates that the race track and entertainment center would be completed 12
to 18 months following completion of the approval process.
About Century Casinos, Inc.: Century Casinos, Inc. is an international casino
entertainment company that owns and operates Century Casino & Hotels in
Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and
the Century Casino in Calgary, Alberta, Canada. The Company also operates
casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina,
Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit,
Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its
Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3%
ownership interest in Casinos Poland Ltd., the owner and operator of eight
casinos in Poland. The Company also manages the operations of the casino at
the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos,
Inc. continues to pursue other international projects in various stages of
For more information about Century Casinos, visit our website at
www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ
Capital Market® and the Vienna Stock Exchange under the symbol CNTY.
This release may contain "forward-looking statements" within the meaning of
Section 27A of the Security Act of 1933, as amended, Section 21E of the
Securities Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995. These statements are based on the beliefs and
assumptions of the management of Century Casinos based on information
currently available to management. Such forward-looking statements include,
but are not limited to, future results of operations, operating efficiencies,
synergies and operational performance, economic improvements in 2012 and plans
for our casinos and our Company. Such forward-looking statements are subject
to risks, uncertainties and other factors that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Important factors that could cause actual results
to differ materially from the forward-looking statements include, among
others, the risks described in the section entitled "Risk Factors" under Item
1A in our Annual Report on Form 10-K for the year ended December 31, 2011.
Century Casinos disclaims any obligation to revise or update any
forward-looking statement that may be made from time to time by it or on its
Peter Hoetzinger, Co CEO & President, +1-719-689-5813, +43 664 355 3935,
SOURCE: Century Casinos, Inc.
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-0- Dec/03/2012 14:30 GMT
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