PR Newswire/euro adhoc/
EANS-Adhoc: Century Casinos Provides Update on "Century Downs Racetrack and
Casino" Project and the Date of the Sod Turning Ceremony in Calgary, Alberta,
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
COLORADO SPRINGS, Colorado, December 03, 2013 - Century Casinos, Inc. (NASDAQ
Capital Market® and Vienna Stock Exchange: CNTY) announced today that, through a
wholly owned subsidiary, it signed amended agreements with United Horsemen of
Alberta Inc. ("UHA") as well as a commitment letter with Bank of Montreal
("BMO") in connection with the development of a racetrack and Racing
Entertainment Centre ("REC") in Balzac, north metropolitan area of Calgary,
The project, which will be called "Century Downs Racetrack and Casino," will be
the only horse racetrack in the Calgary area and will consist of a 5.5 furlongs
(0.7 miles) racetrack and a REC, including a gaming floor offering 550 gaming
machines, a bar, a lounge, restaurant facilities and an off-track betting area.
This REC license is the only license currently available in any metropolitan
area of Alberta, as its application pre-dates the three-year moratorium on new
Casinos and RECs (which can be extended for an additional two years) by the
Alberta Gaming and Liquor Commission ("AGLC").
The Company completed its due diligence on the project. Litigation that was
brought by a third party against UHA relating to prior business arrangements
between that party and UHA has been settled, allowing the project to move
forward. The updated budget for the construction and opening of the REC and
racetrack is estimated at CAD 24 million (USD 23 million based on the exchange
rate in effect on November 30, 2013). The Company agreed to lend up to CAD 24
million to UHA and intends to provide the loan to UHA with borrowings under an
amended Credit Agreement with BMO; BMO and the Company signed a commitment
letter in this respect.
For entering into the amended agreements with UHA the Company received a 15%
ownership position as well as board control in UHA. In addition, the Company has
the right to convert CAD 11 million of the loan amount into a 60% ownership
position in UHA. Thus, if the Company exercises its conversion right, it would
own 75% of UHA. Once the project is developed and operational and for as long as
the Company has not exercised its conversion rights for a majority ownership
position in UHA, the Company will receive 60% of UHA's net profit before tax as
a management fee, subject to certain provisions.
Both the credit and management agreements are subject to final approvals from
the AGLC. AGLC has moved the licensing approval process to step 5, which give
UHA and the Company the permission to build the REC and racetrack under a number
of conditions; the license itself will be issued shortly before the planned
opening of the REC and racetrack, upon a final review by AGLC. All significant
shareholders in UHA, including the Company, have already been found suitable by
the AGLC. Horse Racing Alberta, the governing authority for horse racing in
Alberta, has already approved the project and issued a license. The applications
for final building permits are in process with Rocky View County. There is no
assurance that the needed approvals will be obtained or as to the timing of such
The proposed project is 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 plans to hold a sod turning ceremony on December 4, 2013 in Calgary.
The Company anticipates that the REC project will be completed by the end of
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 66.6% ownership interest in Casinos Poland Ltd, the owner
and operator of nine 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 development.
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, statements regarding the REC project and financing, timing and
prospectus for the project, future results of operations, operating
efficiencies, synergies and operational performance, 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, 2012. 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 behalf.
Further inquiry note:
Century Casinos Europe GmbH
Mag. Peter Hötzinger, CO-CEO
issuer: Century Casinos,Inc.
c/o Century Casinos Europe GmbH, Untere Viaduktgasse 2
sector: Casinos & Gambling
indexes: WBI, ATX Prime
stockmarkets: official market: Wien
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-0- Dec/03/2013 21:31 GMT
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