WYOMISSING, Pa. & OXON HILL, Md.--(BUSINESS WIRE)--Penn National Gaming, Inc. announced today that it has submitted an application to the Maryland Racing Commission for a license to operate Rosecroft Raceway in Oxon Hill, Maryland, which the Company acquired in March. Subject to regulatory approval, Penn National plans to resume operations at Rosecroft Raceway on July 1, 2011 with a slate of 20 days of live racing in 2011 followed by 54 days of live racing in 2012. The application to the Racing Commission includes the principle terms of a purse agreement between the operator and both the standardbred horsemen and the breeders.
Penn National’s application also calls for year round simulcasting of standardbred and quarter horse races. The expansion to full simulcast operations that includes thoroughbred simulcasting and the increased staffing arising from those larger operation is contingent on the standardbred and thoroughbred industry participants reaching an agreement on terms.
In the spirit of cooperation, Penn National presented a proposal to the thoroughbred industry participants to resolve the dispute in early March, but has never received a response. The proposal included a 50-50 split of all net simulcasting revenue (subject to a cap of $2 million per year) produced at Rosecroft on any thoroughbred simulcast racing imported from out of state to Rosecroft, excluding any Penn National owned racetracks. The recently approved House Bill 1039 provides for binding arbitration if the dispute between the parties is not resolved by October 1, 2011.
Penn National Gaming Senior Vice President, Eric Schippers, commented, “By restoring and ultimately expanding operations at Rosecroft, Penn National can play a major role in saving the standardbred industry and returning live harness racing to this historic track.
“Rosecroft is a community asset and we look forward to working with all area stakeholders to develop a long-term plan that will allow Rosecroft to thrive and prosper once again. There is a rich history of standardbred racing in Maryland and given our position as the largest operator of pari-mutuel facilities in the country we look forward to rebuilding Rosecroft’s role in the state’s racing industry and nationwide through simulcasting.”
Rosecroft Raceway, located approximately 13 miles south of Washington, D.C., is situated on approximately 125 acres just outside the Washington I-95 Beltway in Prince George’s County. In addition, the facility is less than 5 miles from National Harbor, a 300-acre multi-use waterfront development on the Potomac River that includes condos, hotels, retail facilities and a marina, among other amenities. The 5/8-mile oval track with a seven race paddock, opened in 1947 and closed in July 2010 following the end of live racing in 2009. The track was in bankruptcy prior to Penn National’s acquisition. The Rosecroft facility features a 53,000 square foot grandstand building and 96,000 square foot three story clubhouse building with dining facilities.
Penn National Gaming, Inc. is licensed to conduct racing and/or gaming in 19 states including Maryland and is host to an industry high 1,300 live racing events annually.
About Penn National Gaming
Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. The Company presently operates twenty-five facilities in seventeen jurisdictions, including Colorado, Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario. In aggregate, Penn National's operated facilities feature over 27,000 gaming machines, over 500 table games, over 2,000 hotel rooms and over 1 million square feet of gaming floor space.
Through a joint venture, Penn National is developing a full casino at Kansas Speedway in Kansas City, which is anticipated to open in the first quarter of 2012, and is also developing casinos in Toledo and Columbus, Ohio, with openings targeted for 2012. In October 2010, Penn National purchased all of the outstanding debt of The M Resorts LLC. The M Resort Spa Casino is situated on over 90 acres on the southeast corner of Las Vegas Boulevard. Penn National recently entered into an asset purchase agreement with The M Resorts LLC’s equity owners that will allow the Company to convert its debt ownership into full equity, subject to, among other things, regulatory approvals.
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, the “Company”) 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 actual results to differ from expectations include, but are not limited to, risks related to the following: our ability to receive, or delays in obtaining, the regulatory approvals required to own, develop and/or operate our facilities, or other delays or impediments to completing our planned acquisitions or projects, including favorable resolution of any related litigation; our ability to secure state and local permits and approvals necessary for construction; construction factors, including delays, unexpected remediation costs, local opposition and increased cost of labor and materials; the passage of state, federal or local legislation (including referenda) that would expand, restrict, further tax, prevent or negatively impact operations in or adjacent to the jurisdictions in which we do business (such as a smoking ban at any of our facilities) or in jurisdictions where we seek to do business; the effects of local and national economic, credit, capital market, housing, and energy conditions on the economy in general and on the gaming and lodging industries in particular; the activities of our competitors and the emergence of new competitors; increases in the effective rate of taxation at any of our properties or at the corporate level; our ability to recover proceeds on significant insurance claims; our ability to identify attractive acquisition and development opportunities and to agree to terms with partners for such transactions; the costs and risks involved in the pursuit of such opportunities and our ability to complete the acquisition or development of, and achieve the expected returns from such opportunities; our expectations for the continued availability and cost of capital; the maintenance of agreements with our horsemen, pari-mutuel clerks and other organized labor groups; the outcome of pending legal proceedings; changes in accounting standards; our dependence on key personnel; the impact of terrorism and other international hostilities; the impact of weather; and other factors as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the SEC. The Company does not intend to update publicly any forward-looking statements except as required by law.