COLORADO SPRINGS, Colo., Oct. 18 /PRNewswire-FirstCall/ -- Century
Casinos, Inc. (Nasdaq: CNTY) announced today that it has signed an agreement
with the owners of Landmark Gaming LLC of Franklin County, Iowa, to jointly
submit as co-applicant with the Franklin County Development Association (FCDA)
an application to the Iowa Racing and Gaming Commission (IRGC) to develop and
operate a moored barge casino, hotel and entertainment facility in Franklin
County, Iowa. The proposed project includes a casino with approximately
40,000 square feet of total space, 120 hotel rooms and 300 covered parking
spaces.
A study completed by independent casino and lodging industry consultants
Gaming & Resort Development, Inc. estimates total development costs to be
$67.0 million and projected first year net revenue of $72.0 million. The
Company's contribution to the project at closing will include an initial cash
capital contribution of $1.25 million in return for a 40% interest. The
current owners of Landmark Gaming will contribute the land and land options in
return for 60% ownership. Additionally, an affiliate of the Company will
enter into a Casino Services Agreement to manage the property in return for a
share in gross revenues plus a share in EBITDA. The Company's cash
contribution and the beginning of construction are subject to various
conditions and approvals, including, but not limited to awarding of a license
by the IRGC, securing acceptable financing and other due diligence.
There are currently ten river boats, three racetrack slot machine
operations, and three Class III Indian gaming venues in the state of Iowa.
The ten river boat casinos have generated approximately $715 million in gross
gaming revenues in fiscal year 2004 (from July 2003 to June 2004; as per
information available on the website of the IRGC). Licensing in the state
requires approval by the residents of the county to authorize gaming and
requires sponsorship by an approved charitable organization that receives a
percentage of the gaming revenues. Franklin County is one of six counties in
the state that received voter approval to proceed with the gaming application
process. FCDA is the sponsoring charitable organization for this project.
Casino licenses are awarded based on the merit of the project. The number of
licenses awarded is determined by the IRGC. The site of the proposed project
is located approximately 80 miles north of Des Moines, Iowa and 52 miles south
of the Iowa-Minnesota border. The proposed project will be located on a
manmade body of water adjacent to Interstate 35, Iowa's primary north-south
link between Minneapolis and Des Moines, along Iowa Highway 3. The Company
believes that the proposed casino's proximity to major roadways could give the
county an edge over others competing for a license.
"This project represents an excellent opportunity to participate in the
expansion of casino development in Iowa. We believe this proposed casino,
hotel and entertainment facility in Franklin County would be a natural fit for
Century Casinos," said Chairman and CEO Erwin Haitzmann.
About Century Casinos, Inc.:
Century Casinos is an international casino company that owns and operates
Womacks Casino and Hotel in Cripple Creek, Colorado; owns and operates The
Caledon Hotel, Spa & Casino near Cape Town, South Africa; operates the casinos
aboard the ultra-luxury vessels of Silversea Cruises, The World of ResidenSea,
and Oceania Cruises; and owns 50% of, and provides technical casino services
to the Casino Millennium in the Marriott Hotel in Prague, Czech Republic. The
Company continues to pursue other international projects in various stages of
development.
The address for the U.S. offices is 1263A Lake Plaza Dr., Colorado
Springs, CO 80906. Telephone: (719) 527-8300. Fax: (719) 527-8301. E-Mail:
investor@cnty.com. For more information about Century Casinos, please visit
the Company's web site at http://www.centurycasinos.com. Century Casinos' common
stock trades on The NASDAQ Stock Market(R) under the symbol CNTY.
This release contains forward-looking statements that involve risks and
uncertainties. Among the other important factors which could cause actual
results to differ materially from those in the forward-looking statements are
the significant conditions to closing the transaction and completion of the
casino and hotel project, which cannot be assured, acceptance by the public of
gaming at the new casino, significant competition from other casinos in the
state, other economic, competitive, and governmental factors affecting the
Company's operations, markets, services and prices, as well as other factors
detailed in the Company's filings with the Securities and Exchange Commission,
including its recent filings on Forms 10-K, 10-Q, and 8-K. 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.
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