Looming Minnesota State Government Shutdown May Force Canterbury Park to Suspend Operations
June 14 2011 - 4:00PM
Business Wire
Canterbury Park Holding Corporation (NASDAQ:CPHC) reported today
that it may be forced to suspend substantially all of its
operations on July 1, 2011 if the current budget impasse between
Minnesota’s Governor and Legislature continues into July and if
layoff notices recently sent to employees of the Minnesota Racing
Commission (the “MRC”) which regulates Canterbury Park’s gaming
operations remain in effect on July 1, 2011.
As regularly disclosed, Canterbury Park’s live horse racing,
pari-mutuel wagering and Card Casino operations are all subject to
significant regulatory oversight by the MRC and its employees.
These employees, along with all other state workers, have been
notified that they will be laid off on July 1, 2011 unless the
current budget impasse is resolved by that date. However,
Canterbury management understands that employees of certain state
agencies may continue to work after July 1 if a court determines
that such employees work for an agency that provides “critical
services.” However, there can be no assurance the MRC would be
deemed by a court to provide critical services. Therefore, if the
current budget stalemate continues into July, unless the MRC is
determined to provide critical services, the MRC’s employees will
be laid off on July 1 and unable to perform the significant
regulatory activities which, by law, they are assigned to perform.
Without such regulatory oversight, it is legally uncertain whether
Canterbury could conduct live horse racing, Card Casino and other
gaming operations from July 1 until the date the budget impasse
ends.
“We are evaluating all of our options. However, should the MRC
layoffs force us to cancel live racing, the impact on Minnesota’s
horse racing industry would be devastating,” stated Randy Sampson,
Canterbury Park’s President and CEO. “We have numerous horsemen
from Minnesota and around the country currently on property for our
live meet. Cancellation of live racing at Canterbury Park and
Running Aces would result in several thousand people either losing
their jobs or being forced to move their horses and employees to
another state. In addition, for every day after June 30 that we are
unable to operate our Card Casino and conduct simulcasting, we will
be further deprived of revenues we need to sustain and grow our
business. As these revenues would be used to fund future purse
payments, this will also have a detrimental impact on the horse
industry.”
Sampson concluded: “We will continue to monitor the budget
negotiations at the Capitol, as well as legal proceedings related
to designating what state agencies provide critical services. At
the same time, we will work with the MRC, the Legislature and the
Governor’s office to avoid a complete shutdown of the Company’s
operations should the budget standoff continue into July.”
About Canterbury Park:Canterbury Park Holding Corporation
owns and operates Canterbury Park Racetrack, Minnesota’s only
thoroughbred and quarter horse racing facility. The Company’s
62-day 2011 live race meet began on May 20th and ends September
5th. In addition, Canterbury Park’s Card Casino hosts “unbanked”
card games 24 hours a day, seven days a week, offering both poker
and table games. The Company also conducts year-round wagering on
simulcast horse racing and hosts a variety of other entertainment
and special events at its facility in Shakopee, Minnesota. For more
information about the Company, please visit us at www.canterburypark.com.
Cautionary Statement:This release contains or may contain
forward-looking statements based on management’s beliefs and
assumptions. Such statements are subject to various risks and
uncertainties that could cause results to vary materially. Please
refer to the Company’s SEC filings for a discussion of such
factors.
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