Canterbury Park Provides Further Information Regarding Possible Suspension of Operations Due to Pending Minnesota State Gover...
June 30 2011 - 9:30AM
Business Wire
On June 14, 2011, Canterbury Park Holding Corporation
(NASDAQ:CPHC) reported that it could be forced to suspend all or
substantially all of its operations on July 1, 2011 due to a budget
impasse between Minnesota’s Governor and Legislature. As Canterbury
reported, without agreement before July 1 between Minnesota’s
Governor and Legislature on the State’s budget for the biennium
beginning July 1, funding for the Minnesota Racing Commission (the
“MRC”), the agency which regulates Canterbury Park’s gaming
operations, might be cut off as of that date and prevent the MRC
from fulfilling its regulatory responsibilities until such funding
was restored.
No agreement between Minnesota’s Governor and the Legislature
has been announced to date and, yesterday, Judge Kathleen Gearin,
Chief Judge of the Ramsey County Minnesota Court, entered an order
that addressed what state functions could continue to operate on
and after July 1 despite a continuing budget impasse. Judge Gearin
ruled that only certain core functions of state government may be
funded in the absence of an agreement between Minnesota’s Governor
and Legislature and that other government functions should not be
funded. She emphasized that state payments during a shutdown should
be limited to "only the most critical functions of government
involving the security, benefit, and protection of the people." In
proceedings leading up to Judge Gearin’s order, the Minnesota
Horsemen’s Benevolent & Protective Association (the “MHBPA”),
the group that represents thoroughbred trainers and owners,
requested that the MRC be funded during any budget impasse
continuing into July because the monies needed to provide such
funding are supplied 100% by payments from racetracks and other
racing industry sources and that no other funding are needed by the
MRC. However, because she determined the regulation of horse racing
is not a core function of government, Judge Gearin declined to
order such funding.
Canterbury Park also announced yesterday that it has joined with
the MHBPA in a lawsuit filed in Scott County Minnesota District
Court, Court File 70-CV-11-13433, requesting that the State of
Minnesota and its Department of Management and Budget be ordered to
continue funding of the MRC, notwithstanding the budget impasse, so
that Canterbury Park may continue to operate under the regulation
of the MRC. As in the Ramsey County proceeding, Canterbury and the
MHBPA believe the MRC should be funded during any budget impasse
continuing into July because the monies needed to provide such
funding are supplied 100% by payments from racetracks and other
racing industry sources. A hearing on a motion by Canterbury and
the MHBPA for injunctive relief that would order the continuation
of such funding effective July 1 is scheduled for this morning,
June 30.
“We are doing everything possible to avoid suspending our gaming
operations in the event of a state government shutdown,” stated
Randy Sampson, Canterbury Park’s President and CEO. “If we are
forced to suspend all horse racing, simulcasting and Card Casino
operations, the impact on the Company would be very severe. We
would lose gaming and concession revenues in excess of $1 million
per week even as we continue to incur substantial operating
expenses, including expenses to support our backside horse
population. Moreover, without any revenues coming in, we would be
forced to lay off substantially all of our 1,000 full-time and
part-time employees, causing hardship for them and their
families.”
Mr. Sampson added: “Unless there is a quick end to the budget
impasse, there is the real possibility that owners and trainers
will likely start moving their horses from Canterbury to other
racetracks within a week or two of July 1, and, once they leave, it
is unlikely they will return. Clearly, if the budget impasse
continues beyond early July the impact could be devastating for
Canterbury and the horse industry. We could lose the entire
remainder of the racing season.”
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.
Canterbury Park (NASDAQ:CPHC)
Historical Stock Chart
From May 2024 to Jun 2024
Canterbury Park (NASDAQ:CPHC)
Historical Stock Chart
From Jun 2023 to Jun 2024