Canterbury Park Suspends Gaming Operations
July 01 2011 - 9:30AM
Business Wire
Effective at midnight on June 30, 2011, Canterbury Park Holding
Corporation (NASDAQ:CPHC) suspended all of its gaming operations.
This action was taken due to the fact that Minnesota’s Governor and
Legislature failed to reach an agreement on the State’s budget for
the biennium beginning July 1, 2011. The inability to reach an
agreement forced many state agencies to immediately shut down due
to the lack of an appropriation of funds. The Minnesota Racing
Commission (the “MRC”), the agency which regulates Canterbury
Park’s pari-mutuel and Card Casino gaming operations, was one state
agency ordered to close.
During its suspension of gaming operations and despite a
continuation of the impasse between the Governor and Legislature,
the Company will continue to pursue measures through legal channels
that would allow gaming operations to resume at Canterbury Park. As
previously reported, the Company is one of the plaintiffs in a
lawsuit filed in Scott County District Court that seeks an order
directing the State to provide funding for the MRC during the
budget impasse because the monies needed to provide such funding
are supplied 100% by payments from racetracks and other racing
industry sources. Yesterday, the Minnesota Supreme Court directed
that this lawsuit be consolidated with other applications for
relief from the partial government shutdown.
“I am extremely disappointed that we have been forced to suspend
our gaming operations due to the state government shutdown,” stated
Randy Sampson, Canterbury Park’s President and CEO. “Beginning
today and each day that follows, so long as the impasse continues
and our horse racing, simulcasting and Card Casino operations are
suspended, we will suffer severe financial loss. We will 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 are now forced to
begin laying off substantially all of our 1,100 full time and part
time employees, causing hardship for them and their families.”
Mr. Sampson concluded: “We are hopeful that a government
shutdown is short-lived and that a budget solution will soon be
found that is acceptable to both the Governor and the Legislature.
However, should the stalemate continue, 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.
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