New York Racing Franchise Contender Capital Play, Inc. Announces VLT Partnership with Mohegan Sun
Capital Play, Inc. (www.capitalplayny.com), the highest bidder for New York State’s thoroughbred racing franchise, and the Mohegan Tribal Gaming Authority (or “MTGA”), the owner and operator of the most spectacular and successful casino in the northeast – Mohegan Sun in Uncasville, Connecticut – and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania, today announced that they have entered into an agreement under which MTGA will develop and operate the video lottery terminal (VLT) component of Capital Play, Inc.’s bid, subject to the satisfaction of customary conditions.
If awarded the New York franchise, Capital Play, Inc. and MTGA will operate the thoroughbred racing and VLTs at Belmont Park and Aqueduct racetracks, as well as thoroughbred racing at Saratoga Race Course. The addition of VLTs at Belmont requires approval by the New York State Legislature and Governor.
“We are thrilled to be part of the Capital Play team, and there is no doubt we are a perfect fit,” said Mitchell Etess, President and CEO of MTGA. “Mohegan Sun in Connecticut has redefined the gaming and entertainment experience in the Northeast and set the benchmark for customer service and financial performance. Our recent experience and success as a commercial operator in Pennsylvania at Mohegan Sun at Pocono Downs demonstrate our ability to deliver these results outside of Connecticut as well. As someone who grew up in New York State, I am personally delighted to be part of the opportunity to bring a first class gaming experience to New York.”
Mohegan Sun at Pocono Downs became the first commercial casino in the Commonwealth of Pennsylvania when it opened on November 14, 2006. Since the opening, Mohegan Sun at Pocono Downs has operated with the highest slot win per unit in the Pennsylvania market. Upon completion of a Phase II expansion anticipated in the summer of 2008, Mohegan Sun at Pocono Downs is expected to include three fine dining restaurants, a 300 seat buffet, an expanded food court, retail shopping, nightlife venues, additional parking, bus amenities and approximately 2,500 slot machines.
“We are excited that Mohegan Sun is joining our bid team, which already includes the best in horse racing. Mohegan Sun’s success further validates Capital Play as the best qualified bidder for Saratoga, Belmont and Aqueduct,” said Capital Play Inc. Founder and CEO Karl O’Farrell. “We feel that by presenting the highest guaranteed bid and the experience of international racing, Capital Play was offering the “Best in the World for New York”. With the addition of Mohegan Sun we have increased our ability to create for New York an innovative and integrated entertainment venue(s) with world-class entertainment, food and racing.”
MTGA’s overwhelming success at Mohegan Sun in Connecticut and at Mohegan Sun at Pocono Downs in Pennsylvania is testament to a highly efficient and effective management style that will complement and greatly enhance Capital Play, Inc.’s already considerable operational capabilities and potential for a successful racing and wagering franchise. This combination further strengthens Capital Play Inc.’s bid for New York State’s thoroughbred racing franchise.
About Capital Play, Inc.
Capital Play, Inc. is a New York State corporation formed to bid on and secure the rights to operate three thoroughbred racetracks in New York – Saratoga Race Course, Belmont Park and Aqueduct – and a VLT casino at Belmont Park and Aqueduct. Capital Play believes its proposal to be superior to any others because it offers highest guaranteed payments, the largest investment in the tracks, a proven ability to increase attendance at other tracks and a top international management team, which now includes the experienced casino industry team from MTGA.
About MTGA and Mohegan Sun
MTGA is the owner and operator of Mohegan Sun in Connecticut and Mohegan Sun at Pocono Downs, also a gaming and entertainment facility offering slot machines and harness racing in Wilkes-Barre, Pennsylvania and several OTW facilities located elsewhere in Pennsylvania. The gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.0 million square foot facility, which includes the Casino of the Earth, Casino of the Sky, The Shops at Mohegan Sun, 10,000-seat Mohegan Sun Arena, 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the approximately 1,200-room luxury Sky Tower. Mohegan Sun is currently in the midst of Project Horizon – a $740 million expansion that calls for a new 1,000-room hotel, featuring 300 House of Blues-themed rooms and an exclusive members-only House of Blues Foundation Room™. The expansion also includes 115,000 square feet of additional retail and restaurant space, and a new 64,000-square-foot “Casino of the Wind.” In addition, Project Horizon expands Mohegan Sun’s Asian gaming experience in the Casino of the Earth with the opening of Sunrise Square in the summer of 2007. Upon full completion in 2010, Project Horizon is expected to add more than 1.4 million square feet to Mohegan Sun’s existing structure. More information about MTGA and its properties can be obtained by visiting www.mtga.com.
Some information included in this press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include information relating to business development activities, as well as capital spending and financing sources. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend” and similar expressions. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of MTGA. These risks and uncertainties include, but are not limited to, those relating to increased competition (including the legalization or expansion of gaming in New England, New York, New Jersey and Pennsylvania), the financial performance of Mohegan Sun, Mohegan Sun at Pocono Downs and the OTW facilities, dependence on existing management, potential adverse changes in local, regional, national or global economic climates, MTGA’s leverage and ability to meet its debt service obligations, changes in federal or state tax laws or the administration of such laws, changes in gaming laws or regulations (including the limitation, denial or suspension of licenses required under gaming laws and regulations), and the continued availability of financing. Additional information concerning potential factors that could affect MTGA’s financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2006, as well as its other reports and filings with the SEC. The forward-looking statements included in this press release are made only as of the date of this release. MTGA does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. MTGA cannot assure you that projected results or events will be achieved or will occur.