AURORA, ON, Nov. 5 /CNW/ - Magna Entertainment Corp. ("MEC" or the
"Company") (NASDAQ: MECA; TSX: MEC.A) is pleased to report that on November 4,
2008 Maryland voters approved the proposed state constitutional amendment
authorizing the State to issue up to five video lottery licenses for the
installation and operation of up to 15,000 video lottery terminals ("VLTs")
for the purpose of raising revenue for education. The Maryland Jockey Club, an
MEC subsidiary, expects to pursue a VLT license for Laurel Park as soon as
practicable after the administrative aspects of the license application
process are finalized by applicable regulators. The Maryland Jockey Club also
expects that both Laurel Park and Pimlico Race Course will be entitled to
share in Maryland VLT revenues through purse contributions.
Tom Chuckas, President and Chief Operating Officer of the Maryland Jockey
Club, stated: "Today is a very important day for horse racing in Maryland. The
voters of Maryland have approved a measure that we at the Maryland Jockey Club
are confident will help save an industry that we love and that employs
thousands of Maryland residents. We expect that introducing VLTs in our State
will put Maryland racing back on a more even playing field with its
neighboring states."
Chuckas added: "Moreover, the funds generated from VLTs in Maryland
should result in significant increased revenues for education, which will have
a very beneficial impact across the State. We want to thank all of the people
involved in supporting this initiative, both within and outside of the horse
racing community, for their tremendous efforts and look forward to their
continued support as we now turn our focus to the licensing process."
MEC, North America's largest owner and operator of horse racetracks,
based on revenue, develops, owns and operates horse racetracks and related
pari-mutuel wagering operations, including off-track betting facilities. MEC
also develops, owns and operates casinos in conjunction with its racetracks
where permitted by law. MEC owns and operates AmTote International, Inc., a
provider of totalisator services to the pari-mutuel industry, XpressBet(R), a
national Internet and telephone account wagering system, as well as
MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty
percent interest in HorseRacing TV(R), a 24-hour horse racing television
network, and TrackNet Media Group LLC, a content management company formed for
distribution of the full breadth of MEC's horse racing content.
This press release contains "forward-looking statements" within the
meaning of applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934, as amended
(the "Exchange Act") and forward-looking information as defined in the
Securities Act (Ontario) (collectively referred to as forward-looking
statements). These forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Act (Ontario) and include, among others, statements regarding
the VLT licensing process, purse contributions and other matters that are not
historical facts.
Forward-looking statements should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or the times at or by which such performance or results will be
achieved. Undue reliance should not be placed on such statements.
Forward-looking statements are based on information available at the time
and/or management's good faith assumptions and analyses made in light of our
perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances and are subject to known and unknown risks, uncertainties and
other unpredictable factors, many of which are beyond our control, that could
cause actual events or results to differ materially from such forward-looking
statements. Important factors that could cause actual results to differ
materially from our forward-looking statements include, but may not be limited
to, material adverse changes in: general economic conditions; the popularity
of racing and other gaming activities as recreational activities; the
regulatory environment affecting the horse racing and gaming industries; our
ability to obtain or maintain government and other regulatory approvals
necessary or desirable to proceed with proposed real estate developments;
increased regulation affecting certain of our non-racetrack operations, such
as broadcasting ventures; and our ability to develop, execute or finance our
strategies and plans within expected timelines or budgets. In drawing
conclusions set out in our forward-looking statements above, we have assumed,
among other things, that we will be able to successfully implement our
September 12, 2007 adopted plan to eliminate the Company's debt, although not
on the originally contemplated time schedule, and comply with the terms of
and/or obtain waivers or other concessions from our lenders and refinance or
repay on maturity our existing financing arrangements (including a senior
secured revolving credit facility with a Canadian financial institution and a
short-term bridge loan facility of up to $125.0 million with a subsidiary of
MI Developments Inc., MEC's controlling shareholder), and there will not be
any material adverse changes in: general economic conditions; the popularity
of horse racing and other gaming activities; weather and other environmental
conditions at our facilities; the regulatory environment; and our ability to
develop, execute or finance our strategies and plans as anticipated.
Forward-looking statements speak only as of the date the statements were
made. We assume no obligation to update forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
forward-looking statements. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect thereto or with respect to other forward-looking statements.
SOURCE Magna Entertainment Corp.
For further information: Blake Tohana, Executive Vice-President and
Chief Financial Officer, Magna Entertainment Corp., 337 Magna Drive, Aurora,
ON, L4G 7K1, Tel: (905) 726-7493
