RICHMOND, BC, Aug. 23, 2012 /CNW/ - Great Canadian Gaming Corporation [TSX:GC] ("Great Canadian" or the "Company") announced today that it has acquired a minority equity interest in PDX Entertainment Company ("PDX"), an Oregon corporation, through a newly formed subsidiary. PDX, whose shareholders include financial partners with gaming experience and resident Oregon businesses, is pursuing the opportunity to build and operate an entertainment and gaming complex on a 31 acre site in Wood Village, Oregon, a City approximately 20 kilometres east of Portland.
The success of the proposed development is subject to a high level of uncertainty. It requires the approval of Wood Village voters through a local municipal ballot measure, and the approval of Oregon voters through two state ballot measures, one of which would change the state constitution to permit private-sector casino gaming in Oregon. The ballot measures will be voted on November 6, 2012, Election Day in the US and the date of the US Presidential election. PDX has recently commenced a substantial public outreach program to educate voters about the economic benefits that the proposed entertainment and gaming complex will provide to residents of Oregon, including approximately 2,000 permanent jobs, increased school funding from casino gaming revenues, and significant construction-related jobs and supply opportunities for Oregonians.
"The proposed development will require a private-sector investment of approximately US $300 million and is expected to create product and supplies opportunities for hundreds of Oregon companies and direct and indirect long-term jobs for thousands of Oregon residents. Government financial assistance is not required to construct the proposed facility," said Rod Baker, the Company's President and Chief Executive Officer. "The timing for the Wood Village proposal is right, as a casino being proposed in nearby Clark County, Washington State threatens to take economic benefits from Oregon."
This project, if approved, will enable the Company to secure a firm position in a new and vibrant marketplace. The Oregon proposal is close to the Company's corporate office in BC and is less than six hours drive south from Vancouver.
ABOUT GREAT CANADIAN GAMING CORPORATION
Great Canadian Gaming Corporation is a multi-jurisdictional gaming, entertainment and hospitality operator with 17 gaming facilities, which include ten casinos, four horse racetrack casinos, three community gaming centres, and a Four Diamond hotel resort, located in British Columbia, Ontario, Nova Scotia and Washington State. As of June 30, 2012, the Company had approximately 4,100 employees in Canada and 600 in Washington State. Further information is available on the Company's website, www.gcgaming.com.
This news release contains certain "forward-looking information" or statements within the meaning of applicable securities legislation. Forward-looking information is based on the Company's current expectations, estimates, projections and assumptions that were made by the Company in light of its historical trends and other factors. All information or statements, other than statements of historical fact, are forward-looking information including statements related to the Company's intention, by participating in PDX, to build and operate a gaming and entertainment complex in Oregon and statements that address expectations, estimates or projections about the future. Such forward-looking information is based on certain assumptions made by the Company and is not a guarantee of future performance and may involve a number of risks and uncertainties. Although forward-looking information is based on information and assumptions that the Company believes are current, reasonable and complete, they are subject to a number of factors that could cause actual results to vary materially from those expressed or implied by such forward-looking information. Such factors may include, but are not limited to: the ability to win the necessary voter approvals to build and operate a gaming an entertainment complex in Oregon, terms of operational service agreements with lottery corporations; changes to gaming laws that may impact our operational service agreements; pending, proposed or unanticipated regulatory or policy changes; unanticipated fines, sanctions and suspensions imposed on the Company by its regulators; impact of global liquidity and credit availability; adverse tourism trends and further decreases in levels of travel, leisure and consumer spending; competition from established competitors and new entrants in the gaming business; dependence on key personnel; the risk that systems, procedures and controls may not be adequate to meet regulatory requirements or to support current and expanding operations; potential undisclosed liabilities and capital expenditures associated with acquisitions; negative connotations linked to the gaming industry; First Nations claims with respect to some land on which we conduct our operations; future or current legal proceedings; construction disruptions; financial covenants associated with credit facilities and long-term debt; credit, liquidity and market risks associated with our financial instruments; interest and exchange rate fluctuations; non-realization of cost reductions and synergies; demand for new products and services; fluctuations in operating results; and economic uncertainty and financial market volatility. These factors and other risks and uncertainties are discussed in the Company's continuous disclosure documents filed with the Canadian securities regulatory authorities from time to time, including in the "Risk Factors" section of the Company's Annual Information Form for fiscal 2011, and as identified in the Company's disclosure record on SEDAR at www.sedar.com. The forward-looking information in documents incorporated by reference speak only as of the date of those documents. Readers are cautioned not to place undue reliance on the forward-looking information, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. The Company undertakes no obligation to publicly revise forward-looking information to reflect subsequent events or circumstances except as required by law. The forward-looking information contained herein is made as of the date hereof and is expressly qualified in its entirety by cautionary statements in this news release.
ON BEHALF OF
GREAT CANADIAN GAMING CORPORATION
"Original Signed By Rod N. Baker"
Rod N. Baker
President and Chief Executive Officer
SOURCE: Great Canadian Gaming Corporation
For further information:
For investor enquiries:
Ms. Tanya Ruskowski
Executive Assistant to the President and Chief Executive Officer and the Chief Financial Officer
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Mr. Howard Blank
Vice-President, Communications, Entertainment & Responsible Gaming