| Century Casinos Completes Transaction with Tollgate Venture LLC |
Century Casinos, Inc. (Nasdaq: CNTY - News). As previously announced, Century reported plans to develop and operate a casino and hotel in Central City, Colorado. On December 30, 2004, the transaction closed with the Company having contributed a cash capital contribution of $3.5 million in return for a controlling 65% interest and Tollgate Venture LLC having contributed three existing non-operating casino buildings, land and land options valued at $9.2 million for a 35% interest. The newly formed entity, CC Tollgate LLC, is in the process of securing acceptable financing and obtaining licensing from the Colorado Division of Gaming. The Company also has a Casino Services Agreement to manage the casino and hotel.
Casino licenses in Colorado are not limited in number by state gaming laws and are primarily subject to successful background investigations by the Colorado Division of Gaming. Century currently is licensed in Colorado for gaming at Womacks Casino and Hotel in Cripple Creek. Additionally, the principles of Tollgate Venture LLC currently have existing key licenses in the State of Colorado.
The proposed $40.0 million development includes a 60,000 square foot casino and back of house with 625 slot machines, six table games, 35 hotel rooms, retail, food and beverage amenities and a 500-space on-site covered parking garage. Construction is tentatively scheduled to begin in the first quarter of 2005 and is expected to take approximately 14 months.
On November 19, 2004, the city of Central City opened to the public the new $45.2 million four lane highway (Central City Parkway) that the Company believes will offer a safer and faster alternative route from the greater Denver area to Central City and Black Hawk, Colorado. The Central City Parkway is an entirely new construction and connects I-70, the main East/West interstate highway in Colorado, directly to Central City and then on to Black Hawk. Central City is a prime location for the Company's latest venture because of the new Parkway and because of the fact that the Parkway goes through Central City before going through Blackhawk. All traffic must go directly past the casino's main entrance and parking structure. The Colorado Division of Gaming reports an increase in Adjusted Gross Profit (AGP) of 18.5% for Central City and a decrease of 3.7% for Black Hawk for the month of November 2004 when compared to November 2003. Century believes the substantial increase in AGP for Central City is attributable to the Central City Parkway, even though the Parkway was only open for 12 days during the month of November 2004.
Central City and Black Hawk are historical mining towns situated adjacent to each other and located in the Rocky Mountains approximately 35 miles west of Denver. The first casinos opened in both cities in 1991. The Central City Parkway will enter the casino cities first at Central City. Currently the alternative route, which is only a two lane highway and a more treacherous drive than the new Central City Parkway, enters these cities first at Black Hawk.
About Century Casinos, Inc.:
Century Casinos is an international casino company that owns and operates Womacks Casino and Hotel in Cripple Creek, Colorado; owns and operates The Caledon Hotel, Spa & Casino near Cape Town, South Africa; operates the casinos aboard the ultra-luxury vessels of Silversea Cruises, The World of ResidenSea, and Oceania Cruises; and owns 50% of, and provides technical casino services to the Casino Millennium in the Marriott Hotel in Prague, Czech Republic. The Company continues to pursue other projects in various stages of development.
The address for the U.S. offices is 1263A Lake Plaza Dr., Colorado Springs, CO 80906. Telephone: (719) 527-8300. Fax: (719) 527-8301. E-Mail: investor@cnty.com. For more information about Century Casinos, please visit the Company's web site at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Stock MarketŪ under the symbol CNTY.
This release contains forward-looking statements that involve risks and uncertainties. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are the significant requirements to completion of the casino and hotel project, which cannot be assured, acceptance by the public of gaming at the new casino, use by the gaming public of the new Central City Parkway, significant competition from many large and established casinos in Black Hawk and by the City of Black Hawk, which will seek to preserve market share for the Black Hawk casinos, other economic, competitive, and governmental factors affecting the Company's operations, markets, services and prices, as well as other factors detailed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K, 10-Q, and 8-K. Century Casinos disclaims any obligation to revise or update any forward- looking statement that may be made from time to time by it or on its behalf.
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Source: Century Casinos, Inc.Source: PR Newswire
Friday, 31 December 2004
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