Dover Downs sheds gaming

Mar 12, 2002 10:15 AM

Dover Downs Entertainment Inc. (DVD) directors want out of the gaming business so that they can concentrate on their motorsports activities. To accomplish this they will spin off the gaming sector.

As of March 18, there will be two companies, both trading on the N.Y. Stock Exchange. The principal company will be called Dover Motorsports Inc and it will retain its trading symbol, DVD. The second company will be called Dover Downs Gaming & Entertainment Inc. and will trade under the symbol DDE.

All stock in DDE will be owned by those holding stock in DVD. On the effective date, each shareholder in DDE will receive 0.7 shares of Gaming and Entertainment common stock and 0.7 shares of Dover Motorsports Inc.

The company said it already has received a ruling from the Internal Revenue Service indicating that the spin off will be tax free to the shareholders.

Dover Motorsports Inc. will own and/or operate six motorsports tracks in states from Delaware to California.

Dover Downs Gaming & Entertainment Inc. will consist of Dover Downs Slots, an 80,000 square foot video lottery casino; the Dover Downs Hotel and Conference Center, and the Dover Downs Raceway, a harness racing track with pari-mutuel wagering on live and simulcast horse races.