Canterbury wants slots to boost revenues, state taxes

Apr 1, 2003 6:01 AM

The horse betting and card playing business is good at Canterbury Park in Shakopee, Minn., and the company, Canterbury Park Holding Corporation (ECP) continues to increase its annual earnings.

In fact, last year, net income was $2,276,595 or $0.57 a fully diluted share compared to $1,816,780 or $0.49 a share in the previous year.

Yet, the company says that these results would be substantially exceeded if the track were granted approval to install video lottery machines at its facility. And, the state would benefit as well, track management contends. A bill to that effect was filed in February and recently passed its first hurdle.

"We cleared our first hurdle when the Minnesota House Committee on Government Operations and Veterans Affairs approved the racino bill without recommendation and sent to the House on Taxes for further consideration," Randy Sampson, track president commented last week.

"However, the bill must pass through other committees in the House and no committee in the Minnesota Senate has yet scheduled the racino bill for a hearing. Accordingly, ongoing efforts to gain legislative approval will require significant additional expenditures," Sampson said.

He cited as benefits: At least $150 million in new state tax revenues each budget cycle to the state; some $2 million each year to local governments; about 1,400 new jobs, and an improved horse and agricultural industry due to a $12 to $14 million increase in annual purses.

PDS Gaming

PDS Gaming Corporation (PDSG), a Las Vegas-based company that finances, leases and sells gaming equipment for the casino industry, as well as operating Rocky’s Casino and Sports Bar in Reno, Nev., reported a loss from continuing operations of $624,000 or $0.16 per diluted share for the quarter that ended on Dec. 31, 2002.

During the comparable period of Dec. 31, 2001, the company had earnings of $32,000 or $0.01 per diluted share. Revenue from continuing operations during this period amounted to $14.8 million compared to the previous year’s $7 million.

The company said that due to unacceptable operating results, it has discontinued operations of its Table Games Division and certain components of its Casino Slot Exchange Division.

Paul-Son Gaming

Paul-Son Gaming Corporation (PSON), a manufacturer and supplier of casino table game equipment that was taken over last September by Etablissements Bourgogne et Grasset of France, reported a fourth quarter net loss of $1 million or $0.14 a share for the quarter that ended on Dec. 31, 2002.

This quarter compared unfavorably with the fourth quarter of a year earlier when the company had net income of $951,000 or $0.23 per basic and diluted share.

The company cited problems in integrating the two companies, as well as a third company, The Bud Jones Co., which it also acquired.

Jacobs Entertainment

Jacobs Entertainment Inc., whose businesses were broadened by founder Jeffery Jacobs to include both horse racing in Virginia and casinos in other states, reported net income for the year ended on Dec. 31, 2002, of $2.9 million compared to $4.6 million in the previous year.

However, the company reported EBITDA (earnings before interest, taxes, depreciation and amortization) of $31.8 million compared to $7.4 million a year earlier.

Based in Black Hawk, Colo., Jacobs Entertainment is the owner and operator of the Lodge Casino at Black Hawk, the Gilpin Hotel Casino in Black Hawk, the Gold Dust West Casino in Reno, Nev., and seven truck plaza video gaming facilities located in Louisiana.

Also, the company owns and operates Colonial Downs Racetrack in Virginia and four related off-track wagering facilities.