For Immediate Release -
Magna Entertainment Corp. Responds to Oregon Racing Commission Decision
April 25, 2008, Aurora, Ontario, Canada
Magna Entertainment Corp. (“MEC” or the “Company”) (NASDAQ: MECA; TSX: MEC.A) today announced its response to a decision this afternoon of the Oregon Racing Commission (“ORC”) to reject a proposed order by the Office of Administrative Hearings (“OAH”) approving the offering of Instant Racing at Portland Meadows, MEC’s thoroughbred racetrack located in Portland, Oregon.
Instant Racing is a form of pari-mutuel wagering processed through a standard totalisator terminal, where the patron wagers on previously-run horse races. In 2003, the ORC, following testimony, public input and advice from the Oregon Attorney General, adopted rules authorizing Instant Racing. In 2006, the ORC approved the request of MEC to offer Instant Racing at Portland Meadows. As a result, MEC invested substantial capital at Portland Meadows to improve the facility and purchase Instant Racing terminals. On September 20, 2007, the ORC, on the advice of the Attorney General, reversed its position and denied a request by MEC to offer Instant Racing under its race meet license. On October 8, 2007 the Company requested a hearing contesting this reversal, which resulted in the OAH issuing an order on February 27, 2008 in favor of offering Instant Racing at Portland Meadows. The decision today by the ORC overturns this order.
Over the past several years, MEC has worked conscientiously and in good faith with the ORC in an attempt to improve the long-term viability of horse racing at Portland Meadows, including through the introduction of Instant Racing. MEC is very disappointed with the actions of both the Oregon Attorney General and the ORC, and is considering all of its legal options with respect to this matter.
MEC, North America's largest owner and operator of horse racetracks, based on revenue, acquires, 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, 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 our further consideration of our legal options as a result of the action of the Oregon Racing Commission to reject the proposed order of the Office of Administrative Hearings 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 the Company's control, that could cause actual events or results to differ materially from our 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, 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 there will not be any material adverse changes in general economic conditions, the popularity of horse racing and other gaming activities, weather and other 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.
CONTACT:
Scott Borgemenke, Executive Vice-President, Racing, Magna Entertainment Corp., 337 Magna Drive, Aurora, ON, L4G 7K1, Tel: (905) 726-7465