Full House Resorts Announces Amended Compact between Huron Band and State of Michigan
LAS VEGAS--(BUSINESS WIRE)-- Full House Resorts (NYSE Amex US: FLL) announced that the Nottawaseppi Huron Band of the Potawatomi and the state of Michigan have signed an amended compact that will extend its term from 2018 to 2030 to ensure that FireKeepers Development Authority ("FDA") will have a full 20 years of gaming operations.
The amended compact follows a similar pattern to other compact renegotiations recently concluded in Michigan, and resolves a potential legal dispute between the Tribe and Michigan concerning state revenue-sharing payments. Under the amended compact, FDA's exclusivity fee paid to the state will be reduced from 8% of slot revenue to 4% for 2009 and 2010, a sliding scale of 4 to 6% in 2011 and a sliding scale of 4 to 8% thereafter. The terms of the amended compact are retroactive to the opening of FireKeepers. The 2% payment to the local governmental entities remains unchanged.
"We are pleased that FDA and the state of Michigan have been able to reach agreement on these key compact provisions," said Andre Hilliou, Chairman and Chief Executive Officer of Full House. "The amended compact will provide significant economic protections to FDA against commercial or state-run gaming expansion in the surrounding areas of FireKeepers, and through its management agreement, Gaming Entertainment (Michigan), LLC ("GEM") will be able to share in the economic benefits realized through the amended compact."
FireKeepers Casino is located at Exit 104 directly off Interstate 94 in Battle Creek, Michigan and contains a 107,000 square foot gaming floor with 2,680 slot machines, 78 table games, a 120-seat poker room and a bingo hall. In addition, the property features five restaurants, including a fine dining signature restaurant, a 300-seat buffet and a 150-seat 24-hour restaurant, as well as an enclosed 2,080-space parking garage attached to the casino.
Full House Resorts, through its joint venture GEM, is the manager for the casino and supervised development and construction for the Tribe. GEM is managing the operations of the casino for the FireKeepers Development Authority, an agency of the Huron Band. GEM will be paid a management fee equal to 26% of pre-management fee income over a seven-year period which commenced with the public opening on August 5th.
About Full House Resorts, Inc.
Full House owns, develops and manages gaming facilities. Full House owns the Stockman's Casino in Fallon, Nevada which has 8,400 square feet of gaming space with approximately 260 gaming machines, four table games and a keno game. The casino has a bar, a fine dining restaurant and a coffee shop. Full House also receives a guaranteed fee from the operation of Harrington Raceway and Casino at the Delaware State Fairgrounds in Harrington, Delaware. Harrington Raceway and Casino has a total of approximately 2,100 gaming devices, a buffet, gourmet steakhouse, other food and beverage outlets and an entertainment lounge. Full House also has an agreement with the Nottawaseppi Huron Band of Potawatomi Indians for the management of the recently opened FireKeepers Casino in Battle Creek, Michigan with 2,680 gaming devices, 78 table games and a 120-seat poker room. For further information, go to www.FireKeepersCasino.com. In addition, Full House has been working with the Northern Cheyenne Nation of Montana for the development and management of a gaming facility on tribal land. Further information about Full House Resorts can be viewed on its web site at www.fullhouseresorts.com.
Forward-looking Statements
Some of the statements made in this release are forward-looking statements. These forward-looking statements are based upon Full House's current expectations and projections about future events and generally relate to Full House's plans, objectives and expectations for Full House's business. Although Full House's management believes that the plans and objectives expressed in these forward-looking statements are reasonable, the outcome of such plans, objectives and expectations involve risks and uncertainties including without limitation, regulatory approvals, financing sources and terms, integration of acquisitions, competition and business conditions in the gaming industry. Additional information concerning potential factors that could affect Full House's financial condition and results of operations is included in the reports Full House files with the Securities and Exchange Commission, including, but not limited to, its Form 10-K for the most recently ended fiscal year.
For the foregoing reasons, readers and investors are cautioned that there also can be no assurance that the outcomes expressed in Full House's forward-looking statements included in this release and otherwise will prove to be accurate. In light of the significant uncertainties inherent in such forward-looking statements, the inclusion of such information should not be regarded as a representation or warranty by Full House or any other person that Full House's objectives and plans will be achieved in any specified time frame, if at all. Full House does not undertake any obligation to update any forward-looking statements or to announce revisions to any forward-looking statements.
Source: Full House Resorts
Released September 15, 2009