HOUSTON, Jan. 4, 2007 (PRIME NEWSWIRE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) today announced that its joint venture partner, American Racing and Entertainment, LLC, issued a statement regarding the performance of Tioga Downs and Vernon Downs in New York State.
Robert Farinella, Senior Vice President & General Manager of Nevada Gold NY and President of American Racing stated, "Since joining American Racing we have revised our business plan to improve operating performance. Like any new entertainment property, it will take several months to realize the full benefits from this process. Our process includes cost cutting coupled with new directions in marketing the properties. We have several key dynamics that are influencing our ability to generate improved operating performance including, but not limited to, a very high tax rate and mandatory purse contributions that equate to an approximate 70% 'tax' on revenue, the rural location of our properties and the fact that a major competitor in our Vernon market pays no gaming taxes."
Mr. Farinella continued, "We also have several factors working in our favor, including a fine team of associates dedicated to making our business successful and great local tourism and community activities, which our marketing programs can take advantage of to create synergy and drive additional guests to our facilities. We also have a live racing program which attracts a broad base of guests, who enjoy the entertainment of pari-mutuel horse racing and the additional amenities we offer.
"We are dedicated to making our business model work but realize legislative tax relief could be a long-term necessity based on our locations and competitive positioning within our markets in order to continue to provide the economic stimulus and jobs to the communities in which we are located," Mr. Farinella concluded.
About Nevada Gold & Casinos
Nevada Gold & Casinos, Inc. (AMEX:UWN) of Houston, Texas is a developer, owner and operator of gaming facilities and lodging entertainment facilities in Colorado, California, and New York. The Company owns a 43% interest in the Isle of Capri-Black Hawk LLC, which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company owns a 34.3% interest in the Tioga Downs Racetrack & Vernon Downs Racetrack in New York State and has a management contract for both facilities. The Company also works with Native American tribes in a variety of capacities. Native American projects consist of River Rock Casino in Sonoma County, California, a casino to be built in Pauma Valley, California for the La Jolla Band of Luiseno Indians and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California for Buena Vista Rancheria of Me-Wuk Indians. For more information, visit www.nevadagold.com.
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