Gaming News

Rail City Expansion Plans Updated

RENO, Nevada – (PRESS RELEASE) -- The Sands Regent today announced an update on expansion plans for its Rail City Casino property in Sparks, NV.

Initially, the property's current 650 slot machines will be increased to 850, with ultimate plans for a total of 1,000 games. Pending completion of the permit process with the city of Sparks, management plans to begin a six-month, phased construction process in mid-calendar year 2006. Included in the scope of the expansion will be an additional restaurant and bar venue.

Effective March 20, 2006, Plantation Investments, Inc., a subsidiary of the Company, has contracted to purchase a half-acre site that is adjacent to the casino, for $1.3 million. Occupying the site currently is a 27-unit motel. The Company plans to demolish substantially all of the motel units to provide for additional customer parking during construction and once the expansion is completed. Closing of the transaction is scheduled to occur on or before April 3, 2006.

The scope of the expansion has been increased and the budgeted project costs have been revised to approximately $13.8 million versus the previous estimate of $8.5 million. Increased construction costs, refinement of the project scope, careful sequencing of construction activity to minimize customer inconvenience and the acquisition of additional land for customer parking are the primary drivers of the increased cost estimates.

Ferenc Szony, President and CEO of The Sands Regent, commented, "We are confident that by enhancing this expansion opportunity at Rail City Casino, we will ensure that the new facility will exceed customer expectations, in part by adding even more parking than originally planned, right on Victorian Avenue. The added investment will ensure that we maximize the property's profitability."

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