SEARCH NEWS:

 

Florida Legislature Passes Slot Legislation

FLORIDA – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA; TSX: MEC.SV.A) today announced that legislation authorizing the operation of slot machines within existing, licensed Broward County, Florida pari-mutuel facilities that have conducted live racing or games during each of 2002 and 2003 has been passed by the Florida Legislature. This legislation follows state-wide voter approval of Amendment 4 to the Florida Constitution on November 2, 2004 and subsequent Broward County affirmative vote pursuant to that Amendment on March 8, 2005.

Under the legislation, each of the four qualifying facilities will be entitled to offer up to 1,500 Class III slot machines, subject to a state tax rate of 50% on gross gaming revenues ("GGR"). All proceeds from that tax will be used to supplement Florida education. Each facility will also be subject to a $3 million annual license fee intended to cover administrative costs. In addition, each facility has entered into separate contracts under which Broward County and the City in which that facility conducts pari-mutuel gaming will receive an aggregate of 3.2% on that facility's GGR not exceeding $250 million and 4.5% on its GGR in excess. The legislation is now subject to review by Florida's Governor within 15 days of receipt. The Governor may sign the legislation into law, allow the legislation to become law without his signature, or veto the legislation. In the event the legislation becomes law, the Division of Parimutuel Wagering will oversee the conduct of slot machine operations and will be required to develop the governing rules and regulations within 180 days of the legislation's effective date, failing which the facilities will be entitled to operate pursuant to temporary licenses.

MEC owns and operates Gulfstream Park, a licensed parimutuel facility that has conducted live racing during each of 2002 and 2003 in Broward County. MEC intends to now work closely with State and Division officials and with its horsemen and breeders to pursue the remaining steps to implementation of slot machine gaming at Gulfstream Park.

< Gaming News