Companies Execute Binding Term Sheet

Published: July 30, 2014 11:09 am EDT

Saratoga Harness Racing, Inc. (SHRI) and Churchill Downs Incorporated (CDI) have announced that they have executed a binding term sheet and are close to finalizing a five-year management contract wherein CDI will manage Saratoga Casino and Raceway in Saratoga Springs, NY and Saratoga Casino Black Hawk in Black Hawk, CO.

According to a joint release from both parties, once finalized, the management contract will become effective as soon as CDI obtains necessary licenses and approvals in New York and Colorado.

The release goes on to state that should CDI and SHRI be successful in their joint bid to build Capital View Casino & Resort, a proposed world class destination resort casino in East Greenbush, NY, CDI will also manage that facility. A binding term sheet for such management agreement was included with CDI and SHRI's New York casino license application that was submitted on June 30.

SHRI and CDI have also signed a binding term sheet and begun negotiations on a stock purchase agreement wherein CDI will purchase 25 per cent of economic and voting interests of SHRI. In addition to its flagship Saratoga Casino and Raceway in Saratoga Springs, NY, SHRI owns a controlling interest in Saratoga Casino Black Hawk in Black Hawk, CO; a 50 per cent interest in a joint venture with Delaware North Companies to manage the Gideon Putnam Hotel and Resort in Saratoga Springs, NY and a minority interest in Ellis Park, a thoroughbred racing and instant racing machine facility in Henderson, KY. SHRI, together with its partner Rush Street Gaming, filed a second application for a New York casino in Newburgh, NY in the Hudson Valley-Catskills Region.

"We are very excited about the expansion of our relationship with Churchill Downs," James D. Featherstonhaugh, secretary and chief legal officer of SHRI, was quoted as saying in the release. "We look forward to a long and successful partnership between two iconic names in the racing and gaming world."

"We are proud to take an ownership interest in Saratoga Harness Racing Inc., which shares with us a passion for offering premier racing and gaming entertainment," said Bill Carstanjen, president and chief operating officer of Churchill Downs Incorporated. "We are excited to expand our operations into New York and Colorado and hope to become more involved in the Capitol Region if we are fortunate enough to be awarded a license to build and operate Capital View Casino & Resort."

(With files from SHRI and CDI)