SOURCE: Caribbean Casino and Gaming Corp.

May 02, 2011 09:28 ET

Caribbean Casino and Gaming Corp. Explains Transactions With Dominican Government

MIAMI, FL--(Marketwire - May 2, 2011) - Caribbean Casino and Gaming Corp. (PINKSHEETS: CGAQ). On Tuesday, after some delays CGAQ expects the first letter of approval from the government of the Dominican Republic regarding the 4th acquisition. This deal consists of the lease with an option to buy, El HIPODROMO QUINTO CENTENARIO, the only horse race track in the country which is currently owned and operated by the government (there are no other horse race tracks in the country).

This deal includes the following:

1. Casino License valued at $350,000 USD (expected to be built as a Vegas style Venue)

2. Professional Boxing License valued at $10,000 USD

3. Bingo License valued at $10,000 USD

4. Sports betting License valued at $13,000 USD

5. Slots License valued at $150,000 USD

6. Lottery betting license valued at $3,000 USD

7. License to install two thousand (2,000) betting locations in Dominican territory valued at $6,000,000 USD

8. Tax exception for the life time of the contract.

9. The property of the race track as we see it is valued at $60,000,000 USD.

The race track property consists of 650 acres, 1 and 1/16 mile of a full size race track, 200 horse stables and a seating capacity for 15,000 people. We expect to replicate famous US race tracks by having concerts, pro boxing, wrestling, and many other events. Standing room and infield seating could accommodate an additional 10,000 people.

CGAQ has 45 days to agree or amend some of the terms in the deal. It has put $1,000,000 USD in an escrowed account with a New York Attorney firm.

Final contract terms will be discussed in the following weeks.

On this acquisition Mr. Steven Swank, CEO, stated, "This is a huge deal for the company which will represent a revenue source of great importance and value. All aspects involved in this deal are valued in the millions of dollars. This is something that has been worth the wait with all the work involved." Mr. Swank also stated, "This is the only horse race track in the country with no competition, it is an enormous property, in which we can develop other projects, and being able to open 2,000 betting locations will mean that CGAQ will have a dominant presence in almost all the Dominican territory."

This deal brings the company to a whole new level that will propel it into one of the leading names in gaming in the Dominican Republic as well as the Caribbean. This has been the main goal for CGAQ since it opened its first casino operation. Operating the only horse racing track in the country means no direct competition for the company.

The company has also started a lottery betting operations in the Dominican Republic. CGAQ has started by opening 8 lottery betting operations in Puerto Plata, with plans to raise that number to up to 20 in the near future. These lottery stands are all over the country and represent a very good revenue stream for the company. People in the Dominican Republic have 3 different lottery drawings per day which are all played by millions every day.

Mr. Swank emphasized on this matter, "We are not stopping our growth plan. CGAQ is getting involved in every gaming aspect that can present future revenue and growth. The opening of these locations gives us a feel on what kind of revenue this can bring to the company in a large scale operation. We are starting with a few but if everything goes as expected we will open all 2,000 or can sell some of them, or joint venture the others."

CGAQ also has a 2nd deal pending with the Dominican Government. This is a software contract waiting for approval. This project should generate over $1,000,000 USD each month for our company, at this time we are preparing a live demo containing newly developed software as requested by certain government officials. This outcome should be forth coming very soon.

Mr. Steven Swank CEO, stated, "I am no longer giving exact times, as some time lines are out of my control when dealing with the government." He also stated, "I will do my very best effort to make these important deals come true."

About Caribbean Casino and Gaming Corp:

Caribbean Casino and Gaming Corp (PINKSHEETS: CGAQ) is the owner and operator of the Sosua Bay Grand Casino and Afterone Disco. The corporation is focused on becoming a leader in the Caribbean for gaming and entertainment, including live betting from cameras located above tables within the Sosua Bay Grand Casino. Not only will Caribbean Casino and Gaming Corp. offer world class gaming and accommodations within its facilities for those visiting our properties, but also allow patrons to wager (where allowed) from the comfort of their own home or hotel room. The casino is now the centerpiece in the Sosua Bay Resort at Puerto Plata, Dominican Republic, the most populated Caribbean Island.

FORWARD-LOOKING STATEMENT

This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this report are made as of the date hereof and Caribbean Casino and Gaming Corporation undertakes no obligation to update such statements.

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