Gateway Casinos & Entertainment Limited

July 18, 2011 19:08 ET

Gateway Casinos & Entertainment Limited Acquires BC Assets of Boardwalk Gaming and Entertainment Inc.

BURNABY, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Gateway Casinos & Entertainment Limited ("Gateway") is pleased to announce that it has completed the acquisition of Boardwalk Gaming & Entertainment Inc.'s BC assets, which include Community Gaming Centers located in Mission, Squamish and Surrey, BC; and additional operational rights related to the former operations of Burnaby Bingo Country.

The purchase will also provide Gateway with significant real estate assets, tax recoveries and tax assets. This acquisition was funded entirely with cash and shares, thus is expected to reduce leverage levels.

The purchase of these facilities will be accretive to earnings and will immediately add 225 slot machines to Gateway's existing operations, together with established bingo operations. The acquisition will allow for future growth opportunities, including the planned introduction of at least 100 slot machines in Q3 2011 at Newton Square Bingo Country in Surrey, which is currently under refurbishment.

The purchase will also ensure that the communities in which these facilities operate will continue to receive support and have opportunities to receive even greater contributions in the future. We look forward to working with existing employees, regulators, stakeholders and the British Columbia Lottery Corporation to continue delivering entertainment and gaming offerings to the residents of these communities.

ABOUT GATEWAY CASINOS & ENTERTAINMENT LIMITED

Gateway Casinos & Entertainment Limited is a leading casino operator in Canada, with facilities located in British Columbia and Alberta. Gateway operates three casinos in the Greater Vancouver Regional District, British Columbia; four casinos in the Thompson-Okanagan Region, British Columbia; and two casinos in Edmonton, Alberta. In aggregate, Gateway facilities feature approximately 5,400 gaming machines, approximately 200 gaming tables, and over 400,000 square feet of gaming floor space. Further information is available on the Company's website, www.gatewaycasinos.com.

DISCLAIMER
This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. Such differences may be caused by factors which include, but are not limited to, ongoing requirements to comply with financial covenants associated with credit facilities, limited terms of operational service agreements with gaming regulators, pending and proposed legislative or regulatory developments, competition from established competitors and new entrants in the gaming business, dependence on key personnel, no assurance that systems, procedures and controls will be adequate to support expanding operations, potential undisclosed liabilities and capital expenditures associated with acquisitions, negative connotations linked to the gaming industry, First Nations claims with respect to public lands on which we conduct our operations, impact of legal proceedings, impact of smoking bans, interest and exchange rate fluctuations, nonrealization of cost reductions and synergies, acceptance and demand for new products and services, fluctuations in operating results and general economic conditions. The Company cautions that this list of factors is not exhaustive.

Contact Information

  • Gateway Casinos & Entertainment Limited
    Corporate Development and Investor Relations
    (604) 412-0166
    www.gatewaycasinos.com