The venture would build a $30 million harness track and card room featuring poker and other games. The track would be about 30 miles north of Minneapolis, and 53 miles from Canterbury Park in Shakopee, the only other racetrack in the Twin Cities area.
When Southwest first applied for its license, the Minnesota Racing Commission expressed concern over the company's ability to fund its proposal, but MTR Gaming's involvement could ease those concerns. The proposed track would be the second of only two racetracks permitted by law in the seven-county Minneapolis metropolitan area.
A second phase could include other forms of gambling, if the state legislature passes a so-called "racino" bill that would allow slot machines at the horse tracks. Last week, Rose Mary Williams, MTR's director of racing, appeared before the Minnesota Racing Commission in support of the license application.
The letter of intent grants MTR the exclusive right to deal with the seller and calls for the Company to invest $7.5 million in the event North Metro Harness obtains the necessary regulatory licenses. The transaction will also be subject to receipt of all required governmental approvals. MTR's due diligence investigation is under way, along with the negotiation of definitive agreements.
MTR also recently announced its intent to purchase the historic Binion's Horseshoe Hotel and Casino in Las Vegas. MTRalready owns Mountaineer Race Track & Gaming Resort, a year-round thoroughbred racetrack, 3,200 slot machines and 359 hotel rooms in Chester, WV, and the Speedway Casino at the Ramada Inn, a 131-room hotel and a casino with 400 slot machines and 10 table games in North Las Vegas, NV.
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