Hotel Online  Special Report

 Caesars Entertainment, Inc. Signs Development and Management Agreements for $250 million Hotel and
Casino on Tribal Land Near Fresno, California


LAS VEGAS - Sept. 16, 2004 -- The leaders of the Big Sandy Band of Western Mono Indians and Caesars Entertainment, Inc. (NYSE: CZR), one of the world's leading gaming companies, have signed formal agreements that will govern the development, construction and management of the Tribe's planned new casino, to be built on Tribal land near Fresno, California. The total project cost is estimated at $250 million.

The management and related agreements establish the management fee that Caesars will receive from the Tribe; provide for payment of a development fee to the company; and assign obligations for funding the various portions of the project.

Plans for the Big Sandy project call for construction of a premier-quality casino resort on 48 acres of Tribal land near Fresno in the central San Joaquin Valley. The casino would become the second to directly serve the Fresno metropolitan area, which has a population of approximately 1.2 million.

The casino property initially would include 250 to 300 hotel rooms, more than 75,000 square feet of gaming space, at least 2,000 slot machines, approximately 20 gaming tables and a collection of restaurants, retail shops, meeting space and entertainment facilities. The company and the Tribe are discussing an appropriate brand for the casino.

"The Big Sandy Band of Western Mono Indians is proud to be working with one the largest casino operators in the world," said Big Sandy Rancheria Tribal Chairperson Connie Lewis.

"This collaboration will provide a new economic base for the Tribe and Fresno County. All parties involved will share in the economic benefits that this new casino will bring," Lewis added.

"We are pleased to be associated with the Big Sandy Tribe in this significant California gaming project," said Caesars Entertainment President and Chief Executive Officer Wallace R. Barr. "This casino resort will deliver millions of dollars of investment and thousands of local jobs to the region, in addition to providing substantial economic benefits to members of the Tribe."

Under the terms of the agreements:

  • The Tribe and Caesars Entertainment will develop and construct the casino resort and other related facilities on Tribal lands.
  • Caesars Entertainment will assist the Tribe in securing financing for the planned development.
  • Caesars Entertainment will manage the casino and resort for an initial term of seven years, which is renewable upon the consent of both parties.
  • Caesars Entertainment will receive a management fee of 30 percent of Net Total Revenue, as defined in the management agreement, from casino and resort operations. Net Total Revenue is analogous to the GAAP concept of pretax income.
  • Caesars Entertainment will receive a one-time development fee of approximately $7 million for its assistance in planning and building the casino resort.
The Big Sandy Tribe currently operates the Mono Wind Casino in Auberry, California, about 15 miles northeast of the proposed Fresno-area casino.

The management agreement between Caesars Entertainment and the Tribe requires the approval of the National Indian Gaming Commission. In addition, the Tribe would have to amend its existing compact with the State of California, or negotiate a new compact for the new casino project. The project also is dependent on other regulatory approvals and contingencies.

About Caesars Entertainment
Caesars Entertainment, Inc. (NYSE: CZR) is one of the world's leading gaming companies. With $4.5 billion in annual net revenue, 28 properties on four continents, 26,000 hotel rooms, two million square feet of casino space and 52,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas.

In July 2004, the Board of Directors of Caesars Entertainment approved an offer from Harrah's Entertainment to acquire the company for approximately $1.8 billion and 66.3 million shares of Harrah's common stock. The offer must be approved by shareholders of both companies and federal and state regulators before the transaction can close.

This press release contains "forward-looking statements" within the meaning of the federal securities law, which are intended to qualify for the safe harbor from liability provided thereunder. 

Caesars Entertainment
Also See: Caesars Entertainment and The Big Sandy Band of Western Mono Indians Developing $200 million Hotel / Casino Just North of Fresno, California / February 2004
The $150 million Chukchansi Gold Resort & Casino Opens Near Yosemite National Park / August 2003

To search Hotel Online data base of News and Trends Go to Hotel.Online Search

Home | Welcome! | Hospitality News | Classifieds | Catalogs & Pricing | Viewpoint Forum | Ideas/Trends
Please contact Hotel.Online with your comments and suggestions.