Hong Kong Jockey Club Granted Nevada Gaming Commission Approval

LAS VEGAS, Aug. 24 /PRNewswire/ -- In a historic decision, the Nevada Gaming Commission has given its approval to allow the Hong Kong Jockey Club (HKJC) to accept commingled bets from the United States on Hong Kong racing. The approval process is the first major step in distributing HKJC's world-class racing product to the US marketplace.

The decision validates the strategic partnership between the HKJC and Nevada-based Las Vegas Dissemination Company (LVDC) to provide live simulcast, pari-mutuel wagering, and commingled pools of all HKJC races into the U.S. For the first time, a wager placed within the U.S. will be commingled directly into the HKJC pools, which are the largest commingled pools on horse racing in the world.

"We thank the Nevada Gaming Control Board and Gaming Commission for their approval to import Hong Kong's world-class racing product," said Winfried Engelbrecht-Bresges, Chief Executive Officer of the HKJC. "We have a mission as the Hong Kong Jockey Club to be a world leader in racing and sports betting entertainment businesses and with globalization we see the importance regarding our brand image. Any ventures into overseas markets must be done in the right way, consistent with our commitment for best practices. It is our view there is no better place in the world with respect to best practices than the state of Nevada with its worldwide reputation as a premier regulatory authority in a very competitive gaming environment. We believe that Nevada is the right entry point for our first overseas commingling venture."

"It is the biggest news to hit the horse racing industry in the past 30 years and will be a boost to the sport's global popularity. HKJC's 78 race days in the 2006/07 season generated US $8.2 billion, which is equivalent to more than 50% of the aggregate total U.S. racing turnover in 2006. The impact of the Hong Kong races will reverberate throughout the racing and casino industries and will enhance the way American race books and race tracks operate their businesses," said John Gaughan, President and CEO of LVDC.

"This is a historic moment for fans of horse racing," said Robert Moretti, Executive Vice President and COO of LVDC. "The Gaming Commission's decision places the prestigious Hong Kong Jockey Club on a world-wide stage in front of a global audience."

The agreement endorses LVDC as the exclusive U.S. hub for commingling bets into the pools of the HKJC. All U.S. wagers will be serviced by LVDC as it disseminates their races to an expanded market place. "Wagering on HKJC races will now be available at authorized locations in the U.S. utilizing LVDC as its tote provider," Moretti added.

The HKJC was very pleased with its proposed cooperation with LVDC, given LVDC's reputable position in a highly regulated market place. With its non-restricted gaming licenses by the Nevada Gaming authorities and constant supervision by the Nevada Gaming Control Board, LVDC operates in one of the most highly respected gaming jurisdictions worldwide.

"According to the HKJC, LVDC was selected for its market position, Nevada non-restricted gaming licenses and full-service systems operator for the U.S. horseracing pari-mutuel industry," said Moretti.

About Hong Kong Jockey Club

The Hong Kong Jockey Club is one of the largest racing organizations in the world. Horse racing is the most popular spectator sport in Hong Kong and through its subsidiaries, the Club is the only authorized operator of horse racing. It also operates the Mark Six lottery and under Government authority offers betting on football matches held outside Hong Kong. The Club is the largest single taxpayer in Hong Kong - HK$12.64 billion in 2006/07, or about 8.2% of all taxes collected by the Government's Inland Revenue Department. A unique feature of the Club, much admired worldwide, is its not-for-profit business model whereby its surplus goes to charity. Over the past decade, the Club has donated an average of one billion Hong Kong dollars every year to hundreds of charities and community projects. Today, the Club ranks alongside organizations such as the Rockefeller Foundation as one of the biggest charity benefactors in the world. The Club is one of the largest employers in Hong Kong, with 4,400 full-time and 20,000 part-time staff. For more information, visit http://www.hkjc.com/ .

About Las Vegas Dissemination Company

Las Vegas Dissemination Company (LVDC) is the industry leader for pari-mutuel wagering and racetrack simulcasting. As the racing industry's only full-service, race information and off-track-betting hub facility, LVDC is the exclusive pari-mutuel service provider for Nevada's gaming industry and major, out-of-state casinos. In all, the company provides common-pooling through its hub into nearly 100 racetracks throughout North America. LVDC's key market advantage is that it is Nevada's only licensed systems operator for pari-mutuel wagering. To that end, the company holds three non-restricted Nevada gaming licenses as a disseminator, live broadcast disseminator, and pari-mutuel systems operator. LVDC operates under the regulatory oversight of the Nevada Gaming Control Board and Nevada Gaming Commission (which regulate all the casinos in Las Vegas and throughout the state of Nevada). For more information, visit http://www.lvdc.com/ .

Contacts: LVDC: Kurt Ouchida (702) 300-5756 Francine Mazzella (702) 739-8781