Officials of Isle of Capri confirm casino will continue operations in GB

By LISA S. KING

FN Asst. Editor

lisa@nasguard.com

Speculation regarding the intended closure of Isle of Capri on June 1 has been put to rest with the announcement by the company that it has reached an agreement with Government officials to continue the operation of its casino at Our Lucaya in Freeport.

The company had previously announced that it would be terminating its lease as of June 1, 2007. However, it is believed that after careful negotiation with the Government, the company's request to have the casino tax rate reduced from 17 percent to under 10 percent has been granted.

Despite then Prime Minister Perry Christie's announcement at a mass rally in Grand Bahama last week that the government met with executives of the Isle of Capri to have the casino continue its operations here, there were still reports that the casino was closing on June 1.

However, Jill Haynes, Isle of Capri's senior director of Corporate Communications, said she is very satisfied with the new agreement made between the Government and Isle of Capri, as there was great hope for the casino to remain in Freeport.

Haynes said although she could not comment on the full details regarding the new agreement, she did say that the company will be notifying its regular customers about the changes as soon as possible.

Haynes said yesterday that the new agreement will make the property financially more attractive from an operational standpoint and the company intends to work very closely with the Ministry of Tourism as they move forward.

"The details of the agreement has not been disclosed," Haynes said. "But we will let our customer base know of the changes that will be taking place."

Before announcing its closure on June 1, Isle of Capri was seeking a reduction in the casino win tax rate from 17 percent to nine percent and was hoping for promotional and marketing support from the Government, including a $5 million contribution from the administration for such campaigns.

Minister Obie Wilchcombe had said two weeks ago that the Government had essentially agreed to the requests in return for Isle of Capri remaining as the operator of Our Lucaya's casino for another two years rather than terminate its lease on June 1, 2007 as originally planned.

Wilchcombe had revealed that the rate ( 17 percent) was a little too high and that the Government had been able to work out an agreement that places it under 10 percent.

Tim Hinkley, Isle of Capri's president and CEO, said the company appreciates the diligent efforts put forth by the Ministry of Tourism, the Gaming Board of The Bahamas, the Hotel Corporation and Government officials, who all worked together to complete the new agreement.

"Isle of Capri will remain in Freeport welcoming guests to this wonderful island get-away," Hinkley said. "Our team members will continue to be a part of the Isle of Capri family welcoming guests to our casino and providing an experience complete with Las Vegas-style action and excitement."

Christie told Progressive Liberal Party (PLP) told supporters on April 14 that the government had settled the terms of an agreement with the Isle of Capri and that the Heads of Agreement was to be executed that week. This move, he said, was to protect the jobs of some 1,000 Bahamians.

Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience.

Welcoming guests at each of its 15 casino properties are team members committed to superior service and a fun atmosphere. The Company owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida.

© 2007 The Freeport News