Hollywood Casino Proposals Will Generate Millions More for Non-Profit Partners - WCAX.COM Local Vermont News, Weather and Sports-

Hollywood Casino Proposals Will Generate Millions More for Non-Profit Partners

Information contained on this page is provided by companies via press release distributed through PR Newswire, an independent third-party content provider. PR Newswire, WorldNow and this Station make no warranties or representations in connection therewith.

SOURCE Strategic Economics Group

Millions more for non-profit partners compared to Hard Rock and Warrior proposals

SIOUX CITY, Iowa, March 15, 2013 /PRNewswire-USNewswire/ -- In a third installment study released by Strategic Economics Group, an Iowa-based research organization, the two Hollywood casino proposals will generate the most dollars for their non-profit partner.

Under state law, casino operators are required to have a partnership with a qualified sponsoring organization (QSO), which in turn must support community initiatives with the funds received from the commercial operator.  All finances and payouts related to the casino operations are subject to audits conducted by the State of Iowa.

While each applicant has a different agreement with their respective QSO, state law requires a minimum 3% of adjusted gross revenue (AGR) go the non-profit partner.  Hard Rock's QSO agreement requires a 4.25% of AGR payment to MRHD, their non-profit partner.  Warrior's agreement with Siouxland Great is a little more complex, provides an initial 3% of AGR to the QSO which increases to 3.25% after 5 years and 3.5% 5 years after that.  Hollywood's agreement with its QSO, Greater Siouxland Improvement Association, starts it payments at 7.5% of EBITDA (earnings before interest, taxes, depreciation and amortization), increasing to 17.5% of EBITDA of $20-25 million, 25% of EBITDA between $25 and $30 million and 33% of EBITDA above $30 million.  The expected year one EBITDA of Hollywood is $29 million.

Despite the complicated formulas, the anticipated payouts to non-profit partners are straightforward over the next 20 years.  Hollywood Casino Siouxland will pay out $148.3 million and Hollywood Casino Sioux City will distribute $123.7 million, compared to a $107.7 million payout by Hard Rock Casino and $68.4 million from Warrior Casino.

The study can be found here.

The authors of the study are Harvey Siegelman, President of SEG and former State of Iowa Economist (1982 – 2001) and Mike Lipsman, senior economist at SEG and former Research Manager for the Iowa Department of Revenue. 

©2012 PR Newswire. All Rights Reserved.

  • Local News

  • Friday, May 24 2013 11:30 PM EDT2013-05-25 03:30:10 GMT
    A hole in the road closed one of the routes into Canada Friday.State Police say Route 5 in Derby Line is closed near Caswell Avenue because of a hole in the pavement just a couple of feet over the line
    A hole in the road closed one of the routes into Canada Friday.

  • Friday, May 24 2013 7:17 PM EDT2013-05-24 23:17:06 GMT
    It was a storm that left residents with more damage than they could have ever imagined. "The basement has about 13 inches of water," said Bob Genter of Underhill. And preparing for the aftermath of the
    Flash floods left destruction across the region. And the rain is not over. Heavy downpours left some people trapped in their neighborhoods as emergency crews work to try to clear the roads.

  • Friday, May 24 2013 7:54 PM EDT2013-05-24 23:54:18 GMT
    Vermont State Police say the following roads have been closed due to flooding:UNDERHILL: VERMONT ROUTE 15, CILLEYHILL POKER HILL ROAD NORTH UNDERHILL STATION ROAD PAIGE ROAD DAUDLIN ROAD   BROWNS TRACE,
    Roads closed due to flash floods.

  • Friday, May 24 2013 7:20 PM EDT2013-05-24 23:20:50 GMT
    As the cleanup gets underway from Thursday night's flash flooding, the focus shifts now to the broader impacts of rising rivers from around the region. All the rain so far and more to come is running into
    All the rain is running into larger streams and rivers that are moving rapidly toward flood stage.

  • Friday, May 24 2013 12:44 PM EDT2013-05-24 16:44:50 GMT
    Heavy rains have caused more flooding problems around our region, and the situation could get worse as the rain continues to fall over the holiday weekend. So far, the impact has mainly been seen in road
    Heavy rains have caused more flooding problems around our region, and the situation could get worse as the rain continues to fall over the holiday weekend.

  • Friday, May 24 2013 9:51 AM EDT2013-05-24 13:51:55 GMT
    Over the river and throught the woods isn't just the way to grandma's house, its the way a lot of people are having to travel just to make it to their front door. Dormant brooks and sleepy streams turned
    Strong rains Thursday flooded roads in Essex.

  • Friday, May 24 2013 7:25 PM EDT2013-05-24 23:25:14 GMT
    A rainy Vermont City Marathon forecast isn't slowing down runners or organizers. "Well, we're going to make some liquid sunshine out of all of this rain. That's the only choice we've got right now," said
    The countdown is on to this weekend's Vermont City Marathon and final preps are underway. Those finishing touches are coming in the rain, but organizers say the weather isn't slowing things down.

  • Friday, May 24 2013 7:35 PM EDT2013-05-24 23:35:15 GMT
    The bad weather has forced the postponement of the annual Memorial Day parade in Essex. The parade is held annually on the Saturday morning of the holiday weekend. But after all the rain and flooding damage
    The bad weather has forced the postponement of the annual Memorial Day parade in Essex.
Powered by WorldNow

News

Weather

Featured

Quick Links

WCAX-TV

PO Box 4508
Burlington, VT 05406-4508
Primary Phone: 802-652-6300
Primary email: channel3@wcax.com

All content © Copyright 2000 - 2013 WorldNow and WCAX. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.