State of Florida Enacts Tax Reform for Jai-Alai Pari-Mutuels
MIAMI--(BUSINESS WIRE)--June 4, 1998--Florida Gaming Corp. (NASDAQ-SMALL CAP:BETS), the largest Jai-Alai operator in the world, announced that effective June 4, 1998, major tax legislation which limits the amount of state handle and admission taxes, became law, and will take effect July 1, 1998.
The new law (Section 2, Subsection (1b) of section 550.09511, Florida Statutes) states, in part, that, ''Any jai-alai permitholder that incurred state taxes on handle and admissions in an amount that exceeds its operating earnings in a fiscal year that ends during or after the 1997-1998 state fiscal year, is entitled to credit the excess amount of the taxes against state pari-mutuel taxes due and payable after June 30, 1998, during its next ensuing meets.''
Florida Gaming Corp. paid state taxes on handle and admissions in the amount of $3,105,309 for the year ended Dec. 31, 1997. Taxes paid to the state in fiscal 1997 of approximately $1,724,881 ($.29 per share) are eligible for recovery by the company during the twelve-month period beginning July 1, 1998.
W. Bennett Collett, chairman of Florida Gaming Corp., stated: ''This legislation will have a dramatic positive impact on our future revenues. For example, if this new tax legislation had been in effect as of Jan. 1, 1998, the company would have reported net income of $862,506 or $.19 per share, instead of income of $87,102 or $.02 per share for the quarter ended March 31, 1998. This is very good news for our employees and shareholders.''
Florida Gaming Corp. is the largest Jai-Alai operator in the world and the largest card room operator in Florida. The company owns and operates four Florida pari-mutuel wagering facilities located at Miami, Tampa, Ft. Pierce and Ocala which contain an aggregate of 425,000 square feet of gaming space with over 10,000 gaming positions. The company offers wagering on live Jai-Alai games and Inter-Track Wagering via simulcasting of horse (thoroughbred and harness) and dog racing at all four facilities. In addition, poker and dominoes are offered at the Crystal Cardrooms at the Miami and Tampa facilities.
Contact:
Florida Gaming Corporation
W. Bennett Collett, Chairman
502/589-2000 or 770/466-6870
or
Timothy L. Hensley, Chief Financial Officer
305/633-6400
or
Visit our web site:
fla-gaming.com
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