06/04/2002 11:00PM

Magna: Flamboro slots lucrative


Slot machines at newly purchased Flamboro Downs, near Toronto, will generate nearly $11 million in annual revenues for Magna Entertainment, according to figures provided on Wednesday by Magna's chief financial officer, Graham Orr.

Orr said during an interview that Flamboro's 750 slot machines make approximately $400 each in net winnings a day. The track operates the slot machines 365 days a year, Orr said.

Because the track and its horsemen split 20 percent of the net win, the annual revenue for each group from the machines is approximately $11 million. The machines are operated by the Ontario Lottery and Gaming Corporation, and Flamboro simply gets a cut.

Magna, which had net income of $13.5 million in 2001, announced Tuesday that it had reached an agreement to purchase Flamboro for $47 million, with the deal expected to close in the third quarter this year.

Magna owns seven tracks, including Santa Anita Park and Gulfstream, and has leases on three others. Flamboro, a small harness track 40 miles outside Toronto, would be the first track Magna owns in Canada and the first with slot machines.

Orr also said that Magna hopes to add Flamboro's 260 live race cards to its racing television channel, HorseRacing TV, but he said Magna has not finalized plans to launch that channel.

"There's not anything to report on that front yet," he said. Magna officials said previously that the channel would launch in June.