Sportech re-negotiates terms with Shoreline Star Complex

Sportech Plc has confirmed that it has improved the conditions and terms for its services the Shoreline Star Greyhound and Entertainment Complex, which the company inherited through its 2010 acquisition of Scientific Games Racing.

Under the previous agreement the Connecticut racing complex was due to receive around 50% of gross gaming revenue from new forms of gaming in Connecticut in the US for 25 year, Sportech having inherited the deal from Scientific Games Racing would also be forced to make additional capital investments in the joint venture.

Sportech said it considered the terms of this deal to be inequitable and started renegotiating the deal. Under the new terms, Shoreline Star will receive 50% of the profits after tax, with a foraced review period attached to its earnings after a period of 5 years.  Any payments under the contract will only occur once Sportech fully recovers any capital investments made.

Sportech Plc Chief Executive Ian Penrose commented on the new agreements 

“These material improvements to our contractual arrangements mean that Sportech and Shoreline Star have now more closely aligned our financial interests in the outlook for gaming in Connecticut,” 

“At a time when legislation for additional slot machines in the state is gaining momentum, and other forms of gaming may be introduced in the medium term, I am pleased that, following a lengthy and difficult period of negotiation, we now have a structure in place, which will bring increased financial returns to Sportech,”