Profile: Canterbury Park Holding Corp (CPHC.OQ)
9 Dec 2013
Canterbury Park Holding Corporation, incorporated on March 24, 1994, conducts pari-mutuel wagering operations and hosts unbanked card games at its Canterbury Park Racetrack and Card Casino facility (the Racetrack) in Shakopee, Minnesota. The Company operates in three segments: horse racing, Card Casino and concessions. The Company’s horse racing segment represents operations related to pari-mutuel wagering on simulcast and live horse races. The Company’s Card Casino segment represents its unbanked card operations. The Company’s concessions segment represents food and beverage services for simulcast and live racing, the Card Casino and special events at the Racetrack. The Company's pari-mutuel wagering operations include both wagering on thoroughbred and quarter horse races during live meets at the Racetrack and year-round wagering on races held at out-of-state racetracks that are televised simultaneously at the Racetrack (simulcasting). Unbanked card games, in which patrons compete against each other, are hosted in the Card Casino at the Racetrack.
Horse Racing Operations
The Company’s horse racing operations consist of year-round pari-mutuel wagering on simulcast horse races and on live thoroughbred and quarter horse races (live meets) held on a seasonal basis beginning in May and generally concluding in August or September each year. During the year ended December 31, 2011, Racetrack hosted 56 days of live racing from May 20th and concluded on September 11th. The meet included 37 days of mixed thoroughbred and quarter horse racing and 19 days of thoroughbred only racing. The Company offers full card simulcast racing (broadcasting of another racetrack’s entire daily live racing program) from up to 20 racetracks per day, round the clock, including Churchill Downs, Hollywood Park, Santa Anita, Gulfstream Park, Belmont Park and Saratoga Racecourse. In addition, races of national interest, such as the Kentucky Derby, the Preakness Stakes, the Belmont Stakes, and the Breeders’ Cup, supplement the regular simulcast program.
Card Casino Operations
The Card Casino is open round the clock offering two variations of unbanked card games: poker and table games. The Poker games, including Texas Hold Em, 7-Card Stud and Omaha, with betting limits per hand ranging between $2 and $60, are offered in the poker room A dealer, employed by the Company, regulates the play of the game at each table and deals the cards but does not participate in play. In poker games, the Company is allowed to deduct a percentage from the accumulated wagers and impose other charges for hosting the activity but does not have an interest in the outcome of a game. The Company may add additional prizes, awards or money to any game for promotional purposes. The Company collects a rake of 5-10%, depending on the limit of the game, of each addition to the pot up to a maximum of $5 per hand as its collection revenue. In addition, poker games offer jackpots for games. In order to fund the jackpot pool, the dealer withholds $1 from each final pot in excess of the $15 minimum. Table games, including Blackjack, Fortune Pai Gow, Let-It-Ride, Three and Four Card Poker, Ultimate Texas Hold Em, EZ Baccarat, and Blackjack Switch are offered in the Card Casino. The primary source of Card Casino revenue is a percentage of the wagers received from the players as compensation for providing the Card Casino facility and services, referred to as collection revenue.
The Company has used its grandstand, grounds and parking lot for special events and rentals. While the use of the Company’s facilities for particular special events and purposes varies from year to year, such as snowmobile races, arts and crafts shows, trade shows, concerts, fundraisers, automobile shows and competitions, vehicle and boat storage and private parties.
The Company competes with North Metro Harness Initiative, LLC.
Canterbury Park Holding Corp
1100 Canterbury Road
SHAKOPEE MN 55379