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EXHIBIT 99.1
Grand Casinos, Inc. (ticker: GND, exchange: New York Stock Exchange) News
Release - Tuesday, December 08, 1998
GRAND CASINOS ANNOUNCES CONCLUSION OF
MANAGEMENT CONTRACT FOR GRAND CASINO HINCKLEY
Minneapolis, December 8, 1998 - Grand Casinos, Inc. (NYSE: GND)
today announced that it has reached an agreement with the Mille
Lacs Band of Ojibwe, effective December 1, 1998, for the early
buyout of the management contract for Grand Casino Hinckley. The
Mille Lacs Band has elected to exercise its option for the early
buyout of the contract that was scheduled to expire on May 15,
1999. The early buyout of the contract was provided in the
original seven-year management agreement and Grand Casinos will
receive full value for all contracted obligations by the Mille
Lacs Band. Under the early buyout agreement, Grand Casinos was
compensated for the management fees the company would have
received had it managed Grand Casino Hinckley through the
original contract expiration date.
Grand Casinos seven-year management contract with the Mille Lacs
Band for Grand Casino Mille Lacs had previously concluded on
April 2, 1998. The Mille Lacs Band will assume sole
responsibility for the operations of its two casino resorts in
Minnesota. The original management agreements between Grand
Casinos and the Mille Lacs Band granted the Band the right to
continue use of the "Grand Casino" brand name beyond the term of
the management agreements.
Grand Casino Hinckley and Grand Casinos Mille Lacs were
developed into full-scale destination resorts during the term of
the management agreements. Grand Casinos managed all aspects of
development and operations for the two properties from master
planning and financing to construction and marketing, with
particular emphasis on training and development of the casinos'
tribal employees. The Mille Lacs Band and Grand Casinos have
enjoyed a successful partnership, lasting over an eight-year
period. Both entities are proud of the Grand Casino resort
operations in Minnesota, which are considered among the most
profitable and well-run Indian gaming establishments in the
United States.
Grand Casinos continues to manage two casino resorts in
Louisiana, Grand Casino Avoyelles in Marksville, Louisiana, and
Grand Casino Coushatta in Kinder, Louisiana. Following the
company's previously announced plans to merge its Mississippi
operations with the gaming operations of Hilton Hotels
Corporation, the two Grand Casino properties in Louisiana will
be managed by Lakes Gaming, Inc. Shares in Lakes Gaming, a new
publicly held company, will be distributed to current
shareholders of Grand Casinos common stock. Existing management
of Grand Casinos will manage Lakes Gaming. This transaction is
expected to be completed by year-end 1998.
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Grand Casinos, Inc. is a publicly traded company listed on the
New York Stock Exchange under the trading symbol GND. The
company currently owns and operates the three largest casino
resorts in the state of Mississippi and manages two land-based
casino resorts in Louisiana.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain information included in this press
release (as well as information included in oral statements or other written
statements made or to be made by the Company) contains statements that are
forward-looking, such as statements relating to plan for future expansion and
other business development activities as well as other capital spending,
financing sources and the effects of regulation (including gaming and tax
regulation) and competition. Such forward-looking information involves important
risks and uncertainties that could significantly affect anticipated results in
the future and, accordingly, such results may differ from those expressed in any
forward-looking statements made by or on behalf of the Company. These risks and
uncertainties include, but are not limited to, those relating to development and
construction activities, dependence on existing management, leverage and debt
service (including sensitivity to fluctuations in the interest rates), domestic
or global economic conditions, activities of competitors and the presence of new
or additional competition, fluctuations and changes in customer preferences and
attitudes, changes in federal or state tax laws of the administration of such
laws and changes in gaming laws or regulations (including the legalization of
gaming in certain jurisdictions). For more information, review the Company's
filings with the Securities and Exchange Commission, including the Company's
annual report on Form 10-K and certain registration statements of the Company.
# # #
FOR FURTHER INFORMATION CONTACT:
Jaye Snyder 612-449-8556
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press
release regarding Grand Casinos, Inc.'s business which are not
historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the
most recently ended fiscal year.