American Wagering to sell LV hotel

Monday, May 17, 1999 | 2:02 a.m.

American Wagering Inc. said it has agreed to sell its Howard Johnson's hotel-casino to Gold Rush Casino & Hotel LLC and lease back the casino and bar at Tropicana and I-15 for two years.

The sale, subject to Gold Rush getting a firm financing commitment, is for $4.3 million, American Wagering said. Proceeds will be used to repay a $2.4 million mortgage.

"By selling this hotel and paying off the mortgage, the company in essence becomes debt-free," American Wagering Chief Executive Vic Salerno said. "This transaction will result in a much more impressive balance sheet, while giving us additional cash for our growth and development plans."

American Wagering operates 48 Leroy's Horse and Sports Place throughout Nevada, supplies sports and race book equipment and software and operates Mega$ports, a parlay betting system. The company has formed an Australian subsidiary that operates Mega$ports and fixed odds wagering on the Internet.

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