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SPORT OF KINGS, INC. ANNOUNCES TEMPORARY CLOSURE OF FACILITY

 LAS VEGAS, Nev., July 16 /PRNewswire/ -- Sport of Kings, Inc. (NASDAQ Small Cap: ODDS) (the company), which opened its race book facility in Las Vegas in October 1992, reported today that it will effect a temporary closure of its race book facility on July 19, 1993 in order to allow the company and its debt obligations to be restructured. The company announced that the Nevada Gaming Control Board has agreed to allow the company to retain its gaming license while closed until Dec. 31, 1993.
 Blas Molto, acting president of the company, stated, "We believe this action is in the best interest of the company and our shareholders. Although gaming results have improved since the Sport of Kings commenced activities in October 1992, our current operating revenues are still not enough to cover our operational expenses and we cannot service our debt obligations. In addition, under the terms of our gaming license, we are required to meet certain standards and operating ratios. Since we cannot meet certain of these conditions, we have decided to take the course of action being announced today in order to avoid any additional problems with the Nevada Gaming Authorities. Since it is our intent to restructure the company and reopen the facility, we believe it is important to maintain a good working relationship with the state regulatory authorities."
 The company announced that no assurance can be given that the company will be able to effect such restructuring, or that the facility can be reopened.
 The company also announced that following the resignation of William J. Vargas, its former chief financial officer who was also serving as acting president, which resignation was effective as of June 29, 1993, the company retained the services of a local accounting firm to assist management in certain accounting matters. During such firm's review of the company's financial information, it was discovered that the company had not paid backup withholding on gambling winnings during 1993. Such liability is estimated to be approximately $365,000. Current management of the company was not aware that such backup withholding was not paid to the Internal Revenue Service.
 The company has requested that a portion of the reserves established with the Nevada Gaming Authorities be released to enable the company to pay some of its obligations. Management reported that it has obtained the agreement of the Nevada Gaming Control Board to release a portion of the reserves to pay such obligations. Sufficient reserves will be retained by the Nevada Gaming Control Board to satisfy all outstanding gaming and chip obligations.
 -0- 7/16/93
 /CONTACT: Mr. Blas Molto of Sport of Kings, Inc., 702-893-3500, or Fax, 702-893-3576/
 (ODDS)


CO: Sport of Kings, Inc. ST: Nevada IN: CNO SU: RCN

SH-WB -- NY044 -- 2594 07/16/93 15:45 EDT
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Publication:PR Newswire
Date:Jul 16, 1993
Words:463
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