On 27 June 2008 the government of Costa Rica issued a decree that will limit casino operations to the twelve hours between 6 p.m. and 6 a.m. from 27 December 2008. This is just one of several measures that will affect the gaming revenues of operators in the country. Laura Chinchilla, Vice President and presidential candidate, last April stated that casinos would be limited to opening between 6 p.m. and 2 a.m., so the original plan has been modified although, according to Thunderbird Resorts, the curtailed hours may have a material impact on its existing operations.

Thunderbird expects the legality and constitutionality of this decree to be challenged by various business associations and/or casino operators. The proposed changes to the gaming laws in Costa Rica may also impact the company’s new developments as it places a requirement of a minimum number of hotel rooms in order to offer certain levels of gaming tables and slot machines for future casinos and requires them to be located in at least 3-star properties.

The decree adds a further limitation for new casinos only of a minimum hotel size of 60 rooms with one gaming table allowed per 10 hotel rooms, one slot machine per hotel room (for a total minimum of 60 slot machines and 10 tables), increasing in proportion to the number of rooms of the hotel adding one gaming table for each 10 additional rooms and one slot machine for each additional room. Operators will have six months from the date of the decree (27 December, 2008) to comply with its various provisions.

Thunderbird comments, “The slot machine and table limitations applied to new casinos may materially impact our new casinos, specifically the Tres Rios project currently under construction and the Escazu project which is in the design phase. Thunderbird continues the construction of its hotel and casino at Tres Rios with an expected opening in the first quarter of 2009. The effect of the decree may include a delay in the construction at Escazu until the legal impact of the decree and any legal challenges are sorted out.

In its update on Poland Thunderbird says its application to the Polish Ministry of Finance for approval of the acquisition of a controlling interest in a joint venture with a local partner to develop casino properties in Poland was approved in June 2008 and the acquisition was completed on 2 July 2008. Currently, the two Casino Centrum facilities which the Company now owns are located in the central part of Lodz and operate under one casino licence and one slot licence. The Casino Centrum locations have approximately 720 square meters in the aggregate with approximately 73 slot positions and 28 table positions. (E-07.07.08)

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