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The following is an excerpt from a 10-K SEC Filing, filed by ROYAL CASINO GROUP INC on 11/14/1997.
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ARCLAND ENERGY CORP - 10-K - 19971114 - PART_I


Item 1. Business

General Development of Business

The Company, which is a Utah Corporation, was originally formed on March 21, 1981, under the name "Arrowhead Energy Corporation" ("Arrowhead") which later changed its name to "Reliance Enterprises, Inc." ("Reliance"). At the time of incorporation, Arrowhead, and subsequently Reliance, were engaged primarily in the acquisition and drilling of oil and gas prospects principally through private sales of limited partnership interests. On March 5, 1986, Reliance filed for protection under Chapter 11 of the United States Bankruptcy Code. On April 18, 1988, Reliance acquired Capitol Television Network Inc., a California corporation ("CTN California") formed on December 31, 1986, in exchange for a controlling interest in Reliance. "CTN California's" president and largest shareholder was Jon Elliott. Pursuant to a Plan of Reorganization, as Confirmed by the U.S. Bankruptcy Court, Reliance emerged from bankruptcy proceedings and amended its Articles of Incorporation to change its name to Capitol Television Network Inc. The Company was formed to establish a national broadcasting network to provide programming via satellite for independent and low power television stations. Due to the company's inability to attract the necessary funds to commence and sustain operations, combined with the then current recession, the Company ceased operations in January, 1992. The Company was dormant until January, 1994 when it amended its Articles of Incorporation to change its name to Royal Casino Group Inc.

The Company's revenues are derived from Goldiggers Hotel & Gaming Est., the company's casino and hotel in Deadwood, South Dakota combined with revenues from the Deadwood Stage, a transportation system operated by the Company in conjunction with Goldiggers. The revenues from Goldiggers were not sufficient to support Goldiggers and the corporate overhead required to maintain the corporation's existing operation plus the costs inherent in pursuing other gaming opportunities. Consequently, the Company experienced an operating loss. It is anticipated that additional losses will be incurred in the future as the Company develops casino properties and will continue until the Company's second or third property is operational.

Royal Casino Group Inc. is a publicly traded company whose stock trades on the NASDAQ Over-The-Counter ("OTC") Bulletin Board under the symbol "WINZ". The Company currently maintains its principal office at 152 Sherman St, Deadwood, SD 57732. The Company's mailing address is P.O. Box 545 Deadwood, SD 57732, it's telephone number is (605) 578-1299 and the fax number is (605) 578-1298

Narrative Description of Business

Just a few short years ago the only casinos in the country were in Nevada and Atlantic City. Faced with a shortage of civic funds due to the recession, several small cities such as Deadwood, SD, Davenport, IA and three obscure gold mining towns in Colorado began to allow casinos as a way to replenish municipal coffers. The phenomenal success of gaming in these communities soon spawned riverboats on the Mississippi River and on Indian reservations and the "new gold rush of the `90's was on". Several gaming companies that began less than five years ago in small cities in Iowa, South Dakota and Illinois now have a market cap in excess of $200M. As these companies expand their horizons to larger population centers the tendency is to overlook the smaller communities.

The Corporation's business plan consists of the development of gaming properties in small to medium sized jurisdictions throughout the country. The Company believes that with the proliferation of gaming many compelling opportunities will be available to aggressive gaming organizations over the next several years. Therefore, the Company's strategy is to operate many smaller casinos in small to medium sized markets, some potentially on a Joint Venture basis with one or more of the larger gaming companies. In most markets Royal Casino Group will elect to develop the property in-house.

The Company through its wholly-owned subsidiary, Atlantic-Pacific Corp., owns and operates Goldiggers Hotel & Gaming Est. in Deadwood, South Dakota. The property consists of a limited stakes casino with 90 gaming devices, a nine room hotel, restaurant and bar. In addition the Company owns the Deadwood Stage, a transportation system consisting of 11 vehicles including two 47 passenger busses, three 25 passenger busses, a 20 passenger bus plus assorted vans. Two parcels of land adjacent to the property are owned outright by the Company and could be utilized to expand the property.

The Company has signed a 25 year exclusive contract with the City of Wyatt, Missouri to develop a riverboat casino entertainment center on the Mississippi River. The Company has 50 acres of land on the Mississippi River under its control to develop the project. The Company's application to the Missouri Gaming Commission is pending receipt of a suitable docking permit from the Army Corps of Engineers and the annexation of the property into the City of Wyatt. It is anticipated that the application will be submitted to the gaming commission during the Company's second quarter, ending January 31, 1998, although there can be no assurances that the docking permits and/or annexation will be completed within that time frame.


Including its wholly-owned subsidiary Atlantic-Pacific Corp., the Company employs approximately 55 full time employees year round increasing to approximately 75 during the summer.

Item 2. Properties

The Company leases approximately 1,000 square feet for its corporate headquarters in Deadwood, South Dakota from First Western Bank for $950 per month on a lease through April, 1998. The Company leases the three building complex that houses Goldiggers for an aggregate $19,500 per month on a five year lease with three five year renewal options. The Company experienced a 50% rent deferral of the $16,000 per month portion of its Goldiggers lease from January-May, 1997 due to the severe winter's impact on the business. The deferred portion was to be added to the monthly rent and paid from June-October, 1997. As of the date of this filing two payments of the deferred portion have been paid. Additionally, the Company's wholly owned subsidiary is delinquent three months on its rent. The Company, through its wholly-owned subsidiary, Atlantic-Pacific Corp., owns outright two contiguous lots on Main Street in Deadwood adjacent to Goldiggers.

Item 3. Legal Proceedings

In July, 1997 the Company settled its only lawsuit. In August, 1996 Stephen Grogan, a former Officer and Director of the Company sued Royal Casino Group Inc. and Jon Elliott, its President seeking $1 million. The Company sued Stephen Grogan and in the course of such suit discovered formal documentation from the South Dakota Commission on Gaming recommending that Stephen Grogan not be given a gaming license. Solely to avoid the continuous distraction and costs associated with litigation, the Company, without admitting any wrongdoing, chose to settle Grogan's suit for less than $75,000, and withdraw their suit.

The Company is not involved in any existing law suits, nor is the Company aware of any pending legal proceedings. [See:
Subsequent Events]

Item 4. Security Ownership of Certain

Beneficial Owners and Management

The following table sets forth certain information regarding the Company's Common Stock as of July 31, 1997, not giving effect to any stock options or Warrants outstanding as of such date, owned or recorded beneficially by each person owning more than 5% of such Common Stock and by all officers and directors as a group.


 Name of                            Number

 Beneficial Owner                 of Shares       % of Total

Jon F. Elliott

P.O. Box 623

Deadwood, SD 1,029,974 19.95

CEO/President and Director

Larry C. Close

1917 Catherine Court

Gardnerville, NV 89410 412,500 8.

Vice President Gaming,

Secretary and Director

All Officers & Directors

as a Group 1,442,474 27.95

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