Pinnacle hints at closing President Casino
By Eric Heisler
ST. LOUIS POST-DISPATCH
03/09/2006
A suitor of the bankrupt President Casino on the Admiral hinted Thursday that its plans include closing the Art Deco boat next year.
"Certainly we know what this boat is worth," Wade Hundley, president of Pinnacle Entertainment Inc., said in a statement. "It is not in a good location, and it's in terrible shape."
Still, "we intend to operate the President at least until (2007), possibly longer."
Hundley, who declined to detail specific plans, made Pinnacle's first statement on the President since signing a deal to acquire the boat for $31.5 million last month.
The offer is not final; rival companies will have a chance to outbid Pinnacle in a May auction.
Hundley said Pinnacle primarily wants to buy the President to ease the 2007 opening of the company's own $400 million casino complex just blocks away from the older casino on Laclede's Landing.
"As we have said many times, we are interested in the President's trained work force, as well as its customers and billboard locations," he said."
A casino industry analyst, however, said Pinnacle could benefit from keeping the President open.
Steven Ruggiero, who follows Pinnacle for CRT Capital Group in Connecticut, estimated that the President generates $75 million in annual revenue. Even after the new Pinnacle casino opens, the older casino still could generate more than $30 million in revenue a year, he said.
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By Eric Heisler
ST. LOUIS POST-DISPATCH
03/09/2006
A suitor of the bankrupt President Casino on the Admiral hinted Thursday that its plans include closing the Art Deco boat next year.
"Certainly we know what this boat is worth," Wade Hundley, president of Pinnacle Entertainment Inc., said in a statement. "It is not in a good location, and it's in terrible shape."
Still, "we intend to operate the President at least until (2007), possibly longer."
Hundley, who declined to detail specific plans, made Pinnacle's first statement on the President since signing a deal to acquire the boat for $31.5 million last month.
The offer is not final; rival companies will have a chance to outbid Pinnacle in a May auction.
Hundley said Pinnacle primarily wants to buy the President to ease the 2007 opening of the company's own $400 million casino complex just blocks away from the older casino on Laclede's Landing.
"As we have said many times, we are interested in the President's trained work force, as well as its customers and billboard locations," he said."
A casino industry analyst, however, said Pinnacle could benefit from keeping the President open.
Steven Ruggiero, who follows Pinnacle for CRT Capital Group in Connecticut, estimated that the President generates $75 million in annual revenue. Even after the new Pinnacle casino opens, the older casino still could generate more than $30 million in revenue a year, he said.
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