Bankrupt casino gets Las Vegas offer

ST. LOUIS -- Las Vegas-based Pinnacle Entertainment Inc. has offered to pay $30 million to buy a bankrupt casino on a historic Mississippi riverboat, $2 million more than a competing company's bid.

The Pinnacle offer accepts the same terms as those offered by the other company, Wyomissing, Pa.-based Penn National Gaming Inc.

In a Friday bankruptcy court filing, Pinnacle said a previous $30 million bid was rebuffed by the investment banker and creditors of the President Casino on the Admiral.

St. Louis-based President Casinos Inc., the casino's parent company, has been operating under bankruptcy protection since June 2002.

The deal is subject to regulatory approvals from various agencies. A hearing to establish procedures for that deal, and hear objections, has been scheduled for Wednesday.

Jon Sloane, a President spokesman, said the President Casino on the Admiral would continue operating as usual until ownership was settled.

"This is a wide-open, ongoing process that could take a long time to finally resolve," he said.

Penn National officials were unavailable for comment Friday. In August, Penn National spokesman Joseph N. Jaffoni said purchasing the President would open a new market for the company. Jaffoni said the buy would fit into Penn National's strategy of acquiring casinos in regional markets and making additional investments in them.

The Missouri Gaming Commission approved Pinnacle's proposal to build two St. Louis-area casinos at a selection meeting Sept. 1. Pinnacle's plans for a downtown complex feature a $200 million casino and five-star hotel on Laclede's Landing that would open in late 2006. The second project, a $300 million county complex, would open near Lemay in late 2007. It would include a 90,000-square-foot casino, 100-room hotel, retail space, movie theater and bowling alley on 80 acres of land.

The commission staff acknowledged then that the development at Laclede's Landing probably would mean the demise of the President Casino on the Admiral.

Pinnacle chairman Daniel Lee said on the day of the meeting that his company would be interested in buying the casino, to secure its 700 experienced employees and gain experience in the St. Louis market before opening the Laclede's Landing complex.