BOYD PULLS UP ANCHOR IN MISSOURI; COMPANY BLAMES CLOSING OF SAM'S TOWN ON RESTRICTIONS

Boyd Gaming Corp. of Las Vegas is saying goodbye to Missouri.

Sam's Town, a casino in North Kansas City that opened in September 1995, will close within two months.

Boyd investigated two areas for casinos in Missouri -- at Kansas City and Cape Girardeau -- after voters legalized riverboat gambling in the state in 1992. An operation at Cape Girardeau, where the company still owns property along or near the Mississippi River, never materialized.

After months of struggling in a crowded market, the owners of Sam's Town Casino said Tuesday they were selling some assets to Harrah's Entertainment and will close.

Sam's Town becomes the first casino to go out of business in Missouri. Four remain in the Kansas City area.

Harrah's side-by-side North Kansas City casinos have been the revenue leaders among Kansas City gambling operations.

Harrah's Entertainment will purchase the bulk of Boyd Corp. assets -- a 26,000-square-foot riverboat, 80,000 square feet of land facilities and all of Sam's Town gambling equipment -- for about $12.5 million.

William S. Boyd, chairman and chief executive officer of Boyd Gaming, said in a prepared statement Tuesday: "We have concluded that Missouri presents unusual challenges, which have negatively impacted our overall operating results since 1996. Having reviewed the competitive and ongoing restrictive regulatory and legislative environment in this particular region, we have determined that it is in the best long-term interest of our shareholders to focus our resources on other markets and properties."

Rob Stillwell of Boyd Gaming said Missouri's gambling restrictions, including specified "boarding times" and a $500 loss limit per visit, hamper casino operators.

"We operate in the most competitive environment in the world for gaming, that being Las Vegas, and have for decades," Stillwell said. "But Missouri presented a unique set of challenges."

Boyd also operates casinos in Illinois, Mississippi and Louisiana.

Harrah's is not purchasing the Sam's Town name or business and does not plan to operate a casino at the Sam's Town site, said Anthony Sanfillipo of Harrah's Entertainment.

With an unemployment rate just below 3 percent, high-quality employees are hard to find in the Kansas City area, said Sanfillipo. "We know Sam's Town has excellent employees, and we hope to employ many of them at our North Kansas City property," he said.

Sam's Town lost $5 million last year. Industry analysts had predicted it would lose $4.4 million this year and more than $2 million in 1999.

In April, Sam's Town had its worst month ever, taking just 7.35 percent of Kansas City's gambling dollars. The casino drew 114,000 people in April, the lowest in its 31 months of operation. Reported revenue for the month totaled $2,745,063.41.

In recent months, competition in the Kansas City region has intensified with opening of an expanded riverboat casino at St. Joseph and two Indian casinos on reservations in northeast Kansas.

Harrah's Kansas division operates one of the Indian casinos at Mayetta, Kan.

Boyd initiated its quest of Kansas City and Cape Girardeau gambling operations in January 1993. A $38.5 million development was proposed for downtown Cape Girardeau.

The Boyd project was delayed when city voters turned down riverboat gambling in April 1993. It wasn't until seven months later, in November 1993, that voters approved a casino riverboat project during a second election.

In January 1994, Lady Luck Gaming Corp. tossed its hat in the Cape Girardeau ring. But two months later the city selected Boyd to develop a $52.1 million gambling operation.

After Boyd had been selected, it started acquiring property from Broadway northward to and including the old shoe factory building property on North Main. The company still owns that property, but it is on the market.

The company also owns a couple of parcels on the west side of Main Street, including the former Job Service Office building and two buildings on North Spanish north of Broadway. Boyd also owns the property at the northeast corner of Broadway, site of a former Sinclair service station.

A total of 10 parcels have been offered for sale, said Ivan l. Irvin of Century 21 Key Realty, which will handle the sales. Irvin handled most of the purchases for the company.