Casino makes offer on St. Louis gaming site

ST. LOUIS -- Isle of Capri Casinos Inc. is offering $50 million to buy a struggling downtown gaming site, a move that could help its case to build a St. Louis County casino.

Isle of Capri announced the offer Thursday, a day after city and county officials launched a joint effort to draw a casino company that would build a high-quality gaming site on the St. Louis riverfront and a new casino in south St. Louis County.

The proposal seeks a casino north of the riverfront's President Casino on the Admiral. But Jeff Rainford, Mayor Francis Slay's chief of staff, said Friday the city also would support an overhauled facility on the site of the President.

City and county officials believe the Missouri Gaming Commission may be more willing to approve two St. Louis-area casinos by the same company than to approve one new casino in the county. Gaming officials have been concerned that a new casino in south St. Louis County would hurt revenues at a downtown casino.

The President already is the area's smallest casino and produces the least revenue.

Isle of Capri, based in Biloxi, Miss., has a history of buying and remaking casinos, including one from the President's parent company. Three years ago, Isle of Capri bought President Casinos Inc.'s casino and hotel in Davenport, Iowa. Also that year, it purchased and refurbished the Flamingo Hilton Riverboat Casino in Kansas City.

Isle of Capri also has shown interest in a 22-acre site near the Jefferson Barracks Bridge since it dropped its plan to build a riverboat casino in neighboring Jefferson County in 2001.

Jim Oberkirsch, chief financial analyst for the state gaming commission, said Isle of Capri will be scrutinized although it already operates casinos in Boonville and Kansas City.

"They've got to go through a background check, just the same as any buyer would," Oberkirsch said, noting that the quickest a background check has been completed was three months, with most taking longer.

Isle of Capri also runs casinos in Colorado, Iowa, Louisiana, Mississippi and Nevada.

Slay advocates a larger downtown casino, in hopes it would draw more visitors, jobs and tax income.

Rainford said the mayor hoped for a "destination attraction" casino with entertainment venues, restaurants, retail stores and all the amenities.

Under the plan advocated by city and county officials, revenues from the two casinos could be split between the city and county.

Proposals for new casinos are due by Nov. 14.

Because President Casinos Inc. filed for bankruptcy last year, the casino's sale would require approval from a bankruptcy judge.

Industry analysts have said the company buying the President would need to build a new facility before long, because the Admiral riverboat -- a St. Louis landmark for more than 60 years -- has only a few years of useful life left.

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On the Net:

Isle of Capri Casinos Inc.: http://www.isleofcapricasino.com

President Casinos Inc.: http://www.presidentcasino.com