Court OKs Pinnacle deal to buy casino

ST. LOUIS -- U.S. Bankruptcy Court in St. Louis has given the go-ahead for Pinnacle Entertainment Inc. to purchase the President Casino on the St. Louis riverfront for about $31.5 million, Pinnacle said Friday.

The ruling marks another step in a deal to switch ownership of the casino.

"We'll have to just see where it takes us," said President spokeswoman Stephanie Flynn.

Las Vegas-based Pinnacle is in the midst of building a $350 million casino near the President, the only current casino in the city and one of five in the St. Louis area. If the deal goes through, Pinnacle could close the President to eliminate competition.

The deal still needs licensing approval from the Missouri Gaming Commission and final approval from the court of the debtors' bankruptcy plan. President Casinos Inc., the riverboat casino's parent company, has been under bankruptcy protection since 2002.

Earlier this week, President Casinos Chairman Terrence Wirginis told the St. Louis Post-Dispatch that the company has plans to keep the riverfront casino in spite of Pinnacle's bid.

Wirginis said the company plans to submit a proposal to reorganize its debt and emerge from bankruptcy, continuing as the casino's owner.

The casino arm of Columbia Sussex Corp., initially planned to buy the President but backed out of the deal after it appeared the purchase might not be approved by the Gaming Commission.

Columbia Sussex, based in Fort Mitchell, Ky., announced this week it plans to buy the Casino Queen, which sits in East St. Louis, Ill., across the Mississippi River from the President. That deal also needs regulatory approval.

The new Pinnacle casino opening next year will feature 200 hotel rooms and cover 18 acres in the Laclede's Landing area north of the Gateway Arch. The casino is slated to have 2,000 slot machines, which is nearly twice as many as the President. The complex will have 12,000 feet of meeting and convention space.