PLAYERS INTERNATIONAL TO SELL CASINO OPERATIONS

Players International Inc., a small casino company that first opened a riverboat operation at Metropolis, Ill., Feb. 24, 1993, will be sold to Jackpot Enterprises Inc., an even smaller company in Las Vegas, Nev.

Players, based in Atlantic City, N.J., now also has casinos at Riverport in Maryland Heights in the St. Louis area and at Lake Charles, La.

Peter Aranow, a vice president for Players Services Inc., said the sale was approved Tuesday by boards of directors of Players and Jackpot.

Jackpot, which operates two casinos and more than 4,000 slot machines in grocery, drug and convenience stores in Nevada, agreed to purchase Players for about $424 million in cash, stock and assumed debts. Jackpot will pay $8.25 -- $6.75 in cash and $1.50 in stock -- for each share of Players stock, or $264 million. Jackpot will also take on $160 million in debt.

The transaction is subject to approval by shareholders of both companies and gambling regulatory agencies, including those in Illinois, Louisiana, Nevada and Missouri.

Players rejected an unsolicited offer of $350 million from Hollywood Park last year.

The largest shareholder of Players stock is entertainer Merv Griffin, who owns about 13.3 percent of its stock. Griffin was a frequent visitor to Metropolis during the first two years the riverboat operated there.

More than 8.8 million visitors have crowded onto the Metropolis riverboat since 1993,

The riverboat has meant a windfall to Metropolis, which has taken in more than $27 million by serving as the boat's host city.

The funds have been put to good use, said Mayor Beth Clanahan.

"All of our streets and some alleys have been paved, we've purchased land for an industrial park and signed an agreement with the Illinois Department of Transportation to help finance a four-lane road from Interstate 24 into the downtown area," said the mayor.

Metropolis residents are paying about 60 percent less in property taxes. The city has constructed a new electrical substation and electrical lines at a cost of about $1.9 million. The city also has bought new police cars and an extrication and rescue unit and added personnel, including police officers and firefighters.

The city also recently approved funds for a parks and recreation director and provides funds to the Metropolis Chamber of Commerce.

"It's amazing what we have going on," said Clanahan. "One of the things I am proud of is the lining of sewers in some parts of town, preventing sewer backup. Hopefully, we're doing some things that will make a difference in the future."

Included in the multimillion-dollar riverboat complex along the banks of the Ohio River are a new 1,650-passenger riverboat; a riverboat landing that includes restaurants and gift shops; a land-based, 120-room hotel adjacent to the riverboat landing area; and a 350-seat Players Theater, which plays host to a number of entertainment productions.

Players employs 600 to 800 workers.