KC Casino still losing money, but not as much

Thursday, Jan. 30, 1997 | 11:59 a.m.

An earnings statement released Wednesday by the casino's Las Vegas owner said Sam's Town lost just under $1 million operating the riverboat during the quarter. According to a Wall Street analyst, in the six months before October the riverboat lost more than $5 million on operations.

Boyd Gaming Corp, which owns the Kansas City riverboat, mentioned the improved results in releasing its earnings for October through December.

The company was heartened by the second-quarter improvement, especially because it came as another riverboat, the Hilton Flamingo, entered the Kansas City market and took a slice of Sam Town's revenues.

"Yes, the revenue is down," Boyd spokesman Rob Stillwell said of Sam's Town. "But what everybody doesn't realize is that the expense is also down. It's down to a greater extent than the revenue."

To attract more customers, the riverboat has been improving its access and lighting. To reduce costs, it has reduced its work force from more than 1,200 to about 900 and has cut back or reconfigured its operations.

Sam's Town is facing another challenge in the giant Station Casino, a twin riverboat and entertainment complex that opened this month less than a mile away.

Boyd noted that the Sam's Town casino in Tunica, Miss., also improved its results. In December the casino opened 350 new hotel rooms and a 1,000 space parking garage.

The company also took over the Par-A-Dice Hotel and Casino in East Peoria, Ill., bringing to 12 the number of properties it owns.

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