Suncoast gets OK from gaming board

Friday, Aug. 25, 2000 | 11:39 a.m.

CARSON CITY -- Michael Gaughan's latest resort, the Suncoast hotel and casino received final approval from state gaming regulators Thursday.

The approval, the final regulatory hurdle for the northwest Las Vegas casino, clears the way for its planned opening in early September. Suncoast officials have said the $200 million locals-oriented casino could open as early as Sept. 1.

David Ross, vice president and general manager at the 200-room hotel, told the state Gaming Commission Thursday he hopes to draw 85 to 90 percent of its business from residents. It may cut into the casinos in North Las Vegas and also may attract residents of Sun City, Ross said.

"We're going to duplicate the success of the Orleans and the Gold Coast," said Ross, referring to two other casinos owned by Coast Resorts Inc., whose chief executive officer and chairman is Gaughan. Coast also owns the Barbary Coast on the Las Vegas Strip.

Pending clearance of fire inspectors, the Suncoast will open with a 70,000-square-foot casino, 2,100 slot and video machines, 16 movie complexes, a bingo parlor, a bowling alley and restaurants. Ross told the commission that the rooms will be 540 square feet, which would make them some of the largest in Las Vegas. The average rate will be $65.

Asked by Commission Chairman Brian Sandoval if the local market might be saturated, Ross said there are still 5,000 to 6,000 new residents coming in a month. And as Las Vegas continues to grow, the question of saturation is "moot," Ross said. Northwest Las Vegas is also one of the fastest growing areas in Clark County, he noted.

Asked about the Barbary Coast, Lieberman said the "numbers are up significantly." Business has increased since the nearby Bellagio opened.

Earlier this month Coast Resorts reported revenues of $94.5 million for the quarter ending June 30, a 6.7 percent increase over a year ago. Net income increased 49 percent to $7 million.

The commission also approved the sale of the Lady Luck Casino Hotel in downtown Las Vegas from Andrew Tompkins to Isle of Capri Casinos Inc., which operates 11 casinos in five other states. The Lady Luck will be the Biloxi company's first Las Vegas property.

The purchase price for the property, which includes about 800 hotel rooms, was $14.5 million. Bernard Goldstein, chief executive officer and chairman of the board of Biloxi-based Isle of Capri, said his company does not know the Las Vegas market.

"We will take our time and learn what Nevada and Las Vegas are all about before investing more money," Goldstein said. "We don't want to be the biggest, but we want to be the best."

Previously, Isle of Capri purchased Las Vegas-based Lady Luck Gaming Corp. in a $58.5 million deal. Tompkins controlled about 45 percent of that company, which owned casinos in Iowa and Mississippi, but not Las Vegas.

The Lady Luck transaction is expected to close next month, assuming the company receives approval from the City of Las Vegas.

Allan Solomon, executive vice president for Isle of Capri, said it is the seventh-largest publicly traded gaming company in the world, with revenues in excess of $1 billion last year.