Isle of Capri to buy Flamingo in Kansas City

Timothy R. Brown

Wednesday, Feb. 9, 2000 | 8:37 a.m.

JACKSON, Miss. - Isle of Capri Casino Inc. has agreed to buy a Missouri casino for $33.5 million in a move that is expected to bolster the company's presence in the Midwest.

The acquisition of The Flamingo Hilton Riverboat Casino was announced Tuesday. Hilton Hotel Corporation has owned and operated the $300 million Kansas City, Mo., gambling vessel since January 1997.

The gaudy boat, painted hot pink and located next to a busy interstate, has consistently lagged behind area casinos in revenue.

The deal was completed as Isle of Capri seeks to finalize its $400 million acquisition of Lady Luck Gaming Corp.

Bernard Goldstein, Chairman of the Board and CEO for Isle of Capri, said the Kansas City casino was in the location the company was looking for when it decided to expand to the Midwest.

"With this Midwestern acquisition and our previously announced Lady Luck purchase, Isle of Capri Casinos, Inc. will grow and diversify to 12 casinos in six states," Goldstein said.

Isle of Capri owns and operates seven riverboat, dockside and land-based casinos, including locations in Tunica, Biloxi and Vicksburg, two locations in Louisiana, and one in Colorado.

The company also operates a harness racing track in Pompano Beach, Fla., and the Enchanted Capri cruise ship that sails out of New Orleans.

Approval of the Lady Luck purchase is pending by gaming regulators in Nevada, where Lady Luck is based, and in Iowa, where Lady Luck has a 50 percent stake in a casino and hotel in Bettendorf.

The remaining 50 percent stake in the Bettendorf property is owned by the family of Goldstein.

Allan B. Solomon, executive vice president for Isle of Capri, said Tuesday that regulatory approval of the Lady Luck deal, with the exception of the Lady Luck Casino in downtown Las Vegas, should be completed by March.

The Flamingo acquisition comes after Hilton twice failed to sell the property. A deal to sell the casino to Donald Trump's organization collapsed in August, as did a more recent agreement with Las Vegas-based Station Casinos Inc.

Hilton wrote the struggling Flamingo casino off its books as a financial loss in 1997.

Solomon said the casino may not have a success project for Hilton, but he is certain his company will improve the boat's profitability.

"We will bring the Isle of Capri brand to Kansas City," Solomon said. "We are offering a fun atmosphere with a tropical theme, which is different from the hardcore style of gambling."