Mississippi gaming company shifting focus to casinos

Monday, March 6, 2000 | 9:31 a.m.

It's also changing its name, too.

Hollywood Park is now Pinnacle Entertainment and the California-based firm has more changes coming that will affect its Boomtown and Casino Magic casinos in Biloxi and Bay St. Louis.

It started in 1997 when the company bought Boomtown Inc., followed by Casino Magic Corp. in 1998. That same year it lured away most of Horseshoe Gaming's top management, including President Paul Alanis, after a failed pitch to buy the successful gambling operator.

Then last year the company sold its Hollywood Park Race Track to Churchill Downs and last week struck a deal to sell its remaining track, Turf Paradise. Changes also were necessary for the company to diversify geographically. That is why the company agreed in December to sell Boomtown and Casino Magic Bay St. Louis to Penn National Gaming for $195 million in cash.

Alanis, Pinnacle's president and chief operating officer, said the deal, which is expected to be completed in May, will enable the company to do more to improve Casino Magic Biloxi.

"We don't hesitate to spend money to improve our properties," Alanis said. "That's why we wanted to focus on one property and not dilute ourselves."

Alanis believes Penn National, a pari-mutuel wagering company, will be able to do the same with its new casinos.

"Our sale is good for the Coast because it brings in another company that can invest in those properties," said Alanis.

Penn National is a newcomer to casino gambling, but Alanis said that shouldn't be a handicap.

"Part of the attractiveness of the deal for Penn National," he said, "is that they're acquiring good management at the properties as well." If those changes were not enough, Alanis also must find a new general manager for Casino Magic Biloxi to replace Jeff Dahl. Mirage Resorts hired Dahl as president of Beau Rivage in Biloxi two weeks ago.

Assistant General Manager Mickey Culberson will run the casino until a new GM is named.

"We'll find the right person, someone who is a strong leader like Jeff," Alanis said. "I hate to lose him, but that's business."

Alanis sees a strong future for Casino Magic Biloxi and the Coast casino market.

"The Coast has the potential to continue to grow to be a significantly greater market," he said. "That takes time and patience. There are infrastructure issues. Long term, it's a great market."

The key to tapping the Coast's potential, Alanis said, is getting people to understand the quality of the product.

"The success of this market depends on getting the word out," he said. "You can get a Las Vegas experience in Biloxi for a lot less money and a lot less hassle. The people have to know that Biloxi is there and what it has to offer."