Binion gets $465 million for casino in forced sale

Monday, April 16, 2001 | 10:54 a.m.

SUN STAFF AND WIRE REPORTS

ALTON, Ill. -- Argosy Gaming Co. said today it agreed to buy the Empress Casino and Hotel in Joliet from Jack Binion's Horseshoe Gaming Holding Corp. for $465 million.

Binion is selling the Chicago-area riverboat gambling venue on orders from the Illinois Gaming Board because of questionable business dealings and compliance issues in Nevada, Louisiana and at the Joliet casino.

Binion also owns 1 percent of the historic Horseshoe Club in downtown Las Vegas, having sold most of his interest in the property to his sister Becky Behnen in 1998. The sale settled a lawsuit Behnen filed over Binion's management of the property, which their late father had operated.

Binion couldn't be reached for comment this morning.

The Illinois board, which must approve the Joliet transaction, last summer denied a license renewal to the Empress after declaring Binion unfit to run the casino. It also ordered him in January to move his company's Joliet headquarters out of state by the end of May and disassociate himself with gaming in Illinois.

Argosy emerged as the buyer after contacts with several potential bidders -- likely including Las Vegas gaming operators Mandalay Resort Group and Park Place Entertainment Corp.

Desert Inn owner Steve Wynn visited the boat and his friend Binion last year, but Wynn said he wasn't interested in buying it.

MGM MIRAGE is interested in entering the Chicago market, but apparently is looking at other opportunities.

"This opportunity reinforces our commitment to grow the company, provide greater diversification of cash flows and to further maximize value for our shareholders," said Argosy's president and CEO, James Perry.

"We are excited about the opportunity to expand our presence in Illinois, where we received our first gaming license in 1991 and look forward to operating in the Chicago market, one of the strongest gaming markets in the country."

Argosy said the deal is expected to close in the third quarter.

In today's announcement, Horseshoe Gaming officials said only that they were pleased to have reached an agreement for the sale of the casino to another Illinois-based company.

Argosy stock rose 1 cent to $26.38 a share in early trading today on the New York Stock Exchange.

Argosy said it received a financing commitment from Wells Fargo Bank, a big gaming industry lender in Nevada, to fund the acquisition.