PDS Gaming cancels deal to buy chain of PT’s Pubs

Thursday, July 5, 2001 | 11:06 a.m.

As it prepares to make a run at the Regent hotel-casino, PDS Gaming Corp. of Las Vegas has called off its deal to acquire Las Vegas's largest chain of video poker bars.

Revenue Properties Co. Ltd. of Toronto announced Wednesday that Las Vegas-based PDS has terminated a deal to acquire P.T. Gaming LLC, owner of 23 PT's Pubs throughout the Las Vegas Valley. Revenue Properties jointly owns P.T. Gaming with local businessmen Phil and Tom Boeckle.

Revenue Properties provided no information on why the deal fell apart, saying in a statement only that it "had been terminated at the election of the purchaser." The deal had been expected to close by Sept. 1.

Bill Kennedy, vice president and secretary with Revenue Properties, referred additional questions on the termination to PDS. Revenue Properties remains interested in selling P.T. Gaming, he said, but hasn't identified a new buyer yet. PDS officials could not be reached for comment this morning.

Though the terms of the deal were never disclosed, PDS said it expected the purchase of P.T. Gaming to increase its annual revenues by $25 million per year, a 50 percent increase.

The deal is the second terminated by PDS in a little over a year. In April 2000 PDS called off a preliminary agreement to buy downtown Las Vegas's Four Queens hotel-casino from Elsinore Corp. for $30 million. PDS pulled out of that deal after failing to reach a definitive agreement. The company did enter the casino business in January, however, when it acquired the Gambler casino in Reno.

PDS's primary business is providing lease financing to casinos for slot machines, gaming equipment and furniture. The company also sells refurbished slot machines. PDS reported net income of $464,000, or 12 cents per share, on revenues of $9.4 million for the quarter ending March 31. This compared to net income of $175,000, or 5 cents per share, on revenues of $18 million in the year-ago quarter.

PDS stock traded at $4.81 this morning, down 26 cents.