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Earnings down for Vegas casino buyer

Tuesday, March 27, 2001 | 10:40 a.m.

GARY, Ind. -- Majestic Star Casino LLC reported declines in cash flow and revenues for the quarter ending Dec. 31.

The company, controlled by Detroit businessman Don Barden, reported cash flow of $4.1 million, down 28 percent from the year-ago quarter, and net revenues of $28.1 million, off 5 percent. Majestic Star, which is not publicly traded, reported a loss of $1.88 million, compared to a loss of $705,000 in the year-ago period.

The company blamed a variety of factors for its performance, including severe weather conditions in December, a 10 percent decrease in table game play, lower-than-expected hold and higher casino operating expenses.

A subsidiary of Majestic Star, Majestic Investor LLC, is currently attempting to acquire three casinos from Fitzgeralds Gaming Corp., including the company's downtown Las Vegas property, for $149 million in cash. This deal was approved by a bankruptcy court earlier this month, but is still contingent on financing and regulatory approvals.

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