IGT selling two casinos in Colorado

By Liz Benston (contact)

Thursday, Dec. 26, 2002 | 11:25 a.m.

Isle of Capri Casinos Inc. and a Texas-based casino developer today announced an agreement to purchase two Colorado casinos from International Game Technology for $84 million in cash.

Reno-based IGT had expected to divest the casinos, which were acquired in the 2001 purchase of slot maker Anchor Gaming, to concentrate on its core slot manufacturing business.

The transaction, expected to close in the spring of 2003, is subject to financing arrangements and approval by Colorado casino regulators.

Biloxi, Miss.-based riverboat casino operator Isle of Capri Casinos and Houston-based casino developer Nevada Gold & Casinos will jointly own the Colorado Central Station Casino in Black Hawk and the Colorado Grande Casino in Cripple Creek under a limited liability company, Isle of Capri Black Hawk LLC.

Isle of Capri Black Hawk LLC also expects to invest $75 million in an existing casino in Black Hawk, Isle of Capri Casino Black Hawk, and nearby Colorado Central Station Casino. The companies will increase parking for both casinos, add casino space and restaurants and connect the properties with an overhead walkway.

The 237-room, Isle of Capri Black Hawk casino -- the largest hotel-casino in Colorado and about 35 miles west of Denver -- is 57 percent owned by Isle of Capri and 43 percent owned by Nevada Gold & Casinos. The limited liability company, which will run Colorado Central Station and Colorado Grande, will operate under similar joint ownership.

Earlier this month, IGT announced an agreement to sell its Nevada slot route operations, also acquired from Anchor Gaming, to Herbst Gaming Inc. of Las Vegas. The sale, which gives Herbst control of more than 8,000 slot machines in Nevada, puts the family owned chain in league with Alliance Gaming Corp.'s United Coin Machine Co., considered the country's largest slot route operator.

Isle of Capri owns 13 riverboat, dockside and land-based casinos in southern and midwestern states. Nevada Gold & Casinos has a 69 percent interest in Dry Creek Casino LLC, which is assisting the Dry Creek Rancheria Band of Pomo Indians in building the River Rock Casino in Sonoma County, Calif. The company is also assisting the Pueblo tribe of Laguna in the development of a Route 66-themed casino near Albuquerque, N.M., which is expected to open next year.