Isle of Capri resort’s sale to Boyd becomes final

Timothy R. Brown

Wednesday, Oct. 9, 2002 | 9:50 a.m.

BILOXI, Miss. -- Isle of Capri Casinos Inc. has completed the sale of its Tunica resort to Boyd Gaming Corp. for $7.5 million while losing a bid to purchase two bankrupt Nevada casinos.

Boyd will take over Isle's 225 hotel rooms and two theaters in Tunica, but has no plans to operate the casino. Biloxi-based Isle of Capri announced last month the closing of its Tunica property.

Boyd owns and operates gaming properties in Nevada, Mississippi, Illinois, Indiana and Louisiana. The company also is developing The Borgata, a $1 billion resort in Atlantic City, in a joint venture with MGM MIRAGE.

The Isle now owns 14 casinos in Mississippi, Louisiana, Colorado, Iowa, Missouri and Nevada. The Tunica casino, which opened in 1999, struggled in a very competitive market.

Isle of Capri officials also said Tuesday that the company's attempt to acquire The State Line and Silver Smith casino resorts in Wendover was unsuccessful. Isle of Capri reached a $30 million agreement last month to purchase the bankrupt Wendover casinos, but lost a bidding war to Peppermill Casinos Inc.

Spokeswoman Lori Hutzler said Tuesday that Isle of Capri will continue to look for opportunities to expand its business. "We are always interested in ventures that may sit well with our product," Hutzler said.

Isle of Capri said last month that it was considering developing a casino at Sabine Pass in Cameron Parish, La. Company officials said a purchase agreement was reached with the parish's police jury (county commission). However, that development hinges on a parish-wide November election on gaming as well as regulatory approval.

Isle of Capri's stock fell $1.23 cents in trading Tuesday. The stock closed at $14.74.