Gaming briefs for July 1, 2004

Thursday, July 1, 2004 | 10:45 a.m.

Merger plan advancing

MELBOURNE, Australia -- Tabcorp Holdings Ltd., Australia's biggest gaming company, said a majority of Tab Ltd. investors have accepted its A$2.2 billion ($1.5 billion) takeover offer, counting acceptances to its adviser UBS AG.

Tabcorp has received acceptances for 47.2 percent of the shares of Sydney-based Tab and UBS holds about 6.1 percent, the Melbourne-based company said in a statement to the Australian Stock Exchange.

Tabcorp's offer of 0.2 shares and A$2.10 cash for each Tab share is conditional on gaining 90 percent of Tab, the threshold for being allowed to compulsorily acquire any remaining shares. The bid expires July 21.

Gaming deals completed

Two Las Vegas gaming companies completed purchases of other gaming companies today.

Boyd Gaming Corp. closed on its deal to buy Coast Casinos Inc. for $1.3 billion, giving the company 18 casinos and the title of fifth-largest gaming operator in the United States based on revenue. As part of the deal, Coast will operate as a subsidiary of Boyd.

The merged companies will operate the Las Vegas Valley casinos Stardust, California, Fremont, Main Street Station, Sam's Town, Eldorado, Jokers Wild, Barbary Coast, Gold Coast, Suncoast and The Orleans. Another casino, South Coast, is under construction and scheduled to open in October or November 2005.

In a separate deal, Harrah's Entertainment Inc. purchased Horseshoe Gaming Holding Corp. for $1.45 billion, making Harrah's the largest gaming company in the world in terms of revenue. The deal gives Harrah's 28 casinos in 12 states including the Rio and Harrah's in Las Vegas and Horseshoe properties in Hammond, Ind.; Bossier City, La.; and Tunica, Miss.

MGM MIRAGE would surpass Harrah's if MGM MIRAGE's purchase of Mandalay Resort Group is approved.

Tribe makes state payment

WEST ALLIS, Wis. -- The Forest County Potawatomi paid the state $40.5 million Wednesday under its gaming compact, allowing the tribe to continue offering Las Vegas-style games such as craps, poker and roulette.

All the state's 11 tribes made their compact payments to the state by Wednesday's deadline except the Ho-Chunk Nation, which owes $30 million. The Potawatomi payment was the largest.

The Potawatomi covered the payment after it secured short-term loans from three banks Wednesday morning, said Potawatomi Attorney General Jeff Crawford.

"I want this check also to symbolize the growing relationship between our two governments, the tribal and the state government," Potawatomi Chairman Harold Frank said at a news conference outside a suburban Milwaukee fire station.

Payments from the state's tribes became uncertain last month when the state Supreme Court struck down provisions in the Potawatomi compact that make the deal never-ending and allow the Las Vegas-style games at the tribe's Milwaukee casino.

Tribe hopes to expand casino

OMAHA, Neb. -- A small Indian casino that will open Friday in Emerson will have the ability to grow if voters approve expanded gambling in November, a tribal economic development official said.

The casino, which will be on the Winnebago Reservation in northeastern Nebraska, will start off with 39 electronic bingo machines.

"We're positioning ourselves for a much larger endeavor," said Lance Morgan, head of HoChunk Inc., the tribe's economic development arm. "We don't want to be last in what's happening in Nebraska right now."

The Iron Horse Bar & Casino will employ about 24 people.