Tuesday, July 13, 2004 | 10:48 a.m.
Majestic Star Casino LLC has signed an agreement to sell its casino in Black Hawk, Colo., to Legends Gaming LLC in order to free up funds for other projects.
The Indiana-based company, which owns a self-named riverboat casino in Gary, is controlled by Detroit businessman Don Barden. Through a subsidiary, Majestic Star bought three Fitzgeralds casinos in downtown Las Vegas, Tunica, Miss., and Black Hawk out of bankruptcy in 2001.
The $66 million price is "subject to adjustment," Majestic Star said. The deal, also subject to regulatory approvals, is expected to close within six to nine months.
The Black Hawk casino is a "non-core asset" and is the smallest of the company's casinos in terms of revenue and assets, Barden said. The property features about 594 slot machines, six table games, a restaurant and a bar.
"This type of transaction gives the company increased financial flexibility," Barden said. The company may invest the proceeds in other properties or pursue new gaming ventures "which are becoming increasingly attractive in various jurisdictions across the country," he said.
Barden has expressed interest in investing in other casinos nationwide, including casinos in Las Vegas as well as his hometown of Detroit. Major companies now run three temporary casinos in Detroit and MGM MIRAGE or Mandalay Resort Group may have to sell one of their combined two casinos in the city to satisfy regulators examining the pending $7.9 billion merger of those companies.
The downtown Las Vegas casino has reported losses in recent months, but the company recently restructured the asset by removing its debt and spinning it off into a separate subsidiary in order to have greater financial flexibility to upgrade the property.
Legends is controlled by William J. McEnery, a founding partner and director of Illinois-based riverboat casino company Argosy Gaming Co. and also was a founding partner of Empress River Entertainment Corp., former owner of the Empress-brand casinos in Illinois and Indiana.
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