Gaming briefs for July 29, 2004

Thursday, July 29, 2004 | 11 a.m.

SEC issues subpoena

WEST GREENWICH, R.I. -- Gtech Holdings Corp., the world's biggest seller of computerized lottery systems, received a subpoena from the Securities and Exchange Commission for documents on the its Brazilian operations.

The investigation involves allegations of wrongdoing during negotiations for a contract extension, the company said. Gtech has said that it acted appropriately. The company said today it is cooperating with the probe.

Gtech said in May that its contracts to provide services to Caixa Economica Federal, a Brazilian bank and operator of Brazil's national lottery, were under scrutiny by the SEC and regulators in Brazil.

Profit rises on Colorado results

An affiliate of the Fitzgeralds hotel-casino in downtown Las Vegas swung to a profit from a loss in the second quarter on stronger results from the company's casino Black Hawk, Colo. The results don't include figures from Fitzgeralds Las Vegas, which was spun off last year into an affiliate of Majestic Star Casino LLC.

Majestic Star Casino reported a profit of $2.9 million compared with a profit of $1.6 million.

The company owns the Majestic Star in Gary, Ind., and owns the Colorado property and two casinos in Tunica, Miss., through a subsidiary.

Center will cater to women

The Rio hotel-casino expects to build a $7 million "theme park for women" that will cater to bachelorette parties, high school and college reunions, 21st birthday celebrations, office parties and other "girls' night out" functions.

Billed as the "Ultimate Girls' Night Out," the 21,000-square-foot center will feature a 400-seat Chippendales theater with sky boxes, a 1,500-square-foot "ultra lounge," 2,100-square-foot retail area featuring lingerie and party gear and a restroom with a plush "gossip pit." It is expected to open in December on the second floor within The Rio's Masquerade Village retail area.

Third parking garage planned

Wynn Las Vegas plans to build a parking garage on property the company is buying at Sands Avenue and Koval Lane.

Wynn Resorts Ltd., in a filing with the Securities and Exchange Commission, disclosed that it is amending its senior credit agreement by an additional $50 million for the garage project.

A spokeswoman said the resort would have three separate parking structures, including one on the Wynn Las Vegas site with more than 4,000 spaces; the former Desert Inn structure, which will be remodeled; and the new site at Sands and Koval.

The parcel acquired by Wynn is adjacent to property acquired by the developers of the Venetian hotel-casino. The Sunrise Village apartment complex currently occupies the two parcels.

Company opens new location

Tix4Tonight, which offers discounted tickets for Las Vegas shows, has opened a free-standing booth at 2955 Las Vegas Blvd. South, near the Peppermill Inn Restaurant.

It's the second location for the operation, which will keep its primary base at 3729 Las Vegas Blvd. South, next to the Harley-Davidson Las Vegas Cafe, until it moves later this summer into the Hawaiian Marketplace shopping center.

Company's loss widens

ATLANTIC CITY -- Donald Trump's Trump Hotels & Casino Resorts Inc. on Wednesday said its second-quarter loss widened to $17.6 million because of more competition in Atlantic City.

Trump Hotels said its loss widened to 59 cents a share from $10 million, or 46 cents a share a year earlier. Revenue fell 4.4 percent to $293.2 million, the Atlantic City-based company said in a statement. The firm owns three Atlantic City casinos.