Gaming briefs for May 14, 2004

Friday, May 14, 2004 | 9:08 a.m.

New casino owner posts profit

Increases in gambling volume, increased hotel occupancy and higher average room rates yielded a first-quarter profit of $3 million for the owner of the Golden Nugget casinos in Las Vegas and Laughlin.

Revenue was $61.1 million. Excluding promotional expenses of $7.2 million, net revenue was $53.9 million. Casino revenue was $37 million and room revenue was $10.3 million. Food and beverage revenue was $10.8 million.

The figures reflect the results of company operations for the 69 days from the company's acquisition of the Golden Nugget properties on Jan. 23 through March 31.

Calculating earnings as if the company had acquired the properties on Jan. 1, 2003, profit would have been $6.7 million for the first quarter, up from a profit of $4.6 million for the same period last year.

The figures reflect additional capital contribution and borrowings as if they had occurred a year earlier.

Under this comparison, revenue would have been $68.7 million, up 11 percent from a year ago. That figure includes promotional costs.

Cash flow -- a key indicator of casino performance -- would have been $14 million, up 18.6 percent.

Poster Financial completed the acquisition of the resorts from MGM MIRAGE in January for about $213.7 million.

Title companies warned

DENVER -- Developers of an Indian casino in the Denver area have alerted land title companies that some property titles could be clouded by a tribal claim to the land.

The Cheyenne-Arapaho Tribes of Oklahoma have filed a claim for 27 million acres in Colorado, saying they would settle it in exchange for 500 acres near Denver and the right to build a casino on the property.

The group sent a letter to title companies Wednesday, warning them that similar land claims in other states "have resulted in substantial and prolonged clouds on private and public landowners' title."

"We wanted to give full notice of the existence of the claims," said Longmont investment broker Steve Hillard, who put together the Native American Land Group to file the claim with the Interior Department.

"We are not looking to pressure anyone, but we want the facts to speak for themselves," Hillard said. "A prudent investor in real estate would want to be notified far in advance."

Representatives of title companies declined to comment Wednesday because their attorneys have not yet reviewed the claims.