Thursday, May 5, 2005 | 10:50 a.m.
Executives receive millions in options
MGM Mirage's board of directors this week granted more than 2 million stock options to about two dozen executives and directors as part of a 2005 incentive plan.
MGM Mirage Chief Executive Terry Lanni received 550,000 options. President and Chief Financial Officer Jim Murren, Mirage Resorts President and Chief Executive Bobby Baldwin and MGM Grand Resorts President and Chief Executive John Redmond each received 300,000 options. General Counsel and Secretary Gary Jacobs received 200,000 options.
The options were granted with an exercise price of $68.10 per share and vest in 20 percent increments each year.
MGM Mirage stock fell 71 cents to $70.25 per share in midmorning trading, making the executives' options already worth millions of dollars.
Shares hit a 12-month high of $79.60 per share in February.
MGM Mirage majority shareholder and director Kirk Kerkorian, who owns about 57 percent of the company, did not receive option grants.
Earnings up 21 percent
Ameristar Casinos Inc. said first-quarter profit rose 21 percent to $19.2 million, setting a new record, as the company's brand continued to dominate several riverboat markets in the Midwest and South.
On a per share basis, earnings at the Las Vegas-based company were 68 cents compared with 58 cents in the first quarter of 2004. Analysts expected the company to earn 62 cents per share.
Revenue minus promotional expenses rose 12 percent to $25.7 million.
Earnings before interest, taxes, depreciation and amortization -- a key profit indicator -- rose 13 percent to $67.1 million.
Ameristar owns casinos in Missouri, Iowa, Mississippi, Colorado and in Jackpot. In the first quarter, all of the casinos except for its Mountain High property in Colorado captured a leading share of gambling revenue in their respective markets.
The company's St. Charles, Mo., casino broke the state's all-time monthly gambling revenue record in March.
House OKs card rooms
The House on Wednesday tentatively approved expanding gambling in Alaska to include "card rooms" in cities larger than 30,000 people.
Betting would be allowed on games such as poker, rummy, bridge and cribbage under the measure that passed 23-16.
The House may take up the bill on reconsideration today.
The House adopted several amendments, including a requirement that local voters must approve a card room before it can operate in a municipality.
The bill's sponsor, Rep. Pete Kott, R-Eagle River, said poker's popularity is sweeping the country. It's a game of skill, not true gambling, he said.
"This is a game. A card game," Kott said.
The rooms would allow a safe, social and restrictive environment for people to participate, he said.
Number of licenses discussed
A majority of the five-member Iowa Racing and Gaming Commission said they favor approving between three and five new casino licenses.
Gambling commissioners held a nine-hour public hearing on Wednesday to listen to the viewpoints of supporters and opponents of proposed casino projects. It was the commissioners' first chance to express their opinions on how many licenses they'd like to see approved.
Seven Iowa communities have proposed 10 different casino projects -- three in Waterloo, two in Emmetsburg and one each in Fort Dodge, Riverside, Ottumwa, Worth County and Franklin County.
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