Vegas-based Pinnacle moves ahead with Louisiana casino

Staff and wire services

Tuesday, Oct. 20, 2009 | 4:39 p.m.

Headlines from the Vegas gaming industry

Las Vegas-based Pinnacle Entertainment might see its riverboat casino in Baton Rouge, La., open by late 2011.

The Louisiana Gaming Control Board approved a revised development schedule today for the $250 million property after the casino operator told regulators financing would be available for the project. If the timeline goes as planned, construction is expected to start in May.

The project will be located on more than 550 acres of land that Pinnacle owns in East Baton Rouge Parish and is expected to include a 100-room hotel, 1,500 slot machines, 50 tables games and an entertainment venue.

Earlier this year, the company said it probably could sell bonds, but high interest rates would make the project financially prohibitive. But Carlos Ruisanchez, Pinnacle's executive vice president for strategic planning and development, said the company recently issued about $450 million in bonds at just under 9 percent to get money for its $407 million Sugarcane Bay casino project in Lake Charles.

Baton Rouge has two other riverboat casinos -- The Belle of Baton Rouge, operated by Tropicana Entertainment, and Hollywood Casino, operated by Penn National Gaming. Pinnacle is using one of the two licenses it obtained from Harrah's Entertainment Inc. in November 2006 after Harrah's decided not to reopen its two-boat complex in Lake Charles following destruction from Hurricane Rita.

Pinnacle will report third quarter earnings Thursday, Oct. 29. During the second quarter of 2009, the company reported a net income of $4.7 million compared to a loss of $18.1 million in the same quarter of 2008.

Pinnacle Entertainment operates six casinos in Nevada, Missouri, Indiana, Louisiana, as well as smaller ones in Argentina.

Discussion: 4 comments so far…

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By environprotector

Oct. 20, 2009

7:10 p.m.

Suggest removal

This is good for Louisiana, they need all of the job generating businesses they can get for recovery in the region.
By kc212203

Oct. 21, 2009

5:18 a.m.

Suggest removal

Something about this company still leaves a bad taste in my mouth after they demolished The Sands and left a vacant lot just off the Boardwalk in Atlantic City. A marketing campaign stating "those other casinos are just practice" and other arrogant statements.
By Longtimevegan

Oct. 21, 2009

6:38 a.m.

Suggest removal

Pinnacle decision to move forward in opening a casino in Baton Rouge will be met with resistance from the voters. Opening a casino in Baton Rouge is not in the best decision for the community. We sit each day and watch our friends and neighbors go through bad times, and then we have some greedy knuckle head in the barracuda company Pinnacle, deciding to exacerbate problems by funneling monies from a local community economy to enrich shareholder and investor, and must likely line local polictians pockets. After all this Lousiana! Pinnacle has no interest in the future of the Baton Rouge community, nor have they provided or added value to the community. A casino in Baton Rouge is not in the best interest, long or short term, for the local citizens. No value, educational or monetarily. A interest only in the interest of Pinnacle to add value to shareholder and investors. In addition, Pinnacle has not established a personal relationship with the local voters, at least the locals would like to know who will take down their community structure and stop the young people from attending school with the lure of low wage jobs.

The local polictians who are shorting the voter will be accountable. Pinnacle is a barracuda company, this shows it plan-clear and simple. By placing a casino in the Baton Rouge community, Pinnacle will influence the young people away from schools in hope of getting a job for short term relief. Young people should stay focus on much needed education. Another casino to enrich the owners and sharehold is bull!!! A company that has no interest in the local ecnomony is not the answer. This adds to a already bad preception of casinos of being greedy and unconcerned with a community's growth and well being. Sad, we have to goes through this during these tough times. A huge public relation blunder in making for Pinnacle. I can assure the shareholders and investors, this is a big mistake, one that will ripple to the elected officials who are in support of this Fountainbeau type project, except the locals will come out and do what is reasonable, stop this madness of companies like Pinnacle from further damaging communities that are trying to rebuild.

This is a distraction by Pinnacle to lure a community from rebuilding with the lure of a quick buck. Taking advantage of a labor pool in need of jobs, providing an illusion of relief to enrich shareholder and investors that have no interest in the growth of the Baton Rouge community.
By American_Gaming_Guru

Oct. 21, 2009

11:14 a.m.

Suggest removal

Longtimevegan. It is my understanding that the local votors approved the Pinnacle plan, did they not?