Regulators Approve Pinnacle’s Redesign
State regulators approved a proposal from Pinnacle Entertainment Inc (PNK: 9.11 0.00%) to reduce the cost of its second riverboat casino-hotel project in Lake Charles by $50 million.
The Louisiana Gaming Control Board meet on Tuesday and unanimously agreed to permit the company to reduce cost by redesigning the Sugarcane Bay project to share a check-in area with the neighboring L’Auberge Du Lac riverboat casino and hotel, also owned by Pinnacle.
Other changes to the project include reducing the number of restaurants and retail space.
The casino operator also agreed to complete the project by the end of June 2011, although company officials said it may be possible for gambling to begin earlier.
Company officials told the board that without substantially changing the project they would be able to increase their rate of return on its investment during financially difficult times.
Jack Godfrey, General Counsel for Pinnacle said “What we think we are bringing you is a stronger project than before.”
Sugarcane Bay’s sister casino and hotel L’Auberge Du Lac has been a major success for Pinnacle, typically drawing in more winnings from gamblers than any of Louisiana’s other 12 riverboat casinos.
Although the hotel is nearly filled every weekend, there has been a noticeable drop in weekday business during the economic downturn.
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