According to a Securities and Exchange Commission filing by Florida Gaming, Isle of Capri is seeking to seize the property and collect damages of $358,823 for unpaid fees from simulcasting horse races at the fronton.

In January, officials with Fort Pierce Jai-Alai announced that because of diminishing interest they had stopped offering harness racing simulcasts for betting. Simulcast jai alai, greyhound racing and thoroughbred racing remained.

Isle filed the lawsuit in the Palm Beach County Circuit Court on February 18 and a foreclosure suit in St. Lucie County, targeting the building that houses the Fort Pierce Jai-Alai.

While Florida Gaming admits to defaulting on the loan, they have stated that they plan to file an answer to the complaint and vigorously defend themselves to prevent the seizure.

Isle of Capri attorney, Gary C. Rosen, said that Florida Gaming’s Miami Jai-Alai is not included in the lawsuit.

“We will not go down that path,” said Brian Watts, the Isle’s general manager of the Black Hawk.

Last week the state’s Limited Gaming Control Commission approved a rule change allowing casino operators to lower blackjack payouts to 6 to 5, so that a $10 wager would return $12, instead of the current 3 to 2 rule which means the payout on a winning $10 bet would be $15.

The revision is the result of a 3-1 vote by the five member panel, one commissioner was absent.

Instead Watts suggested that they may add a new variation of the game, such as a single deck game featuring the new payout.

The change can go into effect in the state’s casinos as of April 30.

“We continue to lay the foundation for growth upon an economic recovery. Further, we are optimistic about the future as we continue our commitment to gaming management, and are aggressively pursuing opportunities for such incremental revenue” commented James B. Perry, the Company’s chairman and CEO.

Net revenues dropped 6.1% from last quarter to $227 million, with expenses increasing to $10.5 million primarily due to increased insurance cost.

“During the quarter, while our average spend per visit declined, our successful marketing efforts produced an increase in the average number of visits per rated patron and led to a significant number of new customers to our database with whom we are building strong relationships.” said Virginia McDowell, the Company’s president and COO.

The casino operator recently announced an amendment to the Credit Facility that provides “greater financial flexibility” as they attempt to focus on improving the balance sheet.

However as a result of the amendment, expenses are expected to increase during the fourth fiscal quarter by approximately $2.2 million due to fees and the write off of certain unamortized deferred financing costs.

Based on Isle’s current debt levels interest expenses are also expected to increase by approximately $15 million annually.

“Overall, as we are bumping along the bottom of this economic cycle, we continue to generate free cash flow while managing with a solid operating plan and an eye towards increased future profitability.” Perry said.

As of January 24, 2010, the Company had $72.5 million in cash and cash equivalents and total debt of $1.2 billion.

The casino operator has completed the amendment process and entered into an agreement with lenders to amend the senior credit facility dated July 26, 2007.

Under the terms of the amendment, interest rates on both the revolving and term loan portions of the credit facility will be increased to LIBOR +3.00% with a LIBOR floor of 2.00%.

Isle also agreed to reduce its revolving loan commitments by $100 million to $375 million.

The amendment provides Isle with leverage and interest coverage covenant relief through April 30, 2012, as well as allows for senior unsecured notes to be issued, provided proceeds are used to pay down the senior credit facility.

Dale R. Black, chief financial officer, stated, “The amendment offers us greater operating and financial flexibility and gives us more options moving forward as we seek ways to improve our balance sheet while we investigate and pursue gaming management and other growth opportunities. We thank our lenders for their continued support and confidence in these difficult economic times.”

Fiscal 2010 third quarter results will be released before the market opens on Tuesday February 23.

The management deal was pending approval from the bankruptcy judge and Michigan gaming regulators.

However on January 22 the bankruptcy judge approved a plan to reorganize Greektown casino under new ownership and management and exit from bankruptcy, rendering the management deal unnecessary.

“In light of the recent confirmation of the plan of reorganization and Greektown’s expected exit from bankruptcy in the coming months, it became clear to our company and Greektown that the short-term transitional consulting services that we were to provide may not represent the most expeditious course of action for Isle of Capri or Greektown Casino. Moving forward, Isle of Capri remains committed to its belief that it can have a positive impact on existing properties and its own balance sheet by utilizing the extensive experience of its management team through management and consulting contracts in gaming markets across the United States.”

The gaming company has not yet released any information surrounding the future of Robert C Wyre, who was hired in January to serve as Vice President responsible for leading the company’s services at the Greektown Casino and Hotel.

“I am pleased to welcome Greg to the Board of Directors,” said James B. Perry, the Company’s chairman and CEO. “Greg is committed to enhancing shareholder value and brings high professional and personal ethics consistent with the longstanding values of the Company. We believe that his background and experiences will increase the overall effectiveness of the Board of Directors.”

Kozicz currently holds the position of president and CEO of Alberici Corporation and its subsidiary Alberici Constructors Inc. in St. Louis as well as serves the Eighth District Real Estate Industry Council of the Federal Reserve Bank of St. Louis.

The election is pending necessary gaming regulatory approvals.

The first class at the Academy is scheduled for Feb. 16 and will focus on training employees in the service industry to be more customer-friendly and will implement Isle’s See, Say, Smile program.

Tony Scudiero, vice president and general manager of Isle of Capri in Natchez, Mississippi says that since they have implemented the program their property has either tied for or solely held the top customer service rating for all 14 Isle properties in the last three months.

Scudiero says, “When we started (the See, Say, Smile) program, we were at the bottom of the list now, we are at the top.”
Cassy Muscalino, director of human resources at Isle of Capri Natchez, said the difference can be traced directly back to the implementation of “See, Say, Smile” in May of 2008.

“Customers have a choice of where to go, and they are going to take their money to the place that treats them well,” Scudiero said. “In today’s market where people are taking trips closer to home and being more particular about spending money, we have to work harder for every dollar.”

Credit Suisse Securities have been selected by the company to help secure the potential amendments including restructuring some financial covenants.

Although Isle has been working to lower expenses and was helped partly through reimbursed development costs they have also experienced financial setbacks as Florida Gaming Corp failed to meet payment deadlines to Isle on a $3 million promissory note due last month.

However Isle has several contracts lined up to help bring revenue into the company.

Last week Nemacolin Woodland Resort and Spa in southwestern Pennsylvania applied for a resort gaming license and selected Isle to manage gaming operations if approved.

Isle has also been selected by Greektown Casinos to manage their Michigan operation as the owners and shareholders undergo bankruptcy.

Isle also awaits word on Station Casinos bankruptcy process after being selected by Stations lenders to manage four of the companies bankrupt casinos, if they fail to successfully complete restructuring.

Galaxy Gaming Inc has announced that they have received approval from the Mississippi Gaming Commission to roll out its electronically enhanced table game platform to the sates 31 casinos.

“The Isle of Capri has enjoyed a long-standing prosperous relationship with Galaxy Gaming for many years,” stated Mike Cray, Director of Casino Operations at the Isle of Capri in Biloxi, Mississippi. “We are excited their Bonus Jackpot System has been approved for use in Mississippi and we look forward to the opportunity to implement it which we expect will enhance our players’ gaming experience.”

Galaxy initiated its launch in March to a casino in Washington State, after its trial implementation period the company decided to roll out the system one gaming jurisdiction at a time; last week they announced they would begin with California casinos and now Mississippi.

The Miami-based company which owns Miami Jai-Alai and Fort Pierce Jai-Alai, said it failed to make payment on a $3 million promissory note due to Isle on December 31.

The missed payment resulted in an interest rate spike to 18%.

“The registrant, Florida Gaming and Isle currently are engaging in discussions to restructure the repayment to Isle of amounts due Isle under the Isle documents,” Florida Gaming stated in the SEC filing.

Isle of Capri is based in St. Louis Missouri and owns casinos across the country, including Isle Casino & Racing at Pompano Park in Pompano Beach.

Isle opened trading today with a stock price of $8.38 up $0.04 from Friday’s closing price of $8.34.

Shares of Isle increased $0.90 this month with news of several contracts secured to manage bankrupt and potential future casinos.

The casino operator recently announced that they have reached an agreement with Nemacolin Woodlands to manage the proposed resort gaming facility at the Nemacolin Woodlands Resort in Farmington, Pennsylvania.

Nemacolin announced this week that it intended to file an application with the Pennsylvania Gaming Control Board for the remaining Category 3 resort gaming license.

Legislation signed into law this week by Pennsylvania Governor Rendell made certain changes to the Gaming Act governing the state’s resort casinos an attractive opportunity to Nemacolin.

Isle of Capri Casinos President and Chief Operating Officer Virginia McDowell noted, “Since we first began our discussions with Nemacolin Woodlands and visited the facility, our team has been convinced that this is the right opportunity in the perfect location to build a resort casino in Pennsylvania. Nemacolin Woodlands is Pennsylvania’s premier resort destination, and the plans we are building together will situate the property to produce maximum benefits for the state and the community.”

Earlier in the week, the casino operator confirmed that they have been contracted by the management board of Greektown Casino to provide consulting services to the property as it completes its bankruptcy reorganization.

Virginia McDowell, the president and chief operating officer of Isle of Capri, commented, “We are optimistic about the possibilities ahead for Greektown Casino-Hotel, and I am confident that Rob Wyre is exactly the right professional to lead the charge. He is a seasoned veteran with an outstanding variety of experiences and successes across our business and will bring outstanding value to our clients and our company.”

Wyre brings more than 28 years of experience in gaming operations, marketing and player development after serving the gaming industry at both the corporate and property levels through positions with the Foxwoods Development Company and Lakes Entertainment in Minnesota, as well as at properties in Michigan, Mississippi, Las Vegas and Atlantic City.

Isle of Capri spokeswoman Jill Haynes said the company “has an agreement with the lenders for assistance if the lenders have to take over the assets.”

No terms of the agreement were revealed.

Station Casinos filed for Chapter 11 bankruptcy protection in August and has been given until the end of March to file a plan of reorganization with the bankruptcy court.

If new agreements and a restructuring plan are not prepared by March or if the U.S. Bankruptcy Court in Reno rejects Station Casinos’ restructuring plans the gaming company could lose control of Red Rock Resort, Sunset Station, Boulder Station and Palace Station to the lender.

Last year, Isle of Capri purchased a stake in a Fernley gaming company and filed a licensing application with the state of Nevada.

The Gaming Control Board Chairman Dennis Neilander said Wednesday that Isle of Capri is about three-quarters of the way through the licensing process.

In May 2008 Greektown Casino and its majority owner, the Sault Ste. Marie Tribe of Chippewa Indians sought Bankruptcy protection and expects to complete its reorganization later this year, resulting in the three member board losing control of the casino.

The deal is currently pending approval before the bankruptcy judge and Michigan gaming regulators.

Under the terms of the agreement Greektown Casino LLC will pay Isle of Capri $200,000 per month for the first six months and $250,000 a month for any additional time they help manage the casino and Hotel through the bankruptcy process.

Isle will take over management from a Las Vegas-based management company whose contract ended Dec. 31.

Greektown Board Member Jake Miklojcik said in a statement “As we look to the future and continue to seek opportunities to improve performance, maximize profits and minimize costs, Isle of Capri knows the Midwest market, they know casino management and they are positioned to take the property to the next level.”

Virginia McDowell, the president and chief operating officer of Isle of Capri, commented, “Our company recognizes that, even in this challenging economic environment, we have the opportunity to provide services to gaming assets in new and existing markets in order to leverage our operational expertise while having a positive impact on our balance sheet. We firmly believe in the upside potential at Greektown, and the team now in place has the skills and experiences to help guide the management through the remainder of their reorganization.”

Vice President Barron Fuller told the Boonville Planning and Zoning Commission that their contract is scheduled to expire in 2011 and an on-site facility would be ideal.

The council granted approval for the preliminary site plan this week on the condition that all issues raised regarding the development would be addressed.

Residents in the area have asked that the council guarantee that the warehouse would have a minimal effect on nearby residents and proposed that landscaping be added to the south side of the warehouse and deliveries be limited to daylight hours.

According to City Counselor Megan McGuire the planning commission would perform a critical review of the proposal in the coming months.

The casino operator released the results off its second fiscal quarter ending Oct 25 with profits of $1.6 million, or 5 cents a share.

The gaming company recovered $6.8 million in expenses related to Pittsburgh development cost and a property tax settlement of $900,000.

The revenue results beat analysts predictions of a loss of 5 cents per share and rose from last years $13.5 million loss.

The recession has caused many gambling companies to struggle and forced them to combat declines by reducing spending and development projects. Isle was able to lower operating expenses from $243.8 million to $234.5 million for the quarter.

While Wall Street predicted a slightly higher revenue result of $250.2 million the company reported a revenue decline of only 1% to $247.4 million because of lower room revenues and increased promotions.

Isle stock opened the market this week at $7.99 and closed the market yesterday down 22 cents to $7.77.

The gaming establishment was unable to be evacuated as public health officials said the gas cloud covering the area was dangerous. Instead, patrons took refuge inside the establishment for nearly 2 hours before the cloud disbursed.

The casino mangers were instructed by Kansas City Fire Department Chief Smokey Dyer to shut down air handling units and not to allow anyone outside.

One person from the casino had to be transported to an area hospital with respiratory issues.

The northbound lanes of Interstate 35 over the bridge have been shut down indefinitely as crews repave the road.

News sources have reported that the casino has been reopened, however according to the casinos official website, it remains closed.

Isles of Capri, have been working with government officials to help transition the Our Lucaya property to the new casino manager Treasure Bay, after passing on the option to renew its lease which ended on May 31.

Treasure Bay Gaming resorts will take over the property on or before November 23.

In a press release last Sunday, Minister of Tourism Vincent Vanderpool-Wallace expressed gratitude to Isle of Capri for having extended their exit in order to achieve a seamless transfer to Treasure Bay.

The Rhythm City Casino in Davenport, Iowa, was scheduled for a $9 million upgrade. But profits at that location and another in Bettendorf have been low, causing a reassessment of the project.

Casinos in Marquette and Caruthersville, Missouri are still moving forward with renovations.

Rhythm City saw June revenues of $4.39 million, down from May’s results,which netted $5.04 million. The numbers were better than June of 2008, but that is accounted for the closing for part of that month due to river flooding.

“Bernie was undoubtedly one of the most significant figures in the history of our industry,establishing it as a major entertainment force in America’s heartland,” said Frank Fahrenkopf, president and CEO of the American Gaming Association.

“He founded and built this company with his outstanding dedication and constant desire to help improve communities and create good jobs,” said Isle of Capri CEO James B. Perry.

Goldstein led he fight for regional casino gambling laws across the country, and is credited with opening the first casino riverboat, in Iowa in 1991.

He built Isle of Capri into a major force in regional gaming, controlling seventeen casinos across six states, as well as international interests.