Issue 298
May 29 - June 4, 2006
Volume 6
page 2
 

Pinnacle Gets $78 Million Consolation Prize
By Howard Stutz - Las Vegas Gaming Wire

LAS VEGAS, Nevada – "Pinnacle Entertainment ended Friday with an extra $78 million in the bank but without ownership of Aztar Corp.

Gaming analysts and Wall Street investors weren't upset at the outcome of the two-month Aztar bidding war, won by Columbia Sussex Corp.

The $78 million breakup fee paid to Pinnacle by Aztar -- $25.8 million will go to the lawyers -- is worth $1 a share in earnings to the Las Vegas-based casino company, according to one gaming analyst.

"We view this as a very positive outcome for Pinnacle and laud the company for not matching Columbia Sussex's $54 per share bid, which we view as too steep a price to pay for Aztar's assets," CRT Capital Group gaming analyst Steve Ruggiero said.

Pinnacle, which operates casinos in Reno, Louisiana, Indiana and Argentina, had sought to increase its scope nationally by acquiring Aztar, which operates the Tropicana casinos in Las Vegas and Atlantic City and three smaller casinos in Laughlin, Indiana and Missouri.

Now, Pinnacle may cast its eyes elsewhere on the Strip.

Pinnacle Chairman Dan Lee was traveling Friday and couldn't be reached for comment. However, he recently toured the Sahara, which has retained commercial real estate company CB Richard Ellis to sell the casinos and its three land parcels totaling 55 acres.

"Pinnacle has identified Las Vegas as a market it would like to enter. We believe the company will set its sights on other locations in Las Vegas," Morgan Joseph gaming analyst Adam Steinberg said in a note to investors, titled, "You Got to Know When to Fold 'Em."

Steinberg also said Riviera Holdings, owners of the Riviera and a Colorado casino, could become a target. Riviera has an agreement to be purchased by an investment group for $17 a share.

"We would not discount the company at least giving a cursory glance at Riviera Holdings," Steinberg said.

Pinnacle shares jumped $2.13, or 7.44 percent, Friday to close at $30.75 on the New York Stock Exchange.

Analysts said the company may need to repair its image with investors.

"As the bidding process continued, the financial discipline for which Pinnacle management was lauded, has lost some of its sheen, but we believe it can be restored," Steinberg said.

Added Davenport & Co. gaming analyst George Smith, also in a note to investors; "We are relieved the company has chosen not to make another bid. Concern pertaining to this saga has been a material overhang on the stock. Although buying Aztar would make strategic sense, we simply believe the price has gotten to rich. Moreover, management's decision not to up the ante demonstrates financial discipline."

 

 

 

Iowa Casino Opens Its Doors
As reported by The Messenger

EMMETSBURG, Iowa – "Wild Rose Casino and Resort opened its doors for the first time Sunday to friends and family of the owners and their employees.

"The grand public openings for the casino are scheduled for June 30 and July 1, a little more than one year after the Iowa Gaming Commission awarded Palo Alto County a license to build the facility.

"Friends and family anxiously waited to enter the casino to be among the first to try out the slot machines and game tables.

"…Wild Rose Casino and Resort is one of the premier gaming facilities in the Midwest, according to casino officials. The casino features 28,000 square feet of gambling luxuries that include 550 slot machines, 16 game tables, an Irish Pub, a full buffet, a 71-room hotel, a 68-spot RV park and a convention center…"

Betmaker Brings Online Wagering to Spanish Speaking Population
Press Release

SAN JOSE, Costa Rica -- If you thought the World Cup couldn't be any more exciting, Betmaker.com, one of the Internet's oldest and most trusted online sportsbooks, has just proved you wrong. Today, Betmaker.com introduced their first Spanish-language online sportsbook and casino just in time for the largest and most watched sporting event in the world, The World Cup.

The addition of a Spanish-language Betmaker will bring all of the excitement and entertainment of sports wagering to millions of Spanish-speaking Americans, as well as the rest of the Spanish-speaking community around the globe.

"Spanish speaking people are some of the most passionate sports fans in the world," said Mike McComb, Director of Marketing at Betmaker. "No sport or sporting event means more to the Spanish-speaking world than the World Cup. Our new Spanish-language Betmaker lends even more excitement and entertainment to the greatest sporting event in the world to the over 400 million persons worldwide who speak Spanish!"

About Betmaker

Since 1996, Betmaker has been serving sports enthusiasts in practically every sport and on every continent by providing them with an unrivalled wagering and casino experience. In turn, this allowed them to build a solid reputation for delivering one of the most secure and customer oriented betting services on the Web. The Offshore Gaming Association calls Betmaker, "One of the best sportsbooks anywhere." And Gambling Magazine raves that, "Betmaker has a solid reputation, with first class customer service." Betmaker unveiled a newly designed Web site in September 2005 and introduced new virtual Poker Rooms to their customers.

JuJAretha Franklin

House of Blues at Showboat Atlantic City: Renowned for her soul and R&B recordings, The Queen of Soul, has also sung jazz, rock, blues, pop, gospel, and even opera. Aretha Franklin will be performing at Showboat Atlantic City's House of Blues.

Date: Friday and Saturday June 23-24, 2006

Time: 9 pm

Ticket Price: $68, $83, $88, $103

For more information: (800) 736-1420

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