Bally's Las Vegas
Has A New Look

LOS ANGELES, CA - /Reuters/ - The $1.3 billion Aladdin Hotel and Casino, the Las Vegas Strip's newest mega-resort, has struggled in its initial months of operation and may fail to meet upcoming financial obligations without a debt restructuring or cash infusion, according to a filing by the company on April 2.

The quarterly filing by Aladdin Gaming Enterprises depicted a company struggling to find a winning mix of gaming and image on the competitive Las Vegas Strip where it competes with much larger corporations that own multiple properties.

Since its opening in August 2000 the Aladdin has reduced its staff to 3,100 workers from an initial 4,500, according to the privately held company's quarterly filing with the Securities and Exchange Commission. For all of 2000, the company - which sits on the site of the old Aladdin where Elvis Presley married Priscilla Beaulieu - reported a net loss, including opening costs, of $8.56 million.

To address the potential shortfall, Aladdin said it is exploring several alternatives, including taking on more debt or selling an adjacent five-acre parcel of land. The company said it may also try to reach a new agreement with its creditors.

The casino's weak is largely the result of poor design and marketing issues, according to analysts.To a lesser extent, the resort was also the victim of a slowing economy, and had the misfortune of opening at the end of a building boom that saw thousands of rooms added to the Las Vegas Strip over the last three years.

While it is not unusual for new casinos to get off to slow starts, the Aladdin has drawn criticism from gaming analysts on issues ranging from its poor access to the Strip to the congested layout of its casino floor.

Rumors abound that Aladdin's partner London Club International has been shopping its stake in Aladdin in an effort to shed what many perceive as an albatross around the company's neck. One frequently mentioned potential buyer is park place Entertainment Corp., which owns about 30 percent of Aladdin's high-yield zero bonds and also owns an operates the adjacent Paris Las Vegas Casino Resort.