In the Midwest mix
In the Midwest mix
St. Louis market shifts with moves by Columbia, Pinnacle
Columbia Entertainment-still fresh from its bidding war for Aztar Corp.-agreed in late-May to purchase the Casino Queen, a riverboat casino and hotel in East St. Louis, Ill., for $200 million, with plans to spend an additional $60 million to further develop the property.
The deal is expected to be complete by the end of 2006, pending regulatory approval.
Columbia attempted a purchase in the St. Louis market in 2004, withdrawing its application to buy the bankrupt President Casino for $57 million due to licensing issues. Gene O'Shea, Illinois Gaming Board spokesperson, said the board will be contacting Missouri regulators about the failed bid, along with examining Columbia's regulatory compliance in its other operations.
The Casino Queen broke ground on a $150 expansion to the property shortly before the sale announcement. Plans call for the casino premises to be moved almost 700 feet inland from the Mississippi River to the site of the current hotel parking lot.
Expansions will increase the size of the casino by about 10,000 square feet. The new 236,000-square-foot resort will feature 38,000 square feet of gambling space, a parking garage, a buffet, a steakhouse, a lounge, a stage bar and a cafe.
The new casino should open in a year, said Jim Koman, Casino Queen's president. He told reporters at the groundbreaking that the expansion is "absolutely important" due to Pinnacle Entertainment Inc.'s planned $400 million casino complex across the river in St. Louis. Koman referred to the project as the Casino Queen's "biggest threat."
Meanwhile, Pinnacle's hold in the St. Louis market may grow stronger. Recently the company announced that the U.S. Bankruptcy Court in St. Louis gave Pinnacle the green light to purchase the President Casino for around $31.5 million, pending licensing and court approvals. Pinnacle could close the property and eliminate competition if the deal closes.
-Darby Harris
St. Louis market shifts with moves by Columbia, Pinnacle
Columbia Entertainment-still fresh from its bidding war for Aztar Corp.-agreed in late-May to purchase the Casino Queen, a riverboat casino and hotel in East St. Louis, Ill., for $200 million, with plans to spend an additional $60 million to further develop the property.
The deal is expected to be complete by the end of 2006, pending regulatory approval.
Columbia attempted a purchase in the St. Louis market in 2004, withdrawing its application to buy the bankrupt President Casino for $57 million due to licensing issues. Gene O'Shea, Illinois Gaming Board spokesperson, said the board will be contacting Missouri regulators about the failed bid, along with examining Columbia's regulatory compliance in its other operations.
The Casino Queen broke ground on a $150 expansion to the property shortly before the sale announcement. Plans call for the casino premises to be moved almost 700 feet inland from the Mississippi River to the site of the current hotel parking lot.
Expansions will increase the size of the casino by about 10,000 square feet. The new 236,000-square-foot resort will feature 38,000 square feet of gambling space, a parking garage, a buffet, a steakhouse, a lounge, a stage bar and a cafe.
The new casino should open in a year, said Jim Koman, Casino Queen's president. He told reporters at the groundbreaking that the expansion is "absolutely important" due to Pinnacle Entertainment Inc.'s planned $400 million casino complex across the river in St. Louis. Koman referred to the project as the Casino Queen's "biggest threat."
Meanwhile, Pinnacle's hold in the St. Louis market may grow stronger. Recently the company announced that the U.S. Bankruptcy Court in St. Louis gave Pinnacle the green light to purchase the President Casino for around $31.5 million, pending licensing and court approvals. Pinnacle could close the property and eliminate competition if the deal closes.
-Darby Harris
