Pinnacle lowers investment in Lake Charles casino

12-19-2009

Pinnacle Entertainment, the Las Vegas-based gaming and hospitality company, has received approval by the state of Louisiana to decline its investment in the new Lake Charles casino. In the meantime, Pinnacle representatives agreed on a faster timeline, which enables the gambling venue to open the new casino earlier.

Alteration in financing

The opening of the casino on Sugarcane Bay is scheduled for June 2011. The casino project was first calculated at $350 million and Pinnacle Entertainment is now obliged to fund up to a minimum of $300 million.

Delay casino hotel

Due to the economic slump, Pinnacle representatives had required several times to delay the construction. Pinnacle could have lost the gambling license for the Lake Charles casino, if the state had not approved the postponements and the alteration in financing.
Falling revenues were one of the reasons for altering the casino plans, which consists of combining the existing 1000-room hotel with a new 400-room hotel.

Pinnacle Entertainment

Cliff Kortman, Pinnacle’s executive vice president for development, commented: “People gamble less due to the recession.”
Jack Godfrey, secretary and general counsel of Pinnacle Entertainment, said: “We believe that we present a stronger project than the previous version.”