Let’s assume, for the moment, that the President Casino/Admiral Riverboat is not going to pass inspection in June 2010 and their license will be up for grabs. Who would bid on it?
I wouldn’t be surprised if Pinnacle (who currently holds the license) didn’t bid. They already have 2 casinos in the St. Louis market. Would they want the expense of building and promoting a 3rd in the same area? Admittedly, it would give them a casino in SW, NE and center of STL (assuming they stuck with their plans to locate it near the Chain of Rocks bridge. But would having a 3rd casino get them enough market share from the rest of the casinos to make it worthwhile?
I wonder if the owners of the Casino Queen or Penn National (Argosy) would be more likely bidders. Depending on where they place it, the new MO casino wouldn’t necessarily cannibalize existing business. A MO-based casino also offers these two companies a facility where gamblers can smoke. (And as we’ve seen, smoking can have a big impact on casino revenues.)
Any other guesses?
Tags: admiral, argosy, casino, casino queen, penn national, pinnacle, president casino, riverboat, st louis
November 12, 2009 at 10:32 am |
[...] Still, competitive issues aside, it’s reassuring to see that the gaming industry is picking up even in the current economy. Dennis M. Farrell Jr., a gaming analyst for Wells Fargo Securities, said revenue growth reflected not only stronger demand for gambling, but also better economic conditions in the Midwest compared to other parts of the country. It certainly bodes well for Pinacle’s new casino slated to open in April 2010, and for a new casino in North County (if it should ever come to pass; but that’s another story). [...]
December 14, 2009 at 1:09 pm |
[...] The one thing that raised my eyebrow in their press release today was the absence of the President Casino. In th release, John Giovenco, Pinnacle’s interim chief executive officer, said that, “… Along with Lumiere Place, its sister property in downtown St. Louis, River City represents a major investment in the future of the St. Louis area.” I’m curious why the quote didn’t also mention Pinnacle’s President Casino. Is it because the other two are new and required large amounts of capital to build? Is Pinnacle trying to distance itself from the ailing President Casino, which faces certain challenges of its own? Is Pinnacle underscoring its dedication to St. Louis and its record of investing in St. Louis in the hopes of facilitating the efforts to keep and/or move the President’s coveted 13th license? [...]
January 26, 2010 at 12:54 pm |
[...] Pinnacle to bid for it against other suitors? Could the fact that the Commission knows there are several other parties interested in the license influence their decision to revoke and resell the existing [...]
January 26, 2010 at 12:54 pm |
[...] to bid for it against other suitors? Could the fact that the Commission knows there are several other parties interested in the license influence their decision to revoke and resell the existing [...]
March 12, 2010 at 3:15 pm |
[...] most pressing question now is, “Who will get the coveted 13th license?” Several groups have been cited as having an interest in opening a new casino. The [...]
March 12, 2010 at 3:18 pm |
[...] most pressing question now is, “Who will get the coveted 13th license?” Several groups have been cited as having an interest in opening a new casino. The [...]