Pinnacle Entertainment (NYSE:PNK) has folded their hand and agreed to close the President Casino by July 1, 2010. This ends the latest chapter in the story of the prolonged battle between Pinnacle and the Missouri Gaming Commission. However, the story is far from over.
The 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 Gaming Commission Chairman James L. Mathewson has been quoted as saying that he would welcome a bid from Pinnacle to purchase the license, so could there possibly be another suitor now?
I’m also intrigued that the spokesperson for this announcement has been Mathewson, and not Executive Director of the Missouri Gaming Commission, Gene McNary. McNary has been rumored to have political ties with the North St. Louis County government and the development company which has expressed interest in building a casino near the Columbia Riverbottom conservation area, so I wonder if the commission is trying to distance McNary from the process until the license is awarded.
I’m also curious why Pinnacle decided to give up the license. It seemed, following the recent court decsion, that the fate of the President was far from sealed. I’ll be interested to see if Pinnacle and the Commission have made any other agreements.
I also find it humorous to read comments on other blogs applauding the closing of the President and at the same time expressing hope that the Admiral riverboat will be converted into a cruising vessel. I’m curious who would be willing to underwrite such a venture. Certainly Pinnacle will have no interest in the boat, will they? If they didn’t want it as a casino, why would they want it at all? Are there investors out there who would be willing to buy the boat and then pay to fix it up? That cannot be an inexpensive proposition. The hull still isn’t expected to pass inspection this summer, so it’s not like it would be a quick fix to convert the boat into another business.
Still, it will all be interesting to watch.
Tags: admiral, casino, gambling, pinnacle, president casino, st louis
May 5, 2010 at 1:00 pm |
[...] enough, Pinnacle Entertainment (NYSE:PNK), current holder of the license at the President Casino which will be returned to the Commission in a few weeks, did not express interest at this [...]
May 6, 2010 at 9:43 am |
[...] enough, Pinnacle Entertainment (NYSE:PNK), current holder of the license at the President Casino which will be returned to the Commission in a few weeks, did not express interest at this [...]