Pinnacle gives up gaming license and scraps Sugarcane Bay project

Sugarcane Bay project Scrapped

Friday April, 16 – Pinnacle Entertainment (PNK) announced it has given up its gaming license for Sugarcane Bay to the Louisiana Gaming Control Board and scrapping the proposed project.

Pinnacle's Sugarcane Bay project was to be located by the company's L'Auberge du Lac Casino Resort the $305 million dollar riverboat and hotel project had already cost Pinnacle $70 million, however after a fourth quarter loss of $242 million they have decided to cut costs to offset revenue losses.

This is also one of many new changes to come as newly appointed President/CEO Anthony Sanfilippo moves the company into the future. Anthony Sanfilippo was names President/CEO of Pinnacle Entertainment back on March, 15 just 10 days after opening River City Casino, South St. Louis County's first gaming facility.

The River City complex features a single-level, 90,000-square-foot casino with more than 2,100 slot machines and 55 table games, including poker, and parking for more than 3,000 vehicles. River City's exciting array of restaurants and nightlife options include Jeff Ruby's Steakhouse, a fine-dining restaurant featuring USDA Prime dry-aged steaks, the freshest seafood and a sit-down sushi/raw bar; 1904 Beerhouse, a tavern featuring more than 100 beers by the bottle and 32 on tap, including River City's exclusive 1904 Brewhouse Ale; and Judy's Velvet Lounge, the heart of River City's nightlife scene featuring live music, specialty drinks, bar-top slots and high-definition flat-screen TVs for viewing the biggest sporting events.

Pinnacle says the cancellation reflects "disciplined capital spending and expansion," The company reaffirmed its plans for a development in Baton Rouge that is to include about 1,300 slot machines, 50 table games and at least 100 hotel rooms. They also said it was canceling the project to focus on its existing Louisiana operations.

Competition has increased in the gambling industry during the recession as gamblers have spent less on amenities, as well as slots and table games, and as new casinos have opened.
 

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