Louisiana

New Developments (updated 10/22/01)

Gaming license issued: On October 16, the Louisiana Gaming Control Board voted 6-3 to issue the state's last available riverboat casino license to Pinnacle Entertainment Inc. for a proposed 225-acre project in Lake Charles.

The vote awarding the license to Pinnacle came minutes after Board Chairman Hillary Crain broke a 4-4 deadlock on a motion against issuing the state's 15th riverboat license at all.

Several board members questioned whether now is the right time for a new casino in the wake of the September 11 terrorist attacks and the resulting economic turmoil. Among those board members questioning the timing of the project was Robert Fleming, a retired judge.

"We are at war in Afghanistan right now, and it just seems like there are better things that could be done besides building another riverboat," said Fleming.

But Crain argued that the $220 million project proposed by Pinnacle was a good bet. He said about $150 million of the project involves building land-side improvements such as a golf course and hotel that must be completed before any gaming is conducted on the proposed riverboat.

"There will not be a single door opened, a single slot machine played, a single card dealt until there is a hotel, golf course and the remainder of the infrastructure that Pinnacle has promised," Crain told the board.

He said the board can yank the license if Pinnacle takes too long to complete the project.

"If they can't do it, then we simply pull it back and go again. In all honesty, I don't see any downside," said Crain.

Pinnacle, owner of Boomtown Casino and Casino Magic in Bossier City, must get the approval of Calcasieu Parish voters before adding an additional riverboat to the four-boat market.

Pinnacle President and CEO Paul Alanis said he expects to get voter approval easily.

"We're going to take some polls and see if we need to do some work in that area, but my instinct is that the people of Lake Charles want this project and they will support this project overwhelmingly," Alanis said.

Pinnacle's plan won out over two competing proposals.