Casino news source: The Daily Comet - http://www.dailycomet.com/
Casino company purchases land in Baton Rouge
The Associated Press
Pinnacle Entertainment Inc. has bought a 35-acre tract in Baton Rouge that could provide a site for the city's third riverboat casino.
Through its $70 million purchase of Harrah's Entertainment Inc.'s two riverboat licenses in Lake Charles, Pinnacle has one license available to move to another city. Company officials have indicated that East Baton Rouge Parish, West Baton Rouge Parish and Jefferson Parish are possible sites.
Pinnacle plans to use the other Lake Charles license for a second casino in that city.
Clerk of court records in Baton Rouge show Yankton Investments, a Pinnacle subsidiary, bought a 35-acre tract along River Road on Wednesday for $1.1 million.
Developer Mike Wampold also confirmed Thursday that there is a purchase agreement on a tract of Mississippi River batture he owns adjacent to the land purchased by Yankton. Wampold said he expects that deal to close within 60 days, but would not comment further.
Baton Rouge already is home to the Belle of Baton Rouge, owned by Columbia Sussex Corp., and Casino Rouge, owned by Penn National Gaming Inc. Unlike the possible Pinnacle site, both are in the downtown area.
Trudy Fuselier, confidential assistant to the Louisiana Gaming Control Board, said Thursday that so far, Pinnacle has not petitioned the agency to come to Baton Rouge. Moving another casino to Baton Rouge would require the approval of parish voters.
Pinnacle spokeswoman Pauline Yoshihashi said Friday that the company had not decided where to locate the casino. She declined comment on real estate transactions.
"I thought it was the most ridiculous idea to come along for quite some time. That area is totally inappropriate for this," said state Rep. William Daniel, who already was composing a letter Thursday night to the Gaming Control Board expressing his opposition.
Mayor Kip Holden said he had not been in contact with Pinnacle since the company made an initial, informal inquiry to his office earlier this summer. He said he would reserve judgment.
"Frankly, until somebody from the company comes and sits down and talks to us, I'm in no position to comment, because there's nothing on the table," he said.
Metro Councilman Pat Culbertson, in whose district the new Pinnacle property is located, said that despite recent speculation about the company's plans, a third Baton Rouge riverboat "has to be looked at carefully" although "there is going to have to be a strong case made in order to see the benefits of a third boat."
At least one of Baton Rouge's two existing riverboat casino operators isn't thrilled about the prospect of a third boat in the market.
"We believe that this is a two-boat market, and has been for a long time," said Jon Zimmerman, general manager of Casino Rouge. "At one time some economists called it a boat-and-a-half market. We don't believe it will support a third riverboat."
Zimmerman said Baton Rouge is the smallest gambling market in the state, and is surrounded by other gambling options. He said studies have shown the Baton Rouge gambling market is 93 percent local.
"They think they can draw people from out of state," he said. "I really don't think that they can do that. The only way that they can do that is to steal existing market share from the existing casinos." |
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