Given the supine attitude toward mergers and acquisitions that has prevailed in Washington, D.C., for the past 15 years and the routine, 
state-by-state approval of Pinnacle Entertainment‘s takeover of Ameristar Casinos, I had erroneously thought it a done deal. Not so. The Federal Trade Commission has deemed it a violation of antitrust laws, as it would throw a big, Pinnacle-colored blanket over the St. Louis and Lake Charles markets. (Where were these people when then-MGM Mirage and Harrah’s Entertainment were near-monopolizing the Las Vegas Strip, huh?) I somehow doubt that consumers are as excited about the “compelling benefits that the merger will provide” as Pinnacle execs would like to believe.
Pinnacle would own all but one of four casinos on 
the Missouri side of the St. Louis market and two of the three in Lake Charles. No offense to Casino Queen in East St. Louis and Isle of Capri Casinos‘ Lake Charles riverboat, but they’re hardly serious rivals to Pinnacle. (Ditto Penn National Gaming‘s puny-grossing Alton Belle, further upriver in Illinois.) Working under a deadline to get the Ameristar deal done, Pinnacle CEO Anthony Sanfilippo (right) scoffed at the FTC opinion and vowed to proceed full speed ahead with the takeover. He could always try to appease Washington by unloading a casino or two, but what’s the point of gaining a stranglehold if you give it right back? Considering the premium at which Ameristar is trading, however, it could be a scary downhill ride for ASCA if Sanfilippo’s sangfroid proves misplaced.
Phoenix from the ashes. Remember the fire that laid waste to the 32nd floor of the Monte Carlo? In its place has arisen Hotel 32, a hotel-within-a-hotel, sort of like an affordable (well, $170 midweek) version of the Four Seasons. Forbes‘ Larry Olmsted belatedly gives it a rave. Selling points include larger-than-average rooms and suites (formerly reserved for high rollers), as well as speedy service and state-of-the-art amenities. It’s worth considering when you want to splurge on a Vegas vacation but don’t want to get cleaned out at Cosmopolitan-sized rates.
Harrahs LV monopolizing aside, they did have to divest of assets to appease the Feds, and Colony Capital was eager to over-pay for them. Anyway, this should get interesting. I am surprised they just do not off-load Lumiere as you have somewhat suggested in the past. I think it would fit into the Boyd portfolio rather perfectly.
On Hotel 32 … where have you been??? It’s probably due for a renovation at this point 🙂
David, I am with you on where was the FTC during the take over of the Las Vegas Strip.