Pinnacle expands, Boyd loses face

Jeez, I go on sabbatical to attend to other writing commitments and hella history breaks loose: Internet gambling is now the law of Nevada and New Jersey (so much for federal legalization being “just around the corner,” huh?), Caesars Entertainment floats a “controversial and complicated” IPO — well, nothing new there — and there’s a godawful, bloody massacre on the Las Vegas Strip. Or as civic boosters would call it, business as usual.

Pinnacle Entertainment, meanwhile, put another $20 million into the New Orleans market, breaking ground on a small (eight suites, 150 rooms) hotel to complement its Boomtown New Orleans riverboat. And why not? The Pelican State has been very, very good for Pinnacle, which has surpassed Caesars as Louisiana‘s dominant casino operator. The new hostelry won’t add a lot of jobs (50) over the long run, when it opens in April 2014. However, Pinnacle has poured so much money into the Lake Charles and Baton Rouge markets that it can be forgiven for being a bit cost-conscious in the Big Easy.

It’s the second time around for ex-lovebirds Boyd Gaming and Dania Entertainment. Yesterday, Boyd announced a “definitive” agreement to sell its red-headed Florida stepchild, Dania Jai-Alai by May 24. (Let’s hope it’s more definitive than the last agreement was.) The terms of the ‘pre-nup,’ as it were, are downright humiliating for Boyd. Dania will dismiss a lawsuit against the company, but Boyd has to accept $65.5 million for the fronton, down from a previous $80 million sale that went south. What’s more — or rather, less — is that $7 million previously put down by Dania is to be subtracted from the new, lower sales price, so Boyd is getting $58.5 million at the end of the day. The money, while small potatoes, is expected to help retire some of the debt incurred during Boyd’s Peninsula Gaming purchase last year. While Boyd is still keen on the Sunshine State, it had long since decided that Dania was where the action wasn’t and is expediently cutting its losses.