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April 15, 2010
An announcement came on Thursday that Pinnacle Entertainment Inc. will not be building the Sugarcane Bay Project. This was to be a riverboat casino and hotel built next to the L'Auberge du Lac Casino Resort at a cost of $305 million. Pinnacle stated that they were going to focus on their existing operations in Louisiana. The company also stated the cancelation was due to “disciplined capital spending and expansion”. However, there are still plans for the Baton Rouge development. This will include 50 table games, 1,300 slot machines, and 100 hotel rooms. The recession has affected the casinos since gamblers are spending less on amenities, table games, and slots. There is also an increase in new casino creating more competition. Fourth-quarter results for Pinnacle were released in February. The report
stated that around $70 million was already spent on the Sugarcane Bay Project.
Pinnacle also said it lost $242 million. To help offset the revenue drop, cost
cuts had to be made. Return to Louisiana Casinos. |
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