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CR78-p18-NorthAmerica1:SJC-Casino Review 22/3/09 01:00 Page 1
Icahn interested in
Tropicana court sale
The bankruptcy court auction of Atlantic City’s
Tropicana Casino is believed t have attracted
interest from a group including billionaire
financier Carl Icahn. The Tropicana has been
run under a state-appointed conservator since
December 2007 when the state took over from
the former owners. Tropicana president Mark
Giannantonio said the casino will be open as
normal throughout the court sale. “We fully
expect that the Tropicana will continue to
operate in a smooth and uninterrupted manner
during the sale process and the transition to
the new owners,” he said.
woes could
for Ohio
pave way for
US internet
with rival
Penn National is hoping
that a November ballot
House of Representatives Financial
proposal will allow four
Services Committee chairman Barney
resort-style casinos to
Frank’s plan to reintroduce a bill this
be built in Ohio
although this is the fifth
year to overturn the US ban on internet time in 20 years that
gaming will have been boosted by figures
voters have
from a recent study pitching the sector’s
introducing state-wide
ten year potential at US $52bn. gambling with so far no
silverlining month, claiming that online those in 2007 because US against compulsive and under- towards in-state online If voted in, casinos
UNITED STATES gambling is a fundamental online gambling has grown age gambling, money launder- gaming would, by a state legis- would be built in
freedom, and that efforts to despite the prohibition. ing, fraud and identity theft.” lature, make the UIGEA unen- Columbus, Cleveland,
Growing belief that the United make it illegal equate to the Jeffrey Sandman, The hope remains that forceable by the Justice Toledo and Cincinnati.
States Congress will overturn Prohibition in the 1920s. spokesman for the Safe and online gaming could be one of Department inside that state. Having spent over
the 2006 Unlawful Internet The 2006 ban was Secure Internet Gambling Ini- the opportunities to prosper The western state is hoping US$45m last year to
Gambling Enforcement Act approved when Republicans tiative, said: “This analysis from the US economic reces- that the taxation received by make sure
(UIGEA) has been boosted still controlled both houses of further illustrates that the US sion with the need for sources online poker would bolster its failed
further by a Pricewaterhouse- Congress and Republican is missing the opportunity to of new revenue streams fol- troubled economy, which has in its bid last year to
Coopers’ study which states George W. Bush was in the collect billions of dollars in lowing the huge government the second highest foreclo- develop a casino in
the US could raise nearly White House. federal revenues. We are opti- bailouts in several industries. A sure rate in the country and southwest Ohio, Penn
US$52bn in revenue over the PricewaterhouseCoopers mistic that the Obama Admin- trade challenge for the Euro- near double-digit unemploy- National, the nation’s
next decade if it lifted the believes that the US could istration and Congress will pay pean Union may also increase ment. California executives third-largest gambling
three-year-old ban on internet receive as much as $51.9bn closer attention to this issue as the likelihood of the bill being will attend a state poker company, is now
gambling and taxed the busi- in federal revenue over the they seek to find new revenues passed this year. summit to be held in Mid May teaming up with its
ness instead. next ten years if internet gam- that can be generated without California and New Jersey but California’s Indian casinos rival to ensure this
Barney Frank, chairman of bling is regulated as proposed raising taxes for critical are moving forward with their are expected to oppose any proposal sees the light
the House of Representatives in legislation introduced by federal, state and local govern- own online gaming bills, such move. New Hampshire of day. Each casino
Financial Services Committee, Representatives Frank and ment programs. Regulation is which they hope they will be and North Dakota are also would house table
plans to introduce legislation Jim McDermott. Its 2009 pre- also needed to ensure there able to introduce with state believed to be looking at games and a minimum
to overrule the UIGEA this diction is 22 per cent above are safeguards to protect boundaries. Any move similar options. of 5,000 slots. Whilst
Penn has experience in
racetrack operations it is
not thought that any of
Station says ‘no’ to Boyd takeover
the four casinos here
will be developed as
racinos. Tax would be set
at 33 per cent with the
steamrolled Station’s debt between 10 plan of reorganisation.’ required under the proposed licence also demanding
UNITED STATES cents and 50 cents on the Station’s debt holders will transaction structure.” an initial $50m.
dollar in new notes and cash. vote on April 10 on the pro- He added that Boyd con- Governor Ted
Station Casinos’ board of The move would see posed debt restructuring. tinued to believe the pro- Strickland has
directors have rejected Station enter into a voluntary Rob Stillwell, Boyd's vice posal outlined in its February previously been against
Boyd Gaming’s US$950m Chapter 11 bankruptcy, at president of corporate com- 23, 2009 letter offered a developing casino
offer for a majority share in which point its owners, the munications, said: “We superior recovery to credi- gambling in Ohio, but is
Station’s business, saying it Fertitta family and Colony remain interested in acquiring tors compared to the current now believed to be
was acting ‘in the best inter- Capital, would inject $244m of some or all of the assets of restructuring offer Station keen to boost the
est of the company and its cash back into the company. Station Casinos. The has proposed. region’s budget. Penn
stakeholders to proceed Station’s rebuff to Boyd Company understands Bill Lerner, a gaming National’s Richard Land
with the company’s restruc- came on the day that the Station's concern of sharing analyst with Deutsche Bank, said: “We would need to
turing plan.’ company confirmed it had sensitive information and is believes Station’s rejection demonstrate that the
Chairman and CEO Frank reached agreements with prepared to work with Station makes absolute sense. “The state and its
Fertitta III, said Station, which most of its debt holders to to employ standard and cus- reasoning on why they communities would
owns 13 casino properties, extend a deadline to vote tomary due diligence methods rejected this current offer benefit in terms of
including Green Valley Ranch, on the company’s bank- to minimise this risk. Boyd makes sense to me,” Lerner revenue, economic
Red Rock Resort, Sunset company’s assets.’ ruptcy proposal. Gaming reiterates that it has said. “They feel there is development and job
Station, Palace Station and At the start of February Station said that the sufficient liquidity under its notable risk that the deal might creation. We would
Boulder Station, in Clark Station presented a ‘prepack- agreements would ‘provide credit facility to finance a cash not close, and if that happens, need to present a
County, would not take ‘any aged’ bankruptcy proposal the company with additional transaction, and contem- they’ve disrupted the proposal that voters
steps towards pursuing, a sale that would give bondholders time to continue discus- plates that no amendment to prepackaged proposal, and will understand and
of all or any portion of the who hold US$2.3bn of sions regarding terms of its its credit facility would be that changes everything.” support.”
18 April 2009 • northamericanews
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