Pinnacle Entertainment

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This article is about the gaming and hospitality company based in the Las Vegas Valley, Nevada. For other uses, see Pinnacle Entertainment (disambiguation).
Pinnacle Entertainment
Type Public
Traded as NYSE: PNK
Industry Hospitality, Gambling, Entertainment
Predecessor(s) Hollywood Park Entertainment, Hollywood Park Realty Enterprises, Hollywood Park Inc.
Founded 1938
Founder(s) Jack Warner
Headquarters Spring Valley, Nevada[1], United States
Key people Anthony Sanfilippo, Carlos Ruisanchez, John A. Godfrey, Ginny Shanks, Daniel Boudreaux
Revenue US$923.71 million (2007)[2]
Operating income $8.35 million
Total assets $2,193.54 million
Total equity $1,052.36 million
Employees 7,600
Website pnkinc.com

Pinnacle Entertainment, Inc. is a gaming and hospitality company based in Spring Valley, Nevada. Formed in 1938. Pinnacle owns and operates 18 casinos and two racetracks. It also has a 26% ownership stake in Asian Coast Development (Canada) Ltd. (ACDL), which is developing Vietnam's first large-scale integrated resort on the Ho Tram Strip.

Company names over time

Hollywood Park Entertainment was established in 1938 . It was incorporated in 1981 under the name Hollywood Park Realty Enterprises, Inc.. In 1992, it was renamed Hollywood Park, Inc. In February 2000, the company became known as Pinnacle Entertainment after selling Hollywood Park to Churchill Downs Incorporated.

History

Pinnacle Entertainment traces its roots back to 1938, when movie mogul Jack L. Warner opened the celebrated Hollywood Park Turf Club racetrack in Inglewood, California. The original shareholders included some of Hollywood’s biggest names, such as Walt Disney, Mervyn LeRoy and Bing Crosby.

After many years in the horseracing business, the company began a transformation into a major casino operator. In 1997, the company acquired Boomtown, Inc. and its three casinos in Nevada, Louisiana, and Mississippi for $188 million.[3] In 1998, it acquired Casino Magic Corp. for $340 million, including two casinos in Mississippi, one in Louisiana, and a controlling stake in two casinos in Argentina.[4][5]

With its success in the casino business, the company sold the Hollywood Park racetrack in 1999, and in 2000 changed its name to Pinnacle Entertainment. Belterra Casino Resort & Spa made its debut in 2000 as Pinnacle's first company-designed and developed gaming resort. Then in 2005, Pinnacle opened L'Auberge du Lac in Lake Charles, Louisiana, which quickly became the company’s flagship resort.

On September 5, 2006, Pinnacle announced that it purchased Sands Casino Hotel in Atlantic City, New Jersey and would tear it down to build a $1.5 billion resort.[6] The property was closed on November 11, 2006 and demolished on October 18, 2007. Harsh economic times later caused Pinnacle to delay construction of the new resort.[7] In February 2010, the company announced that it had canceled its construction plans and would instead seek to sell the land.[8]

On December 21, 2006, Pinnacle completed the purchase of the President Casino in St. Louis, Missouri.

Lumière Place opened in downtown St. Louis in December 2007, anchoring an entertainment district that includes The Four Seasons Hotel St. Louis and HoteLumière. In March 2010, Pinnacle opened River City Casino, in south St. Louis County. Then in September 2010, Pinnacle announced the expansion of its L’Auberge Baton Rouge project, which is slated to open summer 2012, pending regulatory approval. The final step in the formal licensing and approval process was successfully completed August 31, clearing the way for a September 1, 2012 Grand Opening. The planned August 29 Grand Opening was postponed due to Hurricane Isaac.

On November 9, 2009, chief executive officer Dan Lee was forced out by the company's board of directors after reportedly physically confronting and threatening a St. Louis County official.[9]

In July 2010, the company sold its Argentina casinos for $40 million.[10]

In January 2011, Pinnacle closed on the purchase of River Downs in southeast Cincinnati.

The company agreed in April 2012 to buy a 75.5% stake in Retama Park, a money-losing horse track in Selma, Texas, for $22.8 million. The purchase is seen as a "defensive move" to help soften the blow if gaming in Texas is expanded and draws visitors away from Pinnacle's Lake Charles properties.[11]

In May 2011, Pinnacle expanded into the Asian gaming market with a $95 million investment for 26 percent ownership of Asian Coast Development Ltd. ACDL is the owner and developer of the Ho Tram Strip, 80 miles away from Ho Chi Minh City in southern Vietnam, which will be the country’s first large-scale integrated destination resort. Upon the closing of the transaction, Pinnacle will enter into a management agreement through 2058 for the second integrated resort on the Ho Tram Strip.

In June 2012, Pinnacle sold Boomtown Reno for $12.9 million to M1 Gaming, the company of former Station Casinos executive Dean DiLullo.[12]

In August 2013, Pinnacle bought Ameristar Casinos for $869 million plus $1.9 billion in assumed debt,[13][14] adding nine properties in Colorado, Indiana, Iowa, Missouri, Mississippi, and northern Nevada. To gain FTC approval for the merger, Pinnacle agreed to sell its Lumiere Place property and Ameristar's under-construction casino in Lake Charles.

Resorts and casinos

United States

Previous operations

Argentina

  • Casino Magic San Martin de los Andes (sold)
  • Casino Magic Neuquén (sold)

United States

References

  1. ↑ "About Us". Retrieved 2009-05-11. "address: 8918 Spanish Ridge Avenue Las Vegas, NV 89148" 
  2. ↑ "Pinnacle Entertainment, Inc: NYSE:PNK quotes & news - Google Finance". Finance.google.com. Retrieved 2012-04-08. 
  3. ↑ "Hollywood Park completes merger". Las Vegas Review-Journal. July 2, 1997. Retrieved 2012-07-31. 
  4. ↑ "Hollywood Park completes acquisition of Casino Magic" (Press release). Hollywood Park, Inc. October 17, 1998. 
  5. ↑ "Hollywood Park to buy Casino Magic for $81 million". New York Times. February 20, 1998. Retrieved 2012-07-31. 
  6. ↑ Haught, J. Staas (2006-09-06). "Sands sold, will close; Pinnacle plans to build $1.5B. megaresort casino hotel". Press of Atlantic City. Retrieved 2006-09-06. 
  7. ↑ Pinnacle's AC casino plans on 'indefinite' hold, Forbes, November 7, 2008.
  8. ↑ "Pinnacle folds its hand in Atlantic City", The Philadelphia Inquirer, February 6, 2010.
  9. ↑ Howard Stuz (2009-11-09). "Pinnacle Entertainment CEO resignation may alter projects". 
  10. ↑ "Pinnacle Entertainment Completes Sale of its Argentina Operations" (Press release). Pinnacle Entertainment, Inc. 2010-07-07. Retrieved 2010-08-16. 
  11. ↑ Patrick Danner (April 27, 2012). "Retama strikes deal with Vegas company". San Antonio Express-News. Retrieved 2013-01-13. 
  12. ↑ Stutz, Howard (June 26, 2012). "Reno's Boomtown Casino changes hands, but keeps its name". Las Vegas Review-Journal. Retrieved 2012-06-27. 
  13. ↑ Stutz, Howard (December 21, 2012). "Las Vegas-based Pinnacle Entertainment to acquire rival Ameristar Casinos for $869 million". Las Vegas Review-Journal. Retrieved 2012-12-21. 
  14. ↑ Howard Stutz (August 14, 2013). "Pinnacle Entertainment completes $2.8 billion buyout of Ameristar Casinos". Las Vegas Review-Journal. Retrieved 2013-08-14. 

External links

Colorado
  • Ameristar Black Hawk
Indiana
Iowa
  • Ameristar Council Bluffs
Louisiana
Mississippi
  • Ameristar Vicksburg
Missouri
Nevada
New Jersey
Ohio
  • Belterra Park
Texas
  • Retama Park
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