(November 26, 2009 8:00 AM) -

Staff & Wire Reports | Pinnacle Entertainment Inc. (PNK), of Las Vegas, has slashed its projected spending for the Sugarcane Bay casino project in Lake Charles, lowering the projected cost by roughly $100 million to $305 million.

The Louisiana Gaming Control Board is expected to consider the new plans at a meeting Dec. 15, the company said in a news release Tuesday.

Pinnacle also said it is proceeding with plans for its casino project in Baton Rouge, which represents an investment of approximately $260 million, excluding capitalized interest. As announced previously, the Baton Rouge project will include a new single-level riverboat casino; a 100-room hotel; a mix of restaurants and lounges; and an entertainment venue.

Related Articles:

Casinos in crisis -- marketing missing the mark

Casinos in crisis Part 2: Back to Basics

Casinos in crisis Part 3: Promotions target lost customers

Also Check out our Race & Sports Section

Pinnacle has delayed the Baton Rouge complex three times because of credit market conditions, most recently last month when the Louisiana Gaming Control Board gave the firm until the end of April to let construction contracts. Foundation work began on the Lake Charles project in October.

The Sugarcane Bay project, the sister property to the company's L'Auberge du Lac casino resort, will include a new single-level riverboat casino; 400 guest rooms and suites; dining and lounge outlets; a multipurpose venue for entertainment and group meetings; and an expanded spa.

Earlier plans called for a retail area and estimated the project's cost at up to $407 million.

The company said $54 million has been spent so far on Sugarcane Bay. The updated design will more fully integrate Sugarcane Bay with L'Auberge du Lac and results in a renaming of the project to Sugarcane Bay at L'Auberge du Lac.

Sugarcane Bay is expected to generate about 700 construction-phase jobs and 1,000 jobs. Pinnacle said it expects to complete the Sugarcane Bay casino in late 2010 and open in 2011.

"Sugarcane Bay at L'Auberge du Lac is an important part of Pinnacle's development plans, and we're pleased to reaffirm the board of directors' commitment to the state of Louisiana and the Lake Charles market," said John Giovenco, Pinnacle's interim chief executive officer.

"We believe the updated design can generate ongoing value for our shareholders while creating quality jobs, generating tax revenues and providing the superior guest experience that has made L'Auberge du Lac a success," he said.

Question? Comment? E-mail the staff at: Staff of GamingToday

---

What's your take on this subject?
Post a Comment or visit the Message Boards.

---