Pinnacle Entertainment realizes most gamblers don't know when
they've reached their peak. The Las Vegas-based gaming company
actually has no casinos in Vegas; instead, the regional casino
operator owns seven casinos in other locations. Most of its
properties cater to locals or those within easy driving distance.
Three of Pinnacle's locations operate under the Boomtown banner.
Its L'Auberge du Lac Hotel & Casino property in Lake Charles,
Louisiana, is the company's largest casino resort. In St.
Louis, the company owns Lumière Place (including the Lumière
Place Casino, the Pinnacle-owned Four Seasons Hotel St. Louis, and
HoteLumière) and the River City Casino.
The company has casinos in Indiana, Louisiana, Missouri, and
Reno, Nevada. Four of its eight gaming properties are located in
Louisiana. In fiscal 2012 Pinnacle derived 53% of its revenues from
these four casinos and 32% from one of them, L'Auberge du Lac in
Lake Charles, Louisiana.
Sales and Marketing
Pinnacle spent about $27 million on advertising and marketing
promotions in fiscal 2012.
The company's revenue increased by 5% to $1.197 billion in
fiscal 2012 from $1.141 billion in fiscal 2011. The growth was
powered by increases in revenue from 6 of 8 casinos. L'Auberge du
Lac in Lake Charles, its largest property, had a 2% increase in
revenues, as a result of a continued focus on the efficiency of the
operation and utilization of assets, and due to a non-recurring
charge related to the re-launch of its my choice customer loyalty
program in April 2011.
Pinnacle is focused on enhancing operating results at its core
US properties and to build shareholder value. Improvements
made throughout its properties have helped increase gaming
revenues. Operating efficiencies have been achieved through
consolidating tasks by leveraging shared services where appropriate
to do so.
In 2012 Pinnacle made a major investment at its Boomtown Casino
New Orleans property with a planned $20 million hotel project. The
150-room five-story hotel will include suites, a fitness center,
and meeting space along with 250 additional parking spaces.
Mergers and Acquisitions
In 2012 the company closed on an agreement to purchase
substantially all of the assets of Federated Sports & Gaming,
Inc. and Federated Heartland, Inc., owners of the Heartland Poker
Tour and other related assets and intellectual property, for total
consideration of $4.6 million. These entities own the Heartland
Poker Tour and other related assets and intellectual property. The
Heartland Poker Tour is a live and televised poker tournament
Pinnacle also has plans to acquire Ameristar Casinos in an all
cash transaction valued at $2.8 billion, including assumed debt.
Ameristar operates the following casinos: Ameristar Casino Resort
Spa St. Charles (serving the St. Louis, Missouri metropolitan
area); Ameristar Casino Hotel Kansas City (serving the Kansas City
metropolitan area); Ameristar Casino Hotel Council Bluffs (serving
the Omaha, Nebraska metropolitan area and southwestern Iowa);
Ameristar Casino Resort Spa Black Hawk (serving the Denver,
Colorado metropolitan area); Ameristar Casino Hotel Vicksburg
(serving Jackson, Mississippi and Monroe, Louisiana); Ameristar
Casino Hotel East Chicago (serving the Chicagoland area); and
Cactus Petes Resort Casino and The Horseshu Hotel and Casino in
Jackpot, Nevada (serving Idaho and the Pacific Northwest).