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Shares of Gulf Coast casino operators gain

Posted by admin in Casino News

Shares of Gulf Coast casino operators got a boost Tuesday as worries about damage from Hurricane Gustav receded, although investors pared those gains later in the day after analysts said closures may put pressure on earnings estimates.The companies’ stocks also got an early boost from a sharp drop in oil prices, although those prices regained some ground later in the session.

KeyBanc Capital Markets analyst Dennis Forst said preliminary reports have indicated that Gustav did little physical damage to casinos in Louisiana and Mississippi.

He said even major hurricanes, like Hurricane Katrina, generally do not have a significant long-term impact on the fundamentals or valuations of gambling companies.

Oppenheimer & Co. analyst David Katz, however, said he expects the hurricane to have a negative impact on estimates for the current quarter.

Thomas Weisel Partners analyst Jake Fuller said he expects casino closures to put pressure on earnings estimates for Boyd Gaming Inc. and Pinnacle Entertainment Inc., in particular.

Here is a look at how casino operators affected by Hurricane Gustav fared on Tuesday:

Pinnacle Entertainment Inc., up 38 cents, or 3.4 percent, to $11.47.

Isle of Capri Casinos Inc., up 11 cents to $7.27.

Penn National Gaming, up 5 cents to $33.87.

Boyd Gaming Inc., up 21 cents to $12.40. Top of page

CNN Money

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Small South Texas town dreams big with a casino

Posted by admin in Casino News

GRANJENO, Texas (AP) — Fresh off his electoral victory in May, Mayor Vicente Garza Jr. has embarked on a quixotic project, betting against long odds that a casino could secure the future of this indebted town of 485 residents.

Founded in 1767, but not incorporated until 1993, Granjeno clings to a sharp curve in the road a mile from the Rio Grande. It has a single city employee and a beer joint is its only business.

But things are happening. The border fence that put Granjeno in the spotlight last year when initial plans had it running through yards and homes is taking shape instead just behind property lines on the south side of town. A new international bridge to Reynosa, Mexico, is under way to the west.

And Garza, at 24 years old, is the eldest of a new leadership triumvirate striving to pay off debts and make Granjeno self-sufficient.

“We’re surrounded; we have no economic development,” said Garza, a county corrections officer, who sports the high and tight haircut favored by military and law enforcement ranks and does not try to hide his enthusiasm for the casino idea.

“We’re really looking forward to it,” Garza said, adding, with no pun intended, “It’s like a gamble; it’s something out of the box.”

On a recent morning, Garza met in city hall with the consultants who began researching the idea after he threw it out in an impromptu brainstorming session on how the city might capitalize on the traffic generated by the new international bridge.

Antonio Fernandez III, of Mission-based South Texas Consulting, unfolded a newsprint-size page of the $37.7-million 2009 budget of the Comanche Nation in Oklahoma. Fernandez highlighted the long list of community improvement projects funded by the Indian casino, suggesting a similar jackpot could await Granjeno.

As Fernandez began to sketch a rough casino floorplan and talk of multiple restaurants and an auditorium, Garza asked if it would be possible to have a sliding floor that could be converted for football games. He also wants it to be “green” or environment friendly.

“Let’s get an architect,” Garza suggested.

While Garza is focused on his hometown, Fernandez envisions Granjeno’s “community charity casino” as only a pilot project for a broader goal of opening similar moneymakers in all of Texas’ economically distressed counties.

The only hitch is that the sort of gambling Fernandez and Garza ultimately envision with slots and poker tournaments is illegal in Texas.

Just last year, well-funded casino interests unsuccessfully pushed a bill that would have allowed 12 resort-style casinos in Texas and video slot machines at horse and dog tracks. Two Indian tribes are still fighting to reopen casinos the state shut down in 2002. And a bill sponsored by Rep. Ismael “Kino” Flores, whose district includes Granjeno, that would have allowed slots at racetracks and Indian reservations, died.

Garza signed a letter earlier this month requesting an opinion from Attorney General Greg Abbott, who has taken a narrow view of the state’s gambling laws previously, and hopes Flores will pass it on.

Flores said he has not met with Granjeno officials yet but hopes to get a better understanding of their proposal.

“If it’s something that they need, I’m going to help all I can,” Flores said. But knowing the state’s gambling laws and Abbott’s earlier opinions, Flores said the odds would be against them.

The casino isn’t the only thing on the mind of Garza, whose father was Granjeno’s first mayor. He is working on ways to pay off the city’s debt, build a long-awaited park and keep a fledging community watch program going until casino proceeds can one day fund a Granjeno Police Department.

Granjeno’s residents seem willing to give their ambitious new mayor the benefit of the doubt on the casino idea.

Garza said that while there are skeptics, he has not heard any outright opposition since the local newspaper reported the idea recently.

Taking his daily walk north out of town one recent afternoon, Manuel Olivares, who was born and raised in Granjeno, said the city was in dire need of help.

A share of the revenue generated by the new international bridge could still be years off and crime is up. He hopes the casino idea pans out.

“If it will help Granjeno, fine and dandy,” Olivares said before conceding with a grin, “I go to Vegas once or twice a year.”

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Victim of casino shooting identified

Posted by admin in Casino News

Police reveal few details of incident that took life of 24-year-old man, wounded woman

Steve Lillebuen, The Edmonton Journal

Published: Monday, September 01

Investigators are sifting through a mountain of information in their search for the killer of a 24-year-old Edmonton man outside the River Cree Casino, RCMP say.

Police identified Mohamed Ali Ibrahim on Sunday as the man found dead following gunfire on the Enoch reserve around 1:30 a.m. Saturday.

A 20-year-old woman who was at the casino that night is recovering in hospital from undisclosed injuries. She recently moved to Edmonton from Ontario, but police are not confirming she knew Ibrahim.

 A fight had erupted at the casino’s Touch Ultra Lounge late that evening. Before police arrived at the club just west of Edmonton, the fight had moved outside and Ibrahim was found dead lying face down near the casino’s main entrance.

Witnesses said he appeared to have been shot and suffering from a serious head wound. The medical examiner won’t confirm the cause of death until after an autopsy, which is scheduled for Tuesday.

Ibrahim has family in Toronto.

Const. Barb Roy of the Stony Plain RCMP said investigators are interviewing several witnesses and reviewing casino security camera footage.

But many details of the investigation are being kept away from the public eye.

Officers are witRating 2olding if they have any suspects, if a possible motive is known and if the victim was known to police.

Investigators won’t confirm if the victim knew anyone at the casino or if he was there by himself.

Whether possible links between the homicide and gang or drug activity are being investigated are not being disclosed at this time.

Officers from the Stony Plain RCMP and Edmonton’s major crimes unit are involved in the investigation.

The Edmonton Journal

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Casinos spared major damage from storm

Posted by admin in Casino News

Coast casinos’ move onshore after Hurricane Katrina spared them from serious damage during Hurricane Gustav.

Mississippi Gaming Commission Executive Director Larry Gregory is receiving reports from each of the 11 casinos and will make the decision to reopen when it is safe.

Hard Rock Casino in Biloxi got about two feet of water in the swimming pool and in the lobby, said General Manager Duncan McKenzie. “We had everything of value up,” and crews were already starting to clean up. “We feel the building held up extremely well,” compared with when Katrina devastated the hotel just days before the new casino opened.

The Hard Rock guitar sign that had been pictured on so many national newscasts after Katrina was left on through the night Sunday and into Monday when Gustav hit and the water began to rise. “It’s a symbol of resilience,” McKenzie said.

Silver Slipper Casino, the most western of the Mississippi Coast casinos and closest to Gustav’s landfall, made it through the storm well, said General Manager John Ferrucci. The road along the beach leading to the casino was flooded and there was water up to the front door of Silver Slipper, but the casino floor is two floors up and safe from any storm surge.

“We’ll have a better assessment tomorrow,” Bob Davidge, spokesman for Hollywood Casino Bay St. Louis, said Monday. The road into the casino should be open today and Davidge has had reports of only minor damage because the casino and hotel were rebuilt above the construction standards after Katrina.

The Weather Channel reported from the Island View Casino in Gulfport throughout Sunday night, so viewers across the country could see the floodwaters covering Jones Park and rising on parts of U.S. 90.

“It is a great relief to see that the Mississippi Gulf Coast seems to have fared well in Hurricane Gustav,” said Rick Carter, co-owner of Island View Casino Resort. “We have made such tremendous strides in moving forward and rebuilding our community since Hurricane Katrina struck three years ago, but Gustav served as a reminder that we must remain vigilant with our hurricane preparation plans and remember to take storm season seriously.

“The Island View property sustained minimal, superficial damage, mostly to the landscaping that faces the Gulf of Mexico. We are truly thankful that the resort is in good shape, our friends, family and team members are, to the best of our knowledge, safe and that we are able to now redirect our attention to reopening the hotel, restaurants and casino at the resort as soon as possible.”

The high water flooded U.S. 90 on Front Beach in Biloxi, by Hard Rock Casino, Beau Rivage Casino and the Isle of Capri. Boomtown Biloxi and IP Casino Resort also had some flooding. Keith Crosby, general manager at Palace Casino, said floodwaters and the curfew kept him from getting back to the casino to check on damage.

Elaine Stevens, public relations manager at IP Casino, said the new hurricane curtains were dropped Sunday before the casino closed. The water from Katrina brought debris into the lobby, and the curtains were designed to prevent that kind of damage.

Beau Rivage Casino also invested in technology to minimize storm damage and Mary Cracchiolo-Spain said the shutdown of the resort went very well and the casino will be ready to reopen when the word comes.

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