On April 4, 2007, the Ameristar Casinos Incorporated announced that they will be acquiring the Resorts East Chicago for about $675 million as their first venture in the Chicago Gambling Industry.
Ameristar announced that they are also planning to expand the size of their
gambling casino, doubling its present size. An analyst said that Ameristar’s planned expansion could cost around $200 million.
Ameristar said that they are expecting to finalize the deal with the Resorts International Holdings LLC, a company that is affiliated with Colony Capital LLC, by the fourth quarter of this year. They further stated that their expansion plans will add 4,000 slot machines, 120 casino table games, a parking area and upgraded non-gaming facilities.
The casino upgrade will be completed by the year 2010. Ameristar President and CEO, John Boushy, commented that they have moved to buy the Resorts East Chicago because it will help them to expand in Chicago. The Chicago gambling market is the third largest gambling market in the US, placing directly after Las Vegas and Atlantic City.
Joel H. Simkins, an analyst with the Prudential Equity Group LLC, which is based in New York, commented that his company is a little wary on the Chicago gambling market even with the casino upgrade of the Horsehoe Hammond Casino and the opening of the Pokagon Native American Casino in the third quarter of 2007.
28 June, 2007
