Ameristar buying casino project in Lake Charles

This is the last remaining riverboat gaming license available in Louisiana under current law.

The acquisition is subject to the approval by the Louisiana Gaming Control Board on March 15, of an extension of the deadline for Creative to commence construction of the property to July 20, 2012 and of certain design and scope changes that Ameristar believes will enhance the competitiveness of the property.

The purchase price payable upon closing of the acquisition is us$ 32.5 million (inclusive of a us$ 1 million deposit payable following approval of the construction extension). Closing of the purchase is subject to a number of customary conditions, including regulatory approval and certain third-party consents.

The resort will be developed on a 242-acre site under a lease from the Lake Charles Harbor & Terminal District adjacent to the existing L'Auberge du Lac Casino Resort. Concept drawings for the project as designed by Creative are substantially complete, excluding the interior fit-out, and Creative has entered into a guaranteed maximum price construction contract for the project.

As proposed by Ameristar, the resort will include a casino with approximately 1,600 slot machines and 60 table games, a hotel with at least 700 guest rooms (including 70 suites), a variety of food and beverage outlets, an 18-hole golf course, a swimming pool and spa and other resort amenities, and at least 3,000 parking spaces, 1,000 or more of which will be in a garage. Ameristar's plans represent a significant expansion of Creative's design, which contemplated a 400-room hotel (including 30 suites) and a garage with 400 parking spaces.

 The existing license conditions require Creative to invest at least us$ 400 million in the casino project, including the development of a showroom facility that Ameristar is proposing to eliminate. In seeking the approval of the Louisiana Gaming Control Board, Ameristar is proposing an increase in the minimum investment commitment to $500 million. Ameristar expects to open the resort in mid-2014.

"We believe the development of this project, which will cater to patrons from the large and growing Houston metropolitan area as well as other southeastern Texas and southwestern Louisiana communities, represents an excellent opportunity for Ameristar's growth and diversification. By bringing our best-in-class approach to casino development and the guest experience to one of the country's largest but most under-served gaming markets, we believe we can create incremental value for our shareholders as well as economic development and jobs for the Lake Charles community," said Gordon Kanofsky, Ameristar's CEO.

"We look forward to sharing our vision for our Lake Charles resort with the Louisiana Gaming Control Board as we seek its approval to allow us to move forward with this project."