2007 Annual Report - Ameristar Casinos, Inc.

The Ameristar Vicksburg site has experienced ongoing geologic instability that requires periodic maintenanceand improvements. Although we have reinforced the cofferdam basin in which the vessel is dry-docked on aconcrete foundation, further reinforcements may be necessary. We are also monitoring the site to evaluate whatfurther steps may be necessary to stabilize the site to permit operations to continue. A site failure would requireAmeristar Vicksburg to limit or cease operations.The loss of a riverboat or barge facility from service for any period of time likely would adversely affect ouroperating results and borrowing capacity under our long-term debt facilities in an amount that we are unable toreasonably estimate. It could also result in the occurrence of an event of a default under our credit agreement.We could face severe penalties and material remediation costs if we fail to comply with applicableenvironmental regulations.As is the case with any owner or operator of real property, we are subject to a variety of federal, state and localgovernmental regulations relating to the use, storage, discharge, emission and disposal of hazardous materials.Failure to comply with environmental laws could result in the imposition of severe penalties or restrictions onoperations by government agencies or courts, which could adversely affect our operations. We do not haveenvironmental liability insurance to cover most such events, and the environmental liability insurance coverage wemaintain to cover certain events includes significant limitations and exclusions. In addition, if we discover anysignificant environmental contamination affecting any of our properties, we could face material remediation costs oradditional development costs for future expansion activities.Item 1B. Unresolved Staff CommentsNone.Item 2. PropertiesAmeristar St. Charles. Ameristar St. Charles is located on approximately 58 acres that we own along the westbank of the Missouri River immediately north of Interstate 70. Ameristar St. Charles owns various other realproperty in the region, including undeveloped land held for possible future wetlands remediation.Ameristar Kansas City. Ameristar Kansas City is located on approximately 183 acres of property that we own.The site is east of and adjacent to Interstate 435 along the north bank of the Missouri River.Ameristar Council Bluffs. Ameristar Council Bluffs is located on an approximately 69-acre site along the bank ofthe Missouri River. We own approximately 46 acres of this site and have rights to use the remaining portion of thesite that is owned by the State of Iowa for a term expiring in 2045. We lease approximately one acre of theAmeristar Council Bluffs site to affiliates of Kinseth Hospitality Corporation for the operation of a 188-room limitedservice Holiday Inn Suites Hotel and a 96-room Hampton Inn Hotel.Resorts East Chicago. Resorts East Chicago is located on a 28-acre site in East Chicago, Indiana, approximately25 miles from downtown Chicago, Illinois. We lease the site from the City of East Chicago under a ground leasethat expires (after giving effect to our renewal options) in 2086. We own the casino vessel, hotel and otherimprovements on the site.Ameristar Vicksburg. Ameristar Vicksburg is located on two parcels, totaling approximately 50 acres, that weown in Vicksburg, Mississippi on either side of Washington Street near Interstate 20. We own or lease various otherproperties in the vicinity that are not part of our facility, including a service station and convenience store and arecreational vehicle park that we operate.Ameristar Black Hawk. Ameristar Black Hawk is located on a site of approximately 5.7 acres that we own on thenorth side of Colorado Highway 119 in Black Hawk, Colorado. We own or lease various other properties in thevicinity that are not part of our facility, including approximately 100 acres of largely hillside land across Richman35