2007 Annual Report - Ameristar Casinos, Inc.

Ameristar Black Hawk, which reported excellent growth and increased market sharein 2007, is the site of another ambitious expansion plan: a $235 million-$240 million,33-story hotel and spa. Our new 536-room hotel, located in the Rocky Mountains 40miles west of Denver, will provide guests with spectacular views since it will be the talleststructure between Denver and Salt Lake City. The new luxury hotel will boast a fullarray of amenities including deluxe spa suites with in-room whirlpool baths and rockfireplaces. During 2007, we overcame various site issues and completed the rock excavationand removal necessary to begin construction of the hotel, which is scheduled for completionin the second half of 2009. Our capital investment in Black Hawk is driven by the favorabledemographics of the Denver market and the opportunity to grow the market by offeringa local resort destination alternative to the Las Vegas casinos.ACQUISITIONS/ENTERING NEW MARKETS – EAST CHICAGOWith the acquisition of Resorts East Chicago in September 2007, Ameristar establisheda presence in the nation’s third-largest commercial gaming market. East Chicago,Indiana (part of the Chicagoland market), generates more than $2.5 billion in gamingrevenues annually and serves approximately 6.4 million adults. We continue to view theChicagoland market as underserved and see our property as an important addition tothe Ameristar portfolio.Immediately following the acquisition, we moved swiftly to implement our integration plan,which addressed people, culture and core procedural systems including informationtechnology and marketing. These aspects of East Chicago’s integration into Ameristarwent smoothly.To maximize the property’s growth potential in this important market, Ameristar also begana $25 million-$30 million improvement plan to upgrade the casino floor with newtechnology and an improved mix and layout of games and to introduce Ameristar’sbest-in-class dining venues. Under the leadership of experienced Ameristar management,along with retained management at East Chicago, the property has adapted andadopted the operational and marketing strategies that have proven to be successfulat all Ameristar properties. Early 2008 market data indicate that we are beginning to gaintraction, and we expect to re-brand the property to Ameristar before the end of this year’s thirdquarter. In addition, we continue to evaluate our long-term expansion plans at this property.LOOKING FORWARD – 2008 OUTLOOKA key driver of Ameristar’s success has been our reputation for providing superiorguest experiences. We believe this ongoing commitment will continue to distinguishour properties and ensure our leading positions in all locations.