Political Illusions of the Cajun Mafia

Pinnacle reports that CEO Dan Lee resigned on November 7, 2009. A few months after former
CEO Dan Lee resigned, Pinnacle announced they decided to cancel the Sugarcane Bay project and
surrendered Louisiana’s last remaining gaming license (April 2010). The loss of the gaming license was
recorded as $11.5 million impairment cost and was removed from the company assets. The 2010 report
stated that 31% of the total Pinnacle company revenue is from L’Auberge Lake Charles (52% from
Louisiana).
In February 2011, Louisiana Gaming Control Board announced they “awarded” the last remaining
gaming license to Dan Lee (former Chairman and CEO of Pinnacle Entertainment) and his newly formed
privately-held company Creative Casinos. Dan Lee accepted the terms from the Port of Lake Charles for
the 234-acre lease and agreed to a $400 million contract for construction in order to build the titled Mojito
Pointe casino and resort.
Ameristar decided to purchase the rights of the last Louisiana gaming license from Dan Lee. The
cost of the acquisition was $32.5 million and assumption of the Port of Lake Charles 242-acre lease and
the $400 million maximum construction contract with W.G. Yates and Sons Construction Company.
$1.9 billion in debt would have contributing factor to Ameristar casino searching for a buyer for
approximately 5 years for the company. $1.9 billion in debt is also a contributing factor to the acts of
desperation to participate in questionable transfer of assets for proceeds.
Pinnacle decided to purchase Ameristar Casino for a deal worth approximately $2.8 Billion ($869
million in cash consideration and assuming $1.9 billion in debt). Upon completion of the sale on December
22, 2012, Pinnacle would operate five gaming properties in Louisiana. During 2013, Pinnacle recorded
$864.1 million of goodwill related to our acquisitions of Ameristar and Pinnacle Retama Partners, LLC
(page 82, Pinnacle 2014 Annual Financial Report). Goodwill consists of the excess of the acquisition cost
over the fair value of the net assets acquired in business combinations. Goodwill refers and indicates that
the carrying value may not be recoverable or the over payment of assets. Pinnacle accounting for 99.4%
of the cash considerations of the sale as “goodwill” speaks a bit on to “legitimacy” of the transaction.
Ameristar then contracted and retained Bergman, Walls & Associates as architect, Meyer & Associates as
the civil engineer and W.G. Yates & Sons as the general contractor.
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