Political Illusions of the Cajun Mafia

The purchase of a $32.5-million-dollar investment
and quick sale in a transaction for almost $3 billion in value
itself requires additional review due to it might be “too good
to be true.” There is almost a level of humor when a debt
ridden gaming company 41Tcoincidentally38T41T goes “all-in” and it
pays 100 times on the backs of the shareholders of a public
traded company. The seller in this transaction is more of a
private intermediary that questionably is the former CEO
that was “awarded” the license at the cost of a $50,000
application fee. Pinnacle 2011 reported revenues and debts
were $1.14 billion and $1.1 billion while Ameristar reported
$1.2 billion and $1.9 billion, respectively. Pinnacle said that
Ameristar invested $144.5 million into the Lake Charles
project over the 12 months that ended March 31, 2013. Ameristar previously disclosed that 2013 second
quarter capital spending of $84 million related to Lake Charles design and construction costs.
2013 Ameristar reported it has spent $213.9 million of the budgeted $580 million.
In July
Federal Trade Commission “FTC” began to investigate the transaction and released a complaint
that the Pinnacle acquisition of Ameristar would reduce competition, increase prices and lower quality for
casino customers in the Lake Charles area. To eliminate federal anti-trust issues, the FTC required that
Pinnacle sell the Lake Charles casino development and Luminere
Place Casino in St. Louis casino.
The FTC required Pinnacle to sell the Lake Charles casino
development to an approved buyer within six months or would be
required to sell L’Auberge Casino instead.
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