Pinnacle increases development plans for Baton Rouge

Pinnacle Entertainment scaled back development plans in Atlantic City and Lake Charles, La., but the company is going all out in the Louisiana capital of Baton Rouge.
 
The Las Vegas-based regional casino operator announced late Monday updated plans for a riverboat gaming development in Baton Rouge, raising the construction budget by more than $100 million.
 
The planned property, which could open by December 2011, will have a 200-room hotel tower, a casino with 1,500 slot machines and 51 table games, and other amenities, including a multi-purpose event center, outdoor festival grounds, and an 800-space covered parking garage.
 
Pinnacle said it would spend $357 million on the development, up from the original budget of $250 million.
 
Pinnacle executives said in a statement other Baton Rouge-area properties are older, which has sent customers to casinos in other parts of Louisiana, such as New Orleans.
 
“Market research indicates that a very significant portion of the adult population in the Baton Rouge region bypasses existing gaming options and travels two to three hours to other gaming markets,” Pinnacle Chief Executive Officer Anthony Sanfilippo said. “The expanded scope of our project will address this customer demand with a high-quality entertainment option that will be significantly closer to potential guests.”
 
Wall Street was quick to embrace the plans.
 
“The expanded scope of the project and larger hotel facility could make Baton Rouge more of a destination facility,” said JP Morgan gaming Joe Greff.
 
Added Jefferies & Co. gaming analyst David Katz, “We believe management is taking a prudent approach to capital spending given the considerable opportunities to improve its current operations.”