RENO, Nev. (AP) - The Boomtown Hotel and Casino and adjacent
property along U.S. Interstate 80 just west of Reno have been sold
for an estimated $22.2 million, officials for the Las Vegas-based
Pinnacle Entertainment Inc. announced on Thursday.
Pinnacle Entertainment officials said they have entered a
definitive agreement to sell the casino-resort to M1 Gaming Reno
LLC and SJP Reno Property LLC. They said they also granted the
buyers a one-year option to buy 100 percent of the company's
membership interest in the current gaming licensee, PNK (Reno) LLC, for $3.8 million.
Pinnacle Entertainment said when it announced two weeks ago it
was negotiating to sell the property that there would be no
immediate impact on Boomtown's 376 employees. The resort has 318 hotel rooms and a 203-space recreational vehicle park.
"We believe Boomtown Reno will be well served by its new
ownership team and are confident the same commitment to the Reno
community and Boomtown Reno's guests and employees will continue in the future under M1 Gaming's leadership," said Anthony Sanfilippo, president and chief executive officer of Pinnacle Entertainment.
Dean DiLullo, president of M1Gaming, said his company is excited
about the acquisition, which is subject to regulatory approval and
is expected to close by mid-2012.
"We are not only investing in a great casino but also a part of
Reno's history. We look forward to working with the community to
further develop Boomtown to its fullest potential," he said.
Pinnacle Entertainment, Inc. owns and operates seven casinos in
Louisiana, Missouri, and Indiana, and a racetrack in Ohio.
Macquarie Securities gaming analyst Chad Beynon told the Las
Vegas Review-Journal the sale price was "attractive."
"We had thought anything above $20 million would have been a
good deal," he said.