Ameristar Casinos completes due diligence

23 April 2007

LAS VEGAS, Nevada – (PRESS RELEASE) -- Ameristar Casinos, Inc. (Nasdaq: ASCA) announced today that it has completed its due diligence relating to its acquisition of Resorts East Chicago. On April 3, 2007, Ameristar entered into a definitive agreement to acquire Resorts East Chicago for $675 million, subject to the satisfactory completion of due diligence and customary closing conditions. The due diligence period ended on April 22, 2007.

John Boushy, CEO and President of Ameristar, said, "Now that we have completed our due diligence, we're even more enthusiastic about moving forward with our plan to acquire Resorts East Chicago. With this acquisition, we will add a well-positioned, cash-flow producing property, which we can enhance, expand and substantially grow. This deal absolutely hits the bulls-eye of our acquisition criteria, and this property will be an excellent addition to the Ameristar family, significantly contributing to our ability to achieve our goal of doubling our EBITDA over the next three to five years. We look forward to working with the East Chicago management team as we plan for the successful integration of this property."

Resorts East Chicago is located in East Chicago, Indiana, an approximately 25-mile drive from downtown Chicago, Illinois, and is easily accessible from the entire Chicago metropolitan area. The Chicagoland market is the third largest commercial gaming market in the United States, generating more than $2.5 billion in gaming revenues annually and serving approximately 6.4 million adults. This market is significantly underserved compared with other domestic regional gaming markets, based on the number of adults per gaming position.

Mr. Boushy noted, "The Chicagoland market has tremendous growth potential. Resorts East Chicago allows us to enter this extremely attractive market, while diversifying our cash flow, enhancing our distribution channels and providing a platform from which we can substantially grow an already well- positioned property. No matter how you look at it, this acquisition strengthens the Ameristar brand, and we expect it will enhance our cash flow and create additional value for our shareholders."

Resorts East Chicago currently features a 53,000-square-foot casino and premier 291-room hotel. The casino offers four levels of gaming, featuring approximately 1,900 slot machines, 60 table games and 16 poker tables. The property's streetscape features six restaurants, players' club facilities and meeting rooms. The hotel and casino are served by 3,000 parking spaces. Located in Indiana, Resorts East Chicago benefits from a historically stable regulatory environment which, unlike Illinois, has no restrictions on the number of gaming positions at each casino.

Ameristar intends to make a number of major capital improvements to Resorts East Chicago in order to leverage the opportunities within the dynamic Chicagoland market and maximize its return on investment. Though still in the early planning stages, Ameristar expects to significantly expand the gaming facilities, improve access to the casino, build additional structured parking and upgrade the non-gaming amenities, all with the objective of creating best- in-class offerings and experiences consistent with Ameristar's high standards.

The acquisition is expected to be slightly accretive to earnings by the second year after closing, following a slightly dilutive effect in year one. Ameristar anticipates that the property's expansion and renovation will be completed during the third year following closing. Based on this timeline, Ameristar expects to more than double the property's EBITDA within three to four years after the acquisition closes.

The acquisition, which is still subject to receipt of approvals from various gaming regulatory authorities and antitrust pre-clearance, is expected to close in the fourth quarter of 2007.