CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!

Gaming News

 

Board Concerned About Sales

17 July 2003

NEW ORLEANS -- An attempt by Bally's Casino to get major lease concessions from the Orleans Levee Board may be scuttled by reports that the casino could be sold.

"This was a tough deal to consider before, and it may be an impossible one to consider now," Board President Jim Huey said Wednesday.

Bally's wants a restructured agreement that would cost the flood control agency nearly $900,000 a year in future rental payments. The riverboat gambling hall leases space at the board's South Shore Harbor marina on Lake Pontchartrain.

The board pointed to reports that Bally's parent, Park Place Entertainment Corp. of Las Vegas, plans to invest heavily in the expansion of Caesars Palace in Las Vegas. To pay for the improvements, and perhaps to pay down its debt as well, the company may raise cash by selling off assets, analysts said this week.

Among properties that may be sold are the New Orleans casino.

Roscoe Greene, Bally's general manager, told the board Wednesday that he was not aware of any pending sale of the New Orleans boat.

But board members said they were concerned that Park Place might use a renegotiated lease to bolster the casino's value in advance of putting it on the market.

In the opinion of the board's legal advisers, such a scenario could be interpreted as a violation of state law prohibiting a government agency from making an illegal donation to a private company.

< Gaming News