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Casino Plan With Penguins is Isle of Capri's Biggest Bet

"Isle of Capri Casinos Inc. operates the most riverboat and dockside casinos in the world, but it has never undertaken a project as ambitious as the one it is proposing in Pittsburgh.

"The $250 million casino would be the 13-year-old gambling operator's largest, not only in number of slot machines -- 3,000 to start -- but also in projected revenue and earnings. But making the project even more aggressive is Isle of Capri's pledge to provide $290 million for a new arena for the Pittsburgh Penguins, its partner in bidding for the lone state license available for a casino within the city of Pittsburgh.

"...The company believes it is a gamble worth taking.

"Mr. Hinkley estimated gross revenues at more than $400 million a year and said that, even after adding in construction costs and the 54 percent state tax on slots revenue, the Pittsburgh casino could still turn a profit. "Their financing is very solid," said. "They are a major player. We made sure of that."

"...Penguins President Ken Sawyer said the Penguins had discussions with about a dozen casino operators before deciding on Isle of Capri. The company became its operator of choice because it was one of the largest players in the industry, had great success at winning licenses, and offered to build the city a new arena with a commitment on the financing...

"...All of Isle of Capri's casinos have a Caribbean theme. Pittsburgh's proposed casino would retain that trademark flavor with some upgrades..."

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