SEARCH NEWS:

 

Deal Announced for Sale of Four Queens in Downtown Las Vegas

The property, owned by Elsinore Corp. (OTC: ELSO), has a 690-room hotel and a 32,000-square-foot casino, with 1,075 slot machines and 26 table games. It's in the heart of the Freemont Street Experience, a somewhat successful effort to revitalize downtown.

PDS plans to pay $30 million for the Four Queens. On the financial statements of Elsinore, the value of the property is reported at $40 million. Elsinore, which has no other significant business, lost $919,000 in the quarter ending Sept. 30 but earned $278,000 for the first nine months of 1999.

PDS said no major changes in operations or personnel are anticipated.

"The Four Queens Hotel and Casino has long been a Las Vegas icon," said Johan Finley, chief executive officer of PDS. "We look forward to a long-lasting relationship with the loyal employees and customers of the Four Queens."

But there are numerous contingencies to the deal: negotiation of a final agreement, financing that PDS deems satisfactory and approval by regulators. PDS has never operated a casino, and will have to be licensed as an operator by Nevada.

Peter Cleary of PDS said it will take four to six months for the deal to close. He said the company is not considering other casino purchases now, but wants a casino division and expects to buy others in the future.

PDS began business in the 1980s in Minneapolis, Minnesota, as an equipment leasing firm. In the early 1990s, it started financing and leasing slot machines to casinos.

Its main business now is leasing slots. Cleary said PDS has $90-$100 million in outstanding leases.

The company also has a subsidiary, PDS Slot Source, that reconditions and sells slots. It also has the rights to a digital blackjack system that combines live dealers with video monitors for players. The cards are virtual, which greatly speeds the game, Cleary said.

PDS moved its headquarters from Minneapolis to Las Vegas in the late 1990s.

< Gaming News