With a deadpan comment from Bill Yung Sr., president of Columbia Sussex Corp.: "That's our business, buying hotels and casinos," after agreeing to pay US$45 million for Caesar's Tahoe casino in Lake Tahoe, Nev., and US$24 million for Bally's Casino in New Orleans, it is highly likely that the Fort Mitchell, Kentucky company will sell a number of hotels this year. Last October the hoteliers, who already own six casinos at the rate of three a piece in Nevada and Mississippi, paid US$57 million for a riverboat casino in St. Louis, outbidding gaming outfit Pinnacle Entertainment in the process.

Columbia Sussex, which operates 67 hotels with more than 20,000 rooms, has three of its four largest hotels attached to casinos. The River Palms in Laughlin, Nevada has 1,003 rooms, and its third largest, the Las Vegas Westin, has 826 rooms. Asked about the recent surge in casino buying, after Houston restaurant company Landry's Restaurant announced the acquisition of the Golden Nugget in Downtown Las Vegas, Yung commented that with cheap money available at 4 and 5 per cent rates, borrowing was more attractive now, as compared to rates of 10% in the past.

Taking on a company like Pinnacle at the St Louis’ President Casino at the Admiral auction was not the end of the affair in that jurisdiction. Las Vegas company Pinnacle still harbours aspirations to operate in that market, which could come in the form of a floating casino in a man-made basin about 1,000 feet from the Mississippi River. In that location, inland from the Admiral’s site, the Missouri Gaming Commission plans to build a US$200 million casino.

As the casino business activity in America continues with a flurry of acquisitions, as well as new projects such as the latest Missouri Gaming Commission’s proposals, companies vie for industry positioning in some jurisdictions, and Columbia Sussex has already filed a lawsuit against Pinnacle to stop them bidding for the proposed location. Additionally in Kentucky, Yung is backing efforts to get legislation to approve casinos, which the racing industry opposes. In a bold comment that typifies their mood, Yung said: “Racetracks want a monopoly and nobody's going to give them that." Touche! (E-02.10.05)

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