Las Vegas Company to Buy East Chicago Casino

Ameristar Casinos Inc., a Las Vegas based casino operator, has entered into a definitive agreement to purchase a riverboat casino located in East Chicago, Indiana. Ameristar has big plans for expanding the gambling venue, including making it a 4 story riverboat casino and doubling the number of slot machines.

Las Vegas based Ameristar said that it has entered into an agreement to acquire the property Resorts International Holdings. Subject to due diligence and regulatory approval, Ameristar will purchase the riverboat casino from Resorts International for $675 Million.

Ameristar hopes to have due diligence of the riverboat casino completed by April 22. Assuming that all goes well with due diligence, and there are no hang ups with the State Gaming Control Board, the company hopes to complete the casino acquisition some time during the fourth quarter of this year.

Immediately upon completion of the acquisition of the riverboat casino, Ameristar Casinos will begin a significant expansion of the gambling property. The most noticeable change will be plans to transform the riverboat casino into a four floor casino by 2010.

This will allow the company to double the amount of gambling opportunities on the riverboat casino, bumping the number of slots to 4,000 and table games to 120 tables. Ameristar also plans to renovate and upgrade the restaurants and entertainment venues at the casino complex, providing patrons with easier access to the riverboat casino's gaming floor.

"We will start the expansion promptly following the close of the property," said John Boushy, CEO and president of Ameristar in a press conference on Wednesday. "We expect completion in the third year of our ownership, sometime in 2010."

Acquiring the East Chicago riverboat casino will provide Ameristar with a foothold into the Chicagoland gambling market. This is a market that Ameristar executives describe as being highly desirable and underserved.